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business ethics and its influence on motivation...docx
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    1. Overview of theories of employee motivation

We are living in globalized world when business grow locally and expand abroad, as business organization the main task is searching for effective ways of managing its human capital, by providing activation of their human potential at maximum level.

The main factor of productivity of activities is motivation. To understand the motivation of the employees we have to dig deeper, in order to analyze motivation.

Motives - are that causes certain actions of the person, is in him, has personal character, depends on a set of external and internal factors, and also on action of others, motives arising in parallel with it. Motives are defined by the needs of the person which became on so much important to induce the person to work. 15The motive not only induces the person to action, but also defines that it is necessary to make and as this action, in particular will be carried out if the motive causes actions for elimination of requirement, at various people these actions can be absolutely excellent even if they feel identical need.

Motives can be internal and external. External motives represent aspiration of the person to have some the objects which aren't belonging to it or, on the contrary, to avoid such possession. Internal motives are connected with receiving satisfaction from the object which is already available for the person whom he wishes to keep, or with inconveniences which are brought to it by possession of such object and consequently, aspiration to get rid of it16. For example, interesting work brings to the person pleasure, and he is often ready to work almost for nothing; otherwise he agrees to everything if only to get rid of this work. Motives give in to understanding, the person can influence the motives, muffling their action or even eliminating them from the motivational set.

Motivation - is that forces people to work or the attribute that moves us to do or not to do something. 17Speaking differently is that forces them to put efforts and energy that they do. The positive motivation arises when to the person appeal, but it disappears when people are "forced" to obey to the requirement. By the nature and manifestation the motivation is especially individual for each person, and everything depends on "set" of circumstances at the moment.

According to the opinions of A.Smith and R.Owen money is one of the main factor of motivation, humans primarily economic creatures, who work only for receiving the means necessary for acquisition of food, clothes, the dwelling and so on.

Primary activity of the person is a work which occupies, at least, a third of adult independent life. A number of stages of labor human life takes earlier and late periods of his life (choice of profession, a labor and vocational education, transfer of labor experience in a family, use of the professional help of other people, etc.). Becomes obvious that work, and, therefore, and all questions with it connected are of great importance for any person and always are in an attention field.

The results reached by people in the course of work depend not only on knowledge, skills and abilities of these people. Effective activity is possible only in the presence at workers of the corresponding motivation that is desire to work. The positive motivation activates abilities of the person, releases his potential, the negative motivation slows down manifestation of abilities, interferes with achievement of the objectives of activity.

The motivation includes the internal state of the person called by requirement, and something out of it defined as incentive or a task. The behavior of the person is defined by requirement which dominates time at present.

Moreover, for better understanding the Business Ethics and it is direct impact on motivation of employees we have to analyze and make overview of motivation theories that exist nowadays.

According to the Maslow (pic1) theory physiological needs are fundamental for the person: they demand the satisfaction first of all. After satisfaction of physiological needs to the forefront there is a need for safety when the person seeks to protect himself from possible injuries, and also from adverse economic conditions or the menacing behavior of other people. The following requirement - need for spiritual proximity and love. The satisfaction demands it from the person of establishment of friendly relationship and definition of the place in group. The satisfaction of these requirements puts forward needs for respect and self-esteem. 18These requirements are often important for the person, he needs to feel own importance confirmed by recognition of people around. The hierarchy of needs of Maslow comes to the end with needs of the person to realize itself, to realize a stock of the forces, abilities into activity, to execute the mission.

(pic1)

As requirements at one level are partially satisfied, dominating are requirements of the following level. Thus it is important to mean that only those incentives which satisfy the dominating requirement are motivating. For example, the opinion is very widespread that a major factor of effective work is money: the more the person receives, the better he works. Such belief isn't true because if at the person the need for close relations or need for self-realization dominates, for example, he will prefer to money a place where will be able to satisfy this requirement.

Theory of motivation of David McClelland

With development of the economic relations and improvement of management the significant role in the theory of motivation is assigned to requirements of higher levels. The representative of this theory is David McClelland(pic2). According to his statement the structure of requirements of the highest level is reduced to three factors: to need for achievement, need for power, to affiliation. At such statement the success is regarded not as a praise or recognition from colleagues, and as personal achievements as a result of vigorous activity, as readiness to participate in adoption of difficult decisions and to bear for them personal responsibility. The aspiration to the power has to not only speak about ambition, but also show ability of the person successfully to work at different levels of management in the organizations, and aspiration to recognition - its ability to be the informal leader, to have own opinion and to be able to convince people around of its correctness.19

According to McClelland’s theory the people aspiring to the power have to satisfy this requirement and are able to do it at occupation the of positions in the organization.

It is possible to operate such requirements, preparing workers for transition on hierarchy to new positions by means of their certification, the direction on advanced training courses, etc. Such people have a wide range of communication and seek to expand it. Their heads have to promote it.

Two factor theory Frederick Herzberg

Pic2

This theory appeared in connection with the growing need to find out influence of material and non-material factors on motivation of the person. Frederick Herzberg created two-factorial model which shows satisfaction with work.

The first group of factors (hygienic factors) is connected with self-expression of the personality, her internal requirements. and also with environment in which work is carried out. The second group of factors of motivation is connected with character and essence of the work. The head has to remember need of generalization of substantial part of work here. 20

Hygienic factors of Frederick Herzberg, apparently, correspond to physiological requirements, need for safety and confidence in the future.

Difference in the considered theories the following: according to A. Maslow, after motivation the worker surely starts working better, according to Frederick Herzberg, the worker will only start working better after decides that the motivation is inadequate.

Thus, substantial theories of motivation are based on research of requirements and identification of the factors defining behavior of people.

The second approach to motivation is based on procedural theories. Here it is told about distribution of efforts of workers and a choice of a certain type of behavior for achievement of specific goals. The theory of expectations, or motivation model according to V. Vroom, the theory of justice and the theory or model belong to such theories.

Adam is equity theory

The theory of justice of J. Adams claims that the motivation of the person is influenced substantially by justice of an assessment of his current activity and its results as in comparison with the previous periods, and that the most important, with achievements of other people. If the person sees that him approach with the same measure, as the rest, he feels satisfied and will show activity and vice versa. Thus feeling of disappointment can arise even at the high absolute level of remuneration, and about low and it isn't necessary to speak. According to Adams, each subject always mentally estimates the relation: individual income ____________ income of other persons _______________________ = ________________________ individual expenses __________ expenses of other persons. 21

Thus in expenses join not only efforts of the person on performance of this work, but also its experience in the organizations, a skill level, age, the social status and so forth. The assessment of expenses and results is subjective, and subjectivity concerning other persons whom the person can judge only on the basis of guesses and sketchy information is especially high. If as a result of all estimates and comparisons the conclusion is drawn that violations aren't present, the motivating factors work normally; if they are found and furthermore become chronic, there are a demotivating of the personality, decrease in business activity therefore efficiency of work goes down. The person starts "restoring justice" in the way: requirements of salary increase, improvement of working conditions, promotion; uses of various illegal ways of increase in the income; regulations of personal productivity (speed and rationality of work); transition to other division or dismissal. At the same time, if overpay to people, mostly they aren't inclined to change the behavior. As estimates of this sort are very subjective, it is necessary to have the accurate criteria of remuneration which are based on exact researches and considering psychology of people that helps to soften collisions in case of a divergence of opinions. Besides, as practice of the advanced organizations shows, the positive role is played by opportunity openly to discuss the controversial issues connected with remuneration, an exception of any secrets concerning its size at each of employees, creation of favorable moral and psychological climate.

According to the Business ethics I formulate the main factors that push people make wrong decisions and how it could affect the motivation of employees.

Bribery: one the well knows action that is made, when someone offer very valuable to someone in order to get something from him, it directly could affect the morale of the employees, because they will lose the trust to the supervisors and will doubt their words in the future, and one of the important thing is that it could damage the reputation of the firm.

Moreover, The Globe coalition against corruption made annual research about international transparency, in order to determine corruption level in specific country. Kazakhstan unfortunately took 126 place out of 174 countries22, it means that our country still have problems with transparency. It is great deal, because such ethical problem has huge influence on motivation of employees.

Misconduct: it is something seen as unacceptable in business society, that is not allow to do, we have several examples of misconduct:

  • Excessive tardiness

  • Failure to notify of an absence

  • Insubordination

  • Rude or abusive language in the workplace

  • Dishonesty

  • Theft

Inequality at work: It is one of the important issues, cause employees always compare their inputs with others in organization and evaluate the outcomes that they receive, so if they will found that there is inequality in salary, it will decrease motivation level at work place.

We are living in globalized world, so that we have to be agile in order to compete with others, and those three main factors should not be the obstacle for ethical business in Kazakhstan and influence the motivation of employees.

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