Wheelworks free essay sample

Case Study: Wheelworks Case Study: Wheelworks Principle of Management After analyzing Wheelworks’ compensation and benefits structure, I have found that this organization meets every need demanded by its employees and motivates them in every level. When it comes to needs and motivations, there are two commonly used theories that explain each step. One of the most commonly used theories to explain the levels of needs and motivators is Maslows hierarchy of needs. The other commonly used theory when explaining levels of needs and motivations is Herzberg’s Two  Factor Theory. Maslows Hierarchy of Needs Starting at the bottom with physiological needs and moving upwards to safety, love/belongings, esteem, and eventually reaching self-actualization, Maslows hierarchy of needs is often shown as a five level pyramid. Wheelworks meet its employee’s first need, Physiological needs, just by paying them a salary. When Wheelworks pays its employees, it allows each employee to buy food, water, and pay for a shelter and clothing to maintain a constant body temperature. This first need on Maslows hierarchy of needs is essential and without it, humans would not be able to survive. Wheelworks meet Maslow second need, safety, by providing its employees with benefits such as health insurance, bonuses, and 401k plans. Because of the plans that Wheelworks offer its employees, areas such as financial security and health and well being are covered. Love and belongings, the third level of Maslows hierarchy of needs, is also covered by Wheelworks. Humans need to feel that they belong and are loved. Due to the positive atmosphere that Wheelworks offers, its employees feel loved and like they belong to the group. Due to this, Wheelworks also meets Maslow’s third need. The forth level of Maslows hierarchy of needs is esteem. Wheelworks also cover this level by recognizing its employees for its qualities. By recognizing each of its employee’s qualities, Wheelworks helps them build a stronger self-esteem and self-respect, covering the forth Maslows hierarchy of needs. The fifth nd last level of Maslows hierarchy of needs is self-actualization. This level of Maslows hierarchy of needs has been already reached by Wheelworks employees because of their love for the sport of cycling. Many of Wheelworks employees are highly educated and have better opportunities in other companies, but their love for cycling keeps them working at Wheelworks helping them reach Maslow’s need of self- actualization. Herzberg’s Two  Factor Theory Unlike Maslows five level hierarc hy of needs, Herzberg’s theory has only focuses in two factors. Herzberg believed that there is a two-step approach to understanding employee motivation and satisfaction. These two steps are the hygiene factors and the motivator factors. Hygiene factors consist of the need to for a business to avoid unpleasantness at work. † If these factors are considered inadequate by employees, then they can cause dissatisfaction with work  Ã¢â‚¬Å"(tutor2u. net). Wheelworks meet the hygiene factor by providing a good salary, pleasant work environment, and health and 401k plans. These factors are not taken in account when one measures satisfaction, but the absence of these will cause dissatisfaction. The motivator factor is based on an individuals need for personal growth. Wheelworks meet this factor by recognizing its employee’s qualities, challenging them, and giving them responsibilities. By doing this, Wheelworks employees stay motivated achieving above-average performance and effort. Number One Motivator Having a passion for the sport of cycling has become Wheelworks’ employees’ number one motivator. Many times, one would think that salary, health benefits, and good working conditions would rank high when it comes to job motivation, but without love of the work itself, all of these benefits would not be enough to motivate one’s employees. The main reason Wheelworks’ employees perform above-average and put an extra effort to do the job better is because their love for the sport of cycling. As long as Wheelworks provide its employees with the hygiene and motivator factors, its employees will stay motivated. Financial Rewards Even though that passion for the sport of cycling has become Wheelworks’ employees’ number one motivator, financial rewards also helps motivate them. One of the many ways that Wheelworks motivates its employees financially is by paying them the highest possible wage. By doing this, Wheelworks makes sure that its employees are well paid motivating them to stay within the company. Another method that Wheelworks uses to financially reward its employees is by offering vacation and sick pay, 401k, profit chairing, and health plan. By offering these benefits, Wheelworks ensures that its employees feel well taken care of resulting in a motivated staff. The last financial reward that Wheelworks uses to motivate its employees is giving them seasonal bonuses. Each bonus is subject to how good the company does during the season. Due to this, each employee is motivated to improve its performance which will eventually result in a bigger bonus. Commission One of the best strategies that Wheelworks has used to motivate its sale persons, but yet, maintain a superior customer services is giving seasonal bonuses instead of commission. Due to this strategy, Wheelworks customers receives a superior customer crevice and do not feel pressured to buy an expensive bike. This strategy also improves team work instead of having a constant competition among team members. Even though this strategy has worked greatly for Wheelworks, it could be improved. One way Wheelworks could improve its number of units sold is by giving a reward to the person that averages more units sold per hour in a week. For example, the person that averages the most units sold per week could choose one day to leave early and get paid for the whole day. Rewards like this one could significantly increase the number of units sold increasing the yearly revenue of Wheelworks. Works Cited (n. d. ). Retrieved April 10, 2010, from tutor2u. net: http://tutor2u. net/business/people/motivation_theory_herzberg. asp Janet A. Simons, D. B. (1987). Retrieved April 10, 2010, from honolulu. hawaii. edu: http://honolulu. hawaii. edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow. htm W. Griffin, R. (2007). Management. Houghton Mifflin. Wheelworks_part1. (n. d. ). Retrieved April 10, 2010, from