#3: Key to Motivation Management during Organizational Turnaround

January 17th, 2023 [No. 104 – 2023]

Norihiko Takeuchi
Professor,
Graduate School of Business and Finance, 
Waseda University, Japan

#3: Key to Motivation Management during Organizational Turnaround

In the previous article in this series, I dealt with the case of the President (Mr. Hoshino) of Hoshino Resort regarding the turnaround of his ryokan (Japanese-style inn). The case illustrates the key points of effective motivation management during organizational turnaround. In particular, I believe that the keys in this case were (1) shared sense of organizational direction and beliefs   and (2) *employee participation.

(1) Shared sense of organizational direction and beliefs

When considering employee motivation, whether or not employees are able to direct their own actions is extremely important. Let us recall the mechanisms of human motivation. An individual becomes highly motivated only when employees experience the three phases of NEEDs (or desire), DRIVE, and BEHAVIOR. Again, motivation is the internal process by which a person’s desire (to do something) leads to actual behavior through activating one’s drive (the behavioral choice of “what to do”). 

Before the revitalization of the former Izumi Ryokan, the employees’ desire to please customers was generally high, but they were still unable to come up with a specific strategy for how to satisfy customers. In other words, the transition from “needs (desire)” to “drive (choice of action)” was a stumbling block. Mr. Hoshino supported them in this very area by creating a concept. He clarified the overwhelmingly satisfying target (elderly women) and attempted to create a shared sense of organizational direction and beliefs by generating “empathy” from the employees.

There is a motivation theory called “goal-setting theory.” This theory explains people’s motivation by focusing on the nature of the goals they set. According to this theory, people are motivated when two conditions are met: (a) the goal is specific and clear, and (b) the goal involves a certain level of difficulty. Regarding a goal ‎specificity and clarity, it can be pointed out that in the ryokan case, the target (customer) was clarified through the establishment of a specific concept (goal), which enabled each employee to share a common organizational direction as to where he or she should move forward on his or her own.

As for a goal difficulty, Mr. Hoshino was able to ensure a certain level of difficulty by taking the stance that he would “support” the creation of the ryokan concept and let each site think about the actual operations after the concept was set. In other words, if Mr. Hoshino prepares all the customer services and on-site service delivery methods in line with the concept of a “Multi-occasion Hot Spring Ryokan for Mature Women,” the on-site staff will simply be executors. Certainly, it may be possible to improve services quickly and evenly by controlling them with manuals, etc., but on the other hand, it may create a sense of monotony and a sense of being forced to do things onsite. By adding a cushion of “thinking” onsite, it can be said that a certain level of difficulty in achieving goals (i.e., concept actualization) is ensured, and employee engagement is drawn out.

*(2) “employee participation” will be introduced in the next AOTS-HRM & IR News No.105.