Costco Motivation Essay

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Recommended: Importance of motivation in organizations

There are two main types of motivation when people work for an organization: intrinsic and extrinsic. From those two, various types of motivation can be derived ranging from achievement and competence motivation to fear motivation. Costco utilizes various motivational techniques and we can analyze them from the traditional, human relations, and human resource approach to determine how Costco is different from most retail store of similar size. From the Human Relations approach, Costco has a low turn-over rate even with the use of part-time workers, the insurance enrollment period is lower than that of other retail stores, and the portion of health care premium paid by the company is over 92% From the traditional view, Costco has a higher wage on average, well above that of minimum wage by at least 40%. From the human resources perspective, Costco chooses most of its management position from its internal workforce. …show more content…

This is a type of extrinsic motivation. Their desire to perform are influenced by an outside source such as higher wages and rewards. It is one of the company’s policy to provide higher than average wages and have a retirement plan for all its employees. Workers start at $1 higher than the minimum wage, usually ranging from $8~9 an hour, and after 3-4 years they can earn up to $14 an

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