Outline
- Introduction
- Motivation and Organizational Behavior
- Problem
- Evaluation
- Goal of Analysis
- Hypothesis
- Recommendations and Solutions
- Conclusion
Introduction
Companies have to change and adapt to new environments, which is possible only with an appropriate culture. In this regard, organizational behavior, which refers to the performance and activities done by individuals in a company, is a critical element of success. The case study in question is titled “Career Development And Employee Motivation Initiatives at Chipotle” investigates the thriving culture built by the company’s management that facilitated fast expansion and growth of this business.
The distinct features of Chipotle’s culture are reflected in its hiring and promotion from within strategies, which will be further examined in the following paragraphs. This paper aims to investigate the Chipotle’s case study and review its implications using Maslow’s Hierarchy of Needs to provide recommendations for future operations.
Motivation and Organizational Behavior
Understanding motivation as a concept is the key to developing a successful company. In general, two types of motivation are identified – intrinsic and extrinsic, relating to internal and external factors. The first one is connected to personal satisfaction, while the second relates to the aim of avoiding punishment or earning a reward. In essence, the concept of motivation implies that a person’s behavior is facilitated by a specific factor or a set of factors, either internal or external.
This approach enables companies to develop practices that will make it possible to apply the best performance of their personnel. Its importance is reflected in need to ensure that employees hired for a specific task perform well, thus helping a business achieve its strategic objectives. It is evident that salary is not the only motivating factor that managers can use to empower their personnel. This is especially evident when individuals earn sufficient amounts that allow them to support themselves and their families.
In general, executives can use different strategies for enhancing the company’s operational activities and improving revenue. However, the current organizational theories emphasize the need to dedicate time and effort towards improving the environment of a firm. Landry et al. (2016) argue that prior research indicates a weak correlation between earned money and psychological happiness, which is an element that should be considered when establishing approaches for performance improvement. The authors use the self-determination theory to explain the process of satisfying the basic need for autonomy or competence that is another theory that applies to organizational behavior.
While receiving monetary compensation for work is essential, many researchers state that money does not serve as a sufficient motivational factor (Landry et al. 226). Therefore, companies will not see a significant improvement of employee productivity if they continuously increase their salaries. Instead, Landry et al. recommend focusing on the psychological needs of a person, for instance, ensuring that employees can work autonomously. The initial idea is that satisfying these needs and mitigating frustration can lead to an overall improvement in a person’s well-being, which will be reflected in the quality of one’s work.
The impact of motivation on employees is showcased in its ability to either improve or worsen the performance of an individual at a specific job. Nawangasari et al. argue that motivation plays a pivotal role both in social and work lives of a person (409). The authors state that it is crucial for executives to understand the impact of incentives on individual’s motivation. Also, the work environment affects performance, which is often overlooked by managers. Thus, the focus of a company should be on altering employees’ approaches to work on those that are more efficient. This can be achieved by providing correct incentives, which will be further reviewed using the example of Chipotle.
The theories of organizational behavior explain how individuals behave in the context of a specific company. Thus, understanding the implications of this and being able to leverage different concepts can help executives improve the efficiency of work. For instance, Quain explains that in accordance with the human relations theory, people show better results when they feel valued. This concept has been studied by scholars, and the findings suggest that more productive workplace environments are developed when individuals feel satisfaction from what they do. Therefore, managers can examine the organizations they work in and change specific elements of the environments to improve efficiency.
Problem
Firstly, it is necessary to examine the examples that showcase Chipotle’s organizational behavior. In 2014, major fast-food organizations such as McDonald’s and Burger King were suffering from a change in consumer demand and increasing prices for food (“Career Development and Employee Motivation” 2). Despite these uncertainties, Chipotle managed to increase its revenue and net income. Arguably, the culture of innovation and the exceptional internal environment of the organization contributed to this success because these elements determine the hiring and motivation practices, as well as approaches to sourcing and selling dishes.
Thus, the problem examined in this case is the organizational culture of Chipotle, which continues to contribute to the company’s market success. The significance of the problem is described in the case study since it is argued that culture is the core aspect of efficiency and innovation for any organization (“Career Development and Employee Motivation” 5). In Chipotle’s case, this culture allowed this business to build a loyal customer base that continued to but food from its restaurants even after a price increase. However, as the organization continues to expand and grow the unique culture and approach to preparing food will be tested. Therefore, the primary issue that Chipotle will have to address in the future is the balance between growth and ability to preserve its unique culture.
Evaluation
There are several components of organizational behavior and motivation that enable Chipotle’s success. In 2013 Chipotle had 45,340 employees while current numbers suggest indicating that the company employs 73,000, indicating that the strategy developed by the management is valuable and sustainable (“Career Development and Employee Motivation” 2; “Chipotle Mexican Grill”). It is stated in the case study that food and people culture were the center of attention for Chipotle since its establishment in 1993. The Food with Integrity mission is another example of Chipotle’s attention towards the product they sell. Additionally, one aspect of the culture at Chipotle’s is focused on performance and development. This is an essential strategy for employee management because it allows employees to perform different tasks and improve their professional skills and knowledge.
Promotion from within is characterized by hiring people for entry-level positions and developing then to promote further these individuals, instead of employing people outside the company. According to the case study, this strategy allows Chipotle to mitigate common issues such as high turnover and job satisfaction (“Career Development and Employee Motivation” 3). This is true even for entry-level positions that do not offer a high salary, presumably due to prospects of career advancement.
The illustration of this practice at Chipotle is the Restaurateur Program established in 2005. The idea behind this project is that any employee can become a restaurant manager with a high salary (“Career Development and Employee Motivation” 2). Hiring and development practices are crucial for adequate employee motivation. In this regard, Maslow’s Hierarchy of Needs will be reviewed in section 6 of this paper to provide evidence supporting Chipotle’s model.
Other key differences that distinguish Chipotle form its competitors are the open kitchen model, where visitors can see their food being cooked, and the fact that the company owns all of its restaurants. The focus on Mexican food of a high quality at prices compatible with other fast food offers is another competitive advantage of Chipotle (“Career Development and Employee Motivation” 3). The unique structure of the organization allows the management to control all hiring and motivation practices, which arguably contributed significantly to the success of this business.
Sourcing naturally raised meat and other products is another distinct feature of Chipotle’s culture that aims to enhance customer loyalty.
Goal of Analysis
The analysis of this case study aims to reveal the implications of having an adequate company culture that values employees and aims to grow by improving the competencies of these individuals. As was mentioned previously, the crisis in the fast-food industry affected many of Chipotle’s competitors. However, this company managed to remain profitable and improve its operations. It can be concluded that this organization managed to function for over twenty years without any significant concern, which is a result of its culture. According to Ellet, the aim of analyzing a case study is in establishing the conclusion that can be made from a company’s journey (27).
In the case of Chipotle, the objective is to provide recommendations to other organizations, based on the theory of organizational behavior, Maslow’s hierarchy of needs, and the actual outcomes of the company’s operations.
Hypothesis
It is evident that the success of Chipotle’s model is based on the engagement of employees and company culture, which allowed them to establish themselves in this highly competitive market of fast-casual food. Maslow’s Hierarchy of Needs is a well-known motivation theory according to which human’s behavioral motivation depends on a specific set of factors. For instance, at the first stage, an individual has to satisfy his or her need for psychological comfort (Griffin 145).
The pyramid developed by Maslow describes how the factors of human motivation change, with the final one being self-actualization. The idea behind this theory is that people have a specific set of needs, which is what they want to achieve at a particular stage (Griffin 146).
These requirements are arranged by Maslow based on their importance. While there are basic needs necessary for an individual to feel comfortable, the top of the pyramid accommodates what is known as growth needs. Those are sets of requirements that enable the growth and development of a person. From a managerial perspective, Maslow’s theory provides an understanding of the needs that have to be satisfied at a certain level in order to move to the next one. This provides several implications for reflection, the first one being that elements of intrinsic motivation that help an individual achieve a specific goal are likely to change over time. According to Griffin, “Maslow believed that each need level must be satisfied before the level above it can become important” (p. 175).
One example of an application that managers can use is an employee who wants to increase a sense of belonging. His or her performance can improve if it can help achieve the mentioned goal. The same approach can be applied to other elements of Maslow’s pyramid as well.
According to the theory, the goal of all individuals is to achieve the final level of the pyramid – self-actualization. This concept can be defined as a fulfillment of one’s potential and application of personal talents. The theory can help managers in the process of goal setting and designing jobs or their employees. In the case of Chipotle, the Restaurateur position, which can be achieved by any employee, is an excellent example of such an approach. This is a managerial job that requires sufficient knowledge and ability to manage and develop people. In this regard, having this position and allowing all employees to learn and develop to apply is vital because it can serve the self-actualization purpose.
Using the case of Chipotle, it can be argued that the company culture is tailored to reinforce excellent performance. Additionally, it allows an employee to satisfy each level of needs; for instance, at an entry-level job, a person can achieve safety through financial security. Next, Chipotle provides an opportunity to learn and develop, which, in essence, contributes to the self-actualization. The company culture, which is a string in regards to both employees and customers helps develop a sense of belonging. All in all, Chipotle’s approach to motivation contributes significantly to the satisfaction of needs defined by Maslow.
Recommendations and Solutions
In general, it is evident that Chipotle’s case is a success story, and their approach to motivating their employees can be employed by other companies. The adoption of performance-based culture at Chipotle helps satisfy the self-actualization needs of employees, encouraging them to learn and develop. However, as was mentioned above, in order to get to this level of the pyramid, all other aspects have to be satisfied as well. In this regard, the case study states that Chipotle offers salaries higher than in general on the fast-food market, even for employees with hourly wage (“Career Development and Employee Motivation” 2).
The positive image of the restaurant chain created by its food sourcing and cooking practices allow for good customer perception, and adequate internal culture allows satisfying the need for belonging. While self-esteem depends on an individual, Chipotle provides numerous opportunities for its employees, empowering them.
Therefore, the main recommendation for businesses is to pay close attention to the culture within an organization and ensuring that it is supported even with rapid growth and expansion. Chipotle was able to achieve this while having over 40,000 employees, and their success serves as proof that this model is valid (“Career Development and Employee Motivation” 2). Next, companies should focus on developing strategies for improvement that their employees can use as career advancement opportunities.
The organizational behavior theories and Maslow’s hierarchy of needs emphasize the importance of the workplace environment and its impact on the psychological well-being of a person. Therefore, this should be the main focus of executives who want to improve performance. The goal is to create an atmosphere of respect and ensure that employees feel valued. Additionally, this paper examined the need to have opportunities for promotion as part of the self-actualization process. Using this idea, companies can offer learning opportunities to individuals, which will improve their knowledge and skills and enable them to obtain a more advanced position with a higher salary within an organization.
Based on the examined facts, it can be concluded that other companies can also benefit from Chipotle’s understanding of the needs hierarchy by developing motivational strategies that help satisfy them. One of the critical aspects of this is culture, which creates a sense of belonging and should result in better productivity and loyalty. The case study provides many examples of programs established by Chipotle that reflect the values of this business. Additionally, companies should strive to develop strategies for skill and knowledge improvement that their employees can use to excel as professionals.
Conclusion
Overall, the case of Chipotle is an excellent illustration of proper organizational behavior. This paper reviewed the case study and investigated it using Maslow’s hierarchy of needs. Based on the theory and the success that was achieved by the fast-food restaurant in question in can be concluded that employers have to dedicate more attention towards developing appropriate culture and improving the competencies of their employees, in accordance with their needs at different levels. Chipotle’s model is based on the idea of on hiring people who already work for the company, and emphasizes the internal culture, fostering a respectful environment. This approach allows meeting the needs of employees, ensuring loyalty, and promoting the brand as an accountable organization from a customer’s perspective.
Works Cited
“Career Development and Employee Motivation Initiatives at Chipotle.” ICMR. Web.
“Chipotle Mexican Grill.” Forbes. Web.
Ellet, William. The Case Study Handbook. Harvard Business School Press, 2007.
Griffin, Ricky et al. Organizational Behavior. 12th ed., Cengage Learning, 2017.
Landry, Tibat et al. “Why Individuals Want Money is what Matters: Using Self-Determination Theory to Explain the Differential Relationship between Motives for Making Money and Employee Psychological Health.” Motivation and Emotion, vol. 40, no. 2, 2016, pp. 226-242.
Nawangasari, Sri et al. “Analysis of Effect of Incentives Work Environment, Motivation on Employee Performance (Case from State of Employee in Indonesia).” Social Sciences and Interdisciplinary Behavior, edited by Ford Lumban Gaol et al., CRC Press, 2015, pp. 409-411.
Quain, Sampson. “Behavioral Organizational Theories.” Chron. Web.