Christian Friedrichs
An analysis how the Balanced Score Card approach could enhance the personal
contentedness considering the change in the society from a Work/Life balance to a multi-
duty-life of individuals in consulting companies in Germany
ISBN: 978-3-8428-1438-7
Herstellung: Diplomica® Verlag GmbH, Hamburg, 2011
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II
ABSTRACT
The book
An analysis how the Balanced Score Card approach could enhance
the personal contentedness considering the change in the society from a
'Work/Life balance' to a 'multi-duty-life' of individuals in consulting companies
in Germany
` is focusing on two major goals. First analyzing where current
tools have gaps in satisfying their employees and second what changes are
necessary to prepare tools of consultancies for the upcoming changes in
society.
The research part of the book follows the inductive research method. General
approaches will be used to define new tools based on results of a consultant
satisfaction survey and results of the Delphi 2017 study.
Objectives are the evaluation of current tools, the evaluation of the current
satisfaction level of employees, the comparison of the survey results and
future cultural changes with existing tools and the introduction of a
measurement approach using the Personal Balanced Scorecard to control the
success of used tools.
Six major gaps were identified within the survey; it is necessary to:
establish a more long term oriented development plan for the employee
incl. graduate education;
embed role plays in already existing trainings to reflect project
situations;
establish discussion rounds dependent of career level to allow
experience exchange;
define clear leadership behavior rules and support positive behavior;
provide more supporting leadership for individual agreements about
home office regulations;
establish a better support on the administrative side to disburden the
management.
Together with improvements in the above mentioned gaps, existing tools will
be able to fulfill new demands related to upcoming society changes. To close
the above gaps seven tools are introduced in the last part of the book.
III
ACKNOWLEDGEMENTS
At the beginning of this book I want to thank all the people who accompany
me until the end of it. First of all I want to thank my family who accepts the
absence that was needed to work on the book. Many of my own
responsibilities were taken over by others. Secondly, all supporting colleagues
and friends who opened the door to spread my survey invitation, Martin Kötter
and Tobias Wittebrock from Accenture, Martin Köhler from BCG, Katharina
Mosheim from Cap Gemini, Manja Seidel from Deloitte and Marc-Pascal
Gebhardt from PWC. Certainly all consultants who filled out the survey
contributed a big part to the book outcomes.
A special thank goes to Patrick Rademacher from the institute of journalism
and media research who helped me with the survey structure.
As soon as the first version is written the real fussy work starts. All persistent
lecturers deserve respect for the additional quality of the work. Marcia Kolb
and John Severson for the English review; Ulrike Stallbörger who covers the
English review after a short notice.
Even if the influence looks small, writing embedded in a learning group keeps
the needed drive to come closer to the goal. Thanks to Rainer Buzengeiger
and Johannes Wolff who joined the necessary break times in Mannheim.
Finally, I want to express my gratitude to Prof. Friedrich who guided me
through phases of structuring the book and preserve overview in
administrative barriers.
IV
TABLE OF CONTENTS
ABSTRACT ... II
ACKNOWLEDGEMENTS ... III
TABLE OF CONTENTS ... IV
LIST OF ABBREVIATIONS ... VII
LIST OF ILLUSTRATIONS ... VIII
1
INTRODUCTION ... 1
1.1
Introduction and background ... 1
1.2
Aims and objectives ... 2
1.3
Relationship with previous work ... 3
1.4
Methodology ... 4
2
THEORETICAL BACKGROUND ... 6
2.1
Motivation of employees ... 6
2.1.1
Definition ... 6
2.1.2
Theories about Motivation ... 11
2.1.3
Myths about motivation ... 17
2.1.4
Conclusion and consequences ... 21
2.2
"Classic" Balanced Scorecard Approach
... 23
2.2.1
Origin of the Balanced Scorecard ... 23
2.2.2
Elements of the Balanced Scorecard ... 26
2.3
Personal balanced scorecard approach ... 37
2.3.1
Description of the PBSC method ... 37
2.3.2
The four perspectives of PBSC ... 39
2.3.3
Alignment of PBSC with OBSC ... 42
2.4
PBSC as a Measurement Tool ... 44
2.4.1
Method to define PPM`s
... 44
2.4.2
Case study ... 47
3
CURRENT SITUATION ... 50
V
3.1
Situation in the consulting business ... 50
3.2
Used tools to support employees to improve their contentedness ... 51
3.2.1
Financial perspective ... 53
3.2.2
Individual perspective ... 57
3.2.3
Social perspective ... 61
3.2.4
Educational and learning perspective ... 65
4
CHANGE OF THE SOCIETY (DELPHI 2017 STUDY) ... 68
4.1
Trend research ... 68
4.1.1
General approaches ... 68
4.1.2
Delphi approach ... 71
4.2
Five general orientations of the future ... 73
4.2.1
Managing Dutility ... 73
4.2.2
Living Substance ... 74
4.2.3
Embedding Individuality ... 75
4.2.4
Creating Lifeholder-Value ... 75
4.2.5
Engaging in a Sane Society ... 76
4.3
Future changes of employees life ... 77
5
INTERMEDIATE RESULTS AND RESEARCH QUESTION ... 79
6
QUESTIONNAIRE ... 80
6.1
Target group and method ... 80
6.2
Questions ... 81
6.2.1
Survey structure ... 81
6.2.2
Aims of the questions ... 82
6.3
Analysis of the survey results ... 96
6.3.1
Survey statistics ... 97
6.3.2
Survey results ... 100
6.3.3
Cross relations... 113
7
EXTENSION OR DEVELOPMENT OF TOOLS ... 118
7.1
FIT/GAP Analysis of existing tools ... 119
7.1.1
Educational perspective ... 119
7.1.2
Internal perspective ... 121
7.2
Influences of future changes on existing tools ... 124
7.2.1
Managing Dutility ... 124
VI
7.2.2
Living Substance ... 125
7.2.3
Embedding Individuality ... 125
7.2.4
Creating Lifeholder Value ... 126
7.2.5
Engaging in a Sane Society ... 126
7.3
Development of new tools ... 126
7.4
Agglomeration and connection of tools and PPM's
... 131
8
CONCLUSION ... 133
8.1
Summary of the results of the analysis and recommendations ... 133
8.2
Forecast and next steps ... 135
9
BIBLIOGRAPHY ... 136
9.1
Books & Journals ... 136
9.2
Web pages ... 140
VII
LIST OF ABBREVIATIONS
BCG
Boston Consulting Group
BDU
Bund Deutscher Unternehmensberater
BMFSFJ
Bundesministerium für Familie, Senioren, Frauen und Jugend
BSC
Balanced Scorecard
BSE
Bovine Spongiform Encephalopathy
CBT
Computer Based Training
CEO
Chief Executive Officer
cf.
compare
CV
Curriculum Vitae
e.g.
exempli gratia
et seq.
et sequentes [and the following ones]
etc.
et cetera
EU
European Union
GfK
Gesellschaft für Konsumforschung
GIM
Gesellschaft für Innovative Marktforschung
HBR
Harvard Business Review
HR
Human Resources
IT
Information Technology
KPMG
Klynveld, Peat, Marwick and Goerdeler
MBA
Master of Business Administration
OBSC
Organizational Balanced Scorecard
p.
page
PBSC
Personal Balanced Scorecard
PhD
Doctor of Philosophy
pp.
pages
PPM
Personal Performance Measures
PWC
Price Waterhouse Coopers
SE
Senior Executive
VIII
LIST OF ILLUSTRATIONS
Figure 1:Terms of Motivation (Toman 2006, p. 4) ... 6
Figure 2:Forms of contentedness (Bruggemann et al. 1996, p. 66) ... 10
Figure 3:
Figure 6: Maslow`s pyramid of needs (Jung 2005, p. 375)
... 12
Figure 4:Two factors and their implication (Herzberg 2003, p. 6) ... 14
Figure 5:Motivation model by Porter and Lawler (Staehle 1999, p. 238). ... 16
Figure 6:Managing Strategy: Four Processes (Kaplan & Norton 2007, p. 4) ... 25
Figure 7:Perspectives of a Balanced Scorecard (Friedag & Schmidt 2001, p. 259) ... 30
Figure 8:Linkage of goals (Kaplan & Norton 2007, p. 12) ... 34
Figure 9:The Elements of the personal and organizational balanced scorecards
(Rampersad 2001, chapter 2) ... 37
Figure 10:The Elements of the personal and organizational balanced scorecards
(Rampersad 2001, chapter 2) ... 38
Figure 11:PBSC measurement (Rampersad 2001, chapter 3). ... 46
Figure 12:Personal critical success factors of the test person. ... 48
Figure 13:Case study objective and performance measures... 49
Figure 14:Four areas of trend research (Horx et al. 1996, p. 94) ... 70
Figure 15:Analysis model of Delphi method (Ullrich & Wenger 2008, p. 14) ... 71
Figure 16:Design of the study: qualitative Delphi interviews (Ullrich & Wenger 2008,
p. 17). 72
Figure 17:Survey structure ... 82
Figure 18:Consulting area spreading of survey responses... 97
Figure 19:Career pyramid of the attendees. ... 98
Figure 20:Gender of the attendees. ... 98
Figure 21:Family status of the attendees. ... 99
Figure 22:How many attendees have children. ... 99
Figure 23:Correlation between gender and having children. ... 100
Figure 24:Work/Life Balance spreading ... 101
Figure 25:Rating of the cultural change. ... 101
Figure 26:Satisfaction level with the internal perspective (work). ... 102
Figure 27:Satisfaction level with the internal perspective (private). ... 102
Figure 28:Satisfaction level with the external perspective (work). ... 103
IX
Figure 29:Satisfaction level with the external perspective (private). ... 104
Figure 30:Satisfaction level with the educational perspective (work). ... 104
Figure 31:Satisfaction level with the educational perspective (private). ... 105
Figure 32:Satisfaction level with the financial perspective. ... 105
Figure 33:Level of importance of the satisfaction areas. ... 106
Figure 34:Support for the internal perspective. ... 107
Figure 35:Support for the external perspective. ... 108
Figure 36:Support for the educational perspective. ... 110
Figure 37:Support for the financial perspective. ... 111
Figure 38:Tendency of the different needs. ... 112
Figure 39:Correlation of importance and demand. ... 114
Figure 40:Correlation of importance and demand for analysts and consultants. ... 115
Figure 41:Correlation of importance and demand for managers and senior
executives. ... 116
Figure 42:Connected objectives, topic areas and tools. ... 132
Figure 43:
Drivers of engagements: the six C`s (Cheese, Thomas & Crai
g 2008, p.
163). 134
1
1 Introduction
1.1 Introduction and background
"Social changes are making their mark. Current developments constitute a
tremendous upheaval that, over the next ten years, will exert a lasting influence on
p
eoples
everyday lives, their desires, values, and their behavior
as consumers."
(GIM, 2007)
""Work vs. Life" turns into a "Multi
-Duty-Life": The uncommitted "self-time" is
diminishing
" (GIM, 2007)
.
The GIM (Gesellschaft für Innovative Marktforschung) developed the Delphi 2017
study where they came to the conclusion mentioned above.
The results are significant information on how the individuals will change their
behavior and needs over the next years. But how does this affect the approaches of
consulting companies that want strengthen the work/life balance of their
employees?
"To help our people balance work and life Accenture has flexible work
arrangements in more than 30 countries around the world." (Accenture 2008)
"We also offer a wide variety of t
raditional and non-traditional work/life programs for
employees and their families." (Bearing Point 2008)
Especially in times when well-educated employees are a rare property, there is a
high necessity to offer more than just good salaries. The innovative fantasy is
needed to develop solutions that differentiate a company from its competitors
(competitor in case of different employer). Particularly in cases where highest
assignment is demanded from the employees, the employer must find unique
solutions.
2
The author wants to analyze the existing tools that are used to support the work/life
balance. After questioning a representative number of consultants from different
consulting companies based in Germany, he wants to elaborate areas that are
important for the employees. The survey structure will be oriented on the four
perspectives of the Personal Balanced Scorecard. The Personal Balanced
Scorecard is based on an approach from Hubert K. Rampersad and combines
personal goals with career goals. Based on the results the author wants to develop
tools that support the individual needs. Additionally, the Personal Balanced
Scorecard will be used to support employees in managing their needs and
supporting the employer to measure the current satisfaction level and the
improvements.
1.2 Aims and objectives
The aim of the book is an analysis of how existing tools support an enhancement of
the contentedness of employees within consulting companies based in Germany.
Based on the results of the survey and on expected cultural changes evaluated in
the Delphi 2017 study of the GIM, new tools should be developed to enhance the
contentedness of the employee. The described aim can be divided into four single
objectives.
The first objective is the evaluation of current tools that are used by consulting
companies to enhance the contentedness of their employee. The evaluated tools
will be rated by the level of usage and effectiveness.
The second objective is the evaluation of the current satisfaction level of employees
in consulting companies within the four perspectives of the Personal Balanced
Scorecard. Additionally, needs should be evaluated where consultants demand
more support from the employer.
3
The third objective is the comparison of the survey results and future cultural
changes with existing tools. For evaluated gaps new tools should be developed to
ensure continuing increase of the consultants` satisfaction level.
The fourth objective is the introduction of a measurement approach using the
Personal Balanced Scorecard to control the success of used tools.
1.3 Relationship with previous work
The planned book combines different areas of research. On one side it uses the
Delphi 2017 study (GIM 2007) that analyses the change of cultural and individual
behavior in the next ten years. The study will be used as a guideline to develop new
tools in order to
support the enhancement of the employee`s contentedness
considering the mentioned cultural changes.
Other aspects that will influence the Book are the different studies about employee
motivation. A focus will be set on scientific studies that describe ways of employee
motivation (How do you motivate employees`, Frederick Herzberg, Harvard
Business Review 2002) and more recent approaches (Mythos Motivation by
Reinhard K Sprenger 2005).
For the survey structure, tools development and the measurement approach
literature about the Balance Scorecard Approach will be used, e
specially
The
Balanced Scorecard. Translating Strategy into Action` (
Kaplan, Robert S. and
Norton, David P. 1996) and
Personal Balanced Scorecard` (Rampersad, Hubert K.
2006) will be used to derivate the theoretical background.
4
1.4 Methodology
The work starts with a literature desk research focused on motivation approaches
and the Balanced Scorecard approach, especially the Personal Balanced Scorecard
approach by Rampersad. The aim is to get an overview about available literature
and to identify the relevant papers. It is expected to strengthen the available
knowledge about motivation theories and tools. Additionally, the relevant
information from the Delphi 2017 study should be extracted from the study results.
Within the second part a combined field and desk research should evaluate current
tools to enhance employee contentedness including their grade of usage and
effectiveness. Therefore online available information from different consulting
companies should be evaluated in a first step. The second step is the discussion
with HR representatives from different consulting companies to complete the list of
used tools and include information about usage and effectiveness.
The third phase includes the questionnaire with a representative number of
employees from selected consulting companies based in Germany. The goal of the
questionnaire is to identify the contentedness with existing tools and the consultants
demand for more support. The areas that should be evaluated are oriented on the
four perspectives of the personal balanced scorecard. The results will be collected
and compared with results from phase one and two. A second goal of the
questionnaire is to validate how the results from the Delphi study reflect the needs
of the employees.
Based on results from phase three and the Delphi 2017 study, tools will be provided
to support the increase of employee contentedness. Within selected telephone
interviews with attendees of the survey the effectiveness of developed tools will be
verified.
5
At least the personal balanced scorecard will be modified to support a measurement
of used tools and control the satisfaction development of employee.
The book follows the inductive research method. For citations the author-date
(Harvard) referencing guide will be used (cf. Damarell 2006).
6
2 Theoretical Background
2.1 Motivation of employees
One goal of the dissertation is the finding of recommendations to enhance the
contentedness of individuals in consulting companies. Therefore, it is necessary to
understand the influence of motivation on the contentedness. The current chapter
describes the most important definitions and theories that are mostly used in
literature. At the end of the chapter the influence on the chosen approach will be
described.
2.1.1 Definition
Major terms of the psychology of motivation are described in the following figure (cf.
Heckhausen 1989, p. 34):
Figure 1: Terms of Motivation (Toman 2006, p. 4)
Motivation has complex aspects and many influencing factors that can
reduce or maximize the individual contentedness.
7
2.1.1.1
Need
Definitions of the term ,need` exist within economical sciences as well as in social
science. From a business perspective a need is a non-concrete feeling of a
shortage. The individual will try to eliminate this shortage. In case the need is
focused on a special good we are talking about a demand (cf. Schneck 2003, p.
103).
Tewes and Wildgrube differentiate between a physiological and a psychological
shortage. The physiological aspect describes the objectively existing shortage in the
organism (need of liquid). The psychological aspect describes the sense of the
shortage as a subjective excitement that influences the behavior (cf. Tewes &
Wildgrube 1999, p. 234).
2.1.1.2
Motive
A motive is a concrete target to satisfy the need. The motive describes the final
state after taking action. Focused on the business environment, Jung divided the
motive into intrinsic and extrinsic motives (cf. Jung 2005, p. 362).
Intrinsic motives
Intrinsic motives are based on the positive cognition of the work itself. The more an
employee likes the work, the more contentedness he feels by doing his work. The
following list shows intrinsic motives (cf. Jung 2005, p. 362 & Withauer 1973, p. 41):
Performance motive
The fulfillment of a task itself satisfies the employee
Competency motive
The employee strives to work related success
Sociability motive
The integration into the social group of co-workers will satisfy the employee
8
Extrinsic motives
Extrinsic motives are based on the consequences or results of the work. To satisfy
these motives, the employee will get external compensation. The following list
shows extrinsic motives (cf. Jung 2005, p. 362 & Withauer 1973, p. 46):
Money motive
Money as a compensation will be used to satisfy a broad variety of other
needs. For most of the employees money is the motive to go to work
1
.
Security motive
Security motive means prevention of any disturbances that influences the
satisfaction of needs. They will be divided into aware and unaware security
motives.
Prestige and status motive
Prestige motive means desire to be different from the environment and to
earn credit and acceptance.
2.1.1.3
Stimulation
Stimulation activates a motive. It could be a personal stimulation (internal) or a
situational motive (external) (cf. Fakesch 1991, p. 18). Stimulation only has an
impact if a person realizes the stimulation and expects a satisfaction of the
individual need.
Nerdinger has a broader definition for stimulation. From his point of view
stimulations have a request character to do or to neglect something (cf. Nerdinger
1995, p. 12).
In a business context the individual motives will be connected to the needs and
goals of the company. Freese defines the business motives as granted material and
immaterial compensation by the organization. The goals of the compensation are
1
This does not mean the decision for a specific company. It just means the fact of going to work
itself.
9
willingness to attend the company and to contribute time, energy or other resources
(cf. Freese 1980, p. 286). The stimulation can be positive to enhance a wanted
behavior or negative to avoid an unwanted behavior.
2.1.1.4
Motivation
Summarizing the former definitions, motivation is the cause for human behavior
influenced by the interaction of different activated motives in a concrete situation.
Motivation will be divided into intrinsic and extrinsic motivation. Intrinsic motivation
means a direct satisfaction of the need by executing a special task, e.g. reading a
good book. Extrinsic motivation means an indirect satisfaction, e.g. earning money
to satisfy other needs (cf. Frey & Osterloh 2000, p. 12).
Stroebe describes the process of motivation in five steps (cf. Stroebe 2004, p. 37):
Arise of a need
Build-up of a need excitement
Freeing of energy that triggers a specific activity
Reduction of excitement with growing satisfaction
Arise of a new need
From a business perspective motivation is a bunch of energy from the inside and
from the environment of a person to start business related behavior and to influence
the kind, direction, strength and duration` (Weinert 1992, line 1430).
The book itself is focused on the contentedness of the employees. Motivation and
contentedness are connected and influence each other. The following figure shows
different forms of contentedness and discontentment in a business environment:
10
Figure 2: Forms of contentedness (Bruggemann et al. 1996, p. 66)
The coherence of contentedness and motivation will be described by the process of
motivation.
To guide the energy of employees into the direction of the company targets theories
of motivation need to be considered. Selected theories are described in the
following chapter.
11
2.1.2 Theories about Motivation
The area of motivation makes up a large part of different sciences. Much attention is
paid to the topic What moves people? and a lot of author
s describe various
theories. In the following chapters the most cited classical` theories will be shortly
described. Newer ideas will be mentioned afterwards.
The theories are divided into content theories and process theories. Content
theories are focused on needs and motives that trigger behavior. Process theories
try to explain how a specific behavior will be activated.
Content theories:
Maslow`s pyramid of needs
Herzberg`s two factors theory
Process Theories:
Vroom`s VIE
-theory
Porter`s and Lawler`s
motivation approach
Adams equity theory
12
2.1.2.1
Theory about needs by Maslow
Maslow developed the most known theory, and described it in a pyramid:
Figure 3:
Figure 6: Maslow`s pyramid of needs (Jung 2005, p. 375)
The idea behind the pyramid is very simple. Every human has basic needs and as
long as these needs are not satisfied other needs are not important. After satisfying
a level of needs, the next level will come into focus. The boarders itself are not
fixed, they are more fluent (cf. Maslow 1970, p. 35).
A weakness of the theory is the ability to operationalize ideas. The second point is
the vaguely formulated part of self-fulfillment, a fundamental part of the theory (cf.
Ulich 2001, p. 46).
13
2.1.2.2
Two factors theory by Herzberg
Forget prais
e. Forget punishment. Forget cash. You need to make their jobs more
interesting` (Herzberg 2003, p.1) is the introduction to the Best of HBR article by
Frederick Herzberg. It describes the theory of Herzberg in clear and simple way.
Key of the theory is the differentiation of two factors that influence the behavior of
individuals; hygiene factors and intrinsic motivators.
Hygiene factors include all factors that cannot motivate an individual in a way as
generally assumed. In fact these factors have to meet the needs of an individual to
avoid dissatisfaction, but they will not motivate someone for higher quality at work.
E.g. a clean working environment will not lead to motivated employees. On the
other hand a soiled office will have a discouraging influence on the work.
The intrinsic motivators are different; they can motivate. The growth or motivator
factors to the job are: achievement, recognition for achievement, the work itself,
responsibility and growth or advancement` (Herzberg 2002, p. 7).
14
The following figure shows the categorization of different factors:
Figure 4: Two factors and their implication (Herzberg 2003, p. 6)
Especially the payment is intensively discussed within the scientific world as a
motivation factor.
2.1.2.3
VIE-Theory by Vroom
The theory by Vroom is one of the newer theories following the process approach. It
is based on the way-goal approach by Georgopoulus, Mahoney and Jones that
expects the effort (way) only if the individual assumes to reach the wanted goal. Key
parts of the VIE-theory are three components; value, instrumentality and
expectancy. They are defined as follows (cf. Jung 2005, p. 390):
15
Value
is subjective compensation that can be reached by fulfilling the goal. It is
influenced by the motive of the employee and the stimulus of the effort.
Instrumentality
shows how a special behavior and the connected result will be
rated by the employee to reach the expected goal.
Expectancy
shows the expected probability to reach the goal with a special
behavior.
Employees will have a very high motivation if the following requisites are fulfilled (cf.
Jung 2005, p. 392):
Expectancy: The employee sees a high probability to reach the goal.
Instrumentality: The employee believes that the special behavior will lead to
the personal goals.
Value: The compensation highly fits the current needs.
2.1.2.4
Motivation approach by Porter and Lawler
Based on the theory of Vroom, Porter and Lawler describe the relationship between
effort, performance, reward and satisfaction within their motivation model shown in
the following figure:
16
Figure 5: Motivation model by Porter and Lawler (Staehle 1999, p. 238).
Effort (3) describes the energy spent by the employee to accomplish an
assignment. The effort depends on the subjective reward (1) and the perceived
probability that a reward will be given after the fulfillment of the assignment. A high
effort can be assumed if the value of compensation has a high probability and
reflects the needs of the employee.
The expected performance (6) is dependent on the effort and the abilities of the
individual (4). Another important aspect is the perception of the own role (5). If a
clear role description does not exist, even a high effort could lead to wrong results.
Intrinsic (7a) and extrinsic (7b) reward follows the result of the performance. An
intrinsic reward could be the sense of achievement itself. An extrinsic reward will be
received with a payment or compliment by the supervisor.
Additionally, the intensity of satisfaction (9) will be influenced by the perceived fair
reward (8). The satisfaction will be perceived as adequate if the reward complies
with or extends the expected result. On the opposite dissatisfaction will be reached
if the reward underachieves the expected reward. The reached satisfaction will
influence future efforts. Therefore, the motivation model could be called a feedback
or reactive model.
2.1.2.5
Equity theory by Adams
Beside the expectation approaches as described in former chapters, approaches
based on equation theories can be classified as process theories
.
The equity theory
by Adams bases on the cognitive dissonance theory by Festinger (cf. Festinger
1978, p. 15). A cognitive dissonance represents a tension that leads to an activity of
the individual. The fundamental idea of the equity theory is the aim of individuals in
a company to achieve a balance between effort (input, e.g. working hours,
17
education, intelligence, experience) and result (outcome, e.g. payment, promotion,
social security, status, etc. ...). To rate the balance, the individ
ual compares itself
with others in a same position. If the individual feels a balance between efforts and
results, he will be motivated to make the same effort in the future.
If the individual feels a misbalance, he will follow one of the following strategies to
reduce the misbalance (cf. Adams 1965, p.283):
Change the own input
Change the own outcome
Psychological distortion of input and outcomes
Abandonment of the organization
Influencing the compared person
Changing the compared person
At the end, all of the strategies will reduce the motivation and therefore the outcome
of the individual.
Even if the output of this theory looks just simple it needs to be taken into
consideration if special rewards will be created for subgroups within an
organization. A crosscheck is needed to avoid a feeling of inequitable treatment
within other groups.
2.1.3 Myths about motivation
All motivating is demotivating
2
` (Sprenger 2005, p. 12) is the initial statement of
Sprenger`s theory about motivation. It is critical to under
stand that he does not
mean the state of motivation that an individual has. He means the activity of
motivating people. Therefore, it is important to differentiate between motivating as
an activity and motivation as a state. Motivating is mostly used to manipulate
someone to do what he wants and does not take into account what the manipulated
2
Translated from German
: ,,Alles Motivieren ist Demotivieren.
18
person wants. This controlling aspect of motivating is evident for the motivated
person and can lead to resistance. Even if the affected person does not see the
manipulation from the beginning, he will see trough sooner or later.
Sprenger criticizes that existing theories see people as (cf. Sprenger 2005, p. 53):
effort deniers
bunch of hierarchal needs
stimulus-reaction machines
In his opinion every employee brings his own motivation to work and influences his
motivation depending on inner attitude and external influences. But what can be
done to achieve this motivation?
19
Leading instead of trying to motivate is the key. Sprenger subdivides this approach
into two areas:
Demanding instead of misleading
Avoiding demotivation
The first part of his advice is based on deliberations from Dostoevsky and
Nietzsche. People are not happy if they can get everything they want without
making any effort. Nothing is more diffic
ult to endure than several happy days in a
row
3
` (Nietzsche in Sprenger 2005, p. 189). People are motivated and this
motivation needs to be used to do something meaningful. They are happier about a
success if they had to fight for it instead of getting it without any effort. The risk of
the Motivation as it is used in many companies is the spoiling of employees with
the result of bored and demotivated employees. The better approach is to believe
that employees are motivated and to demand this.
To explain this approach, three dimensions of effort need to be taken into account
(cf. Sprenger 2005, p. 193)
4
:
Commitment
Ability
Opportunity
Commitment will be contributed by the employee. Therefore, ability and opportunity
needs to be supported. In consequence this means to agree with the employee
what are the expectations under consideration of his abilities and give him the
opportunity to fulfill these expectations.
The second part tends to avoid demotivation. It is not necessary for the dissertation
to explain all aspects of Sprenger; just some examples should be described to get
an understanding of his intention.
3
Translated from German
: ,,Nichts ist schwerer zu ertragen als eine Reihe von guten Tagen.
4
Translated from German: Leistungsbereitschaft, Leistungsfähigkeit und Leistungsmöglichkeit
20
If an employee does not meet the expectation, something has demotivated him or
he did not have the ability or opportunity. In many cases Salesmen are paid by
commissions. If the revenues are shrinking because of unattractive products,
management tries to attract the payment terms to motivate the Sales force. On the
short run, this can raise the revenue because the sales force will try to get the
payment. On the long run, this will not eliminate the real issue of uninspired
salesmen that are not willing to invest into a poor product.
A key role of demotivation is the direct responsible manager. He has all the power
to demotivate with his behavior. Therefore, it is the responsibility of the manager to
avoid this demotivation by showing real interest in the employee instead of building
an image as a leader. Additionally, the manager should not concentrate on
motivating the employees. He should rather focus on the elimination of the work
hindering aspects.
5
Finishing this aspect of demotivation, the following list shows some ways of
successful demotivation (cf. Sprenger 2005, p. 205 et seq.):
The manager always knows better
Lonely decisions by the management
Announcements and behavior are coincident
Permanent interference by the manager
Mental under load
Ignoring the employee
5
This a
pproach is also a fundamental aspect of ,agile development and programming`
.
21
2.1.4 Conclusion and consequences
Summarizing the different theories and approaches, we have an employee who
contributes his own motivation to work and wants a meaningful and demanding
assignment. On the other hand, he has needs that he tries to satisfy. As long as his
elementary needs are not assured, he cannot use his motivation to fulfill the
demands of the company. Therefore, the goal of the management must be to
support the employee in reaching satisfaction of his needs and give him space and
opportunity to fulfill the requirements of the company.
On one hand we are too tolerant against companies that procure us a sense and
safety. On the other hand we demand self-determination. In fact we demand
simultaneous self-determination and safety with the same resoluteness
6
` (Peters &
Waterman 2006, p. 148).
Taking a look on consulting companies, the support of the motivation of juni
or
professionals is harder today than it used to be, and it is more important to the
success of the professional service firm` (Maister 2003, p. 163). Apart from the
recommendations of Maister to spend more attention to personal supervisory skills
and a r
eexamination of the firm`s recruiting, work assignment, feedback, and
outplacement system,` (Maister 2003, p. 174) even the private needs of the
employee should be taken into account.
Effectiveness [of the employee] lies in the balance
what I call the P/PC Balance. P
stands for production of desired results, the golden eggs. PC stands for productivity
capability, the ability or asset that produces the golden eggs.`
7
(Covey 2004, p. 54)
6
Translated
from German: ,,Zwar sind wir einerseits fast zu nachgiebig gegenüber Institutionen, sie
uns Sinn und Sicherheit vermitteln, aber andererseits verlangen wir auch nach Selbstbestimmung.
Tatsächlich verlangen wir mit derselben Entschiedenheit gleichzeitig Selbstbestimmung und
Sicherheit.
7
The citation follows the story of the goose producing golden eggs. After killing the goose to get all
golden eggs out of her he lost all further eggs.
22
Only a balanced employee can meet the intensity demand by today`s practice`
(Maister 2003, p. 174).
An approach how to support the employee in finding this balance is described in the
following chapter.
23
2.2
"Classic"
Balanced Scorecard Approach
2.2.1 Origin of the Balanced Scorecard
Supporting strategic management was the initial idea developing the Balanced
Scorecard Approach. Compared to an operations focused management in the past,
the strategic focus became more and more important. Therefore, the Nolan Norton
Institute, the research arm of KPMG, sponsored a one-year multi company study,
Measuring Performance in the Organization of the Future
8
in 1990.
Leading a company means using all existing resources within a company. The goal
is to start the business processes and keep them running in a coordinated way. It
includes all controlling functions (cf. Schierenbeck 2000, p. 86).
The process to lead a company incl. the following functions (cf. Ehrmann 2007, p.
1):
Ambition
Planning
Execution
Monitoring
These functions differs from other management definitions e.g. by Koontz and
Weihrich (cf. Koontz & Weihrich 1993, p.18) but includes all important parts for the
Balanced Scorecard.
8
David Norton, CEO of Nolan Norton, served as the study leader and Robert Kaplan as an
academic consultant.
The Balanced Scorecard is a management system for strategic
leadership by using key figures!
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- , 2008, An analysis how the Balanced Score Card approach could enhance the personal contentedness considering the change in the society from a Work/Life balance to a multi-duty-life of individuals in consulting companies in Germany, Hamburg, Bedey Media GmbH, https://www.diplom.de/document/228289
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