Factors of production and agricultural development

This report sets out to answer the question; “What factors of production and agricultural development, in the wine industry, are seen as motivators to the employees of Chardonnay Chateau and what role does De-motivators, recognition and reward play in their performance? ‘ It aims to provide high-quality recommendations to management at Chardonnay Chateau on how they can improve employee performance through reward and recognition.

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Rigorous research and analysis was performed, looking into motivating factors for workers as well as efferent forms of reward and recognition. Written Journal articles were investigated specifically, focusing on topics such as Intrinsic and extrinsic motivation, the presence of De-motivators In the workplace and reward and recognition. It was Identified which forms were most applicable to Chardonnay Chateau employees. A survey was produced to Illustrate how each employee would hypothetically respond to different situations in the company.

Information for answering these questions came from the research into academic journals. Published surveys were also investigated along with research into the wine making process and industry. The aim of the survey was to identify the work effort that employees of Chardonnay Chateau were contributing, the amount of organizational support the employees were receiving and the reward and recognition currently provided compared to what they would like to receive.

This information was then looked at from a strategic perspective and related back to the individual performance equation. The main findings In the survey were that the managers of Chardonnay Chateau had high levels of Work effort’ where as the harvesters and pickers were unwilling to perform. The mall cause of this problem was found to be De-motivating factors. The survey also found that there was a lack of organizational support present between the managers and harvesters and pickers.

However, it was also clear from the survey that the managers did not believe this was the case. Lack of organizational support leads to situational constraints which results in fewer opportunities for performance to take place. White collar workers believe Chardonnay Chateau offers sufficient incentive plans, where as blue collar workers disagree, as indicated in the survey. Recommendations for this report include that more emphasis should be placed on he blue collar workers.

Management must also work at decreasing the amount of De- motivators present In the company. They must display clear work expectations and Implement a reward system which recognizes efficient staff for their high work performance Table of contents Contents In recent months management at Chardonnay Chateau, a medium sized winery, have become concerned by a drop in employee performance which they believe may be related to how the organization is recognizing and rewarding their employees.

As a result the company has authorized several of its employees to undertake a research reject, investigating what motivates different people in the workplace and then to make recommendations on how to improve performance through appropriate rewards and recognition. The research team implemented the following question to guide their investigation; “What factors of production and agricultural development, in the wine industry, are seen as motivators to the employees of Chardonnay Chateau and what role does De-motivators, recognition and reward play in their performance? In what follows, we outline and summarize the existing literature related to worker titivation and Job satisfaction, beginning with an overview of the wine production processes. We then provide a summary of the existing research relating to Job performance and organizational rewards and recognition. This is followed by a discussion of results and recommendations. Case setting Chardonnay Grapes Development of Land Chardonnay grapes are known for the ease in which they are cultivated.

They have a distinct ability to adapt to different conditions and are ‘malleable’, meaning that the flavor reflects the own winemakers style (Wine Makers Choice 2009). The grape luster have extensive leaf cover, which can inhibit the uptake of energy and nutrients. This is counteracted with extensive and aggressive pruning of the canopy by Chardonnay Chateau’s harvesting workers. Chardonnay vines can produce quite a lot of grapes in certain conditions, however, the quality in the grape drops if yields go beyond 4. 5 tons per acre (80 Hal/ha) (Bordello 2001).

Produces of chardonnay limit the yields to less than half of this. The most common Job for the harvesting workers in regards to development of land would be planting the vineyard and pruning and trimming the plants. This is done in both the warmer months to allow the grapes to get the right nutrients, and in the cold months, to prevent frost damage (Bordello 2001). This work can be very strenuous as it must all be done by hand. The harvesting process involved with wine making Harvesting wine grapes is labor-intensive and certain skills are required when picking grapes to avoid any damage.

We have seven skilled pickers’ working day in and day out in our vineyards through the harvesting season to ensure that only the finest grapes get picked. Typically the grapes are harvested from February to April (About. Com 2012). Chardonnay Chateau often has harvest extensions depending on the individual growing season, grape ripeness and various vintage factors (About. Com 2012). The harvest extension spreads our picking season over two more months, yielding a larger window of opportunity for our harvesting workers to earn extra income.

Unfortunately the extension also forces labor into the wet season, meaning Chardonnay Chateau’s harvesting employees work 5 days a week for 12 weeks to complete the harvesting process in time for the production process to begin (MEDIC 2011). These workers are in the fields harvesting our finest wine grapes by hand from :AMA to 5:pm every day ensuring that only the most superior grapes make it to the next stage. Preparing grapes and fermentation In our wine production department we have four skilled employees whose roles interchange between the production processes and the bottling and distribution aspects of the company.

Following the picking, our production workers have to extract the grape Juice. Unwashed, the grapes go straight into a De-stemmers and crusher and then into a presser to fully extract the Juice (land and Ago 2002). The fermentation process takes place when yeast is added to the grape Juice. The yeast inverts any natural sugars present from the Juice into ethanol and carbon dioxide (Wine Australia 2002). Once this process is complete, carbon dioxide is released from the now wine mixture into the air and the alcohol is left (Wine Australia 2002).

Processes bottling and distribution The production team mostly ferment chardonnay in the same barrels and are often aged sure lie meaning that the wine is left in contact with the dead yeast cells. The production workers sometimes toast the barrels, which will infuse additional flavors into the wine (Gallantries 2012). The production team undergo racking immediately after fermentation is complete. They rack the Chardonnay wine that has been aged sure lie after they have aged sufficiently.

No matter when racking is done the sediments are allowed to settle at the bottom of the container at which point the workers siphon the wine off the top and separate it from the sediment (Gallantries 2012). After the racking is complete they further clarify the wine using different production techniques, some of these include filtration, fining, cold stabilization and electrolysis’s. They use all of these techniques to make the wine visibly brilliant. After they clarify the wine to the head wine maker’s specifications they then bottle it using a bottling machine (Gallantries 2012).

The corks and wine labels are added and it is then ready for Chardonnay Chateau’s distribution workers to transport the wine to various retailers. Literature Review Studies performed in relation to reward, recognition and motivation show a strong link to Job performance throughout organizations in today’s economic environment. Whosoever et. Al (2009) looks at the correlation between Job satisfaction and organizational commitment. The studies by Mathieu and Jack in 1990 cited by Whosoever et. Al (2009, p. 75) found that ’employees enjoying high levels of organizational commitment are more satisfied and motivated in their work place then those who actively consider other employment’. The research conducted by Whosoever et. Al (2009) is based on the theory of combining multiple methods of motivation to identify the key motivating factors to an organization. ‘The key correlates identified by education, age and gender. ‘(Whosoever et. Al, 2009, p. 384) These attributes are seen as motivators which increase Job performance Craig Willoughby who is the operations erector at Conscious, quoted by anonymous (2009, par. ) believes it is important to have Well enthused staff who are keen to do their best for your business’. He is of the belief that the best way of doing this is to make sure there are good communications with the staff… From senior management down to the operational workforce. ‘ Anonymous also quoted Willoughby saying the key is to have people that are trained to flex between different Jobs. ‘ (Anonymous 2009, par. 10) This allows for flexibility with staff across the company and allows staff to have diverse Jobs. There are three disgorges of employees (Keenan and Napier 2012).

The first category looked at is blue-collar workers, they are considered to be hourly waged, non-managerial, non- supervisory employees, who are mostly low skilled without post-secondary education. Secondly, skilled employees involved in clerical processes consist of salaried lower white-collar employees. These employees maintain a supervisory position within which they execute and oversee complex procedures. The third group is made up of the managers within the organization, they are categorized as upper white-collar employees, as a result of their expertise and experience.

Keenan and Napier (2012, p. 667) found that ‘performance measurement in incentive systems for white-collar employees is broader in terms of performance measures, the organizational level of performance measurement, and the time horizon. The intensity of incentives is also stronger for white-collar employees’. The aim of the Journal article by Danish and Susan (2010, p. 165) Was to explore the impact of reward and recognition on motivation and Job satisfaction. ‘ The analysis of the results revealed a close relationship between aspects of satisfaction and work motivation.

However the legislation between recognition in conjunction with the task itself and organizational procedures, proved to have an insignificant correlation (Danish and Susan 2010). It was also found that occasionally wage increases, bonuses, staff rewards and other forms of compensation kept employee morale high and increased motivation (Danish and Susan 2010). Strain (2003, par. L) asks the question ‘are cash rewards the most effective ways of saying thanks to your employees? It was found that although cash can be seen as a highly flexible it has limitations and was not always the most preferred means of reward.

Strain (2003) states that entry level workers prefer cash rewards, whereas higher level workers, such as managers, prefer a reward with trophy value. The main point Strain (2003, par. 24) makes is that ‘people value time off more than anything else. ‘ It was also found that when cash rewards were used, workers became complacent and it was no longer seen as a motivator. Engle, Redound and Wright (1996) found that workers who expect rewards show less motivation than those who receive a reward unexpectedly. Engle et. Al (1996) conducted two experiments to establish these findings.

The results from the experiments also found that when people felt empowered and responsible for their own decisions they showed more motivation towards a task, rather than a manager making the decision for them. Engle et. Al (1996, par. 3) stated in their article that according to Decide and Ryan in 1987 ‘intrinsic motivation stems from drive’. Engle et. Al (1996) experiments’ also produced the findings that once an intrinsic or extrinsic next activities they faced with the same state of motivation. In The Seven Deadly Denominators (1997, par. ) De-motivators are described as ‘daily occurrences that restate employees and cause them to reduce, consciously or unconsciously, the amount of productive energy they use in their Job. ‘ The main De-motivators described in the text are politics, confusing messages and unclear expectations, unproductive meetings, hypocrisy, constant change, withholding information and low quality standards. The Seven Deadly Denominators (1997) also states that if an organization wants to reduce De-motivators in the workplace, the action must be lead from the top.

This means it has to start with managers and superiors before it can filter down to the employees. F Hansen, Smith and R. B Hansen (2002) outline the difference between recognition and reward when motivating employee’s and how crucial it is in today’s organizations. ‘The distinction between recognition and reward is meaningful from both a practical and scientific point of view, and translates into concrete recommendations for employee motivation initiatives’ (F Hansen, Smith and R. B Hansen 2002, p. 9). This theory put into practice has to have recognition and reward treated as a whole. F Hansen, Smith and R.

B Hansen (2002) found that when recognition is disregarded, the intrinsic aspect of the motivational incentive is moored, this ultimately ‘demonstrates a lack of faith in the possibility that people want to take pride in their work (F Hansen, Smith and R. B Hansen 2002, p. 1). This can create unhappy and unmotivated employees, leading to an unsatisfactory work performance standard (F Hansen, Smith and R. B Hansen 2002). Research found by Ganged and Decide (2005) implies that extrinsic rewards applied to motivate employee work performance can be looked at as harmful towards intrinsic motivators.

It is then suggested that the self-determination theory implies ‘intrinsic motivation (based in interest) and autonomous extrinsic motivations (based in importance) are both related to performance, satisfaction, trust, and well-being in the workplace’ (Ganged and Decide 2005, p. 26). Ganged and Decide (2005) found that the self-determination theory presents a helpful approach to understanding the motivational factors for effective organizational behavior. Lethal and Binder (2005, p. 486) state that Work motivation is a set of energetic forces that originate both within as well as beyond an individual’s being.

It is said that ‘motivation is a psychological process resulting from he interaction between the individual and the environment. ‘ Lethal and Binder (2005) found that three main theories are prominent throughout motivation literature. These are the goal-setting theory, the social cognitive theory and the organizational Justice theory. ‘The ability to predict, understand, and influence motivation in the workplace has increased significantly states Lethal and Binder (2005, p. 506). This is due to more attention being focused on all of an employee’s motivation, rather than a few specific aspects.

There are a variety of motivational theories present in today’s organizational environment. These include concepts focusing on extrinsic and intrinsic motivation (Engle, Redound and Wright 1996; Ganged and Decide 2005) reward and recognition (Danish and Susan 2010) and the presence of De-motivators in the workforce (The Seven Deadly Denominators 1997). The results indicate organizational commitment and good communication produces enthusiastic staff and higher Job satisfaction (Whosoever et. Al 2009; anonymous 2009). Cash rewards where as higher level staff prefer a reward with trophy value (Strain 2003; Keenan and Napier 2012).

It was also found that expected rewards causes sees motivation than unexpected rewards, which increase employee morale and Job motivation (Engle, Redound and Wright 1996). The presence of De-motivators that negatively impacts on an organization, must be reduce by upper management (The Seven Deadly Denominators 1997). Recognition and reward when used in a motivational incentive must both be present for employees to achieve adequate performance (F Hansen, Smith and R. B Hansen 2002). Extrinsic motivators could be harmful to intrinsic motivation.

Self-determination theory looks at intrinsic and extrinsic motivation, both of which are related to performance in the workplace Ganged and Decide 2005). Methodology The survey questions were developed through research of previously published surveys (Shipley 1994) and the knowledge gained through research of the wine making industry. Through group discussion we identified the key factors that our survey needed to address and then proceeded to form the appropriate questions. The research question was incorporated into the analysis through linking elements of the proposal to the survey questions.

We would have conducted the research by allocating a paid training session where the survey would have been completed and thoroughly discussed. It would have been compulsory for all staff to complete the survey however the survey responses would have been submitted anonymously. Due to a small workforce, every staff member would be requested to complete the survey in order to obtain sufficient data for the use of implementing changes with the company. The survey population would have included a diverse age demographic, varying from ages 18 to 65, male and female employees, both skilled and unskilled workers and full time and casual employees.

Our physical population included two skilled managers, a skilled agricultural development manager, 7 unskilled harvesting employees and 4 marginally skilled production and distribution employees. Results Question 1 “Chardonnay Chateau staff relations team makes it clear to me how my contributions impacts the company’s success. ” Question 2 “The aspects surrounding my profession are sufficient motivators and drive me to perform to the best of my abilities. ” The results indicate that a large proportion of employees do not agree with this statement.

Question 3 “l believe that the benefits package offered by Chardonnay Chateau Company is attractive. ” Results indicate that majority of Chardonnay Chateau workers disagree with this Question 4 “Chardonnay chateaus’ managerial support is evident across all departments. ” Majority of staff agree with the statement. However, a large proportion disagrees as well. Question 5 “When I perform well, I receive a sufficient amount of recognition which improves my performance. ” Exactly half Chardonnay Chateau’s workforce strongly disagrees with this statement.

Question 6 “l believe that Chardonnay Chateau management are open to suggestions from employees on how to improve operations. ” Majority of workers disagree with this statement. Question 7 “These rewards would help to motivate me further. There was a variety of answers to this question as Chardonnay Chateau have a variety of people, from a number of backgrounds working for them. Some of the answers obtained include rewards with trophy value, such as employee of the month or harvester of the week during harvest season, as well as cash rewards. These could be anything from a raise in pay or a once off bonus.

Time off and other personal In an organization Job performance is equal to the individual performance equation. Individual attributes, work effort and organizational support are the three factors in he equation that need to be present for high Job performance to be achieved (Wood et al. 2010, up. 40-41). The willingness of an individual to perform, relates to the work effort an employee is willing to offer. An employee’s capacity to perform translates to the individuals’ attributes. The opportunity that exists for performance to take place ties into the organizational support (Wood et al. 010, up. 40-41). All of the factors in the individual performance equation should be present for high Job performance to be reached, if any of the factors are absent, Job performance will be poor. The aim of question one and two in Chardonnay Chateaus’ staff survey, was the identification of work effort contribution’s by staff operating in different levels of the organization. It was predicted that the three managers in the organization would agree with these statements, for the reason that it is the obligation of a manager to set the standard for the expected work effort contributions.

It was also predicted that employees involved in harvesting, production and distribution would feel neutral and disagree with these statements as a result of De-motivating factors within the organization. According to The Seven Deadly Denominators (1997, par. 3) De-motivators are described as ‘daily occurrences that frustrate employees and cause them to reduce, consciously or unconsciously, the amount of productive energy they use in their Job. ‘ These daily occurrences include confusing messages, unclear expectations, unproductive meetings, hypocrisy and constant change.

They reduce the willingness of individuals to perform. Therefore, employee work efforts where considered to be marginally absent. Question four and six of the survey addresses, employee position on organizational support within Chardonnay Chateau. It was estimated that the harvesting, processing and distribution employees, would disagreed and strongly disagreed with these statements as a result of a lack in organizational commitment and the correlation between Job satisfaction and organizational support. The studies by Mathieu and Jack in 1990 cited by Whosoever et. Al (2009, up. 75) found that ’employees enjoying high levels of organizational commitment are more satisfied and motivated in their work place then those who actively consider other employment’. This implies that the lack of organizational support in Chardonnay Chateau leads to additional constraints which results in fewer opportunities for performance to take place. Question three and five are concerned with recognition and reward. It was forecasted that managers would agree with these statements as reward and recognition is more focused upon, in the category of white collar employees.

Keenan and Napier (2012 up. 667) found that ‘performance measurement in incentive systems for white-collar employees is broader in terms of performance measures, the organizational level of performance measurement, and the time horizon. The intensity of incentives is also stronger for white-collar employees’. These findings also explain why the harvesting, processing and distribution employees would disagree with these statements, as it is estimated that blue collar employees (Keenan and Napier 2012) would feel unrecognized for their marginal but vital contributions.

Conclusion and Recommendations From the report above, in which research has been conducted into Job performance, job performance was considerably low amongst blue collar workers due to De- motivating factors leading down from upper management. Whereas Job performance was high amongst management as it is required of them to set a high standard of work. Secondly, motivational levels were low amongst blue collar workers due to insufficient commitment and support from the organization that surrounds them.

This has led too lack of low Job satisfaction amongst workers. Finally, insufficient recognition and reward of work done by employees has left blue collar workers feeling unrecognized and unappreciated for their vital contributions within the workplace. In opposition to this management are highly recognized for their contributions and benefit from incentives. Considering these conclusions the following practical recommendations can be made: To improve Job performance, the limitation of all De-motivating factors from the workplace is required.

This can be done by scheduling regular staff meetings, setting clear and achievable work expectations to all staff members and by providing regular employee feedback. It is also recommended to keep clear work structures and reduce the amount of change in workplace procedure. To increase motivation and Job satisfaction, a high level of organizational support and commitment must be implemented. By providing fair pay amongst different levels of skilled workers, making education and training readily available and offering opportunities for advancement.