Management Theories of Myer

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Simple article: Myer Holdings Limited 2011, Annual Report 2010/2011, Melbourne.

As the largest department store chain in Australia, Myer runs its business in Australia more than 100 years, it has 60 stores all over Australia, and Myer is trying to maintain a leading position in the retail trade; a number of management strategies are applied. In order to know how Myer’s managers maintain the performance of Myer, this essay will focus on analyst the important characters of management theories that Myer will use in their management system in the future, including the area of motivation, managing in a global environment and managing information.

Motivation
Motivation can be defined as psychological forces that determine the direction of a person’s behaviour in an organisation, a person’s level of effort, and a person’s level of persistence in the face of obstacles (Waddell 2007, p227). T motivation of employees has a huge impact on the performance of the organisation, so to keep the employees in a high level of motivation will be a good strategy for an organisation to be more effective. In the annual report of Myer, it pointed out the wage and other benefits for store team members were increased, the contribution and commitment of Myer team members were recognised. This agreement can be identified as the extrinsically motivated behaviour, which is performed to acquire material and social rewards (Waddell 2007, p228). The more contribution team members make the more benefits they will get: wage hike, promotion and other rewards. Needs theories: A good manager should know what team members’ needs are. The Maslow’s five basic needs will help managers understand the needs of their members. Waddel et al. (p.230) argues that the Maslow’s hierarchy of needs is from lowest level to the highest level. As mentioned before, Myer increased the wage in the past years, so the physiological needs for its members should be satisfied with that. Furthermore, the report also mentioned they were continued to improve the safety performance for their employees (Myer 2011, p11). To make the members know that they are in a safe job position will makes the members in a good working condition. Mayer also focused on its members’ belongingness need and esteem needs, in the past year, there was a program called Store Management Development Program which helped build competency among high-potential team members who aspire to leadership position at Myer (Myer 2011, p22). Social interaction, communication skills and leadership training were included. At last, the members also can satisfy their self-actualisation at Myer by achieving the opportunities that Myer offered to them. On the other hand, in the annual report, Myer did not point out how they build the healthy competition among the members. Equity theory: The definition of this theory is concentrates on people’s perceptions of the fairness of their work outcome relative to, or in proportion to, their work inputs (Waddell 2007, p239). The more you pay, the more you gain; this proverb also works on Myer. The increase in wage and other benefits is not for all members, only for those members who made contributions to the organisation or had a performance improvement, the money the earned should be equate to value they created. To keep the member in high motivation, Myer has a series of reward and punishment policies to make their members in an equate system. Learning theories: Managers also need to focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviours and the attainment of goals (Waddell 2007, p227). There are two main theories under the learning theories, which are reinforcement theory and social learning theory. According to Waddell (2007, p245), reinforcement means ‘people learn to perform behaviours that lead to desired consequences and learn not to perform behaviours that lead undesired consequences.’...
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