2.11 Fast Moving Consumer Goods
Fast Moving Consumer Goods are defined as those commodities that producers sell quickly and at a very low price. The FMCG industry is characterized by rapid and constant changes. Examples FMCG products also known as CPG (Consumer Packaged Goods) processed foods, soft drinks, kitchen appliances, and toiletries. As noted from the above examples, the FMCG products can include durable and non-durable goods only that the goods must be fast selling. The FMCG products have several unique features which include; low price, recurrent purchase, short counter life, daily consumption, their involvement is low, high volumes of sales, high accumulation turnovers, small return margins, and have extensive circulation networks. The Malaysian FMCG industry is highly represented both locally and on the international level by various companies such as Pepsi, Dove, Oreo, Spritzer, Perfect Food Manufacturing, and Milo. The FMCG businesses in Malaysia have been broadly grouped into three different large market sections which include; personal care, household care, and food and beverages.
2.12 The Meaning of Leadership
Leadership is the function or position of a person who directs or leads a group which in this case the leaders directs employees. Leadership defines the ability or power to lead other employees or staff members. Leadership styles are way and approach through which leaders provide directions, execute plans, and motivate workers. The overall performance of a leader within an organization plays a critical role in overall outcomes of the firm which can be success or failure of the company.
Understanding the consequences of leaderships sand styles on the overall performance of the sector is vital since according to many researchers leadership is viewed as the fundamental motivating force to improving the outputs of the FMCG. Fast Moving Consumer Goods have been defined as the products with a quick shelf turnover at reasonably low cost and that which do not require a lot of time, thought, and monetary investment. An individual FMCG commodity records a less margin of profit, but when the amount of sales of the goods is enormous, the benefits accrued translates to a significant number of sales. Therefore, it can be argued that fast moving consumer goods illustrate a scenario of low margin and high quantity commerce (Hu, Yang, & Islam, 2010, p 349). The sales of FMCG commodities across Asia are rapidly growing with countries such as Vietnam and China recording the highest growth rates.
2.2 Theories and Models of employees' motivation
2.21 Styles of Leadership
Several theories have been developed to illustrate the direction and management styles that can be used to demonstrate the importance of effective motivational practices within the FMCG industry in Malaysia. Leadership styles have been applied for a long time and even in the present their offer a better approach to understanding the impacts of team leaders in the productivity of employees. It is important to note that an individual's leadership style is dependent on the integration of their values, beliefs, and preference with the norms and culture of the organization (Boateng, Ndebugre, & Boateng, 2015, p. 8). An effective combination of the mentioned factors will inspire workers increasing the overall output (Hu, Yang, & Islam, 2010, p 345). The different types of leadership styles include;
2.211 Autocratic Leadership Styles
The above style allows the leader to have complete authority over the employees. The team members are not given the opportunity to air their views nor can they criticize or oppose the ideas of the leaders. A firm practicing this type of leadership in the FMCG sector in Malaysia has shown quick decision-making processes, but on the contrary, they have resulted to increased absenteeism by employees (Islam & Ahmed, 2014, p. 82). The style has only worked best for those organizations with hard working leaders following every detail.
2.212 The Laissez Faire Leadership Style
In this type of style, the leader has total trust in the team members to performing the tasks without much supervision (Aronson, 2001, p. 245). The method gives the employees an opportunity to put forward their ideas and suggestions. The ideas may help the company since these employees know the market well as they are the ones going to the market. Mostly, it is the junior salespersons that are sent to the field to look for market which gives then sufficient information that may help in making informed decisions in the organization.
2.213 Participative leadership Style
The participative approach involves leaders inviting and encouraging employees to take part in the process of decision making even though the final decision is made by the head. The leader also has the responsibility of guiding the workers on their tasks and the best way to perform them. The benefit of this style is that it the employees are more motivated, satisfied and able to utilize their skills to the maximum (Aronson, 2001, p. 249). The approach is credited with creating a positive working environment and promotes innovation within the team.
2.214 Bureaucratic Leadership Style
Bureaucratic leadership style is very strict as it only allows the leaders to adhere to and follow policies and rules of the organization. The leaders also ensure that the workers follow the procedures and norms of the company. Workers likely to get promotions are those adhering to the policies and rules of the enterprise (Aronson, 2001, p. 254). The approach is known to discourage creativity within the organization which has reduced its popularity with companies in Malaysia.
2.22 Theories of Leadership Styles
Several approaches have been developed that illustrates the different types of leaderships. These categories of leadership have been adopted several companies in Malaysia especially those in the FMCG sector of the countrys economy. These models include;
2.22.1 Transformational Leadership
Transformational leadership has been defined as the process that revolutionizes and transforms people. It gives the leaders the ability to improve workers, change them, and lead the employees towards the achievement of the organization's goals. The process involves assessment of employees motives, satisfying their needs, and lastly valuing their contribution to the business (Bass, 1997, p. 130). Therefore, transformational leaders improve the performance of the company and facilitate the accomplishment of the objectives of the firm (Othman, D`Silva & Mohammed, 2012, P. 249). Transformational leadership entails being a role model, proper handling of personal rapport with the subordinates, critical thinking among others. One of the primary roles of transformational leaders is raising conscious of the group by appealing to higher moral values which include; equality, justice, humanitarian, peace, and liberty (Mohammed, Othman & Lawrence D Silva, 2012, P. 1).
2.22.2 Transactional Leadership
Transactional leaders are also referred to as on- charismatic leaders as they play the role of aspiring to accomplish reliable and consistent performance to achieve the set goals. Transactional leaders are known to either give punishments or rewards in an attempt to try and encourage better performance which makes their relationship essential economic transaction (Zakaria, Noordin, Sawal, Zakaria, Noor, & Maras, 2011, p. 115). Transactional leaders are characterized by three key roles that include; first, working in collaboration with their group members with an objective of developing clear and specific goals and also in ensuring that workers are rewarded as promised once they can meet their aims. Second, they are responsible for exchanging rewards about the efforts of the employees (Lowe, Kroeck, & Sivasubramaniam, 1996, p. 402). Lastly, transactional leaders are responsible for immediately responding to the interests of employees in the case where the needs of those workers can be granted while they are getting all the work completed (Lowe, Kroeck, & Sivasubramaniam, 1996, p. 424). Another important duty of the transactional leaders is encouraging close connections between rewards and goals (Othman, D`Silva & Mohammed, 2012, P. 248). As discussed earlier in the chapter, FMCG companies in Malaysia have recorded increased sales if the workers are compensated well.
2.22.3 Situational Leadership
The theory of situational leadership is founded on the interaction between the task behaviors and that of relationship behavior. It is also based on the maturity and readiness of the group members when undertaking specific duties within the organization (Hin, Wei & Abdullah, 2012, P. 103). According to the paper by Hin, Wei & Abdullah, members of the group are the most important determinant in any leadership proceedings since the more distinct the opinions of the followers are, the longer it will take to make crucial decisions. With this kind of knowledge, some companies in Malaysia have utilized this type of leadership to give the employees more confidence in undertaking their duties.
Situational leadership thus examines different ways that can improve the effectiveness of the leaders in unique organizational settings that involves a range of corporate duties. The theory also involves giving clear directives to workers on what they are required to do, the best way of approaching the task, where and when performing the work, and lastly the leaders supervise the performance of the members (Hilman and Kaliappen, 2014, P. 1). Situational leadership shows supportive behavior where the leaders are required to listen to employees, provide encouragement and support, and facilitate their involvement in solving problems and making vital decisions.
2.23 The Concept of Motivation
Motivation has raised many concerns in the past and it has been recognized to be an integral part in most organizations currently. Past motivational approaches have been used by current management to research on the best models that can be used towards improving the performance of workers. Malaysian managers who work at various companies in the FMCG industry are faced with several challenges that undermine the performance of the workers. To counter the challenge, the leaders have adopted various approaches that motivate the employees towards improved results. Several previous surveys have examined the impact of different cultural values in Malaysian companies on the motivational practices such as those from Malays, Indians, and Chinese. For example, a study by Islam & Ahmed, 2014 reveals that the use of incentive to be trained had significant and positive effects on the overall commitment of the employees in most Malaysian companies. The trend when compared to workers in the Western countries has some differences where some were applicable in those countries but have been found not to be valid in Malaysia. For example, the study by Islam & Ahmed, 2014 further illustrates that workers in Malaysia reveal different working attitudes towards commitment to the company and it relates to age of the individuals.
Studies have shown that even if the workers have been employed in a certain organization for it does not necessary mean they will show more commitment than the others. Such trends have been associated with the uncertainty in business environment in Malaysia Paalanen, & Hyypia, 2008, p. 64). The above can be justified by the fact that workers who lack the necessary skills can be trained to increase their expertise. Additionally, if it is the working environment that is killing the morale of workers, the managers can alter it to an environment that pro...
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