Group 11 principles of management

On carrying out the research, we are determined to look into Steve Jobs’ motivational speeches that applied some levels of Maslow’s hierarchy of needs.. Motivation Theories − Maslow’s H

Ha Noi - 6/2020

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TABLE OF CONTENTS

INTRODUCTION 1

I About Steve Jobs and Apple Inc 2

1 Steve Jobs 2

2 Apple Inc 2

II Literature Review on Motivation 4

1 Definition 4

2 Types of Motivation 4

3 Importance of Motivation 5

4 Motivation Theories 6

III Analysis on Steve Jobs’ Motivation Method 14

1 Steve Jobs refers to Vision 14

2 The content in his employee’s sayings is Inspiration 15

3 He prefers using high stake metaphors 17

4 There is always an enemy in Steve Jobs’ stories 19

5 Steve Jobs is a “Theory X” person 20

6 Steve Jobs’ Strong and endless belief 21

IV Recommendations for Other Managers 22

CONCLUSION 25

REFERENCES 26

1

INTRODUCTION

Leadership plays the most prominent role in the acquisition of organizational success An organization without a leader is like a ship without a captain, for he is the one guiding the sails, steering the helm and dropping the anchor Steve Jobs, in the prime of his career, was

a man with a vision turned into actions, the man extracting the best and presenting a victorious picture that crowns all

Steve Jobs cofounded Apple in his parents’ garage, was ousted, came back to its rescue from near bankruptcy and had built it into the world’s most valuable company by the time

he died Therefore, we chose Steve Jobs as the subject of our research, especially his traits

as a successful leader In particular, analysis of his motivation methods and techniques will

be carried out and recommendations for him as well as other managers will also be put forward

On carrying out the research, we are determined to look into Steve Jobs’ motivational speeches that applied some levels of Maslow’s hierarchy of needs All findings are based

on statistics from Apple’s annual report and real footage collected from Apple’s staff meetings and press interviews

Steve Jobs played a prominent role in the growth of Apple While Steve Wozniak was

a hobbyist who designed a computer board which was comparatively small and wanted to give this for free to all the hobbyists, Jobs thought he would sell those small awesome computers Jobs had a vision for a company that would do more than just create computers for the masses He had a thought of a company that would create technology for the world that would allow users to quickly get tasks done, and to do so with ease Later on, he was also largely responsible for helping revive Apple, which had been at the verge of bankruptcy in the 1990s

2 Apple Inc

Apple Inc is an American multinational technology company headquartered in Cupertino, California, which designs, develops, and sells consumer electronics, computer software, and online services It is considered one of the Big Four technology companies, alongside Amazon, Google, and Microsoft

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 Apple retail footprint has since expanded to 510 stores spanning 25 countries and regions, including 271 in the U.S and 239 combined in other countries Even though Apple the second most valuable brand in the world in 2017, it was not among the world’s largest companies in terms of staff As of 2019, the company’s number of employees stood at 137,000 thousand Other information technology companies, such as Samsung Electronics

or IBM, had employed a larger number of people However, the revenue per employee of Apple turned out to be the highest among leading technology companies

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Apple’s number of employees in the fiscal years 2005 to 2019 (in 1,000s)

In 2018, Apple announced its highest annual revenue to date with 265.6 billion U.S dollars generated in revenue About 218 billion U.S dollars of this was generated by sales

of the iPhone, meaning that the smart device was responsible for an average of around 82 percent of the company’s total global revenue Sales of the iPhone reached about 218 million units In 2018, a significant increase from the 150 million units that were sold in

2013 and the 40 million units sold in 2010 Apple also increased sales of the iPad, earning the company revenue of 4.1 billion U.S dollars The iPad contributed an average share of 6.5 percent to Apple’s total global revenue in the fourth quarter of 2018 Even though the global market share of the iPad has dropped since 2012, it still dominated the tablet market with a 31.4 percent share as of the third quarter of 2019

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Global revenue of Apple from 2004 to 2019 (in billion U.S dollars)

II Literature Review on Motivation

1 Definition

Motivation is the process by which a person’s efforts are energized, directed and

sustained towards attaining a goal

− Energy: The energy element is a measure of intensity, drive, and vigor A motivated

person puts forth effort and works hard

− Direction: the quality of the effort must be considered as well as its intensity Effort

must be directed toward, and consistent with organizational goals

− Persistence: motivation includes a persistence dimension Organization wants

employees to persist in putting forth effort to achieve those goals

2 Types of Motivation

Motivation is divided into 2 different theories known as intrinsic (internal or inherent) motivation and extrinsic (external) motivation

− Intrinsic motivation

o Intrinsic motivation has been studied since the early 1970s Intrinsic motivation

is a behavior that is driven by satisfying internal rewards It is an interest or

− Extrinsic motivation

Extrinsic motivation comes from influences outside of the individual Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior, and the threat of punishment following misbehavior Competition is an extrinsic motivator because it encourages the performer to win and to beat others, not simply to enjoy the intrinsic rewards of the activity Advantages of extrinsic motivators are that they easily promote motivation to work and persist to goal completion Rewards are tangible and beneficial A disadvantage for extrinsic motivators relative to internal is that work does not persist long once external rewards are removed

3 Importance of Motivation

− To Individuals: Motivation will help him achieve his personal goals, job

satisfaction, self-development Motivated employees can lead to increased productivity and allow an organization to achieve higher levels of output

o Increased employee commitment: When employees are motivated to work, they

will generally put their best effort in the tasks that are assigned to them

o Improved employee satisfaction: Employee satisfaction is important for every

company because this can lead towards a positive growth for the company and lower turnover rates

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o Ongoing employee development: Motivation can facilitate a worker reaches

his/her personal goals and the self-development of an individual Once that worker meets some initial goals, they realize the clear link between efforts and results, which will further motivate them to continue at a high level

o Improved employee efficiency: For the company to get the very best results, an

employee needs to have a good balance between the ability to get the very best results, between the ability to perform the task given and willingness to want to perform the task

− Leads to stability of workforce: The employees can remain loyal to the enterprise

only when they have a feeling of participation in the management This will lead to

a good public image in the market which will attract competent and qualified people into a concern

4 Motivation Theories

− Maslow’s Hierarchy of Needs Theory

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow

in his 1943 paper "A Theory of Human Motivation" in Psychological Review Maslow created a classification system which reflected the universal needs of society as its base and then proceeding to more acquired emotions Maslow used the terms "physiological",

"safety", "belonging and love", "social needs" or "esteem", and "self-actualization" to describe the pattern through which human motivations generally move This means that in order for motivation to arise at the next stage, each stage must be satisfied within the individual themselves in order for an individual to complete their hierarchy

✓ Physiological needs: This foundation concept is the main physical requirement for

human survival This theory states that humans are compelled to fulfill these physiological needs first in order to pursue intrinsic satisfaction on a higher level Physiological needs include: Homeostasis, Reproduction, Food, Water, Sleep, Clothes, Shelter

✓ Safety and security needs: Once a person's physiological needs are relatively

satisfied, their safety needs take precedence and dominate behavior In the absence

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of physical safety, people may (re-)experience post-traumatic stress disorder or transgenerational trauma In the absence of economic safety, these safety needs manifest themselves in ways such as a preference for job security, grievance procedures for protecting the individual from savings accounts, insurance policies, etc This level includes: job security, health, and safe environments, personal security, employment, resources

✓ Love and belonging needs: After physiological and safety needs are fulfilled, the

third level of human needs are seen to be interpersonal and involves feelings of belongingness This level includes: Friendship, intimacy, family, series of connection

✓ Esteem needs: Esteem needs are ego needs or status needs People develop a concern

with getting recognition, status, importance, and respect from others Esteem presents the typical human desire to be accepted and valued by others People often engage in a profession or hobby to gain recognition These activities give the person

a sense of contribution or value This level includes: respect, self-esteem, status, recognition, strength, freedom

✓ Self-actualization: This level of need refers to the realization of one's full potential

Self-actualization can be described as a value-based system when discussing its role

in motivation Maslow describes this as the desire to accomplish everything that one can, to become the most that one can be

In addition, Maslow separated the five needs into higher and lower levels Physiological and safety needs were considered lower-order needs; social, esteem, and self-actualization needs were considered higher-order needs Lower-order needs are predominantly satisfied externally while higher-order needs are satisfied internally

− ERG Theory

ERG theory is a theory in psychology proposed by Clayton Alderfer Alderfer further developed Maslow’s hierarchy of needs by categorizing the hierarchy into his ERG theory

✓ Existence: The existence group is concerned with providing the basic material

existence requirements of humans Alderfer categorized the lower order needs (Physiological and Safety) into the Existence category

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✓ Relatedness: the desire people have for maintaining important interpersonal

relationships These social and status desires require interaction with others if they are to be satisfied He fits Maslow's interpersonal love and belonging needs into the Relatedness category

✓ Growth: an intrinsic desire for personal development The Growth category

contained the self-actualization and self-esteem needs of Maslow’s

Differences between Hierarchy of Needs and ERG Theory

✓ ERG suggests that people can be motivated by needs from more than one level at the same time There is not necessarily a progression from one level to the next, differs from Hierarchy of needs, Maslow stated that the lower level must be fulfilled for the next level to be satisfied

✓ ERG acknowledges that the importance of the needs varies for each person and as circumstances change Some people might put a higher value on growth than relationships at certain stages of their lives

✓ ERG has a “frustration-regression” element This means that if needs remain unsatisfied at one of the higher levels, the person will become frustrated, and go back to pursuing lower level needs again

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− 3 needs theory:

This theory, also known as Achievement Theory of Motivation or Acquired Needs, was developed by an American Psychologist - David McClelland in the 1960s This motivational theory states that the needs for achievement, power, and affiliation significantly influence the behavior of an individual, which is useful to understand from a managerial context

✓ Need for achievement:

The need for achievement depicts an urge to achieve something in what you do People who possess high achievement needs are people who always need to set and accomplish challenging goals They are willing to take calculated risks, work in a result-oriented environment and constantly receive feedback on their work Achievement-based individuals prefer to work alone and derive their satisfaction from working toward their goals

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✓ Need for power:

The need for power is the desire within a person to hold control and authority over another person and influence and change their decisions This need is expressed as enhancing their self-esteem and reputation as well as competition are the drives behind these people’s actions and they desire their views and ideas to be accepted and implemented People with such drive are suitable for leading positions, they are self-disciplined and expect the same from other people This motivational type is accompanied

by needs for personal prestige, and better personal status

✓ Need for affiliation:

The need for affiliation describes the need for interpersonal and social relationships with others or a particular set of people People with this motivation tend to favor collaboration over competition, they try to avoid risks and uncertainties They enjoy developing and maintaining relationships, and possess a strong desire to be accepted and loved

According to McClelland, every individual has these three types of motivational needs irrespective of their demography, culture or wealth Therefore, identifying and categorizing team members among three needs will provide a useful tool to better manage the team To apply this theory, two steps are required: (1) Identify drivers of motivation; (2) Structure the approach based on drivers

− 2 factor theory:

Herzberg’s Motivation Theory model goes by a number of different names, including Two Factor Theory, Herzberg’s Motivation-Hygiene Theory, and Dual Structure Theory, argues that there are two factors that an organization can adjust to influence motivation in the workplace

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In a general sense, there are four states an organization or team can find themselves

in when it comes to Two Factor Theory:

There is a two-step process to use the Two Factor Theory model to increase the motivation of your team: (1) Eliminate job hygiene stressors; (2) Boost job satisfaction by optimizing three techniques: job enrichment, job enlargement and employee empowerment