BACHELOR THEISIS. Human Resource Management and its alignment to the strategy of a Company. Alexander Litvinov. Unicorn College

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1 BACHELOR THEISIS Human Resource Management and its alignment to the strategy of a Company Alexander Litvinov Unicorn College Prague 2012

2 Zadání 2

3 Abstract This thesis addresses the problem of Human Resource Management and its alignment to the strategy of a Company. First, the theoretical background of human research management is explained. This section includes the historical development of HR, corporate cultures, motivation as well as strategic management principles. The second part of this thesis focuses on the analysis of a chosen company Tesco stores ČR plc. The company is firstly introduced and then analyzed with the main focus on the employees of the company and the HR department. Mainly qualitative analysis is used to gather the needed final information and conclusions are consequently made from that. The overall goal of the thesis is to show how Tesco stands as an employer. Key words: Human Resources, management, strategic management, employee treatment, motivation, corporate culture, Tesco Abstrakt Tato bakalářská práce se zabývá problematikou oddělení lidských zdrojů ve společnosti a jeho zařazením do celkové firemní strategie. Nejdříve jsou představeny a vysvětleny teoretické poznatky ohledně práce s lidskými zdroji. Tato část obsahuje historický vývoj řízení lidských zdrojů, firemní kultury, motivace a také principy strategického managementu. Druhá část práce obsahuje analýzu vybrané společnosti Tesco stores ČR. Společnost je nejdříve představena a pak analyzována s hlavním zaměřením na zaměstnance společnosti a oddělení lidských zdrojů. K získání potřebných informací je použita převážně kvalitativní analýza a z daných dat jsou následně vyvozeny závěry. Celkový cíl práce je zobrazit jak si Tesco stojí jako zaměstnavatel. Klíčová slova: Lidské zdroje, management, strategický management, přístup k zaměstnancům, motivace, firemní kultura, Tesco 3

4 Declaration of authorship I hereby declare that I have written this bachelor thesis on my own and that all used resources are listed and proper references are made. Signature 4

5 Acknowledgment I would like to express my gratitude to Mr. Jerome Dumetz for the help, patience and guidance provided during the creation of this thesis. 5

6 Table of contents Table of contents Introduction Human Resource Management theoretical background History of Human Resource Management New HR Management Corporate Culture in connection to HR Types of Corporate Culture The P.A.E.I. Theory HR Motivation and Stimulation Strategy Optimum working conditions and motivation Motivation and satisfaction Motivation and stimulation Maslow's theory of Needs Theory X and Y Organization s strategy and the alignment of HR Structural units of strategic management Strategy implementation Strategic management and HR Specifics of HR to better serve the employees The Pilot Study. Application of knowledge in a chosen company Tesco Stores ČR plc Company History The Present situation Awards Trends in the consumer market Tesco as an employer Employer's reputation Corporate Social Responsibility Cooperation with universities Acquisition, selection and recruitment Compensation and employee benefits Training and Development Industrial relations and communications Care for employees Questionnaire for employees of Tesco Conclusions References

7 1. Introduction The main focus of this thesis is Human Resource management with the specific focus on how the HR department works and how it is involved in the activities of the rest of the company as well as the care for its customers. The whole concept of the thesis is the analysis of a chosen company based on the previously gained theoretical knowledge. The goal is to show if the chosen company has well-developed HR management consistent with its goals and strategies. The first part of the thesis describes the theoretical background of Human Resource management in general. The mentioned theory will later serve as background information for the consequently conducted analysis of the chosen company. It starts with a historical overview of human resource management along with its development all the way to the modern world. The most important steps of the HR management evolution are depicted in this section. The following part focuses on different corporate cultures, what they mean and how exactly they are related to HR. This includes the responsibilities of the HR manager related to the corporate culture of a company. Then, a slightly larger part is devoted to motivation. It includes the optimum motivation conditions and how motivation itself influences the employees satisfaction and performance. Specific theories about motivation at work also have their place in this section. Motivation is included in the theoretical part of this thesis because it is generally one of the HR manager s duties to look after the employees of the company, specifically their job satisfaction. The next part of the theoretical research consists of the features, structural units and other factors included in strategic management. First, these elements are fully described because each company has its set strategy and goals, and then a connection is made between the strategic management of the company and its HR department. The second half of the thesis contains research information. The chosen company for this research is Tesco. This company was chosen because it is one of the larges companies on the market and it has a long tradition, so we can assume that the desired information will be available and easy to find. We can also assume, that since it is such a large company, The HR management should have some structure and should be more evolved compared to other companies. I find the company interesting since it seems like it has been very successful and I would like to find out how the employees are treated in such a large company. I also know some people who work for Tesco so that will also help me with the information gathering process. The chosen hypotheses for the purposes of this thesis is as follows: 1. Tesco has a well-developed Human Resource management system with great emphasis on the satisfaction of the employee. 2. Tesco implements Human Resource goals into their overall business strategy. The research will either confirm or reject the above-mentioned hypotheses. The information for the research was gathered mainly from the Tesco Intranet, which is a special 7

8 kind of location containing (not only) important information for the employees and is not publicly available, and also from different company web pages. The second part of the research is conducted by a questionnaire completed by the personnel of Tesco. The research is conducted by qualitative research of both internal and external materials of the company as well as discussions with the employees. The information is then analyzed and processes to suit the needs of this thesis. The outcome of the research is organized in chapters in the second main part of this thesis. 8

9 2. Human Resource Management theoretical background This part of the thesis will focus on the main aspects of the theoretical background for Human Resource management. The historical development will be mentioned as well as the so-called New HR management. 1. History of Human Resource Management The roots of Human Recourse management go deep into the history of human society. Even the first representatives of humanity, being united into gentile communities solved many problems every day, using their own, very limited physical and intelligent resources. They faced questions of labor division, work motivation and discipline. There are many examples of people management even in the Bible just remember Moses, who decided (with God s help) to solve the problems of organization, distribution and motivation, during the Israelites transition from Egypt to the Promised Land. 1 During the Middle Ages, only small numbers of people had to be managed (probably the only exception was the military) for many years and even centuries, and they were mainly performing the same operations over and over throughout the whole time. Personal management is one of the activities of the head of an organization, most often the owner, who makes the decisions concerning his employees, based on common sense and experience. Despite the outward plainness of the middle ages, it provides us with interesting examples of planning and development of a professional career (west workshops with its internal hierarchy designed in detail along with the criteria for promotion within the framework), stimulation of work (the first plans of participation of wage-workers in profits), and vocational education (craft schools, apprenticeship system). The Industrial Revolution between 1750 and 1850 changed the character of economic organizations - factories in conjunction with work in large numbers of people replaced workshops. The character of work changed too - in place of skilled trade handicrafts-man came the mechanical content and structure, meaning less work for the proletarians. The increase of economical organizations and the strengthening of discontent because of work conditions, progressively forced the leaders of organizations to employ professionals working exclusively in close relations with the workers. They were called Secretaries of the well-being in England, Social Secretaries in U.S. and France. They organized the workers in schools and hospitals and they also monitored the working conditions. 2 1 Bratton John, Gold Jeffrey. Human resource management: theory and practice. 2nd Edition. London, 2001, ISBN: , p Brunstein Ingrid. Human Resource Management in western Europe. Institut d Administration des Enterprises, University Robert Schuman, Strasbourg, France, ISBN: , p. 66 9

10 Substantial changes in Human Resource Management occurred later in the industrialized countries, in the 20-30s of the 20 th century. Three important factors determined the changes - the appearance and spread of scientific work organizations, the development of the union movement and active government interventions in the relationships of workers and employers. 3 The theory of the scientific organization of work or more precisely scientific management has its basis in the early 20 th century in the work of Frederick Taylor (USA). It was subsequently developed by many scientists and has later formed the quiet revolution in managing organizations in general and human resources in particular. The theory of scientific management maintained that there were only two methods of management and organization of work for all companies, the universal and the optimal, which allowed increases in productivity. The development of these methods is supposedly based on the use of science (mathematics, physics, psychology) and experimental works. While propagating the ideas of scientific management, representatives of a new profession appeared in many plants engineers, who were engaged in the studying and optimization of working methods. 4 The development of machine production united the masses of workers in the industry and made their work mechanical and monotonous. It contributed to the rapid growth of trade unions in all industrial countries. By the beginning of the 30s of the 20 th century, the collision of collective agreements between unions and employers had become a common practice in all industrial countries. Much more complicated relationships with unionized employees demanded the creation of special positions of directors or administrators in many organizations. The employees in such functions negotiated with trade unions, analyzed their claims, and represented the interests of the organization in judicial processes if needed. The sharp social stratification in the society of the industrialized world during the first decades of the 20 th century was accompanied by an increasing influence of social and communist parties, as well as radical trade unions, which made the government to be more active in the regulation of the relations between workers and employers. This government intervention led to the creation of national systems for social insurance, unemployment compensation, minimum wage, control and reduction of working hours. As a result, the organizations began creating special departments that were dealing with the compliance monitoring of labor laws and also engaged in interactions with public authorities. They are usually called the Human Resource department. 3 In the 50s and 60s, the industrialized countries were swept by another wave of legislative - a more complicated regulation of labor relations. The new laws were directed 3 Bratton John, Gold Jeffrey. Human resource management: theory and practice. 2nd Edition. London, 2001, ISBN: , p.6 4 Sison S. Perfecto. Personnel and Human Resources Management. 2nd edition. Date Printed October, 2000, ISBN: , p

11 against all forms of discrimination in the workplace, the social guarantees for workers were increased, and safety standards of the working environment were developed and established. The specialized departments of human resource management, developed in the 20s and 30s of the 20 th century, has been playing a subordinate role for many years now, performing mostly routine work connected with the conduct of documents, analyses of conflicts, representation of employees in courts, salaries, etc. Their functions were treated as purely technical support of management. All decisions related to people management were taken by the leaders, without the participation of personnel officers. 5 During the Second World War, the HR departments of industrial enterprises (especially in the U.S. and UK) were given the task to recruit and train hundreds of thousands of new employees of all professions and send them into the army as soon as possible. This problem was successfully solved and since then the issues of selection and training became the most important activity of the human resource departments. During the war, as well as later on, the development in the early performance management consisted mainly of the development of optimal working methods and planning of the number of workers on the basis of economic indicators (value produced per unit of production, profit). At the end of 20s, the American scientists E. Mayo and F. Roezlizberger proposed the concept of human relations management, saying that the productivity depends not only on the methods of the organizations, but on how managers are implementing them on human rather than mechanical factors. David McGregor published the book The Human Side of the Enterprise in 1960, in which he criticized the basic assumptions of the scientific management theory. 5 McGregor stated that the propounded detailed procedures and rules, pervasive division of labor and the concentration of decision making functions on the upper floors of the organization are killing creativity, limiting the independence of workers and their development, and creating antagonism between the workers and their supervisors, which negatively affects their performance. McGregor s work and other theories of management had a significant influence on management practices and preparation of future leaders. In the 60s and 70s, American business schools expanded their programs by including the disciplines concerned with human resource management: industrial psychology, organization behavior, and the board staff. As a result, leaders who recognized the need and importance of Human Resource Management joined the society. 6 5 Douglas McGregor, Joel Cutcher-Gershenfeld. The human side of enterprise. The McGraw/Hill Companies, Inc ISBN: Bratton John, Gold Jeffrey. Human resource management: theory and practice. 2nd Edition. London, 2001, ISBN: , p.7 11

12 2. New HR Management The principles of management in today s world are human factors, knowledge of the subject of business management, the ability to organize own work and the work of a team, interests, self-development and other creative activities. The central figure in professional management the manager has to be able to see the prospect of case developments, who can quickly assess the real situation and find the optimal solution to achieve set goals. In this regard, the manager must have certain professional and personal qualities, such as: high competency, flexibility, ability to take risks, aggressiveness and the ability to implement plans, simply to be a team leader. 7 Managers nowadays are required to have many practical skills and even more skills connected to social relations. HR managers need all that, but they don t work on concrete business projects and the things like. Their goal is to have skilled and content employees working for the company. So, they arrange trainings of all kinds and hire suitable people for the company, among other things previously mentioned. This area is constantly developing. 3. Corporate Culture in connection to HR Corporate culture means the way things are done within a company. This refers to anything from the main goals and visions of the company, overall morale in the work place, the ways offices are set up (closed or open space) or how meeting are organized all the way to dress codes. The corporate culture defines the company from the inside as well as the outside. 8 Corporate culture is a very important aspect of every company because it affects mainly the employees how they feel at work. Companies with a strict hierarchical structure where people are just placed into tiny offices or cubicles with strictly set rules about how they should do everything and have no say whatsoever usually have a very poor (in relation to human resource management) corporate culture. The corporate culture is simply made up of strict rules and obligations with no personal freedom. Many companies used to have structures like this in the past. Nowadays it is more common for organizations to give their employees more freedom more casual dress code so they would be more comfortable, added value to their opinions and suggestions or some other benefits. So, corporate culture defines how the employees work as well as how they feel about it. 9 7 Brunstein Ingrid. Human Resource Management in western Europe. Institut d Administration des Enterprises, University Robert Schuman, Strasbourg, France, ISBN: , p Nikolai Ivanovich Driakhlov. Корпоративная культура: проблемы и тенденции развития в мире и в России (Corporate culture: problems and development trends in the World and in Russia). Nauka, 2011, ISBN: Kotter John, Corporate Culture and Performance, Free Press, 1992, ISBN-10:

13 So, what exactly is the relation to HR management? HR managers, more or less, take care of the company s employees and it is (not only) their job to make them feel valued. HR managers are also the ones who introduce the corporate culture to the new employees they tell them how things are generally done within the company (most often already at job interviews). When a new employee comes to the company, his first contact is usually with the HR department from where he/she is introduced further on to the company. Any new employee needs to know how things work in the company and the general structure of work, so it is primarily up to the HR manager to inform the new employees about all this relevant information before they start work. Modern HR provides a huge amount of tools, models and methods that can be used in its business. So how does a manager choose the right one that is suitable for this company, at its given stage of development, including which people? As a possible starting point, I propose to have a look at the corporate culture of the organization. 10 Consultants, managers, staff, basically anyone joining a new company has previous work experience in one or two other organizations, so everyone the work according to their experience. This often leads to misunderstanding. For example, like this: The company, whose main business was to distribute food, and whose leadership body had a clear position regarding the main aim (attracting customers and profits), had a new personnel director, who previously worked for an IT company, which was adopted to the entrepreneurial organizational culture. She started the work from what was habitual for her and what she thought most relevant: staff training systems, evaluation and collection of innovations. Two months later, the management body and the personnel director had several conflicts. The management body demanded results and blamed the HR director for unnecessary waste of time and resources. The HR manager, in turn, accused the management body for its shortsightedness. As a result, the personnel director left and said that she would never work in any distributional business again. The company's management became skeptical about HR managers in general. Numerous similar situations happened in many companies. We can see from the example above, that the newly hired employee was not properly introduced to how things were done around the company, i.e. the corporate culture, hence it serves as an example of how important it really is Kotter John, Corporate Culture and Performance, Free Press, 1992, ISBN-10: Nikolai Ivanovich Driakhlov. Корпоративная культура: проблемы и тенденции развития в мире и в России (Corporate culture: problems and development trends in the World and in Russia). Nauka, 2011, ISBN: , p

14 3.1. Types of Corporate Culture While carrying out of the literary research considering this thesis, I have found several sources about already existing types of corporate cultures. Let me present some of them. 12 The main focus of the family-clan s personnel management department is on the adaptation of procedures and processes, which will help develop and maintain the corporate values. That means the aid in the transmission of values and the introduction of new employees into the community and its own values, as well as continuing with the activities and communication networks all the time to support the corporate culture. In a Bureaucratic organizational culture, the focus should be placed mainly on motivational systems, learning and adapting procedures of management. This organizational culture can be called the big car where the main focus is to work with the machine where it is necessary to study the instructions. In addition, because of the lack of accent on personal relationships, opportunities for rapid career growth and the focus on fast results often occur. Some material incentive system for staff is prepared to guarantee high performance in these companies. In Adhocracy organizational cultures, Human Resources are mainly devoted to the direction of training and encouraging innovation. Since the staff is very democratic and selfmotivated, they require a dynamic feedback, opportunities for self-realization and resources for further development. All the rest, these employees do for themselves. Of course, the selection of such personnel requires considerable effort; to select the right employees is always a difficult task for any culture. These people attract the best of the best in the company themselves through communication and demonstration of results achieved in the market. Personnel Department of the organizational culture of the market will focus on procedures for recruitment, mainly because the percentage of turnover in these companies is very high. The incentive system, with emphasis on results and competition between employees has to be managed. 12 Kim S. Cameron, Robert E. Quinn. Diagnosting and Changing Organizational Culture. PB Printing, 2006, ISBN: , p

15 Table : The procedure specifics of personnel department Family-clan Hierarchical Market Adhocracy Management of All of the standards according to the Labor Code. So no matter what kind of Personnel Records organizational culture, every HR manager needs to know the laws and regulations of personnel documents Focus on compliance with The emphasis on qualifications, The emphasis on stress tolerance, Focus on creative problem solving, Recruiting corporate values relevant results orientation learning, the tendency to ("like us") professional level and a desire to achieve results self-sufficiency in the conquest and initiatives Transmission of Transfer processes, Lack of adaptation Training and Adaptation values, the integration in collective integration into the processes of the department, of the company or general information about the product (the employee is taken on the basis development from the first day, the transfer of information on resources, which can take advantage of the of swim out / drown) new employee Not systematic if System process, Not systematically, System training, the necessary whose main the main objective - system self-learning and Education objective - the Quickly improved knowledge transfer effective operation results of process in the system Most often missing, as The main result - the creation of a As a rule, it is not. Main assessment - The main result of the assessment - qualitative Appreciation assessed personnel reserve. is the achievement feedback and objectively close The process is very of results development plans of people not systematic and staff possible bureaucratic Missing or System of The main focus - The system of motivation emphasize motivation combine the result, but not and promotion is very involvement of the answers to the on how to achieve it flexible System of staff in general questions: how the motivation and result brigade particular employee encourage payment, the and what the result, partnership if the necessary procedures 15

16 Corporate Culture The basic question Focus on The desire to Missing or contains Focus on autonomy, selfdevelopment, maintaining corporate values "humanize" the machine, clearlywritten politics of missions and slogans elements of competing fight continuous learning Who is with us? How to do? What is gained? How to do better? (source: Jeffrey A. Sonnenfeld, Andrew Ward. Firing back: how great leaders rebound after career disasters. [Russian translated: Возвращение в бизнес]. Moskva, Vershina, ISBN: , p. 125) As can be seem above, there are many approaches to personnel management and motivation within an organization and its corporate culture, as well as different combinations of them in order to suit the needs of the corporation better. It is up to the company management to decide which way they will choose to manage their personnel resources. It is also important to remember that the HR fulfills the task of making the company more efficient. So, in case it is decided that a new position or process will be developed, the specifics of how it should look like and what the main focus will be, should be figured out in advance. In consequence, it is suggested to build in accordance with the type of the organizational culture of the company. Of course, companies with a "clean" type of an organizational culture do not exist, even though some dominating bright characteristics of such occur in most The P.A.E.I. Theory The " P.A.E.I. Theory" by Ichak Adizes is very popular nowadays. According to this theory, there are four types of factors that make up the ideal manager. 13 Table : Adizes s PAEI model Factor P - Producer Factor A - Administrating Factor E - Enterpreneuring Factor I Integrator Factor A - Administrator. The manager is a man of instructions and rules. He makes the company more rational and manageable. It would be most effective in a hierarchical organizational culture. Factor P - Producer. The manager is a man of action. He takes an idea and not only embodies it into life, but also can make money on it. His weakness is the inability to delegate and that is why he is very tired himself. In this market culture, everyone is competing to achieve results and customer satisfaction

17 Factor E Entrepreneur (generator of ideas). The manager is a fountain full of ideas from the morning until late at night, and they can fundamentally contradict each other, be real, expensive, and crazy. But out of hundreds, some of these ideas make the company a monopoly on the market for spoiled consumers. Generators of ideas make the company efficient in the long run. It is easily recognized as an entrepreneurial organizational culture. Factor I - integrator. The manager makes the organization rational in the long run. He unites people, showing that the final results depend on the contribution of each and everyone s work when they aim at a single target. The principles of family and clan cultures are present here. A manager in whom all the above mentioned factors would be present does not exist - this is an example of an ideal manager. Top managers should have three factors, on average, or at least two. Only some managers can work in three cultures at the same time, the majority manages two. But all should be able to function well in at least one. I will not stop at details of the theory of Ichak Adizes, but it is important to understand that every company or department will dominate in one or another previously mentioned field. Ideally, the company's management team can be balanced and have all the factors at least present. Still, one will always dominate and affect most of the company's strategy. Therefore, it needs to be taken into consideration that the HR department will implement its procedures in the given environment for its employees. 14 The way managers behave also shapes the corporate culture because it directly influences the employees in their work. Ideally, managers should be consistent with the overall company structure, but every manager is comfortable with their own management style, thus shaping the overall corporate culture and bending it a little. Of course, the basic principles and corporate plans and visions are kept throughout the company, but different departments may sometimes work differently only because they have different managers. All this contributes to the forming of the whole corporate culture of an organization. 4. HR Motivation and Stimulation Strategy Motivation is one of the essential parts of personnel management. Generally, motivated workers work better meaning that their performance is larger than the one of nonmotivated workers (e.g. in production, motivated workers produce more). It is also connected to the mood of the worker if a worker feels bad in the working environment, his/her performance and productivity will not be as good as it should be. 15 So, what is this motivation exactly? 14 Ichak Adizes. Managing corporate lifecycles: how to get to and stay at the top. Library of Congree Cataloging. ISBN: , p Herzberg Frederick, The Motivation to Work, Transaction Publishers 1993, ISBN-10: X 17

18 Motivation is any inner reason, which stimulates human behavior. It means that any person, according to his personal reasons and motivation, will act in a special way as long as he has to until the desired goal is reached. To understand this behavior and the manners of any person, it is needed to have at least some knowledge of the motives. It is the one possible method to success. Motivation is a set of internal driving forces of a person, which make focused in a certain direction, activating and maintaining the resulting activity. Outwardly, these forces are manifested in the form of motivated behavior (motivated activity). 16 Armstrong (2010 p. 219) says that: "Motivation relates to factors that influence people to behave in a certain way. Furthermore, it is possible to present the three components mentioned by Arnold like an addition to this theme (2001), which are: "direction - that a person attempts to make an effort - with what diligence and endurance he attempts to reach his aim - how long he tries to do it." There is a working relationship between motivation and performance levels that is very important for the purposes of corporate governance. The awareness of the need of motivation in order to increase employee job performance has been constantly growing, but still we cannot forget about other factors that affect the performance and support good working conditions. These factors are: sufficient knowledge; competent skills; availability of equipment of adequate quality; good materials; comfortable organization of work. By the way, nothing is forever, and any kind of growth or a long-term function eventually looses its attraction and the employees loose their motivation at a certain level. According to the Yerkes-Dodson s theory, when you have crossed this hypothetical level, the resulting level of motivation begins to decline. However, the achievement of this level of excessive motivation, or even higher, is possible. There are several reasons when that happens: in certain situations, when a person is trying to do everything for the success; in certain areas, which that certain person especially dislikes or puts excessive attention to; in a short period of time with a short-term reset. As some typical examples, we can present: a difficult test at school, an important job interview, a high-level sporting events, etc. Unfortunately, the staff at work needs to be 16 PAUKNEROVÁ, Daniela. Psychologie pro ekonomy a manažery, 2 edit. Praha: Grada, 2006, 254 s. ISBN: , p

19 permanently motivated. It means that what was said above is relevant for most cases, but not for cases with employment Optimum working conditions and motivation There are no doubts about the fact that better staff motivation results in better working performance of the staff. 18 Let us now focus on some other conditions that affect the performance level of workers. The subjective factors that affect performance along with motivation are the following: individual abilities; personal skills; knowledge; general qualifications. Workers generally need to be qualified to do their jobs and have the proper skill to perform the tasks, otherwise the job will not get done and the worker will only get frustrated, and thus unmotivated, at work. And also the following objective factors increase performance: organization of work; level of the used technology; the working environment. The above-mentioned specifics refer to the working conditions workers will generally work better if they feel like the conditions and the environment they work in are suitable. 19 Another important thing to remember is, that it is impossible to just claim that "the greater the motivation, the higher the performance", because there is no proportional relationship between motivation and the resulting activity. There are cases, when performance does not increase, but conversely decreases, because of the fact that the level of motivation is too high, above the optimum value. Such cases are also called cases without motivation. So, it can happen that the low level of performance is a result of very high (too high) motivation. As we can see above, the level of motivation needs to be just right the workers need to be motivated and supported, but there is such a thing as too much motivation, which, in 17 PROVAZNIK, Vladimir, KOMARKOVA, Růžena. Motivace pracovního jednání. 2. přeprac. vyd., Praha : Oeconomica, 2004, ISBN: X, 128 s GCONDITIONS.htm 19

20 fact, demotivates the workforce, they may start to feel incompetent or inferior if the managers push too hard and become annoying. So, we can say, that the performance level of any activity, of any person, depends on the levels of motivation, employee skills and on working conditions Motivation and satisfaction There is a term that describes the feelings and expressions of people about their profession, job or work. This term is "job satisfaction". Satisfaction towards work means that a person has favorable and positive attitudes. On the contrary, dissatisfaction with work means that the person has adverse and negative attitudes toward the job. 20 Job satisfaction is related to work motivation, although without a direct correlation, according to F. Herzberger. The absence of long-term job dissatisfaction is prerequisite for desirable work motivation. If a worker has motivation it does not automatically mean that he has satisfaction. 21 In other words, for a worker to be fully satisfied with his work, all of the motivation factors have to be fulfilled, as well as the non-motivational factors connected to the abilities and working environment, have to be fulfilled. Job satisfaction simply describes the overall feeling one has towards his/her job occupation Motivation and stimulation If managers require special activities from their subordinates and put it into context with their existing internal needs, it means that they rely on motivation. People will act in a way as long as it is in line with their actual motives and demands to reach their own goals without any influence, and all this is because of motivation. But to achieve this target, it is important to balance motivation with required special skills. It is not very easy to estimate the actual motives of people. If we bet on stimulation, we will be able to face absolutely different cases. Desirable human activity will be stopped as soon as people stop investing the necessary effort, time or company resources in the given activity. This is expected without any deflections. Managers have to make choices between motivation and stimulation according to their abilities, skills and the specific conditions sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0cc4qfjaa&url=http%3a%2f %2Fwww.webpages.uidaho.edu%2F~mbolin %2Ftella2.pdf&ei=fWuZT7SoJcaQswbX8JSDAg&usg=AFQjCNHEDpcdj2KuQb0Nj21ZTBND il2u2w&sig2=0mef5hbdepyeaurwk2gv3g 21 ARMSTRONG, Michael. Human Resource Management: The latest trends and practices. 10th edition. Prague: Grada Publishing, ISBN p PLAMINEK, George. Leadership, teams and companies: Atlas of Practical Management. Prague: Grada Publishing, ISBN X, p

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