1.1 Introduction

Motivation is described as that inner force that drives people to achieve personal and organizational goals. Motivation is very significant in the success of any business. It ensures that firms don’t lose their talented employees, a situation that could have negative implications for the performance of the firm. Nike Company has effective strategies that ensure that its employees are motivated, and they contribute to the success of the organization. The company has a great workforce, which it works very hard to ensures that it is always motivated to improve the performance of the organization. It applies Maslow’s theory of motivation to motivate its employees. The leadership style of this company is highly attributed to its continued success. This leadership style was introduced by Phil Knight the former CEO and it is still being applied in the company. The company utilizes Theory Y, which encourages participative leadership. This report will describe and analyze the motivation and leadership of Nike Company.

1.2 Nike Company Motivation

Nike Company has an efficient employee motivation strategy that ensures that their employees perform at their best according to Nike Inc.(2013). Their guiding principle has the power to challenge, inspire and influence their employees on a day to day basis. Nike Company global strategy for HR is to assist in unleashing their potential throughout every area of their business by empowering leaders in making significant decisions (Nike Inc., 2013). These decisions ensure the growth of business of the Nike Corporation. The decisions are also in line with the motivation of the employees to make sure that they assist the company in achieving its goals and objectives.

Nike Company has a workforce that consists of more than 30,000 employees throughout the globe according toNike Inc.(2013).They range from marketers and designers to accountants and conformity monitors to retailing employees. Additionally, Nike collaborates with their manufacturers who offer employment opportunities for more than 700,000 employees (Nike Inc., 2013).The company performs a global workers survey after every two years to determine what engages and motivates their employees. A study that was conducted in FY09, 2008 concentrated in determining the engagement of the workers and effectiveness of the employees. The rate of response to this survey grew to 69% (Nike Inc., 2013). This growth was due to several employees’ motivation strategies. Nike Company has motivated and engaged workers with a passion for their jobs, their consumers, and the company. The workers are linked to the vision and strategy of the company. The workers perceive that they are valued, regarded with respect and they would prefer to be empowered and involved. The workers perceive that an individual in the organization has made a personal investment in their growth and development. The employees also confess having a good relationship with their managers.

Nike Company applies the Maslow’s classic model for motivating their employees (Nike Inc., 2013).Maslow’s grouped human needs into five levels. He stated that the desire to satisfy the upper level of needs only develops after the lower order needs in the pyramid are satisfied as stated by Zalenski & Raspa (2006). At the lowest level, there are physiological needs that are equated with fundamental needs to keep the employee in the job. HR managers in the Nike Company ensure that their employees get acceptable basic pay that they perceive as fair when compared to the value of the job. The workers are also paid in time. The workers are also provided with a safe and comfortable working environment. The company also ensures that it keeps it promises to the workers (Nike Inc., 2013). Safety need is the next level, which is equated to job security in the business environment.Nike HR managers assure the employees that their job is secured. They ensure that there is job security by creating a non-threatening working atmosphere. The third level is love needs that are equated with a healthy supportive culture, enjoyable atmosphere and sense of loyalty and belonging in the workplace. They ensure that there are team-building initiatives in the workplace and encourage social interaction. Esteem need is the fourth level of Maslow’s motivation theory. It is equated with self-respect, usefulness and recognition from the company and colleagues (Zalenski & Raspa, 2006). Managers raise the esteem of their workers by offering reasonable salary, job satisfaction, admiration and a “Thank you” from the boss. The last level is self-actualization needs. Managers create an environment that facilitates the employees to achieve their self-actualization (Nike Inc., 2013).These initiatives ensure that Nike Company employees remain motivated.

1.3 Nike Company Leadership

Nike Company has illustrated the extreme success that is directly linked to its effective leadership style. The company is currently leading in the footwear industry, possessing approximately 48% of the market share as stated by Epstein, Buhovac & Yuthas (2010). Its annual domestic sales are around $3.78 billion, and it has been engaged in manufacturing across the region of Asia for more than twenty-four years.The style of leadership and management introduced by Phil Knight, who is the former CEO of the company has been credited with the recurrent success of the company (Epstein, Buhovac & Yuthas, 2010). It has also been attributed to the capability of the organization to improve in the period of economic slowdowns. Knight believed that the brightest leader build opportunities and motivate others to perform at their best.

The leadership style of Knight has been explained as low-key, quiet and in the background. He appreciates impressive salespersons and does not dictate to them on what to they are supposed to do (Epstein, Buhovac & Yuthas, 2010). Instead, he avails to them the means of achieving the objectives and goals of the company and prefers hiring individuals that have vigorously taken part in sports. Knight ensures that his hired best executives can promote the development of quality shoes. His style of leadership can be explained as the technique of settling company’s goals and objectives (Epstein, Buhovac & Yuthas, 2010).He ensured that the employees were loyal to him, and they remained committed to the achievement of the company’s goals. Nike Company continued to apply the Knight style of leadership even after his departure as the CEO.

Knight applied theory Y as his leadership model in the Nike Company. Unlike theory X, which is authoritative, theory Y is participative. Leaders who use theory Y believe that effort in work is as natural as work and play as stated by Tichy & Cohen (1997). Hence, even without coercion, employees will put the effort in the achievement of the company’s goals and objectives. People will apply self-control and self-direction in the pursuit of the company’s goals, without external control or the threat of punishment. Managers in Nike Company believe that their employees have self-direction and self-control and therefore unlike other managers, they don’t threaten their employees (Tichy & Cohen, 1997). Commitment to objectives is a function of rewards related to their achievements. Managers in this company believe that the achievement of the company’s objectives is a reward that keeps employees motivated. People often accept and seek responsibility. Leaders in this company believe that employees like assuming their responsibility, and this serves as their motivation to perform well. The capacity to apply a high degree of imagination, ingenuity and creativity in solving organizational challenges is widely, not distributed narrowly in the population (Tichy & Cohen, 1997). Leaders in this company appreciate that employees will naturally use ingenuity and creativity in solving the problems of this company. The application of this theory helps in creating employees independence that motivates them and ensure that they remain motivated in achieving the goals of the organization.

1.4 Conclusion

Nike Company values employees’ motivation, and it has an effective strategy for ensuring that its employees remain motivated. The HR managers make decisions that are in line with the motivation of the employees. Motivation ensures that employees assist the company in achieving its goals and objectives. The managers ensure that the employees feel that they are respected and have a good relationship with the management. The application of Maslow’s motivation theory has helped the company to ensure continuously that its employees are motivated and productive. The recommendation is that the company should try using other theories of motivation to avoid losing their talented workers. Success in this company is linked to its effective leadership style. Phil Knight, the former CEO style of leadership, has contributed to the progressive success of this company. The application of theory Y as a leadership model has facilitated participative leadership. Participative leadership makes the employees more independent which motivate them to achieve the company’s goals and objectives. The recommendation is that the managers should follow Phil Knight’s leadership model to help in the continued success of the company.

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