Internal Marketing - Motivating personnel leads to higher company performance

Essay by 427214420University, Bachelor'sB-, December 2008

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IntroductionThe purpose of this report is to discuss and evaluate the supposition: "Motivating personnel leads to higher company performance' which would be associated with the concept of internal marketing and developed by comparing individual goals and organization goals.

For a successful organization, there are many essential features, while one of them is they have to motivate employees, so as to induce them to provide quality service and product to the customers, since motivating employee has related so much on that for getting higher company performance.

The remainder of this report will be divided into four sections: the Literature review for definitions and supportive materials, key issue and discussion for the supposition, application to hospitality and the conclusion.

Literature Review1 Motivation1.1 What is motivation?Geen (1995) has stated, "motivation refers to the initiation, direction, intensity and persistence of human behaviour". According to Organization Behaviour (2007), motivation is "the cognitive decision-making process through which goal-directed behaviour is initiated, energized, directed and maintained.

There are lots of motivation theories, while those are generally divided as 1) content theory such as Maslow's needs hierarchy; and 2) process theory such as equity theory and expectancy theory.

These theories help us to find out how to induce the human behaviour from the initiation of the human itself.

1.2 Personnel motivation affect company performanceGummesson (2000) summarized "An employee's ability to influence and satisfy the needs of others inside the organization is considered an antecedent to external customer satisfaction. Only if internal customer relationships work can the quality of the outcome be excellent, thus creating satisfied, or even better, delighted external customers". It addressed that the employees have the ability to influence and satisfy the customer needs. In addition, Pinda(1998) has also stated that "motivating human factors that can influence productivity are the abilities and efforts of the...