Abstract

Scope

Table of Contents

Introduction
Purpose of this work is establishing potential modules of changing motivatinal system in company I work fork. Current motivatinal system is functional, but I have doubt how long it can last concepted as now is. New employees are expected, changes in market enviorenment and changes in managemet also. All factors mentioned above mean that it will be difficult to maintain system and relations that exist now. Organizations effectivenes is mostly caused by motivational level of its members and that is main reason for effectiveness differences (Moorhead and Griffin, 2010). Throug analysis I am presenting development of motivation. At the beginning, definitions of the word itself found in literature are mentioned, then analyzis of importance of motivation and its position in performance process and motivational framework. After that, review of development of motivational thoughts and theories through history is given, analyzing ideas of theories authors and differences among theories. Emphasize is on Maslows need theory as representative of content theories and goal setting theory as one of process theories. Reasons for choosing these theories are facts that Malsows theory eas widely analyzed, tested and further developed through history. Goal setting theory is probably most dominant because it is very applicable, especialy goals set according to SMART criteria. In part dedicated to case analysis, current organizational structure and motivational systems in environment I work are presented and explained. System is then compared to those two theories and further or deeper applicability of two mentioned theories in analyzed. Potential changes in organizational structure and pay system are presented to meet applicability of theories. Meaning, two potential alternatives are developed and some predictions of their functionality is given in conclusion.

Literature review
The word motivation is derived from the Latin word movere, which means movement. In Steers et al (2004) can be found that Atkinson defines motivation as the contemporary (immediate) influence on direction, vigor, and persistence of action, and that Vroom defines it as a process governing choice made by persons . . . among alternative forms of voluntary activity (p. 379). Of course, many other definitions can be found in literature. Managers are ones to recognize what motivates individuals and motivate them for high performances. Performance depends on motivation, ability and environment: P=M+A+E. Environment and ability can be provided. But if motivation is lacking, situation is more complex and manager has to find way to motivate employee. According to Willey (1997), best source of information on motivation is the employee and they have to be asked of motives. Managers may fall into trap thinking that motivators are same for them as for employees. Explanation how motivation works can be given with presented with picture, where basic motivational framework (Moorhead&Griffin, 2010) is given.

History
As we generally learn history to be able to understand present times, same reasons are for analyzing development of historical views on motivation. In a study by Nohria et al (2008) can be read that: ,,deciphering what motivates us as human beings is a centuries-old puzzle. Some of historys most influential thinkers about human behavior among them Aristotle, Adam Smith, Sigmund Freud, and Abraham Maslow have struggled to understand its nuances and have taught us a tremendous amount about why people do the things they do(p. 78).

In the book by Mullins (2005) can be read that the search for a generalised theory of motivation at work appears to be in vain (p. 478). Various theories are developed and they all have critics. Cognitive motivation theories are engaged in internal cognitive processes: peoples feelings and how they think. Depending on approach, they are divided into content and process theories. Content theories are concerned with motivators, nature of peoples needs as motivators, and ways of satisfying them. Process theories emphasize process of motivation, i.e. how behaviour is initiated, directed and sustained. I will now focus on one theory from each of these groups, Maslows hierarchy need model and goal setting theory.

Maslows Hierarchy of needs

According to Maslow, people are wanting beings striving to satisfy their needs that are arranged in a series arranged in a hierarchy of importance (Maslow 1943, cited in Moorhead&Griffin, 2010, p 86.). In the following picture is Maslows hierarchy of needs.

Five basic sets of needs are physiological, security, belongingness, esteem needs and selfactualization needs. Deficiency needs are bottom three. So called growth needs are top two from hierarchy and are related to personal growth and development. Some organizational examples of these needs can be as following. For physiological need it is base salary, long-term job or pension plan for security needs, friends at workplace for belongingness needs. Example for esteem need is job title and challenging job for selfactualization needs. With this, persons full potentials are realized. In an unending proces that continues from birth to death (Maslow, 1943, cited in Chisnall 2005, p. 337), when need is satisfied, providing more of it is no longer motivating and need that is higher in hierarchy become motivating. According to theory, going back down the hierarchy is possible. If lower level need becomes deficient again, it acts as motivator again. Maslow points that it does not take full need to be satisfied before following arises. Realistic approach stands, meaning that decreasing percentages of need have to be satisfied going up the hierarchy so next need can arise. Maslow theory has been object of analysis, tests and criticism, and still is. For instance, five levels of need are not always present, the actual hierarchy of needs does not always conform to Maslows model, and need structures are more unstable and variable then 3

theory lead us to believe (Wahba and Bridwell, 1976, cited in Moorhead and Griffin, 2010, p. 88). Berl et al (1984) analized many reports of theory tests. Levels of need satisfactions were tested and no pattern was found. What Berl and his coworkers found as common mistake in many testings, is that theory is design to fit single persons needs and researches testings are between persons. Jelavic and Ogilvie (2009) state that Maslow as American psychologist was using using American subjects as units of analysis and applicability to other cultural environment is doubtfull. According to them, interpretation of world around us depends on cultural value systems, and theory can be applied selctively because we cannot assume that all societal cultures will see the world through the same lenses and place priority on the same elements of this hierarchy (p. 16).

Goal-setting theory
Goals can be defined as desirable objectives (Moorhead and Griffin, 2010) and are meaningfull objectives for motivation. They are useful for managing motivation and are effective for control. Goal setting theory is based on work of Edwin Locke. Assumption of theory is that behavior is determined by ones goals and intentions. By achieving goals, emotions and desires are satisfied. Responses and actions are guided by goals, so work behavior and performance too. Original theory predicted two basic characteristics of goals. Goal difficulty is the extent to which it will challenge efforts and goal specificity, because clear and precise goals will cause better performance. The purpose of goal setting is to make the superordinate goal concrete, to move it from emotional rhetoric to concrete action steps (Latham, 2003. p.311). Latham and Pinder (2005, p.496) cited conclusion from previous investigations on goal setting theory that it is quite easily the single most dominant theory in the field, with over a thousand articles and reviews published on the topic in a little over 30 years. Also Moorhead and Griffin (2010) found that the theory was widely tested. Their conclusion is that goal setting is clearly an important way for managers to convert motivation into actual improved performance (p. 144). Some of researchers find goal setting overprescribed (Ordonez et al, 2009). They argue that goal setting has powerful and predictable side effects. Rather than being offered as anover-the-counter salve for boosting performance, goal setting should be prescribed selectively, presented with a warning label, and closely monitored (p. 6). Answering these, Locke and Latham stated Goal setting, to the best of our knowledge, has always been presented as an effective technique to motivate performance, not as a soothing ointment and certainly not as a panacea for every problem (2009, p. 17). One of further developed techniques originatig from goal-setting theory is SMART goals, where S stands for specific, M for measurable, A for attainable, R for result oriented or relevant and T for time bound. So, goals should be specific, clear, so one can know what is expected from him, the threshold (Resnick, 2009). Also, goals should be designed in way that they can be clearly measured. Attainable goals are realistic. Goals set too high will not motivate, one will know he cant reach them. Result oriented goals are designed in way that impact they induced is relevant in given environment. And of course, time 4

bound always has to be set because one need to know period in what his achievements will be measured. Carefully measured period of time one has to achieve goals in front of him is very important in order to avoid excuses (Martin, 2005).

CASE STUDY
Ill analyze motivational system in company I work for, Diacell. We are marketing agents of foreign pharmaceutical company. What we do is promotion of company and products from portfolio, market of drugs and medical equipment investigation. Company is owned by my family. First, a quick glance at organizational structure and job descriptions. At top of hierarchy is general manager, my father, experienced and well recognized in this field. Zorica is Clinical cordinator for PD products and job tasks are promoting products and constant update of market database which is continuosly used for market analyzes and investigations. Zorana is Marketing specialist, with similar types of tasks, but related to TPN line of products. Im working as project manager. My tasks are creating marketing plans, preparing, organizing and supporting all activities/projects that are promotional, educational and market investigations. Vesna is RA associate, with following job description: registration of new products at authorized governmental Agency and pharmacovigilance. Dejan is Office Associate and his jobs are all economics and regualtory related tasks. Ljiljana is our assistant. So, we are relatively small collective. Current motivational system is based on relatively high salaries, long-term jobs, good interpersonal relations and trust and working atmosphere. Annual goals are set and all activities are directed in order to fulfill them. Salaries are expressed in foreign currency and that is very import to all employees, because most bank credits here are expressed in foreign currency. This means that credit rates are constant part of salaries, not various. Monthly salaries are fixed. They can be changed depending of annual success. Also, depending on overall success, extra salary is paid off. Next, there is no rapid change of staff, patience is shown for pure performance to certain level. Meaning, nobody will be fired tomorrow, suddenly. All of employees will be aware why someone lost his job. Since most of people work now in Diacell know each other from previous companies and are friends. They share all good and bad news, from both professional and private lifes. What is important, they spreaded over that positive trend of good relations to all employees. Also, experience of our GM in managing people and at the market is enormous. Everyone in Diacell have great respect for him. They all know that he is ready to listen, support, help, advise. Goals are annual due to specificity of product portfolio. There is understanding for failing goals due to circumstances employees couldnt affect on.

Maslows theory
Some questions I ty to answer are: How presented motivational system fits in theory and what need to be changed in order to fully fit in it?

According to Moorhead and Griffin (2010, p. 87), physiologival needs are probably easiest to evaluate and meet. With above described pay system, employes are able to satisfy basic needs to themselves and to their families. Oleson (2004) supported Maslows theory concluding that as individuals progress through the theoretical stages of Maslows hierarchy of needs, it appears that money becomes less and less important to individuals (p.91). Opposite, Rynes et al (2004) concluded after their research that money is not the only motivator and it is not tbe primary... it is important motivator for most people (p.391). Current motivational system in Diacell consider money as important motivator. Also, offices provide adequate working conditions. Toilet facilities are provided, a lot of natural light, air-conditioning, water and refreshing drinks. To satisfy safety needs, there is job safety described above. In his study, Noble (2008) stressed importance of job security and also complexity of this issue. Also, health insurance is provided to everyone and all obligations toward public pension fund are covered so everyone will have pension when retires. Ive already described intrerpersonal relationships as friendly. That is how employees satisfy belongingness needs. We all share, good and bad news. Everyone will get a birthday present from rest of collective. Also, on the day company is founded, joint lunch or dinner with companys friends is provided, singing and dancing are always there. Another important fact for satisfying belongingness needs is care for employees. Nicholson (2003) stated: Variety of factors can block peoples natural motivation One of the most common blockages occurs when employees feel that their bosses dont really care about them (p.59-60). Positive about current motivational system is just that, care for every single one employee, understanding for their problems and needs. In Mongeau (2003) can be read that employees fell as part of team when they hear what is going on direct from their manager, when communication is constant and consistent. Our general manager uses this principle of communicating and informing. All employees have appropriate job titles to satisfy their esteem needs. In small company like this, options for promotions are limited. Business development would bring more options for that. Position of Medical director could be established as next step available to everyone involved in marketing activities. Medical director repsonsibilites would be scietific support to all clinical messages used in campaigns, communications only with KOLs (key opinion leaders) and authorities on medical affairs. providing key valid medical informations and publications to all of his subordinates, following trends worldwide. Also, with more products registered, more employees would be needed in order to do pharmacovigilance in appropriate way. Thus, in that part of organizational structure, positions of RA manager and RA assistants would be established and by so created possibility to employees working in this department, opportunity to develop carrers, have hihger job titles and subordinates. In addition, products of company we represent are unique, of top quality and advanced comparing to competitives. In book by Zoltners et al (2001) can be found importance of these issues for motivation employees and making them proud and accordingly, satisfying esteem needs. Satisfying self-actualization is most difficult need to understand and to satisfy, especially in small company like Diacell. People who satisfy their self-esteem needs can move toward this need. That would mean giving more freedom and empowerment to employees at managing positions, involving them in creating strategies or decion making 6

processes. Maybe even splitting ownership and managing. It probably is not appropriate for small company, but in grown and more developed company such changes could be made.

Goal Setting
Locke (2009, p. 22) concluded that organizations cannot thrive without being focused on their desired end results and that every action has to have challenging purpose. Anon (2010) is also stating that vision of success broken into goals is needed. But, in order to achieve already existing overall goals, setting SMART goals that lead to overalls might improve performance. Charles (2005) finds that applying SMART criteria in everyday work will bring results. Here are some potetnial SMART goals. On regulatory affair field, various goals that meet these criteria can be set. First, Pharmacovigilance reports. It must be submitted to Drugs Agency every month. These reports are sent to us by helathcare professionals. So, it is clear what has to be done. It will be checked using feedback report sent by Agency. Attaing these goals is definitelly possible because reports are only beeing collected, and all together submited in requested form. This is relevant because it is our legal obligation. Check point is every month. Next two are already present. Marketing Authorisation (MA) Renewals. At the end of year, list of these MAs with expiry dates in next year is reviewed. If there is decission that MA will be renewed, procedure at Agency must follow. Clear what has to be done. Renewal licences are used as measures if it is done. Our partner provides all requested documentation, so it is attainable. All medicines must have valid MA in order to be sold on market, so relevance is there. Check point is one year due to processes durations. Finally, new Marketing Authorisations. After market research and conclusion that specific product can be sold, procedure of getting MA should be performed. Yearly plan, with specific product codes for which MA should be obtained is made. MA licence is measure of achieved goal. Number of new MA requested is reasonable so it is attainable goal. Again, relevance is in fact that valid MA is needed for selling drug. For same reason, check point period is one year. For marketing employees, following SMART goals can be set. Number of patients that are prescribed our products. One goal can be certain number of incidence (new) patients and total number of patients beeing prescribed basic products and another for advanced products every month. Goals achievement is measured throug monthly reports provided by dustributor in which all these numbers can be seen. Goals are set based on realistic situaion and realistic possibillities, so activities done by employee should bring to achieving them. Switch to system where monthly salary depends on achieved goals would provide more effectiveness. Every goal achieved would mean increase of basic salary for employee for certain level. Penalties should also be established for not achieveng goals marked as high important: MA and overall number of patients.

Conclusion
700-800 Malsows theory is difficult to be implemented in full in small company like Diacell. Deficiency needs can be satisfied in more appropriate way than growth needs. 7

On the other hand, SMART goals would be easier implemented and might improve current situation. Kulturoloske razlike nas I tvorca Malsow kao otezavaju okolnost Can theory be applied at all in given circumstances? As Locke (2004, p. 395) concluded we must not overlook the fact that people are not merely the passive victims of situations. Employees choose their jobs, might change situations the are in. Motivating them is very difficult and many aspects should be considered to make employees performance effective.

References
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Steers, R. M., Mowday, R. T., Shapiro, D. L. (2004) The Future Of Work Motivation Theory. Academy of Management review, Vol 29, No3. p379-387. Wiley, C., (1997) What Motivates Employees According to over 40 years of Motivational Survey. International Journal of Manpower Vol 18 No3. p263-280. Zoltners, A. A., Sinha, P., Zoltners, G. A. (2001) Complete Guide to Accelerating Sales Force Performance, Chapter 9: Motivating the Sales Force, p248-267. AMACOM, New York.

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