Secret Person

1. Use as many motivational theories as you can to explain why the reward system adopted by Mary Kay works in China?

a) Contingency Theory - Path Goal Theory or Goal Setting Theory

Path Goal Theory is a contingency approach to leadership which under Mary Kay's responsibility is to increase subordinates' motivation by clarifying the behaviours necessary for task accomplishment and rewards. Under Path Goal Theory it must be formed by tangible award. Mary Kay increases her follower motivation by either (i) clarifying the follower's path to the rewards that are available or (ii) increasing the rewards that the follower values and desires.

As in the United States, top achievers are rewarded with jewellery and trips, but under Mary Kay Inc. it has given out three (3) Shanghai-made pink Volkswagen Santanas. For promoters, recognition is based on sales; for directors, recognition is based on the sales they make and those generated by the promoters they trained and counselled.

b) Two Factor Theory

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get better grades - Frederick Herzberg

Another Mary Kay motivational theory why reward system has been adoption is under Frederick Herzberg. This theory developed another popular needs-based theory of motivation called the two-factor theory where:

(i) 1st dimension - hygiene factors

It involves working conditions, pay, company policies and interpersonal relationships. For example Mary Kay offers business opportunities to chinese woman otherwise is very hard to find in China. Mary Kay also allows women to work either full-time or part-time to supplement their income.

(ii) 2nd dimension - motivators

It involves job satisfaction and meeting higher-level needs, such as achievement, recognitions and opportunity growth. For example any successful sales promoters upon obtaining a business license and signing 'Mary Kay Distributor Agreement', they can become business consultants and chief business consultants.

The followers without much experience, Mary Kay gives free...