Patagonia

Introduction This purpose of this paper is to determine from the case study called a passion for the Planet, about the company Patagonia what organisational behaviour theories the Patagonia Company are using and how effective they are. This paper will discuss and detail the theories of reinforcement, equity and social capital, while also discussing Mc Gregors theory and Herzberg’s theories of motivation and Hygienes. This discussion will also try to determine if what Patagonia is doing is actually working, and if other companies could learn from Patagonia on how to effectively put into place a structure to make their working environment more effective. The findings of this paper will be backed up by references from the case study, books, and websites. Patagonia is a company with an organisational culture that strongly encourages social and environmental responsibility. It stresses the significance of people pursuing their individual passions. Patagonia capitalises on its unique business strategy of letting its employees pursue their different interests and lifestyles to enhance life experiences and to make work more fun. According to Pierce, Gardner & Dunham (2002 p 43) ‘Environmental consciousness and activism pervades the company’s culture but transcends the impact of materials and processes used in product manufacturing’. In business today one must be highly competitive and by having highly motivated employees it can provide the competitive edge against ones rivals. Reinforcement theory of motivation according to Malott, Trojan (2008) is based on the idea that human behaviour can be shaped through a system of reward focused on reinforcing desirable behaviour. Until now, there have been two key approaches to keeping employees at the top of their game. At the high-stress workplace, bosses rule by fear, kicking ass and taking names. At feel-good places, managers try to motivate employees with kind words and generous benefits. According to Koontz, Weihrich (2007 p 297) ‘an individual’s behaviour is a function of its consequences. It is based on “law of effect”, individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated’. Reinforcement is the attempt to elicit a desirable behaviour through the introduction of a pleasant aspect of work this is called positive reinforcement, if a person does a good job, he or she should be given a reward praise, bonus, etc. immediately, not weeks later. Reinforcement not only provides feedback about the desired behaviour, it also helps to sustain motivation. Patagonia has a work culture that thrives on positive reinforcement either through staff annual bonuses or gives employees the chance to take two months off with full pay and allow them to go work with an environmental group. Patagonia offers benefits to support employees in both their work and personal lives. Insurance premiums are paid for both full and part time employees, and since 1985 it has run a childcare facility at its headquarters. After one year of employment Patagonia covers up to 60 days worth of an employee’s salary. Patagonia employees work on flex time. Employees are encouraged to use their lunch hours to surf, cycle, or take company-offered yoga and Pilates classes. Patagonia’s approach to its employee’s motivation is very consistent with the equity theory. Pierce, Gardner & Dunham (2002 p 239) states that human motivation is affected by the outcomes people receive for their inputs, compared to the outcomes and inputs of other people’. Employees at Patagonia work hard equity theory thus helps explain why pay and conditions alone do not determine motivation, equity theory is entrenched at Patagonia employees are loyal, hard working, committed to the company, have determination, enthusiasm, trust in their boss superiors and have the skill, ability and are adaptable effort, flexible, tolerant, and heart and soul. The outputs according to www.buzzle.com are that Patagonia employees receive ‘financial rewards (salary, benefits, perks,) recognition reputation, responsibility, sense of achievement, praise, job security and advancement within the company’. According to Adams, Berkowitz & Hatfield (1976) ‘When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation. The way that people measure this sense of fairness is at the heart of Equity Theory’. Krietner Kiniki (2008 p 221) ‘Equity theory says that it is not the actual reward that motivates, but the perception, and the perception is based not on the reward in itself, but in comparison with the efforts that went into getting it, and the rewards and efforts of others’. According to Pride Hughes Kapoor (2009 p 247) ‘Benefits are nonfinancial forms of compensation provided to employees, such as pension plans, health insurance, life insurance, sick-leave pay, vacation pay, credit unions, health programs, and child care. Such benefits increase employee security and, to a certain extent, morale and motivation’. Patagonia’s employees are committed to their work and the company. Even though the work can be demanding it allows the employees to be creative and collaborate between each other which achieve results for the company. Employees at Patagonia value their work and the responsibilities that go along with their day to day activities. People who work for Patagonia do so because they have a passion for the planet and believe in the products that the company makes and sells. According to Krietner, Kiniki (2008 p8) Mc Gregors theory y is a modern and positive set of assumptions about people.’ Mc Gregor believed that people could be creative, responsible, committed and self energized in their workplace environment and by people doing this it could accomplish more. Patagonia also uses Herzberg’s theory of motivation, Herzberg, Mausner, & Snyderman, (1959) defined motivation as achievement, recognition, responsibility, promotion and the work itself. Patagonia also uses Herzbergs Hygiene factors which are pay and benefits, company policy and administration relationships with co-workers, supervision, status, job security, working conditions and personal life. According to Konopaske, Ivancevich (2004 P 183) A reward system includes everything an employee values and desires that an employer is able and willing to offer in exchange for employee time, effort, and contributions reward systems can be either financial or non - financial. Patagonia’s employees are not working for the pay they are working for other rewards that Patagonia offers them. Mc Shane Glinow (2010 p132) motivation are the forces within a person that affects the direction, intensity and persistence of voluntary behaviour. Patagonia values their employees and it‘s relationships with each other this is what gives Patagonia their social capital. According to Johns, Saks (2008 p237) ‘Group cohesiveness is a critical property of groups, cohesive groups lead to effective goal accomplishment’. They treat their employees with respect and are highly appreciated for the job they do. This kind of treatment increases an employee’s motivation. By Patagonia doing this employee’s will become very loyal to the company. Patagonia understands what their employees’ passions are so they give them the chance to explore their passions by giving the employee’s a reward of taking off up two months at full pay or even support them to whenever they studying. This kind of experience and treatment from Patagonia has resulted in Patagonia building a strong social capital. In today’s business world it seems managers of companies still believe that Mc Gregor’s x theory is more realistic than his y theory. Mc Gregors x theory states that people dislike work and must be threatened or punished before they will work and they tend to avoid responsibility and are not ambitious they only believe in job security. However Patagonia can prove that it is possible for Mc Gregor’s y theory to become a reality and you can have employees that are creative, committed, responsible and happy to work hard without the need to be threatened or directed on what to do. However there is one of Mc Gregor’s x factor at Patagonia and that is that Patagonia has no hesitation in firing an employee if they are not pulling their weight. In conclusion this paper has discussed and detailed theories of reinforcement, equity and social capital, while also discussing Mc Gregors y and x theory and Herzberg’s theories of motivation and Hygienes. It can be seen from this paper that Patagonia is a workplace that uses the theories like reinforcement and equity along with Mc Gregor’s y theory. It can be seen these theories are very effective at Patagonia. It can also be determined that employees of Patagonia love their jobs and are there because their jobs give them enormous satisfaction and not there just for the money. This has been backed up with references from books, websites and the case study. References Adams S J Berkowitz L Hatfield E 1976 Equity theory toward a general theory of social interaction. Academic press Inc New York Business Week OB in Action Case Study A passion for the planet Herzberg, F. Mausner, B. & Snyderman, B. B.1959. The Motivation to Work (2nd ed.). New York: John Wiley & Sons. Johns G Saks A M 2008 Organizational Behaviour seventh edition Understanding and managing life at work Pearson prentice Hall Toronto Koontz H, H Weihrich 2007 Essentials Of Management, An International Perspective, 7th Edition, Tata McGraw Hill publishing company limited New Dehli Konopaske R Ivancevich J M 2004 Global management and organisational behaviour text, readings, cases and exercises McGraw Hill Irwin New York Krietner R Kiniki A 2008 Organizational Behavior eighth edition McGraw Hill Irwin New York Malott R W, & Trojan E A (2008) Principles of Behavior, 6th Edition. Prentice Hall Publication Mc Shane S L Von Glinow M A 2010 Organizational Behaviour fifth edition emerging knowledge and practice for the real world McGraw Hill Irwin New York Pierce J L Gardner D G & Dunham R B 2002 Management organizational behaviour An integrated Perspective. South Western USA Pride W M Hughes R J J R Kapoor 2009 Business Cengage learning Australia Equity Theory and Employee Motivation www.buzzle.com/editorials/6-24-2006-100325.asp - Cached - Similar Viewed 3/9/2010