The two-factor theory of motivation (also known as Herzberg's motivation-hygiene theory or dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

1. TWO FACTOR THEORY
AND AMAZON
PRESENTED BY:
DIVYA KAPOOR
PGDM 18-20
MSRIM

2. DEFINATION :
• The two-factor theory of motivation (also known as Herzberg's motivation-
hygiene theory or dual-factor theory) states that there are certain factors in the
workplace that cause job satisfaction, while a separate set of factors cause
dissatisfaction.

3. INTRODUCTION:
• Frederick Herzberg (American psychologist) was very interested in people’s motivation and job
satisfaction . He conducted his research by asking a group of people about their good and bad
experiences at workplace. Based on this, he developed the theory that people’s job satisfaction
depends on two kinds of factors :
• Factors for satisfaction (motivators/satisfiers) and
• Factors for dissatisfaction (hygiene factors/ dissatisfiers).

4. CONCEPT OF TWO FACTOR THEORY:

5. • 4 different combinations can exist at work:

6. HYGIENE FACTORS -
• Pay - The pay or salary structure should be reasonable. It must be equal and competitive to those
in the same industry in the same domain.
• Company Policies - The company policies should not be too rigid. They should be fair and clear.
It should include flexible working hours, breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans (Mediclaim), benefits for
the family members, employee help programmes, etc.
• Physical Working conditions - The working conditions should be safe, clean and hygienic. The
work equipment should be updated and well-maintained.
• Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
• Job Security - The organization must provide job security and stability to the employees.

7. MOTIVATIONAL FACTORS-
• Recognition - The employees should be praised and recognized for their accomplishments
by the managers.
• Sense of achievement - The employees must have a sense of achievement. This depends
on the job. There must be a fruit of some sort in the job they are doing.
• Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
• Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work.
• Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.

8. • Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider.
• Amazon is headquartered in Seattle, Washington. The company has individual websites, software
development centres, customer service centres and fulfilment centres in many locations around the
world.
• Amazon now employees 5,66,000 people worldwide.
• The company was originally a book seller but has expanded to sell a wide variety of consumer goods
and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire
tablet and Fire TV, a streaming media adapter.
• Amazon has a reputation for having CHURN AND BURN environment.

9. APPLYING THEORY IN AMAZON
A. Hygiene factors-
• Pay - The pay or salary structure include great compensation and ample opportunity to learn in
amazon.
• Company Policies and administrative policies - The company policies are fair and clear. It includes
flexible working hours and work from home facilities.
• Physical Working conditions - The working conditions are safe, clean and hygienic.
• Job Security - The organization provides job security to the employees. But employees report
include inconsistency in management and a cut throat competition.

10. B . Motivational factors-
• Recognition - The employees working in amazon are smart people and raised and recognized for
their accomplishments by the managers.
• Promotional opportunities –Promotions are according to overall yearly performance.
• Responsibility - The employees are given different tasks and responsibilities. They are
encouraged to be innovative and create something new.
• Meaningfulness of the work - The work is interesting and challenging for the employee to perform
. The overall approach to creatively inventing ways around the obstacles is interesting.

11. FEEDBACK BY EMPLOYEES FROM DIFFEERENT
SURVEYS OVER THE YEARS
• AMAZON IS FULL OF OPPORTUNITY.
• ALTHOUGH AMAZON RECEIVED AN OVERALL FAVORABLE WORK BALANCE RATING,SOME
EMPLOYEES SAY IT CAN BE TOUGH.
• SOME EMPLOYEES SAY AMAZON USE TACTICS TO OPTIMIZE PERFORMANCE , AT THE
EXPENSE OF EMPLOYEE WELL-BEING.
• OUT OF 19439 EMPLOYEES WHO HAVE SUBMITTED AMAZON REVIEWS ,74 PERCENT SAID
THEY WOULD RECOMMEND THE COMPANY TO A FRIEND.
• AMAZON RATES FAVORABLY IN OTHER CATEGORIES INCLUDING CEO
APPROVAL,CULTURE,VALUES,WORK-LIFE BALANCE,BENEFITS, AND CARRER
OPPURTUNITIES.

12. • AMAZON RECEEIVES AN ABOVE AVERAGE RATING OF 3.8 AS OF FEB 2018 .THIS IS UP FROM ITS SCORE
OF 3.4 IN 2015.
• A LOT OF OPPORTUNITY FOR GROWTH ,INNIOVATION AND NEW IDEAS.
• THUS WE CAN SAY :
• AMAZON PROVIDES GOOD WORKING ENVIRONMENT,BUT THE COMPETITION LEVEL IS
HIGH,WHICH SOMETIMES AFFECTS THE MOTIVATIONAL FACTORS.
• IT APPEARS THAT THE EMPLOYEE EXPERIENCE DIFFERS BASED ON THE SURROUNDING
TEAM MEMBERS AND RELEVANT MANAGERIAL STAFF.

13. CRITIQUE
• The two-factor theory overlooks situational variables.
• Herzberg assumed a relation between satisfaction and productivity. But the research stressed
upon satisfaction and ignored productivity.
• The theory’s reliability is uncertain. It may give different findings by analysing same response
in different manner.
• No defined measure of satisfaction was used. An employee may find his job acceptable,
despite the fact that he may hate a part of his job.
• The two factor theory is not free from bias, as it is based on the natural reaction of employees
when they are enquired the sources of satisfaction and dissatisfaction at work. They will
blame dissatisfaction on the external factors such as salary structure, company policies and
peer relationship. Also, the employees will give credit to themselves for the satisfaction factor
at work.

14. TO SUMMARIZE :
• How to apply the Two Factor Theory?
• Herzberg claims these two factors exist side by side.
• There’s not much point in motivating employees if the hygiene factors aren’t taken
care off. Motivating people really works when the things that bother them and the
things they complain about - disappear.
• When the dissatisfaction is taken away, the organisation can focus on motivating its
employees effectively.
• Measures for motivation require bigger investments and changes to the
organisational culture.

15. THANK YOU