Schultz’s leadership style revolves around gaining the trust, admiration and motivation to other people who in turn repay in working harder. Schultz also understands people’s needs and in accordance to the Maslow’s hierarchy, Schultz satisfies 3rd, 4th and 5th band with his transformational leadership style.
Motivation is a vital factor for business in the process of making their production. Labours are not working machine, so that they can not always do the same affairs with equal passion. Accordingly, the efficient method to make staffs keen on their jobs should be to motivate them. It might even gain a better yield than purchasing plenty of equipments and facilities.
However, to be contrary to the classical management approaches, some reports had proposed that the ways to motivate employees are not only money. Kohn (1993) showed a survey that if a reward frame only offers physical rewards, the produce from workers might decline, especially in the creativity industries. What is more, other factors are essential as well, such as working environment or relationship between employees and managers. Nicholson (1998) reported that “workers had strong social needs which they tried to satisfy through membership of informal social groups at work place”. Besides, “the importance of informal social factors in the work place such as co-worker relationships and group norms that influence employee motivation and performance is highlighted” (Macky & Johnson, 2003)
A pervious researcher, Pugh & Hickson (1989) cited Elton Mayo (1933) made an investigation called ‘Hawthorne Experiment’. According to the results, if managers provided a suitable working environment considering each personal requirement and their sense of satisfaction rather than a higher salary or bonus, workers were encouraged to be more hard-working and efficient. He also verified that if managers of an organisation do not consider about individual works’ needs and wants, then treat them as