Motivational Techniques

Motivational Techniques

Motivation, everyone who has a desire to succeed in life and in business usually has some form of it. Motivation represents those psychological processes that cause the arousal, direction, and persistence of voluntary actions that are goal directed (Kreitner & Kinicki, 2008, p. 210). But one must ask, what makes a company successful? Is it the products they make? Is it the marketing they use? Or is it the people that work for the organization that makes them successful? After reviewing several Fortune 500 companies I have chosen three to discuss. I discovered what makes them tick, and the motivational techniques they use to keep their companies running strong. The three companies being highlighted are Merck & Co., Inc., Starbucks, and Google.

We will begin with Merck. Merck is known worldwide as one of the largest pharmaceutical companies in the world, and ranks 99th on the Fortune 500. It was established in 1891 as the United States subsidiary of the German company Merck KGaA. It is currently one of the seven largest pharmaceutical companies in the world both by capital and revenue (Merck & Co., Inc, 2008, p. 1). Like many pharmaceutical companies in the U.S., the sales force at Merck follows the pay for performance model. Pay for performance is the popular term for monetary incentives linking at least a portion of the paycheck directly to results or accomplishments. Many refer to it simply as incentive pay while others call it variable pay (Kreitner & Kinicki, 2008, p. 259). The pharmaceutical sales representatives at Merck call it motivation. Pharmaceutical sales is a very addictive field due to this pay for performance model. So, why is this job so addictive? Perhaps because the excessive profit margins of many brand-name pharmaceutical products can mean enormous commissions (Princeton Review, 2006, p. 1). Merck’s mission statement and culture lies heavily on both intrinsic and extrinsic motivation.

We recognize that the ability to excel -- to most competitively meet society's and customers' needs -- depends on the integrity, knowledge, imagination, skill, diversity and teamwork of our employees, and we value these qualities most highly. To this end, we strive to create an environment of mutual respect, encouragement and teamwork -- an environment that rewards commitment and performance and is responsive to the needs of our employees and their families (Merck & Co., Inc, 2006, p. 2)

The sales forces’ commitment is due to the motivation of money and recognition.

The next company that will be discussed is Starbucks, which ranks the Fortune 500 at number 310. Starbucks Coffee Company was founded in 1971, opening its first store in Seattle’s Pike Street Market (Starbucks, 2008, p. 1). Starbucks not only ranks the Fortune 500, but also ranks Fortunes Top 100 companies to work for, coming in at number seven. So what is Starbucks doing to motivate its partners while remaining a cornerstone in American culture? They are hiring and motivating quality employees and meeting their basic needs first. Starbucks has more than 172,000 partners (employees) worldwide as of September 2007. “We realize our people are the cornerstone of our success, and we know that their idea’s, commitment, and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, p. 3).

Part-time and full-time employees are not only eligible for health care coverage, but also entitled to professional training; subsidized gym membership, job sharing, compressed work weeks, and some facilities offer on-site childcare. Starbucks is motivating their employees to go above and beyond; by offering benefits and training that has no specific link to their employees’ day to day activities. Because of Starbucks general interests in the basic needs of the employees, they are able to focus on their careers. In 2007, Starbucks received over 705,000 applications for employment (CNN Money, 2008, p. 7). Not only are their motivational techniques working for their current employees, but is also getting the attention of people eager to join the company.

Last but not least we will take a look at the motivational techniques used at Google. A little less than a decade ago Google was an internet startup headquartered in a garage. Today, Google ranks number 241 on the Fortune 500 with a market value of over $143 million. Not only is Google making a splash in the Fortune 500, it is also ranked number one for the top 100 companies to work for in 2008. In 2007 Google received over 761,700 applications for employment. So what does Google have that is attracting and keeping employees? To sum it up in one word, culture.

Ask an employee what keeps them motivated and they say “it is the flexibility, financial securities of course, 99% of employees receive stock options and the opportunity to get things done” (CNN Money, 2008, p. 5). That is where the intrinsic and

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