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Motivation and leadership

You are the Director of Order Fulfillment Applications in the Information Technology department of EEST Company. Your staff consists of a Manager of Inventory Systems and a Manager of Order Processing Systems as well as a team of 20 analysts and programmers divided equally between the two managers. You report to the VP of Applications Development, and she reports to the CIO.

Currently, most of your department is midway through a two year project to upgrade an outdated order fulfillment application system that was originally written in-house and no longer meets the company's functional needs. The project consists of major rewrites to the existing system modules which when completed will meet the new requirements of the company's customers and marketplace. Those few staff members not assigned to this effort are engaged in day-to-day support and minor maintenance to the existing system.

It was recently announced by corporate management that EEST is being purchased by a competitor from the same industry, the Ouest Corporation. Ouest is of roughly the same size (in terms of revenue and staff count) as EEST, but has a very different market philosophy and internal culture. As senior managers have begun planning for the acquisition, it has come to light that these differences extend to fundamental IT philosophy as well. For example, Ouest has a corporate policy to use only vendor-written software packages and not to develop software in-house.

Out of the acquisition planning process has come a directive that similar headquarters administrative departments from the two formerly separate companies, such as Finance, HR and IT, will be combined, and "excess" positions will be eliminated. Preliminary expectations are that you and your VP will be retained, but about one half of your existing staff (including one of your managers) will be let go and several Ouest programmers will become part of your new organization. Additionally, the senior corporate management team has stated that the combined IT department must quickly become an effective team that fits the corporate and IT cultures. Obviously, you realize that these changes will have major effects on both your staff members and on your ongoing project.

Turn your attention to the upgrade project and imagine yourself as a member of a team comprised of EEST and Ouest employees (your instructor will assign you to a team, but you will need to decide among yourselves who is EEST and who is Ouest) Members of the former EEST programming staff have been in the department working on the upgrade project. Members of the Ouest staff have been transferred to the department.
The Manager of the newly merged department has asked each team to prepare a presentation describing the corporate and departmental culture that existed in their organization prior to the acquisition. The intent is to hold a departmental meeting later and discuss the differences and similarities. EEST is in general an open, people-oriented organization. Ouest is a hierarchical, results-focused company.

You are a member of the Ouest team. Develop notes on Motivational Methods & Management Style lower/senior level department heads.

Solution Preview

According to Merriam-Webster online dictionary to motivate is to "impel or excite", oneself or other. If it means to impel or excite someone (the employee) then, the first requirement is that this process needs be continuous or on regular bases or any intervening interval will kill the excitement. Motivation composes of three acts; they are:
"Internal state or condition, which encourage the activation of behavior and gives it direction
Desire or want, which encourages directs goal-oriented behavior

Influence of needs and desires on the intensity and direction of behavior" (Huitt, 2001).

Intrinsic and Extrinsic Motivation

As per Maslow's theory there is a hierarchy of needs. Humans meet their basic needs first and then they seek to satisfy successively higher needs that occupy a set hierarchy. (2003 Maslows hierarchy) The five needs are "physiological, safety, social, esteem and self-actualization" (Robbins, 2003) The lowest needs are basic survival of the human being. Everyone needs to eat for survival and live in an environment where one is protected from nature's extremities.
Thus these needs are intrinsic in nature. The highest needs are internal or intrinsic needs where one strives to gain social acceptance, esteem and eventually reach self-actualization. Maslow's theory states that the lowest needs must be satisfied first before the highest needs are satisfied. Before a person can step up to the next level of need, the lower tier of needs must be satisfied completely. Thus this theory can be aptly applied for developing the organizational reward systems. Good compensation is a basic need of the human. It is very important to maintain the healthy employee morale. For this Company's compensation packages must be regularly benchmarked against packages offered by other premier companies that do business in the same geography. At higher level the other needs become more important where the needs of esteem and self actualization must be met for retaining them.
We can also apply two factor theory.

Two-Factor Theory
Frederick Herzberg developed the Two-Factor Theory. The Two-Factor Theory states that there are two dimensions to job satisfaction: motivation and hygiene. Motivation involves satisfaction and psychological growth and its intrinsic. Environmental or external issues are at the core of the Hygiene Factor and are extrinisic. These are needed to ensure employee satisfaction. Work conditions, salary, status, policies and procedures, interpersonal relationships, job security. Herzberg concluded that hygiene issues must be dealt with effectively before motivation can take place. They will not motivate employees but can minimize dissatisfaction. Once they are addressed, the motivators will promote job satisfaction and encourage production.
Thus the work condition must be made excellent, higher status can be granted to the clerical staff, transparent policies and procedures must be implemented to improve the relationship. Some job security can also be given to the staff. Motivation will come from the need for recognition for achievements, and the desire to gain higher levels of ...

Solution Summary

This explains the various motivational methods, leadership and management style