Improving Staff Performance

Motivational theories can be classified in two categories: content theories and process theories. Content theories revolve around the identification of inward needs e.g. Maslow’s Hierarchy of needs theory, whereas process theories revolve primarily around why people behave as they do; incorporating such factors as perception and learning (Mescon et.al., 1985). In other words, content theories focus on personal needs that workers aim to satisfy. In contrast, process theories focus on how different variables can combine to influence the amount of effort put forth by employees (Mensah, 2009). Basically, content theories deal with “what” motivates people and it is concerned with individual needs and goals while process theories deal with the “process” of motivation and is concerned with “how” motivation occurs. Common process theories include the Vroom expectancy theory, the Adam’s equity theory, and Locke’s goal setting theory (Romero, 2011). However, for this discussion, I have chosen to outline the Adam’s Equity theory

The Equity Theory was developed by John Stacey Adams in 1963 (Mind Tools, 2011). Equity theory assumes that one important cognitive process involves people looking around and observing what effort other people are putting into their work and what rewards follow them. This social comparison process is driven by the concern for fairness and equity. Research by Adams (1965) and others confirms equity theory as one of the most useful frameworks for understanding work motivation.

Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, tolerance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition, and so on) as shown in Figure 1 below.

 Figure 1: Diagrammatic representation of Adam’s Equity Model

        Source: www.businessballs.com/adamsequitytheory.pdf

According to the theory, finding this fair balance serves to ensure a strong and productive relationship is achieved with the employee, with the overall result being contented, motivated employees

Google Incorporated is a technology company focused on providing web search and advertising. It was ranked by Fortune magazine as the best place in the U.S. to work in 2009, and it has reached another zenith by becoming the most popular Web site. The company offers a brand portfolio of web-based products and services, which are classified into six categories: Google.com, applications, client, Google GEO, Google Mobile and Android, Google Checkout, and Google labs. Google is one of the premier internet brands in the world. The company is ranked among the top brands worldwide. The company generates 97% of revenue from its advertising (Datamonitor, 2009).

At Google Incorporated, innovation and creativity keeps their projects changing and improving. Their consistency comes from their staff who are popularly referred to as ‘Googlers’ – smart, amazing people who foster an environment of collaboration and fun (Google, 2011a).

 Figure 2: A section of staff at Google Incorporated

Source:http://www.google.com/intl/en/jobs/index.html 

In order to maintain the services and contribution of its staff, Google  Incorporated rewards staff in order to keep them motivated in the job they do.This was summed up by Eric Schmidt, Executive Chairman of Google when he commented that:

The goal is to strip away everything that gets in our employees’ way. We provide a standard package of fringe benefits, but on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses – just about anything a hardworking employee might want. Let’s face it: programmers want to program, they don’t want to do their laundry. So we make it easy for them to do both (Google, 2011b).

 Some of the ways they motivate staff are as follows

EAP – Employee Assistance Program: Services for employees and their dependents include free short-term counseling, legal consultations, financial counseling, child care referrals, pet care referrals, and more (Google, 2011b).

Life and AD&D Insurance: Automatic coverage at 2 times annual salary (Google, 2011b).

Short Term and Long Term Disability: Short Term Disability Insurance coverage provided at approximately 100% of take-home pay. Long Term Disability coverage provided at 60% of salary once Short Term Disability is exhausted (Google, 2011b).

Google 401(k) Plan: Employees may contribute up to 60% and receive a Google match of up to the greatest of (a) 100% of their contribution up to $3,000 or (b) 50% of their contribution up to $8,250 per year with no vesting schedule! Google offers a variety of investment options to choose from through Vanguard, their 401(k) Plan Administrator. To help employees with those tough investment decisions, employees can access Financial Engines to receive personalized investment advice (Google, 2011b).

529 College Savings Plan: This plan provides employees with a way to save money for post-secondary education (Google, 2011b).

Holidays: 12 paid holidays (sick days taken as necessary) (Google, 2011b).

Take-Out Benefit: To help make things easier, new moms and dads are able to expense up to $500 for take-out meals during the first 3 months that they are home with their new baby (Google, 2011b).

Employee Referral Program: Good people know other good people. Google’s best employees have been hired through referrals. Google encourages its staff to recommend candidates for opportunities and awards them a bonus if their referral accepts the offer. Google pays out these bonuses a month after the referral starts at Google (Google, 2011b).

Gift Matching Program: Google matches contributions of up to $12,000 per year from eligible employees to approved non-profit organizations. Bolstering employee contributions to worthy causes with matching gifts does not just mean helping hundreds of organisations, both locally and globally; it is also a tangible expression (Google, 2011b).

Food: Google offers out free lunch and dinner – their gourmet chefs create a wide variety of healthy and delicious meals every day. Google also offers snacks to help satisfy staff in between meals (Google, 2011b).

Financial Planning Classes: Google provides objective and conflict-free financial education classes. The courses are comprehensive and cover a variety of financial topics (Google, 2011b).

In my opinion, I think it is in recognition of the Equity theory that Google ensures that, the inputs of its employees are always in a fair balance with the outputs through the provision of attractive salary packages and an equal environment for staff to use their own innovative ideas in addition to the training that they have received to ensure that, the business continues to thrive.

Other On-Site Services: At Google headquarters in Mountain View, there is an on-site oil change and car wash services, dry cleaning, massage therapy, gym, hair stylist, fitness classes and bike repair (Google, 2011b).

For example in order to ensure that the inputs of all staff are fairly balanced with the output (rewards) various motivation variables have been put in place for equal access by all members of staff. Google by rewarding employees with perks like onsite swimming pools, allowing employees to bring their pets to work, providing onsite child care, and all the free food employees want, as outlined above, ensure that employees stay motivated to perform their job. One way of maintaining Google, Inc.’s culture and keeping employees happy is administering the best perks and rewards.  Along with its compensation and traditional extrinsic benefits such as free health and dental benefits, flex spending accounts, 401K plans, insurance, tuition reimbursement, and vacation packages, they also have very unique benefits. These unique benefits include maternity benefits up to 18 weeks off at approximately 100% pay.

Equity is again evidenced in the institution as hierarchy levels are kept to the barest minimum to allow employees use their own creative and innovative ideas, in addition to the training they have received to help achieve the overall goal of the organisation. This provides a relaxed environment where group thinking is elevated and teamwork is central to invent the next product that could change the next generation. The organisation also provides individually-tailored compensation packages that can be comprised of competitive salary, bonus, and equity components, along with the opportunity to earn further financial bonuses and rewards.

The fascinating aspect of Google as an organisation can therefore be mentioned as being their intrinsic rewards and how it allows employees to operate with freedom and respect, allowing them control of their own time, and empowering them to have a united common goal, which is to invent products and ideas that will change the world for good. At Google, every employee has something important to say, and that makes every employee an integral part of their success.

Google is proud to be an equal opportunity workplace and is an affirmative action employer (Google, 2011c) that benefits from the Equity Theory by ensuring that the inputs of is staff such as their skill, commitment, loyalty, enthusiasm and personal sacrifices and the output of the organisation which include financial rewards (benefits, salaries and perks) and intangibles such as job security, sense of achievement and recognition are in a fair balance.

Much like the five levels of needs determined by Maslow and the two factors of motivation as classified by Herzberg (intrinsic and extrinsic), the Adams' Equity Theory of motivation states that positive outcomes and high levels of motivation can be expected only when employees perceive their treatment to be fair. An employee's perception of this may include many factors as outlined above with the example of Google Incorporated. The idea behind Adams' Equity Theory is to strike a healthy balance, with outputs on one side of the scale; inputs on the other – both weighing in a way that seems reasonably equal.

If the balance lies too far in favour of the employer, some employees may work to bring balance between inputs and outputs on their own, by asking for more compensation or recognition. Others will be demotivated, and still others will seek alternative employment (Mind Tools, 2011). 

REFERENCES

Adams, J.S. (1965) ‘Inequity in social exchange’, Adv. Exp. Soc. Psycho, 62, pp.335-343.

Datamonitor (2009) Google, Inc. Available at: http://datamonitor.com (Accessed: 14 October 2011)

Google (2011a). Let’s work together. Available at: http://www.google.com/intl/en/jobs/index.html (Accessed: 14 October 2011)  

Google(2011b).Benefits.Availableat:http://www.google.com/intl/en/jobs/lifeatgoogle/benefits/index.html (Accessed: 14 October 2011)

Google(2011c)LifeatGoogle.Available at:http://www.google.com/intl/en/jobs/lifeatgoogle/index.html (Accessed: 15 October 2011)

Mensah, R. (2009). Motivation theories. Available at: http://www.slideshare.net/rely/motivation-presentation-713825 (Accessed: 20 October 2011)

Mescon, M.H., Albert, M., and Khedouri, F. (1985) Management. New York:

Harper and Row.

Mind Tools (2011). Adams’ Equity Theory Balancing Employee Inputs and Outputs. Available at:http://www.mindtools.com/pages/article/newLDR_96.htm  (Accessed: 15 October 2011)

Romero, J.L (2011) Process Theories of  Motivation. Available at:

http://www.skills2lead.com/process-theories-of-motivation.html (Accessed: 15 October 2011)

www.businessballs.com/adamsequitytheory.pdf (Accessed: 15 October 2011)