Book Report: Management Structures and Company Size

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[. . .] The theory further made a proposal that Extrinsic and Intrinsic Factors are interdependent (Fauziah, Shen and Talha, 2013). Having Extrinsic Factors around will guard against dissatisfaction but no job satisfaction will be achieved by having them. Supplying Intrinsic Factors cultivates inner development and growth among employees and this will lead to an increased performance and productivity. Their absence is neutral and will neither dissatisfy nor satisfy employees. Extrinsic Factors allow employees to work while the Intrinsic Factors influence the quality of the work done. The two factors do not oppose one another (Fauziah, Shen and Talha, 2013).


Herzberg theorized that two sets of factors decided the working attitudes and performance levels of employees, i.e. Motivation and Hygiene Factors (Fauziah, Shen and Talha, 2013). Organizations would have to deal with the fact that meeting the hygiene or extrinsic factors shall only guard against dissatisfaction but will not contribute towards improved performance (Fauziah, Shen and Talha, 2013). For organizations to motivate their employees, they ought to channel their energies at giving intrinsic factors. Failure to give extrinsic factors will increase employee dissatisfaction (Fauziah, Shen and Talha, 2013).

The Weaknesses of the Theory

The theory seems to have many criticisms. Some are: (a) the theory seems to be limited by the critical incident method; (b) there is confusion as regards events that cause satisfaction/dissatisfaction feelings and the event triggers; (c) data could be unreliable due to employee's ego or defensiveness; (d) sources of dissatisfaction and satisfaction overlap; (e) the factors' weight vary with the employee's occupational level; and (f) it does not pay attention to the differences that exist between individual employees (Stello, 2010).

The Strength of the theory

The Two-Factors Theory is based on the job satisfaction of employees. Job satisfaction is how much employees like the jobs they do (Fauziah, Shen and Talha, 2013). It has been noted to positively impact the performance of organizations and the commitment of employees (Levy, 2003). Given the definition of job satisfaction, assumption can be made that if employees were to place higher value on extrinsic factors then those factors will positively affect job satisfaction instead of just guarding against dissatisfaction or having neural effects (Fauziah, Shen and Talha, 2013).

Implication of Maslow and Herzberg

Herzberg wrote an article to lay out his theory's practical implications (Stello, 2010). In the article, he asserted the difference that exists between management through motivation and "kick in the pants" (KITA) management (Stello, 2010). KITA management still does emphasize on hygiene factors which do not have long-term effects; while the other option, management through motivation, emphasizes tapping into the employees' potential and to giving them opportunities to derive great satisfaction from the jobs they do and so attaining long-term effects. This was one of his articles that proposed job enrichment (Stello, 2010).

Maslow's hierarchy is a structured way of looking at employees' needs at any particular time in their career and gives an explanation to the varied reactions that employees might have to the same treatment (Saylor, 2011). Employees seeking to meet esteem needs and those seeking to meet social needs may react differently to the same praise given by a superior as earlier illustrated (Saylor, 2011).

Implication and Evaluation of Maslow's Hierarchy of Needs: Wal-Mart Case Study

Wal-Mart should clarify the reasons why they are opposed to unionization. Their public affairs strategy should also take care of the negative feelings that some groups harbor as Wal-Mart is encroaching into several other retail sectors than is necessary. Maslow Hierarchy of Needs can be applied by Wal-Mart here (Hayden et al., n.d.).

Implication and Evaluation of Hezberg's Two-Factor Theory: Wal-Mart Case Study

Hezberg made the argument that having rewards increased shall only give the employees temporary motivation. Their "batteries should be recharged" once they are demotivated again - with another raise. "Installing a generator" seems to be the best option here since they will have the capacity to recharge the batteries on their own (ACCA, 2013). In Wal-Mart's case, the retailer has been facing criticisms over their position against unionization. The company should explain why they are taking such a stance so that their employees do not get demotivated as a result of feeling unappreciated by their employer (Hayden et al., n.d.).

Evaluation of the Effectiveness of the Implemented Motivational Theories

One function of leadership is having the ability to make people do certain things in a manner that positively impacts the vision of the organization and this can be achieved by influencing the attitudes of people (Nwagbara, 2010). This is almost the same as a leader having instilled in his/her subordinates a sense of shared motivation and vision. This also brings forth motivation among the people in a way that results in leadership by consent instead of coercion (Nwagbara, 2010).


While the public affairs strategy of Wal-Mart works quite well with the corporate strategy, a few recommendations could improve its standing. The retailer has received wide criticisms concerning their position against unionism of their workers. These need to be addressed so as to instill in their employees a sense of appreciation as well as belonging. This will not only improve productivity but will also enhance its image among the general population. Wal-Mart must pay attention to these issues if it is to continue enjoying the success it has been having (Hayden et al., n.d.).


Ultimately, depending on the intensity and direction of forces being exerted by different environmental factors and the decisions managers make, the work that an organization commits to shall be targeted at meeting its goals (Tran and Tian, 2013). This is the reason why studying the factors that influence organizational structure is a way of bettering organizational effects on various firms (Tran and Tian, 2013).

Wal-Mart should consider the feelings and needs of its employees before taking such a hard stance as outrightly opposing unionization. When employees feel that they are not appreciated or valued at their place of work, performance dips. Wal-Mart should help its employees meet the need for esteem. Also, unionization will give the employees a sense of belonging and meeting these intrinsic needs will not only help Wal-Mart improve the productivity of their employees, but their image will also be enhanced in the eyes of the public.


ACCA, (2013). Reward Schemes. Relevant To ACCA Qualification Paper P5, pp.3-12.

Buble, M., Juras, A. And Mati?, I. (2014). The Relationship between Managers' Leadership Styles And Motivation. Management, 19(1), pp.161-193.

College of the Redwoods, (2010).Maslow's Hierarchy.pp.1-4.

Fauziah, W., Shen, T. And Talha, M. (2013).Herzberg's Two Factors Theory on Work Motivation: Does Its Work for Today's Environment?.Global Journal of Commerce & Management Perspective, 2(5), pp.18-22.

Hayden, P., Lee, S., McMahon, K. And Pereira, M. (n.d.). A Case Study on Wal-Mart Stores Inc. Wal-Mart: Staying on Top of the Fortune 500, pp.2-23.

Nwagbara, U. (2010). Leadership, Tesco and Leahy's Resignation. Managing Organizational Change, 8(2), pp.1-5.

Saylor, (2011).Motivating Employees. Management Principles.

Stello, C. (2010). Herzberg's Two-Factor… [END OF PREVIEW]

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