Table of Contents

Table of Contents ...................................................................................................................................... 7 Introduction ................................................................................................................................................ 8 What is Motivation? .................................................................................................................................. 8 Importance of Motivation: ........................................................................................................................ 9 Theories of Motivation............................................................................................................................ 12 Types of Motivation ................................................................................................................................ 15 Techniques of Motivation ....................................................................................................................... 18 Simple Strategies to Motivate Workforce ............................................................................................. 20 Case Study Boston Consulting Group ................................................................................................ 22 Other Case Studies Google .................................................................................................................. 33 Other Case Studies Toyota .................................................................................................................. 34 Other Case Studies Microsoft.............................................................................................................. 35 Bibliography ............................................................................................................................................. 37

Introduction

The efficiency of a person depends on two factors, firstly, the level of ability to do a certain work, secondly, the willingness to do the work. So for as the first factor is concerned it can be acquired by education and training, but the second factor can be created by motivation. A person may have several needs and desires. It is only strongly felt needs which becomes motives. Thus motives are a product of needs and desires motives are many and keep on changing with time motives are invisible and directed towards certain goals.

Motivation means that process which creates on inspiration in a person to motivation is derived from the word motive which means the latest power in a person which impels him to do a work. Motivation is the process of steering a persons inner drives and actions towards certain goals and committing his energies to achieve these goals. It involve a chain reaction starting with felt needs, resulting in motives which give rise to tension which census action towards goals. It is the process of stimulating people to strive willingly towards the achievement of organizational goals motivation may be defined as the work a manager performs an order to Induce Subordinates to act on the desired manner by satisfying their needs and desires. Thus motivations is concerned with how behaviour gets started, is energized, sustained and directed.

What is Motivation?
The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force .It is the major task of every manager to motivate his subordinate or to 8

create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term. Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively. In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities. Definitions: According to Edwin B Flippo, Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward. According to Michael J. Jacius ; Motivation is the act of stimulating some one or oneself to get a desired course of action or to push the right button to get a desired reaction. According to Dalton E. Mcfarland, "The concept of motivation is mainly psychological. It related to those forces are many and keep on changing with time motives are invisible and directed towards certain goals.

Importance of Motivation:
Motivation is one of the most important factors determining organizational efficiency. All organizational facilities will go to waste in absence of motivated people to utilize these facilities effectively. Every superior in the organization must motivate its subordinates for the right types of behavior. The performance of human beings in the organization is dependent on the ability in the motivation. Rensis Likert called motivation as" the cost of the management". Motivation is an effective instrument in the hands of management in inspiring the workforce. Motivation increases the willingness of the workers to work, thus increasing efficiency and effectiveness of the organization. 9

Best utilization of resources: - Motivation ensures best and efficient utilization of all types of resources. Utilization of resources is possible to their fullest extent if the man is induced to contribute their efforts towards attaining organizational goals. Thus, people should be motivated to carry out the plans, policies and programmes laid down by the organization.

Will to Contribute: - there is a difference between "Capacity to work" and "willingness to work". One can be physically and mentally fit to work but he may not be willing to work. Motivation results in feeling of involvement to present his better performance. Thus, motivation bridges the gap between capacity to work and willingness to work.

Reduction in Labor Problems: - all the members try to concentrate their efforts to achieve the objectives of the organization and carry out plans in accordance with the policies and programmes laid down by the organization if the management introduced motivational plans. It reduces labor problems like labor turnover, absenteeism, indiscipline, grievances, etc. because their real wages increase by the motivational plans.

Sizeable increase in production and productivity: - when motivated properly, people try to put efforts produce more, thus increasing their efficiency and as a result of this general production and productivity of the organization increases. They (motivated employees) use the methods, system and technology effectively in the best interest of the organization.

Basis of Cooperation: - In a zeal to produce more the member's work 'an s a team to pull the weight effectively, to get their loyalty to the group and the organization, to carry out properly the activities allocated and generally to play an efficient part in achieving the purpose which the organization has undertaken'. Thus, motivation is a basis of cooperation to get, the best result out of the efforts of the human beings on the job.

Improvement upon skill and knowledge:- all the members will try to be efficient as possible and will try it improve upon the skill and knowledge to the progress of the organization which, in turn will provide the promised and more, ultimately enabling them to satisfy their needs - personal and social both.

Acceptance of organizational change: - change is the law of nature. Due to several changes in the society, changes in technology, value system, etc. organization has to incorporate these changes to cope with the requirement of the time. If people are effectively motivated, they gladly accept, introduce and implement these changes without reserving any resistance to change and negative attitude, thus keeping 10

the organization on the right track of progress.

Better Image: - a firm that provides opportunities for the advancement of its people has a better image in the minds of the public as a good employer. This, image helps in attracting qualified personnel and thus simplifies the staffing function. This will also improve employee satisfaction and reduce industrial stifle.In a nutshell, to achieve the organizational and individual goals in an economical and efficient manner, motivatiis an important tool in the hands of management to direct the behavior of subordinates in the desired and appropriate direction and thus minimize the wastage of human and other resources.

Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated.

The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise.

1) High Level of Performance. 2) Low Employee Turnover and Absenteeism. 3) Easy Acceptance of organizational changes. 4) Good human relations. 5) Good image of organization. 6) Increase in Morale. 7) Proper use of Human Resource Possible. 8) Helpful in Achieving Goals. 9) Builds Good relations among employees. 10) Easier Selection. 11) Facilities Change. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity. The rates of labors turnover and absenteeism among the workers will be low.

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There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease.The number of complaints and grievances will come down. Accident will also be low.There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.

Theories of Motivation
Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). Six major approaches that have led to our understanding of motivation are Mcclellands Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation.

McClellands Achievement Need Theory

According to McClellands there are three types of needs1) Need for Achievement This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement.

2) Need for Power It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style.

3) Need for affiliation It is the related to social needs and creates friendship. This results in formation of informal groups or social circle.

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Behavioral Modification Theory;

According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives. More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior.

Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the Bible of Motivation. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific problems in personnel administration and industrial relations. The crux of Maslows theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge.

Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators.

Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.

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Physiological or Body Needs: - The individual move up the ladder responding first to the physiological
needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job.

Safety: - The next in order of needs is safety needs, the need to be free from danger, either from other
people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements.

Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive group
and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition, respect and
prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem 14

e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals.

Self realization or Actualization needs: - This upper level need is one which when satisfied provide
insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.

Types of Motivation
Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant.

Extrinsic motivation comes into play when a student is compelled to do something or act a certain way because of factors external to him or her (like money or good grades) Incentives: An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.

Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If one need is satisfied, the other need need arises. In order to motivate the employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those which are not associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-actualization and responsibility.

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Monetary Incentives
Wages and Salaries Bonus Medical Reimbursement Insurance Housing Facility

Non- Monetary Incentives

Competition Group Recognition Job Security Praise Knowledge Raisng

Wages and Salaries. Often paid every week, sometimes in cash or sometimes into a bank account. It is a common way of remuneration for manual workers those who work in factories and warehouse. It can be calculated in two ways: Piece Rate: this is where the workers are paid depending on the quantity of products made. The more they make the more they get paid. This system of wages is followed where the output can be counted. Time Rate: This payment by the hour. The longer you work the more you get paid. This system of wages is followed where the output cannot be measured. Bonus Bonuses motivate employees to raise their performance to meet business goals. You might want your employees to lower production costs, for example, or eliminate waste in the materials they use. You might give cash or non-cash bonuses as incentives. Employees earn rewards for special achievements, improving productivity and raising profits. Bonuses can serve as an important tool for small businesses, which have smaller staffs and a smaller reservoir of talent than larger firms, helping ensure employee loyalty and reducing turnover. Non-monetary incentives- Besides the monetary incentives, there are certain non-financial incentives which can satisfy the ego and self- actualization needs of employees. The incentives which cannot be measured in terms of money are under the category of Non- monetary incentives. Whenever a manager has to satisfy the psychological needs of the subordinates, he makes use of non-financial incentives. Non- financial incentives can be of the following types:16

Security of service- Job security is an incentive which provides great motivation to employees. If his job is secured, he will put maximum efforts to achieve the objectives of the enterprise. This also helps since he is very far off from mental tension and he can give his best to the enterprise. Praise or recognition- The praise or recognition is another non- financial incentive which satisfies the ego needs of the employees. Sometimes praise becomes more effective than any other incentive. The employees will respond more to praise and try to give the best of their abilities to a concern. Suggestion scheme- The organization should look forward to taking suggestions and inviting suggestion schemes from the subordinates. This inculcates a spirit of participation in the employees. This can be done by publishing various articles written by employees to improve the work environment which can be published in various magazines of the company. This also is helpful to motivate the employees to feel important and they can also be in search for innovative methods which can be applied for better work methods. This ultimately helps in growing a concern and adapting new methods of operations. Job enrichment- Job enrichment is another non- monetary incentive in which the job of a worker can be enriched. This can be done by increasing his responsibilities, giving him an important designation, increasing the content and nature of the work. This way efficient worker can get challenging jobs in which they can prove their worth. This also helps in the greatest motivation of the efficient employees. Promotion opportunities- Promotion is an effective tool to increase the spirit to work in a concern. If the employees are provided opportunities for the advancement and growth, they feel satisfied and contented and they become more committed to the organization. Motivation is the key to performance improvement There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed.Performance is considered to be a function of ability and motivation, thus:

Job performance = f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an 17

uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation. 1) Positive reinforcement / high expectations 2) Effective discipline and punishment 3) Treating people fairly 4) Satisfying employees needs 5) Setting work related goals 6) Restructuring jobs 7) Base rewards on job performance Essentially, there is a gap between an individuals actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap

Techniques of Motivation
Financial IncentivesIncentive is an act or promise for greater action. It is also called as a stimulus to greater action. Incentives are something which are given in addition to wagers. It means additional remuneration or benefit to an employee in recognition of achievement or better work. Incentives provide a spur or zeal in the employees for better performance. It is a natural thing that nobody acts without a purpose behind. Therefore, a hope for a reward is a powerful incentive to motivate employees. Besides monetary incentive, there are some other stimuli which can drive a person to better. This will include job satisfaction, job security, job promotion, and pride for accomplishment. Therefore, incentives really can sometimes work to accomplish the goals of a concern. The need of incentives can be many: To increase productivity, To drive or arouse a stimulus work, To enhance commitment in work performance, To psychologically satisfy a person which leads to job satisfaction, To shape the behavior or outlook of subordinate towards work, To inculcate zeal and enthusiasm towards work, 18

To get the maximum of their capabilities so that they are exploited and utilized maximally.

Job enlargement: Job enlargement (sometimes also referred to as horizontal loading) involves the addition of extra, similar, tasks to a job.In job enlargement, the job itself remains essentially unchanged. However, by widening the range of tasks that need to be performed, hopefully the employee will experience less repetition and monotony that are common on production lines which rely upon the division of labour.With job enlargement, the employee rarely needs to acquire new skills to carry out the additional task, and the motivational benefits of job enrichment are not usually experienced.One important negative aspect is that job enlargement is sometimes viewed by employees as a requirement to carry out more work for the same amount of pay.

Job enrichment-

Job enrichment is connected to the concept of job enlargement.Job enrichment is the process of "improving work processes and environments so they are more satisfying for employees".Many jobs are monotonous and unrewarding - particularly in the primary and secondary production industries. Workers can feel dissatisfied in their position due to a lack of a challenge, repetitive procedures, or an overcontrolled authority structure.Job enrichment tries to eliminate these problems, and bring better performance to the workplace.

Job rotation: It refers to shifting an employee from one job to another. Such job rotation doesnt mean hanging of their job but only the employees are rotated. By this it helps to develop the competency in several job which helps in development of employees.Why is Job Rotation Important? Job rotation is seen as a possible solution to two significant challenges faced by business: (1) Skills shortages and skills gaps (2) Employee motivation Skills shortages occur when there is a lack of skilled individuals in the workforce.Skills gaps occur when there is a lack of skills in a companys existing workforce which may still be found in the labour force as a whole. According to the Treasury and DfES, both skills shortages and gaps are major problems acting as major barriers to economic growth and the reduction in long-term unemployment in the UK.

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Participation : Participation refers to involvement of employee in planning and decision making .it helps the employees feel that they are an asset of the organization which helps in developing ideas to solve the problems.

Delegation of authority: Delegation of authority is concerned with the granting of authority to the subordinates which helps in developing a feeling of dedication to work in an organization because it provides the employees high morale to perform any task Quality of work life: It is the relationship between employees and the total working environment of organization. It integrates employee needs and well being with improves productivity, higher job satisfaction and great employee involvement. it ensures higher level of satisfaction.

Management by objectives: It is used as a motivation and technique for self control of performance. By this technique superior and subordinates set goals and each individual subordinates responsibilities clearly defined which help to explore the sill and use in the organization effectively

Behavior modification: The work in desired behavior in order to modify behavior he last technique of motivation is behavior modification. It develops positive motivation to the workers to do.

Simple Strategies to Motivate Workforce

The five ways are as follow:

1) Establish a Clear Career Path Every employee has a dream. That may include a beautiful house, a nice car and a great career. For an employee to stay motivated, he has to be educated on the potential for their career path, of the steps that must be taken to achieve it, of the responsibilities that must be shouldered to go up the career ladder and put get into a better compensation package. With this thought, an employee will be better motivated throughout his stay with the Company.

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2) Mentoring Mentoring is both a direct and indirect process. A direct process would be to explain the task, of the functions and ways to go about performing his work smoothly. An indirect approach would be about setting a good example, of being a role model that everyone can look up to. In other words, to perform functions necessary in establishing oneself as a true leader of the company. This way, employees could be motivated to follow in the leaders footsteps.

3) Feedback Every employee wants to feel that their boss is accessible for them. They want their leader to be around to help them with their problems. For practical reasons, its quite hard for any executive to be around all the time. The next best solution is to have a feedback system. This feedback system could be in the form of suggestion boxes or electronic mailbox; it could also take the form of open-door management or simply management by walking-around, and asking how can I help you do for job better.

4) Recognition Recognition can go a long way. Every individual wants to be recognized for their efforts and this will help them in staying motivated. This recognition may come in the form of a pat in the back, a note or simply an e-mail. If the achievement is simply too big for just a token, a simple rite or award may also be considered.

5) Fun Environment Everyone wants to work in a fun environment. But what does fun environment entail? It covers two things: the essentials and the excess. The essentials basically cover comfortable desks and chairs, appropriate size of the work areas and availability of supplies and storage cabinets. The excess on the other hand, covers gimmicks like wearing of jeans or casuals on Fridays, pizza lunches or simply just a token like a special parking space for one who drives the hardest.

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Case Study Boston Consulting Group

Company Introduction: Initially started under the wings of a Boston area bank under the leadership of Bruce Henderson, BCG spun off and continued operations as an individual entity in 1963. Currently BCG stands strong with annual revenues of $ 3.55 billion dollars and with an employee strength of 5,600 consultants. This highly creative and dynamic firm, despite its small size, is considered as one of the big three consulting firms in the ranks of McKinsey & Co. and Bain& Company. BCG is widely recognized for its supportive atmosphere, its creative approach to problem solving and a heavy focus on strategy and operations work. Despite its provincial name, BCG has a global presence as can be seen from Exhibit 1, with majority of its revenues coming from its international operations. BCG does not specialize in any specific industry type, but handles projects from a multitude of sectors including financial services, automobiles, healthcare, NGOs and technology. Interestingly, a majority of its projects undertaken are done so keeping its focus on the treetop perspective in mind. BCG does not involve itself with implementation work unless it designs the strategy itself. An insider confirms Were not a firm youd hire to implement an already existing strategy; we dont take on implementation work that we didnt come up with During its onset, BCG turned out to be a management-consulting canon. Its refreshingly new academic approach to a very operations-oriented consulting industry enabled itto differentiate itself and come into prominence in the 1970s, challenging the likes of McKinsey & Co. BCG comes across as realists, telling the clients exactly what it believes and not what the clients want to hear, often losing out competition to customers, but nevertheless maintaining this mantra of honestly and client dedication. BCGs innovative analytical tools like the growth-share matrix (popularly known as the BCG matrix) and the experience curve have reiterated its treetop perspective to problem solving, which is unique in the industry and helps it gain a significant competitive advantage from a more implementation oriented McKinsey, and the financial specialist, Bain & Company. Most importantly, BCGs ability to develop long-lasting client relationships and attract high-level strategy and operations projects as well as its unique and diverse culture are crucial differentiators. This dynamism and innovativeness of the company are not the only reasons that encouraged us to analyze The Boston Consulting Group. We were also highly fascinated by the firms external and internal strategy, its unique and collaborative culture and the incentives and job design, which will be analyzed in great depth in this report. We chose these three aspects specifically, because we believe they are key contributors to BCGs differentiation from industry norms, and more importantly its overall 22

success. By supporting and complementing each other, they foster norms of success, motivation, dedication, and loyalty, reinforce organizational identity and employee identification, and allow BCG to be a pioneer of recognized innovation and achievement.

Motivation & Culture at BCG

Happiness is working hard, doing something you like, and getting paid for it. BCG: Definitely a Nice place to work Andy Law, Consultant. Its not for no reason that BCG has continously been rated 2nd in the 100 Best Companies to work for by Forbes Magazine. Since its inception, BCGs strong organizational culture has been liberal and open, with the management alligning the organization to complement the value its services offer, and develop a strong culture that promotes decentralization and high individual initiative. Strong cultures enhance organizational performance by energizing employees-- appealing to their higher ideals and values and rallying them around a set of meaningful, unified goals...second strong cultures boost performance by shaping and coordinating employee's behavior." It is employee driven, yet customer oriented, encouraging not only in the development of long lasting solutions for clients, but more importantly allowing the firm to repeat-business. With a solution oriented, albeit entrepreneural enviornment in the company, the culture comes with the intention of boosting employee morale, and encouraging innovation in strategy, services, and client interaction. With BCG being a strong proponent of the equity theory however, the supportive culture does not come without its fair share of demands. However, she also emphasizes that the firm has been careful not to let employees get too carried away with work. BCG has always been sensitive to the concept of a balanced career, and the necessity to value peoples personal commitments and needs. There are some consulting firms with long hours, and extraordinarily competitive environments BCG does not fit that mold. There are systems in place that make sure you dont work too much. If someone bills 70 hours a week, 3weeks in a row, a partner will make a call to the client and ask whats going on. Instead, BCG has constantly been described as an environment that is competitive yet collaborative. Yes, there are systems where employees can choose projects that they wish to undertake, however, the priority of the availablility of access to these systems is proportionate to ones position in the organizatioanl hierarchy. However, consultants are encouraged to question and probe, to express their views and put things in different perspectives. As long as your ideas and concepts are intellectually sound, they will be listened to and, above all, valued . Employees can go into the office of a senior partner or someone a week out of school, and have the same conversations, and a flat organization, low power distance, increasing decentralization, a wide chain of command leads to an

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organic organizational structure. With shared norms of teamwork, loyalty, diversity, and a high propensity for risk, employee innovation is encouraged and individual initiative is high. Employees are encouraged to undertake projects from different fields, and travel to different cities and countries and interact with clients. They are encouraged to bring ideas to the table, and suggest projects that companies should undertake. A highly publicized project undertaken in 1996 by Andy Meyer and his team did a business analysis on Andys current relationship titled Romance : A BCG Analysis. When a consultant requested to be allowed to undertake a pro bono project since he wished to contribute to society, BCG paid for him to go to India and work with Teach for India. One aspect of the culture that clearly remains is its intellectualism. The culture is very smart. There are lots of Rhodes scholars and people who finished first in everything they did, says an insider. In other words, this is the kind of place that doesnt cut corners, and with such a plethora of talent, BCG emphasizes its culture of employees following others and learning from peers. Not only does this prevent relationship, and process conflict, but also the pooling of ideas, experiences and resources, team identification lead to synergistic problem solving. This kind of supportive environment also benefits by eliminating conformity pressures, preventing social loafing, and ultimately generates commitment to the organizations goals, and results in significant process gains. Management understands that internal strategy has to complement external strategy, and keeping a resource based view of the firm, seeks to develop a strong workforce. With its employees comprising primariily of successes in their respective fields, the culture guides, rather than controls, the behavior of its members. Recruitment is extremely selective, and while there is definitely stress on the talent and thinking ability of employees, there is a strong push towards employee-organization fit in the recruiting process, and those whose personalities match with that of BCG are much likely to successfully be employed. Such a well thought of recruiting process means that those hired are hired keeping a long term perspective in mind, and a sense of security allows employees to move up Maslows hierarchy. Cultural artifacts primarily include team-building activities, ranging from office parties to hiking, from bowling to weekend getaways to Miami, and working in cross functional teams not only exposes employees to different fields, but more importantly allows them to network within the organization. Empirical evidence of culture related success is abundant, not only visible in their innovations, but in their rankings, reputations in notable successful alumni. These include IndraNooyi, Mitt Romney, John Paulson, Benjamin Netanyahu, Jeff Immelt, Rahul Gandhi, Sally Blount the list keeps going on. BCG considers its employees to be its biggest asset, and theres a strong sense of loyalty and identification with BCG. A distinguished and diverse group, working well in a team, using creative analytical tools, distinguishes BCG from competing firms, and its autonomous but supportive atmosphere and creative approach to problem solving only adds to this differentiation. 24

Incentives and Job Design:

BCG has established its name as the worlds leading consulting company not only because of its unique strategy and dynamic corporate culture, but also because of its sophisticated job design and incentive system, which constantly motivates its employees to perform to their highest standards. BCG effectively balances both extrinsic and intrinsic motivations in order to provide its employees a satisfying yet challenging work environment. The extrinsic rewards system is very well established: A normal consultant working in BCG has a base salary of $72,000 per year and a performance bonus up to 22.5 % of the base salary, which is greatly above the industry standard. Aside from the high salary and bonuses, the company also provides profit sharing and retirement benefits, which can further increase the total compensation to $97,600 per year. It is also worth mentioning that BCG matches 15% of its employees salary and bonuses to their 401(k) retirement fund without requiring any contribution from the employee. However, extrinsic motivation is not the biggest motivator for BCG employees. Intrinsic motivators including challenging work, task meaningfulness, status and recognition and fairness heavily drive employee performance as well. Employees are intellectually challenged every day. Consultants in BCG are called Generalists as they are expected to deal with high-level projects from a multitude of industries, countries and scenarios, rather than specializing in a few. The constant challenge from participating in cross-functional teams and developing solutions for a diverse range of projects, not only provides employees with an opportunity to accumulate knowledge and improves their ability to adapt to new challenges, but also gives them an added perspective fueling overall growth. The diverse working environment, which includes the best from Ivy Leagues spanning different expertise and backgrounds, instills the need to stand out and prove oneself, which intrinsically motivates an employee. BCGers are constantly embedded with a sense of social responsibility. Different strategic solutions that they formulate for clients could really impact the fate of clients it could save them or destroy them. Working as a consultant in BCG often means helping distressed companies in their toughest periods or showing companies how to maximize their potential and thus improving the overall economy. This sense of social responsibility and the sense of having control of the overall economy provide BCGers with a sense of meaning. This constantly motivates employees to perform better and come up with innovative long-lasting solutions directly aligning their goals with the goals of the company. Furthermore, BCG fosters a sense of accountability by expecting its employees to adhere to the guidelines of Corporate Social Responsibility (CSR). Even during tough economic downturns, BCG puts CSR on top of its management agenda. Additionally, BCG organizes various employees-led volunteering programs to help its employees really understand how to help society first-hand. This quote

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displays how these pro bono activities provide BCGers with a sense of task meaningfulness - I work for BCG for 17 years and had two chances to work for pro bono projects save the children. It was the most precious experience to me. I stayed in poorest villages in Nepal, which totally changed my view. Not only are people expected to participate, they can also formulate their own community service activity helping a charity of their choice -One woman is always collecting clothes to take to shelters. If you want to organize a community service activity, you can do it. This kind of flexibility not only motivates employees but also builds loyalty to BCG. Besides challenging work and task meaningfulness, BCG has also designed a system to constantly recognize and reward employees. BCGs career path is structured to help employees to succeed and reach their goal. Most new hires would start from being an associate. BCG provides quick upward mobility rewarding employees who gather enough experience and expertise and who provides results ample opportunity to rise to a consultant, a project leader, a principal, and ultimately becoming a partner in BCG. This is a readily achievable path at BCG, which recognizes employees' hard work and talents. Furthermore, every employee has a sense of voice in the brainstorming and decision-making process. According to a BCG employee, "As long as your ideas and concepts are intellectually sound, they will be listened to and, above all, valued." BCG motivates its employees to put in their best effort, which boosts the organizational performance, as it values diverse perspectives. Lastly, BCG strongly enforces fairness and equity - "No one gets the benefits of BCG easily -people work really hard to get in and succeed here." BCG has a performance-basedreward system. Hardwork, co-ordination and great results are recognized and rewarded with opportunities and benefits in conjunction with the equity theory. There are numerous training opportunities and benefits available at BCG. A combination of BCGs enforcement of fairness and equity and training greatly inspires employees to work harder and contribute more -- " fair-process training can make a huge difference. Subordinates are less likely to steal or to resign from the organization, but they are also more likely to go the extra mile..." BCG strongly supports its employees getting a MBA, and offers full compensation for them to get one at top universities in the world. Employees also have the choice to work in different locations all over the world and to choose their own career course, their practice area, and their clients based on their degree of contribution. As employees continue to put in more effort, they are rewarded with other benefits like retirement plans. BCG also rewards team performance by allocating a budget for well-performing teams or intern classes to spend on team-building activities, excursions, dinners and sports.. This not only motivates employees to perform better, but also builds teamwork and loyalty to the firm. A combination of these "... real motivators such as recognition and team spirit, when combined with adequate pay, have produced a committed workforce and the lowest level of employee turnover..." in BCG , aligning employee goals to the firms goals.

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BCGs job design is close to perfect in the industry and it strongly aligns with the innovative culture and the organic functional structure of BCG. It also leads motivate employees to perform better and increases a sense of learning fueling long-term individual growth. According to a BCG employee, Every six months you realize that you have transformed a lot as an individual. The job design and its incentive system is so powerful that it encourages employees to work hard, self-improve, and work for the greater success of BCG. Its external strategy revolves around looking at the big picture and generating present and future value through building brand loyalty, reputation, and knowledge. How it accomplishes this is through its internal which includes the variety of valuable and rare internal resources it possesses. These resources comprise of its innovativeness demonstrated by its analytical tools, pioneering the tree top analysis, and its strong brand recognition and reputation for producing creative solutions. This interlocking of its internal and external strategy is hard to imitate. The fact that the analytical tools developed by BCG is effectively used in conjunction with its tree-top approach to problem solving, makes its strategy more unique and difficult to imitate It is harder for a rival to match an array of interlocked activities than it is merely to imitate a particular sales-force approach, match a process technology, or replicate a set of product features helping it acquire a substantial amount of competitive advantage and sustainability. A combination of these internal and external strategies forms BCGs competitive advantage. BCGs ability to produce these ground breaking analytical tools and reputation to consistently provide unique and creative solutions originate from BCGs strong and unique culture. BCGs culture drives their competitive advantage. BCGs liberal and open culture allows it to build a great deal of human capital by forming a group of autonomous, congenial, and supportive employees. It does this by promoting innovation and reducing communication barriers. Low level associates are encouraged to put forth their ideas with little risk of repudiation. This decentralization and ease of communication allows individuals to take initiatives and collaborate effectively with their peers to form the creative and unique solutions that BCG is known for, the key element of their internal strategy. Job design and incentive systems at BCG further incentivize employees to contribute their best to BCG. The job design and incentive system at BCG constantly motivates employees. BCG has a plethora of extrinsic and intrinsic motivators. These incentives include very competitive salaries with a clear cut path for growth and accession on the leadership ladder. An associate could one day become a partner if they put in the time and hard work. Intrinsic incentives include the sense of meaningfulness in their work, task identity, and fairness and equity theory. BCG instills a sense of social responsibility by pursuing many CSR projects. They also allow their consultants to be a part of the entire project allowing 27

them to see it through. BCG also enforces fairness and equity rewarding employees for their hard work with opportunities for growth and other benefits. These benefits are in turn also are focused on building human capital; benefits such as encouraging and paying for a MBA educations as well as team building, dinners, and excursions motivates and improves employee as they will have better teamwork and garner more knowledge and experience. The Boston Consulting Groups strategy, culture, and incentives are interlocked together each building off each other. This aligned system allows BCG to consistently be the top consulting firm in the industry. BCG is a great company to work for because of its job design and work-life balance. It is not only ranked as the No.2 best companies to work for in Fortune Magazine, but also analyzed by Harvard Business Review to be the few companies in which consultants and professionals could meet highest standards of service and still have planned, uninterrupted time off. In terms of job design, BCG fully combined the extrinsic motivation and intrinsic motivation together to provide its employees a satisfying but challenging working environment. It has a very established extrinsic rewards system (see exhibit 1). A normal consultant working in BCG has a base salary of $72000/year and a performance bonus up to 72% of its base salary which is highly above the industry standard. Besides the salary and bonus, employees also enjoy the benefits of profit sharing and retirement fund. The total compensation could add up to $97600 per year. It is also worth mentioning that BCG contributes 15% of the salary and bonus to employees 401(k) retirement fund without requiring any contribution from the employee. Besides the basic compensation, BCG also provides a lot of opportunities for its employees outside of the company such as free MBA program and free studying abroad

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However, the extrinsic motivation is not the major drive for BCGers to work in this worldleading company. The intrinsic motivation: the challenging work, the meaningfulness of the consulting as well as the sense of achievement they get from resolving cases play an even more important role in BCG. Working in BCG means employee being intellectually challenged every day. Consultants in BCG are always called generalists because they are always exposed to different industries when they do cases instead of just focusing on one. Therefore, every time they are assigned a new case unrelated to their majors, their journey of challenge and learning begins. It is great chance to accumulate knowledge with such as steep learning curve and it also helps improve their study abilities from time to time. They also have great incentives by working with the most talented people as most BCGers are recruited from Ivy League Universities and different majors. Working in BCG as a consultant means helping the distressed companies and improving the social well-being. The consulting job in nature is already embedded with the sense of social responsibility as the different strategic solutions for clients could really change the fate of them by either saving them or destroying them. BCG also further help develop this sense of meaningfulness by engaging its employees in the concept of Corporate Social Responsibility. BCG puts CSR on the top of its management agenda even during the economic downturn. It even organizes various volunteer work to help its employees further understand how to truly help the society. This quote is from a BCGer who really finds meaningfulness from his work. I work for BCG for 17 years and had two chances to work for pro bono projects save the children. It was the most precious experience to me. I stayed in poorest villages in Nepal, which totally changed my view... BCG values employee status and recognitions. At BCG, every employee has a clear and straightforward career path. They start from an associate, advancing to become a consultant, a project leader, a principal, and ultimately becoming a partner of BCG. It is possible at BCG because BCG recognizes employees' hard works and talents. BCG recognize employees by promotional opportunities and a lot of bonus to those who excel in their jobs. Not only that, BCG recognizes employees and gives them status in the most unique and valuable way: every employee has a voice in all the BCG decision makings. One employee says, "As long as your ideas and concepts and intellectually sound, they will be listened to and, above all, valued." This strong status and recognition keeps employees to work hard at BCG because they know their hard work are being greatly valued and all their voice and effort are being recognized.

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Fairness and equity theory is valued heavily at BCG. "No one gets the benefits of BCG easily -- people work really hard to get in and succeed here." It's a fair system. People work really hard to get into BCG and strive to succeed at BCG with all the challenging works. However, they get a lot in return for the work and effort they put in. Employees receive a lot of opportunities and trainings. One example is the MBA program. BCG offers the financial means to support employees to go to MBA programs at top universities. Employees also have the choice to work in different locations all over the world and to choose their own career course, their practice area, and their clients as a result of their hard work. Employees get retirement plan, benefits, and budgets to spend among their teams to relax after long hours of hard works. This continues to incentivize employees because how much they put in how much will they receive from BCG. Dimensions of motivation in its organizational culture: Shares norms of innovation, teamwork, loyalty and diversity Encourages individual initiative and propensity for risk Culture of following others and learning from peers low competitiveness Accepts conflict and values disagreement Flat organizational structure and low power distance

Reasons for Motivation being so successful, important and well implemented 1) Recruitment Accepts students from different majors Stresses on Employee-organization fit Accepts only the best in their fields

2) Cultural artifacts Promotes team-building trips like dinners, sports and hiking Supports involvement in pro bono activities

3) Structure Flat, organic organizational structure Cross-functional teams

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Empirical evidence of motivation related success Very innovative invented the BCG matrix, time-based system of payment and the experience curve. For the second consecutive year in 2012, BCG has been ranked number 2 in the 100 best companies to work for by fortune magazine. Gives employees a platform to succeed. Network of successful Alumni in different fields - Jeff Immelt, CEO of GE Benjamin Netanyahu,

Ex PM of Israel, Indra Nooyi, CEO of PepsiCo, Mitt Romney,, Governor and Businessman, Presidential Candidate in 2012, John Paulson, very successful hedge fund manager

Challenge as a motivator Consultants are BCG are termed as generalists, and dont specialize in particular industries or countries. They are expected to contribute avidly to a variety of projects, problems, and industries, thereby introducing a sense of challenge and increasing motivation and self worth (tie this in with exposure to different industries). Steep learning curve Exposure to diverse industries Working with talented people Incentive to undertake challenging work and succeed

Meaningfulness of work as a motivator Help distressed companies with expertise Improve social well-beings Involvement in volunteer work Fulfillment of Corporate Social Responsibility

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Status & Recognition as a motivator Straightforward career path from associate to partners Rewarded by promotion or bonus All employees have voice in the decision making process As long as your ideas and concepts are intellectually sound, they will be listened to and, above all, valued

Fairness and Equity as a motivator Inputs Hard work, co-ordination & results No one gets the benefits of BCG easily people work really hard to get in and succeed here

Outputs Benefits, opportunities and rewards They paid my 2-year Wharton MBA tuition work in different locations draw my own career course Provides Healthcare & a 401k each class is allocated a budget for regular events, such as bowling, camping ... Overall BCG has almost the best job design in the industry. The job is designed to incentivize employees to work hard, to develop personal skills, and to continue the successfulness of BCG.

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Other Case Studies Google

Google Inc. is showing one reason why its such a wildly successful internet company: Its using money the way it should be usedto motivate people in a meaningful way. Last month, two teams of Google employees were handed $12 million of free company shares, with more so-called Founders Awards planned for other work groups. By giving the stock, the Mountain View, California-based Google is seeking to reward, motivate and retain employees. The Founders Award is designed to give extraordinary rewards for extraordinar y team accomplishments, Google co-founders Sergey Brin and Larry Page said in their first letter to shareholders. A general rule of thumb is that the team accomplished something that created enormous value for Google. In my graduate psychology training, I was taught that for money to motivate, an employee must: understand what performance is being measured and rewarded; have substantial impact on the performance measure chosen; and be given the reward quickly after his performance has been assessed. Thats the in-school thinking. The out-of-school reality for most companies is: An employee may know what performance is being measured, yet he has no serious input on how its being done, and frequently the reward is given out late, undermining the link between performance and that reward. Why the wrong way? So why dont more companies do things the right way, or the Google way, with rewards targeted at smaller team performance and delivered at just the right time? First, we have the bureaucratic inertia of many human resources departments, where passing out rewards to some people and not to others is simply an untidy way of doing business. And giving rewards at other than year-end compounds the paperwork load. Second, although the usual way is for underling s to envy their superiors higher pay, doing special things for special teams at special times, as Google has done, turns things upside down. Now its superiors envying subordinates. I was a consultant to Mobil Corp. (then an independent company with its headquarters in New York) in the mid-1970s. Shortly after the 1973 Israeli-Arab war and the subsequent oil embargo, the price of gasoline soared and rationing

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Other Case Studies Toyota

How to motivate employees? "Creating a corporate culture of cooperation and respect for the individulal is essential for a company to stay strong, flexible and young.", Mr. Akira Takahashi, Fmr Chairman, Denso Corporation Process Improvement Japan is undertaking the challenge to dissect the way Toyota Motor Corporation and its supplier companies have successfully implemented employee engagement strategies. Employee engagement literally means that all employees participate in activities to achieve the company`s goals. But it may not be as easy as it sounds. When a company loses its flexibility and vision, each department may stop considering the company`s interests as a whole. They may think that even if their company loses its competitiveness, it`s all right as long as their own department is fine. This narrow-mindedness or sectionalism can emerge in any organization. Or, employees can lose morale and commit for other reasons such as a lack of empowering leadership, a lack of team spirit, etc. How to motivate employees and immunize ourselves from sectionalism? One way is to establish a corporate culture that takes advantage of employee`s individual talents and the strength of teamwork. In the workplace, with such a corporate culture, people can be more vitalized and flexible. We decided to go to the source and ask employees directly: What Motivates You?: Mr. Li: "Accomplishment. My Supervisor trusts me to do my best. I have many ideas. Some ideas do not lead to profit for the company but I want to try. If my supervisor doesn`t give me the flexibility to experiment, I have no chance to improve myself or perform proper kaizen. Many problems occur on a day-to-day basis. When there is a problem, I want to solve it. My boss gives me the opportunity to implement my kaizen suggestions." Mr. Hayakawa: "My job has a purpose." Mr. Uemae: "I enjoy my work. I have the chance to increase my abilities and learn new things. It`s exciting. I don`t mind putting in extra hours when I have to."

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Mr Yoshioka: "Recognition. Rewards and salary are not the key point but they do reflect achievement. I want the opportunity to challenge myself and gain experience. I want to be appreciated for my contribution. It`s the small things like compliments and expressions of thanks that lift my spirits." Mr Minami: "When I make suggestions and they are accepted, I get really excited. Plus, I want to do my job efficiently so I can go home to my family."

Other Case Studies Microsoft

Familiarity with your team can help everyone thrive Among the challenges of running a small business is finding good employees and then keeping them motivated so that they thrive. When you do that successfully, your business will thrive too. But don't assume you need books or seminars to build motivation. As a small business owner/manager, you have an advantage larger organisations don't have: You know your employees. Chances are you work side by side with them on a regular basis. You've heard about their families and friends; you know their backgrounds and ambitions. All of that is valuable information for an employer who wants to find effective ways to motivate his team but may lack the resources to offer generous pay raises or bonuses. Consider four ways you can turn the information you glean from your familiarity with employees into a motivation strategy: 1. Ensure a positive work environment. If you're hearing that there are internal conflicts or office politics that are creating an unpleasant work environment, you are the one who can fix it. The fact that you listened and you acted will be a sign that you care about creating a positive place to work. 2. Foster teamwork. Make sure you have a mission statement and that your employees understand why their role is important to the overall success of their company. In your conversations with employees, strengthen the notion that your company is a team and that when you win, they win too. Then follow through. Even if it's a small gesture like ordering in lunch for everyone after a big deal is signed, make sure they share in the successes. 3. Get creative about rewards and incentives. Money isn't the only way to motivate employees to work harder or smarter. Perhaps you've got a young parent working for you who could benefit from flexible

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hours or the opportunity to work from home one day a week. Maybe your salesperson has just put in a lot of long days to make a big deal happen and would prefer extra time off to a bonus. When you show you're willing to be flexible to meet your employees' needs you'll likely discover your employees will reward you. 4. Provide learning and growth opportunities. When employees are bored with their jobs, it generally shows. You notice it, and so do your customers. When you interview employees for a job, take time to ask about areas of interest. Maybe your new receptionist who is taking creative writing classes in the evening would thoroughly enjoy the chance to help develop some marketing materials. Maybe the new waiter who said he hopes to be a chef someday could do a shift in the kitchen every so often and get some on-the-job training. Giving employees an opportunity to learn new skills and pursue special interests may be one of the most effective things you can do to motivate them and it's all good for business. Setting and Monitoring Performance Objectives Once you determine strategies for motivating your employees, your next task is to decide what you want to motivate them to do. It may be as simple as sitting down and talking about what you hope they can achieve and what you can do to help them meet your expectations. But it may also make sense to get it down on paper so you both have a clear understanding of those expectations. Keep in mind that employees may be intimidated at a term like "performance review" which is used in many large organisations. But even so, there are valid reasons to sit down with each employee once or twice a year to talk specifically about their job. This is a time to review accomplishments and set objectives. You might break the discussion into the following topic areas: Performance goals and objectives Skills and knowledge development Processes and methods Feedback

You can print out the basic Job Performance Review Guide from the template collection listed below under Tools. Use it to jot down notes and actions as you talk through these topics. You can also customise the guide to reflect additional topics you think should be part of a performance review. Use this one-on-one time to put your motivational strategies to work. For instance, here's a possible

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scenario: Problem: You've noticed your front desk manager who is also your bookkeeper seems irritable with customers on occasion. Apparently the bill paying and invoicing and waiting on people all at the same time can be very stressful during busy periods. Solution: Let's say this person is also the young parent mentioned earlier. You might discuss in her performance review that you want to make customer service a top priority and in working toward that objective, you would be willing to allow her to work at home on bookkeeping chores one afternoon a week. Every business is different, of course. But one thing small business owners or managers have in common is the ability to turn the close relationships they have with employees into a business advantage that lets everyone win.

Bibliography
Organisational behavior and organizational change in Groups and Teams, Senior Fellow, Lehigh Univeristy Successful Motivation: a Case Study, Research Paper; Pina Tarricone & Joe Luca; Edith Cowan University, Perth, Autralia What makes Teams Work, Journal of Management; Susan Chen and Diane Bailey; University of South California Work groups and Teams in Organisations; Steve Kozlowski, Michigan State University; Bradford Bell, Cornell University The Ripple Effect: Emotional Contagion and its influence on Group Behavior, Administrative Science Quarterly; Sigal Barsade, Cornell University Organisational Behavior; Univeristy of Ljubljana, Faculty of Public Administration; Dr. Stefan Ivanko

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