Managing and Motivating Remotely

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Managing and Motivating Remotely

BACHELOR DEGREE PROJECT THESIS WITHIN: Business Administration NUMBER OF CREDITS: 15 ECTS

PROGRAMME OF STUDY: International Management AUTHOR: Melanie Hellkvist, Martin Lundblad, Joelle Soumi JÖNKÖPING May 2021

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Bachelor Thesis in Business Administration

Title: Managing & Motivating Remotely

Authors: Melanie Hellkvist, Martin Lundblad, Joelle Soumi

Tutor: Edward Gillmore

Date: 2021-05-24

Key terms: Managing Remotely, Employee Motivation, Remote Work, Sweden

Abstract

Background: The Covid-19 pandemic has accelerated the shift towards remote working, an

area that was exponentially expanding pre-pandemic. As the working conditions shift, the previous reliance on face-to-face interactions becomes obsolete. Furthermore, the importance of this issue becomes significant as global companies have expressed their interest in adopting a hybrid way of working post-pandemic. Therefore, understanding how to manage and motivate employees while working remotely becomes crucial in order to operate in highly competitive markets successfully.

Purpose: This study aims to investigate how the experience and motivation of managers and

their subordinates have been influenced following the shift to remote work.

Method: A qualitative design is employed in this study where literature, theories, and empirical

data in the form of semi-structured interviews are utilized. The findings were analyzed according to a thematic analysis approach. Following an abductive approach, the researchers build upon exiting management theories.

Conclusion: The authors identify the different elements that influence experience and

motivation in a remote work setting, as follows: Experiential Knowledge, Drivers of Motivation, Organizational Structure, Tasks and Roles, Formal Communication, Informal communication, Productivity, and Flexibility. Derived from the empirical data, a dimension of motivation was integrated into Cook’s (2019) view on Managing Remotely. The results display both hinders and motivators, which could be mitigated and incorporated, respectively, in future remote work strategies.

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Acknowledgments

The authors would formally like to thank everyone who was provided support and encouragement throughout the process. Firstly, they would like to thank their tutor, Edward Gillmore, for the constructive feedback and continuous guidance throughout the research process. With his expertise and knowledge, they gained useful insight, which contributed to the study.

Secondly, the authors would like to thank the participants from both companies for the time and effort that they provided. Their engagement and valuable input made it possible to study the phenomenon at hand.

Lastly, they would like to thank each other for the positivity, laughter, and dedication throughout the process. This process highlighted the importance of collaboratively creating an open, honest, and trusting environment.

————————— ————————— ————————— Melanie Hellkvist Martin Lundblad Joelle Soumi

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1. Introduction

This chapter will include a background that will outline the current state of the world in terms of remote work, management, and motivation. Followed by a brief explanation of the problem discussion, which expands upon the problems that the pandemic has caused regarding employee motivation and its outcomes. Followed by the research purpose where the Research Question is presented. Ultimately, concluding with the delimitations of the study.

Background

The way people work today is continuously evolving due to the fast-paced environment they live in. Technology and globalization have been powerful drivers of change in the recent decades, enabling workers to be flexible with regard to their work (Cook, 2019). In the Spring of 2020, when the Covid-19 virus propagated throughout the world, millions of workers worldwide were obliged to work from home to mitigate the spread of the virus. This external factor forced all interactions and operations to be carried out through digital means, making remote work the “new normal” for most. However, Covid-19 simply accelerated the transition to remote work. Substantial research pre-pandemic shows that we are moving towards remote work, with the remote workforce growing by 115% in the US from 2005 to 2015, as opposed to 12% growth in the non-remote workforce (Global Workplace Analytics, 2017). There are several reasons why employers seek to shift to remote work, such as increased employee engagement, attracting and retaining diverse talent, and saving money in terms of office costs and overheads. On the other hand, employees benefit from a better work-life balance and spending less time and money traveling, among other reasons (Cook, 2019).

Motivation, more specifically employee motivation, has been a widely researched topic. The importance of employee motivation is undisputed as it is critical in many different aspects of an organization, from performance to job satisfaction and employee retention (Pink, 2011). This is especially significant today as companies operate within a highly competitive environment. Thus, organizations need to understand what drives their employees. People obtain motivation from an array of sources and have been distinguished in differing ways, from Maslow’s hierarchy of needs to modern motivation theories such as the Theory of Equity and Theory of Reinforcement, among others (Aleksić-Glišović et al., 2019). Nevertheless, these theories can be classified into two main categories: extrinsic and intrinsic motivation. Extrinsic

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7 motivation focuses on monetary bonuses and awards as opposed to intrinsic motivation, which aims to stimulate satisfaction, curiosity, and involvement (Arya et al., 2020). These intrinsic forms of motivation, where employees build and maintain fulfilling relationships, rely heavily on face-to-face interactions as they are the richest, most effective forms of communication (Tovmasyan et al., 2020; Caillier, 2013). However, when shifting to remote work, we can no longer rely on face-to-face interactions.

Although our way of working is changing, we rely on the same techniques of managing and motivating employees, which is ultimately incompatible with remote work. Managers can no longer rely on “presenteeism” to know what and how their subordinates are doing (Cook, 2019). Furthermore, multinational companies such as Siemens AG has announced that it will allow its employees to have a hybrid way of working post-pandemic (Siemens AG, 2020). This decision further emphasizes the need to understand managing and motivating remotely as it is not merely a temporary solution. Thus, there is a necessity to research and understand management and motivation strategies through the lens of remote work.

Problem discussion

Previous studies have shown that employees get motivated by having their basic needs fulfilled and by being offered monetary rewards such as prizes and bonuses and non-monetary rewards that stimulate their curiosity and interests (Maslow, 1943; Arya et al., 2020). In most of the studies, it is evident that the focus has been on organizations and managers motivating their employees, suggesting motivation is diffused top-down. However, there has not been an abundance of research connecting the managerial motivation to their subordinate’s motivation and vice versa. This connection needs further investigation to better understand the role that managers and their subordinates play regarding motivation within organizations.

Furthermore, managers have also faced an added challenge that affected how they manage and operate daily, which is the shift toward remote working caused by the Covid-19 virus. The main effects of the pandemic were the elimination of face-to-face interactions and presenteeism (Cook, 2019, Ch. 2). Additionally, employees felt that they were less efficient and less innovative since they could not build relationships and communicate with their co-workers on a daily basis (Hamilton Place Strategies in partnership with Replica, 2020). Research regarding motivation under these extreme conditions has mostly been quantitative, lacking the deeper understanding that qualitative research could provide (Minasyan & Tovmasyan 2020;

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8 Hamilton Place Strategies in partnership with Replica, 2020). Therefore, this paper aims to close the gap in the literature that examines what influences managers and their subordinates’ experiences and motivation following a shift towards remote work. Remote working has been seen as a phenomenon that has been gaining popularity since pre-pandemic. However, the situation does not seem to be going back to “office work,” especially as large companies such as Spotify and Microsoft are giving their employees the option to work from home post-pandemic while still earning the same salary (Spotify HR Blog, 2021; Page, 2020). On the other hand, other influential companies such as Google and Facebook are urging their employees to come back to the office to rebuild the lost symbioses during the pandemic. Google’s CEO has suggested a “hybrid” model of working, where the employees get to work from the office and have the chance to work remotely (Kelly, 2021). Therefore, understanding the hype around remote work, its benefits, as well as its drawbacks are the main aim of this study.

Research purpose

The purpose of this study is to investigate what influenced the experience and motivation of managers and their subordinates following the shift to remote work due to the Covid-19 pandemic. There have been few studies completed on the field of remote work connected to employee motivation. Furthermore, motivation and management have been investigated through the lens of virtual teams. However, these do not apply to remote work in organizations as virtual teams are created with the purpose of operating fully remote. Moreover, traditional management may not be applicable to remote work settings. This area lacks research; hence, this study strives to reduce the gap and provide organizations with increasing knowledge within the area of motivating employees in a remote work setting. Understanding management and motivation in remote work proves to be significant as this structure of working is becoming more prevalent in organizations globally. Thus, the following research question will be employed and answered to structure the study:

RQ: What influences managers’ and their subordinates’ experience and motivation in

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Delimitations

Delimitations to this study were made to focus the research further. This study is limited to the Energy Sector in Sweden, where only two companies were included in the research. Furthermore, all the participants are currently located in Sweden and were during the pandemic as well. Lastly, since the study is focused on managers’ motivation and their subordinates, only one manager and their immediate subordinates were involved in the study.

2. Frame of Reference

This chapter starts with explaining the method of frame of reference which includes the databases used as well as the terms used when gathering secondary data. The most important terms used that were identified were Management, Culture, and Motivation, hence the sections that followed.

Method for Frame of Reference

While the sudden shift towards remote working and its effects on employee motivation are new issues that organizations must adapt to, employee motivation theories and managerial theories are not. These theories stem from prior research and are continuously reviewed and expanded. Consequently, to understand this sudden shift’s effects on organizations, new and old academic research was used and analyzed. A collection of databases was used to methodically gather secondary data in the form of literature periodically from Primo and Google Scholar. The keywords used to gather the literature were “Remote Working,” “Management”, “Management Evolution”, “Organizational Structure”, “Decision-making”, “Organizational Culture”, “National Culture”, “Motivation”, “Employee Motivation”, “Motivational Strategies”, “Motivation Theories”, “Pandemic”, and “Media Richness Theory”. The most cited and only peer-reviewed articles were employed to ensure the highest level of applicability and quality. This supplies the study with a foundation based on trusted and academically approved sources. The validity and reliability of recent studies based on employee motivation during the pandemic are ambiguous due to their newness. In some instances, such as the evolution of management and motivation, older sources were used to better understand their origin and how they have changed throughout the decades.

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Management

Primitive management has been found dating back to the ancient Greeks (Kim et al., 1995). Regarding management of business organizations, there are four keystone tasks according to Ansari and Birkinshaw (2015), “… coordinating activities, making decisions, defining objectives, and motivating effort.” Furthermore, the authors state that the organizations’ management model results from the execution of these four keystones.

Throughout history, there have been different broader movements in management. The earliest accepted movement established itself with the industrial revolution in the late 19th century to early 20th century. Planning, organizing, influencing, and controlling all became essential in industrialized workplaces. The earliest movement, the Classic Management Movement, focused on efficiency (Pindur et al., 1995). Thus, the well-being of the workers was not considered. Due to this, the Behavioral Management Movement was developed between 1930 to 1950. Moreover, the development of statistics and mathematical models during the Second World War contributed to the Qualitative Management Model, an approach based on calculations as a basis for decisions. According to Pindur et al. (1995), the Modern Management Movement is a mix of all previous models and different management approaches such as the process approach, the systems approach, the contingency approach, strategic management, Japanese-style management approach, and excellence approach.

In the book “Reinventing Management” (2012), Birkinshaw explains a school of thought that we are on the verge of change regarding the management models as we know them. The reason being is that the current models were developed during the industrialization era, where capital was a scarce resource, which is not anymore. Instead, knowledge is the scarce resource that organizations are focusing on, which will help them gain a more competitive advantage than focusing on yielding higher efficiency (Birkinshaw, 2012). Similarly, Grant (1996) identifies knowledge sharing as vital for a firm’s success as organizations operate within a highly competitive market. Reychav and Weisberg (2010) suggest that explicit and tacit knowledge have varying economic values. Tacit knowledge carrying higher value as it is usually acquired through direct contact and observation and tends to be more complex.

Ansari and Birkinshaw (2015) describe the two parameters used to evaluate management models – means of management and ends of management. The former being how tasks are structured and how decisions are made, and the latter being the goals set and how employees

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11 are motivated. By analyzing these two parameters, the authors describe four management models. The authors described the Planning Model, which is when management has clear goals with a short time horizon, leading to a rigid hierarchy with clear decision-making procedures. The Quest Model is one where the means are not as strict as in the planning model, however, the ends are precis. This is viewed as a visionary model since employees will have a clear understanding of the expected outcome, but they can decide how to reach it. The Scientific Model is the invert of the quest model, where the means are strict, but the ends are loose. Hence, this management model has a defined way of executing, but the result may vary and has no actual demands. The Discovery Model is when both means and ends are vague. Therefore, an organization with unclear procedures and goals is established (Ansari & Birkinshaw, 2015). Further, the authors state that one organization is seldom in one of these precisely. Instead, an organization might have different departments in different models and be between two models. Additionally, an organization will go through different stages, hence, be in different models from time to time depending on where it is in its lifecycle.

In terms of managers in organizations, there are personal traits that are very important to consider. One of the more common managerial traits is being a good communicator, conveying a message in a transparent and easy-to-understand way, instilling trust in subordinates, earning their respect, and keeping them happy. A. Dasgupta et al. (2014) state that there will be an amplified abidance towards managers which have instilled a trustworthy environment by means of their communication. Additionally, Madlock (2008) concludes that the more skilled the manager is in term of communication, the higher the employee’s fulfilment of the job will be. Furthermore, Yates (2008) states that companies should realize the importance of having effective communication within the organization and help develop those skills in managers and supervisors. In remote situations, managers’ communication abilities become even more critical for team cohesion and reduce the disconnect employees may feel.

Management in Remote Settings

According to Bersin et al. (2020), 47% of remote workers indicate that having good consistent communication with their manager is critical when shifting towards remote work. This amplifies how crucial communication between the two stakeholders is, especially since deteriorated communication can substantially impact the organization’s financial outcome. Cook (2019, Ch. 2) discusses in her book the traditional challenges managers, the employees, and the organization as a whole face when moving from the office to a remote working

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12 environment. The managers’ challenges include not being able to rely anymore on “presenteeism”, which is a concept that they used to employ and build their cultures around monitoring input and the time spent to get a task done. Empowering employees in these situations is necessary since the managers cannot be present all the time at all places. To ensure that they are still in control, managers should make it very clear what the expected outputs are and keep open communication at all times. The shift to remote work creates a greater emotional gap between managers and their team. Managers should be aware of this, aim to bond the team, and build a solid connection to prevent mistrust and miscommunication.

On the opposite side of the issue, Cook (2019) explains how there are challenges that the team members face, which are more psychological and require great care. The lack of face-to-face communication with other team members and superiors could lead to isolation which could become a bigger issue if not resolved. Luckily, technology could fill that gap, however, the lack of equipment could create more problems. In addition, not having a dedicated location for work at home could further hinder them from getting any work done. Working from home could also lead to “work creep”, a state that employees could fall into where they do not have a healthy work-life balance, and they mainly concentrate on work and neglect their private life. The challenges that the whole organization faces are in the form of increased costs. Ensuring that the technology used by the employees is adequate, which includes hardware, software, IT training, and support. The whole organizational culture of how people work and how they behave shifts which could lead to the organization believing that since their employees are working from home that they are not working, hence why they are unreachable. With the proposed shifts, the hierarchy and the bureaucracy a firm operates within are also important to keep in mind while remote working. Thus, Cook (2019) suggests a differing form of management in remote work as managers can no longer rely on control, instead shifting towards the empowerment of employees. In terms of measures of success, managers must rely on results and performance, and outcomes as opposed to previously relying on attendance and hours worked.

Bureaucracy, Hierarchy, and Decision-making Procedures

In the article “Bureaucracy and Growth” by Cornell et al. (2020), bureaucracy is explained from Max Weber’s work in Economy and Society as when the organization is structured with clear responsibility areas and authority. A measurement of the level of bureaucracy within an organization is to observe how tall or flat the organization is. Ghiselli and Siegel (1972) state

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13 that a taller organization structure is one where a high number of managers is present, each with a small width of responsibility, creating a narrow and high passageway for information. On the other hand, flat organizations have fewer managers, each responsible for a broader area of the company. They also have fewer managers above them, which leads to a quicker decision-making process (Ghiselli & Siegel, 1972).

Grewal et al. (2010) define decisions as “… singular, one-off in the moment or the product of many smaller assessments, agreements, and choice.” Depending on the type of decision that needs to be taken, a different management level needs to be involved. Grewal et al. (2010) state that there are three different decision contexts that take place within an organization: tactical, operational, and strategical. The regularity with each of the decisions occurring is not identical. Tactical decisions are the most common, and strategical decisions are the least common. Furthermore, the more strategic value the decisions have and the bigger the implications of the outcome, the decision will be taken by individuals higher up in the chain of command. In comparison, tactical decisions are perceived as simple and can often be taken by subordinates. A clear chain of command is critical to establish within the organization for a decision to be taken by the correct person. A. Crumpton (2013) argues that organizations need to have a deliberate and thought-out chain of command for the most effective outcomes and accountability. Moreover, when knowledge is present within the organization of whom is responsible in each area leads to easy communication flow and the time lost waiting for answers before proceeding with a task will be minimized.

For employees to make correct decisions without communicating with a manager for answers, a manual or guide with answers can be distributed to eliminate waiting time. According to Gaba et al. (2006), cognitive aids, checklists, or standard operating procedures (SOPs), are put in place to help guide employees. Hongdiyanto (2017) states that SOPs minimize human mistakes and increase consistency within production operations. Moreover, stating that quality will increase, and employees will become more efficient as they do not have to ask their managers for help and wait for answers. Instead, all the information needs will be found in one document.

One problem regarding cognitive aid is that employees may become less involved, and employee participation will be reduced as a result of this. As employees will be used more like machines, Antonakis et al. (2005) argue that motivation and innovation will decrease. Hence,

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14 giving employees a say when developing a cognitive aid is critical for their feeling of belongingness and influence.

Culture

Culture has been defined in numerous ways, varying throughout time. Kluckhohn and Kroeber (1952) provided a broad anthropological definition of the term stating, “Culture consists in patterned ways of thinking, feeling, and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artefacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values”. Similarly, Schein (1991) defines culture based on five distinctive implications of the term (1) stability, (2) conceptual sharing, (3) patterning, (4) dynamics, and (5) understanding all aspects of group life. Thus, resulting in the following definition:

“A pattern of shared basic assumptions, invented, discovered, or developed by a given group, as it learns to cope with its problems of external adaptation and internal integration, that has worked well enough to be considered valid, and, therefore, is to be taught to new members of the group as the correct way to perceive, think, and feel in relation to those problems”. In his book “Culture’s Consequences: International Differences in Work-Related Values,” Hofstede (1984) refers to culture as “the collective programming of the mind which distinguishes the members of one group from another” and later emphasizes the importance of values as they are “among the building blocks of culture”.

Organizational Implications on Culture

Hofstede (1980) investigated the differences in national culture through matched samples of business employees at IBM in more than 50 countries. The results from this study presented five independent cultural dimensions of national culture as follows: (1) power distance, (2) uncertainty avoidance, (3) individualism versus femininity, (4) masculinity versus femininity, and (5) long-term versus short-term orientation.

As denoted by Hofstede’s findings, the cultural dimensions have clear implications on organizations and their respective employees. Among the countries studied, Sweden was the most feminine country and was characterized by relatively low power distance compared to other countries (Hofstede, 1983). Hofstede (2011) later encountered factors that described

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15 common difficulties that IBM employees endured in the workplace in all societies, reflecting values of the country of their upbringing. The values conflicts found were: “(1) dependence on superiors, (2) need for rules and predictability, also associated with nervous stress, (3) the balance between individual goals and dependence on the company, (4) the balance between ego values (like the need for money and careers) and social values (like cooperation and a good living environment)” (Hofstede, 2011). These problems describe clear differences in expectations between employees who find themselves in organizational environments with contrasting cultural dimensions.

This is further analyzed by Markus and Kitayama (1991) in “Culture and the Self: Implications for Cognition, Emotion, and Motivation”. The authors explore the differences in cultural values and how individuals view themselves within the cultures they belong to. They classify individuals as having either an independent view of self or an interdependent view of self. The differing values and views of self, have implications on structure, tasks, role of others, and the basis of their self-satisfaction. Individuals who have an independent view of self, mainly found in Western cultures, possess a unitary and stable view on structure where they encourage being unique, expressing oneself, realizing internal attributes, promoting their own goals, and being direct. The role of others in society is for self-evaluation, where others are imperative for social comparison and reflected appraisal. The self-satisfaction pertaining to an individual’s independent view of self is linked to their ability to express themselves and validate their internal attributes.

Conversely, an interdependent view of self, as found in many Asian cultures, views structure as flexible and variable. Their focus is to belong, occupy one’s proper place, promote others’ goals and be indirect. The role of others allows individuals to define the self in different contexts. The self-satisfaction is found in their ability to adjust, restrain oneself and maintain harmony in the social context (Markus & Kitayama, 1991). Countries in Scandinavia are outlined as having more collaborative jobs with a higher degree of autonomy and higher involvement in decision-making among employees (Boychuk & Dobbin, 1999). Markus (2016) identifies cultural context as a crucial factor that impacts motivation. In independent individual societies, the motivation for “good” stems from internal forces and being autonomous as opposed to the external obligation to follow expectations and norms in societies with interdependent individuals. Conclusively, the author reiterates the importance of intercultural

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16 communication in motivation as “meeting expectations and following norms can either impair or enhance motivation” (Markus, 2016).

Motivation

In the article “Modern approaches to employee motivation” by Aleksić-Glišović et al. (2019), motivation is expressed as the process of moving someone towards a set goal. As for the business world, motivation refers to the intrinsic enthusiasm which drives the employees into achieving personal and organizational goals in the most effective manner. The four main modern motivational theories outlined in this paper were the Theory of Equity, Theory of Reinforcement, Goal Setting Theory, and Expectancy Theory. These theories are not presented as new ones since they have been previously heavily researched. However, they are used as a baseline to show how employees engage in different activities depending on the different types of benefits they receive. In the article by Minasyan and Tovmasyan (2020), these theories are categorized as “process theories” since their focus is understanding the cognitive process of the employees and the conscious choices they make on a daily basis. The other category of motivational theories explained by Minasyan and Tovmasyan (2020) is “content theories”, which include Maslow’s Need Hierarchy, Alderfer’s ERG Theory, Herzberg’s Two-factor theory, and McClelland’s Learned Needs theory. What these theories have in common is that they explain that employee behavior is compelled by their personal needs and the desire to satisfy said needs. The two categories of motivational theories coexist and work together rather than compete with one another since managers need to understand what needs and rewards motivate their subordinates.

To adopt the proper rewards to be given, managers need to discover what needs their employees require. Maslow (1943) explains how people require five basic needs to be fulfilled, which are necessary for the survival and growth of individuals. These needs are physiological, safety, love, esteem, and self-actualization. Managers need to make their subordinates aware that their safety, love, and esteem needs are not forgotten or overlooked since they are necessary to be fulfilled as a means of motivation. Nonetheless, Abulof (2017) argues in his article that Maslow’s approach to people and employee needs is outdated and that plenty of people in today’s societies do not need to worry about the physiological and safety needs since they are a given. The author continues by stating that several scholars have criticized Maslow’s work and think that it does not fit in the modern age and reaches the conclusion that self-actualization is not achievable and that setting such a goal could be more harmful than motivating. Abulof

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17 (2017) concludes by stating that in some cases, self-actualization has been substituted by love since they are pulling in opposite directions and people have prioritized the latter over the former. In addition, other scholars such as Herzberg argued that Maslow’s theory needed further elaboration, which led him to write his book “The Motivation to Work” (1993). Herzberg (1993, Ch. 12) describes how there are two sets of factors connected to the employees’ job satisfaction and their needs, Hygiene factors and Motivators. The presence of these factors brings job satisfaction; however, their absence does not mean dissatisfaction. Hygiene factors include supervision, interpersonal relations, physical working conditions, company policies, benefits, and job security (Herzberg, 1993, Ch.12). Whereas motivators are factors that satisfy the need for growth, including the work itself, the possibility of growth, responsibility, and achievement (Herzberg 1969).

On the other hand, Arya et al. (2020) explain how employees get motivated through intrinsic means by stimulating their curiosity, satisfaction, interest, involvement, and positive challenges. Additionally, employees can also be motivated through extrinsic means by being offered monetary bonuses, certificates, prizes, and awards. Both means of motivation are extremely beneficial in an organization when used right. However, it is argued that intrinsic methods are more critical, hence deserve greater attention. The authors then define how the Self-determination Theory is based on three psychological needs: competence, autonomy, and relatedness, which together generate a higher quality of intrinsic motivation. Employees’ motivation depends not only on these needs but also on honest and respectful treatment, as well as feelings of fairness and caring by ethical leaders. When these leaders control their own emotions, they can build higher levels of trust within the work environment. Employees who prefer intrinsic means of motivation are more likely to put additional efforts into meeting their organization's target performance (Arya et al., 2020).

Digitalization’s Effect on Motivation

The shift towards remote working caused by the Covid-19 pandemic has affected the whole world and changed how people work, communicate, motivate, and build relationships. This is discussed in Minasyan and Tovmasyan’s (2020) article, where the focus is to analyze how motivation affects both the employers and the employees. Their findings further support the claim that employees are motivated by both intrinsic and extrinsic factors but are now influenced by the shift towards remote working. It was proven statistically and through a survey that workers need to work in the office where they can build relationships with their co-workers

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18 and establish a workplace environment. This leads to more efficiency, motivation, and innovation. The findings in this article were further supported by the report published by Hamilton Place Strategies in partnership with Replica (2020). This report sheds light on how more employees preferred face-to-face interactions since they admitted that it is more effective and stimulates innovation. In addition, other employees admitted that online meetings are less efficient than expected, and they find it more difficult to have meetings scheduled and get work done at the same time. These findings are in line with the ones found in the article by Colley et al. (2020), where it is discussed that there was a widespread resistance of managers who wanted their employees to work remotely even prior to the pandemic. Remote working not being supported by the traditional work cultures and attitudes, as well as concerns about trust, productivity, and underperformance were some of the reasons that managers argued against remote working. In addition, concerns about inadequate technology, compliance with industrial instruments and work, health, and safety policies were used as excuses to not move towards remote working.

Prior to the pandemic, Caillier (2013) described and discussed the Media Richness Theory and how it influences work in general. The form of face-to-face interactions is the “richest” in the sense that the parties involved get the most information from them. Whereas “less rich” forms of communication, such as emails, are less effective since the parties involved will not be able to use verbal, nonverbal, social, personal, and paralinguistic features to be able to identify emotions. The author discussed this theory at that time since teleworking was gaining popularity and further facilitating digitalization and technological advancements compared to the current situation that was caused by the sudden shift towards remote working. Similarly Daft et al. (1987, p. 358-359) explain face-to-face communication being the richest and most beneficial for complex topics as these can be "adjusted, clarified and reinterpreted instantly". Bartsch et al. (2020) explain in their article that the increased usage of technology and media channels because of Covid-19 has caused a sense of frenzy that managers were not expecting since the employees felt that they were undereducated. Hence, the managers needed to know exactly how to balance between the two behaviors, be aware of how their teams were feeling, and accommodate to the situation. Furthermore, the more technologically advanced the companies were, the less of an issue the move towards remote working was, and the more equipped the managers were for solving issues that arose.

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Relationship of Theories

Figure 1: Relationship of Theories in the Frame of Reference

Derived from the theories of management, motivation and culture previously discussed, the researchers graphically demonstrate their relationship in Figure 1. As outlined by Hofstede (2011), culture has clear implications on expectations on managers and relationships in the workplace, which overrides national culture. Thus, this creates the foundation for organizational structures and hierarchy. The structure and hierarchy which characterizes an organization, in turn, influence the degree of freedom managers possess. Hence, this freedom dictated by the structure of the organization influences the managers’ approach to their subordinates’ motivation. Therefore, motivation theories are an outcome of the managers’ ability to empower their subordinates within the given organizational structure and hierarchy, considering the foundational cultural implications and expectations.

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3. Methodology and Method

This chapter will outline the methodology and method employed and justify why said methodology and method are best suited for this study. Followed by the ethical considerations considered to ensure the trustworthiness of the process as well as the findings.

Methodology

Research Paradigm

Research paradigm is the influence of philosophies, and presumptions have on how research is executed. The most common paradigms are interpretivism and positivism. An interpretivism research paradigm argues that everyone has different assumptions and realities that will influence our reality compared to the positivism research paradigm. The positive research paradigm will be independent of the phenomena and have an unbiased result. On the other hand, in a positivism research approach, the researchers are independent of the phenomena, and that the findings from the study will be objective (Collis & Hussey, 2013).

When considering different approaches to answer the research question, an interpretivism research paradigm was chosen. Hence, the result will be highly influenced by the researcher’s subjective perspective. As a result of this, the researchers will have the ability to generate deep insight from the participants of the interviews, regarding how remote work has affected motivation for managers and their subordinates. The answers yielded from the interviewees are anticipated to differentiate and be highly subjective. This is predicted when adopting the interpretivism research paradigm, as the total population will not be included in the study. Thus, individual answers in the sample can influence the answers in a way that does not represent the population. This study will emphasize the phenomena rather than seek meaning. Thus, the researchers have, by design, chosen not to utilize the positivist paradigm (Collis & Hussey, 2013).

Research Approach

The research approach selected for this study is an abductive approach, as it fits well into an interpretivism research paradigm. According to Gregory and Mutermann (2011), an abductive approach refers to when researchers utilize an inductive manner to explore a phenomenon while

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21 utilizing and comparing both what is known and what is observed. Although an abductive approach shares similarities with both inductive and deductive approaches, it is not a mix of both (Dubois & Gadde, 2002). Additionally, when exploring the phenomena, it is common for an abductive approach to infringe and differ with the currently accepted view of the phenomena (Gregory & Muntermann, 2011). Dubois and Gadde (2002) state that an abductive approach should focus on “theory development, rather than theory generation”. Hence, the researchers will develop and contribute to Cook’s (2019) view of managing remotely.

The selected approach for this study is in adjunction of the research objective of the study. In order to analyze what influences managers’ and their subordinates’ experience and motivation in remote work, theories of management, motivation, and culture will be employed and refined for this setting if see suited. The research aims to provide managers with insights on how remote work influences the experience and motivation of employees. The research team deem the abductive approach most suiting. Due to the use of previous knowledge alongside insights gathered in the research process, this approach will provide the most compelling and useful information to organizations on how remote work has influenced managers’ and their subordinates’ experience and motivation.

Research Design

To answer the research question, the design of the study has a crucial influence on the outcome. Hence, in this research, a qualitative design has been chosen to explore and create a better understanding on what influences employees’ experience and motivation when working remotely. Furthermore, as the research paradigm is interpretivism together with an abductive research approach, a qualitative research design is better suited in this study as the researchers are investigating how remote work influences the experience and motivation of employees. To investigate this, a quantitative design would not provide the deep insights and opinions the researchers aim for in this study.

Moreover, the grounded theory has been an inspiration in the design of the thesis, as the usage of semi-structured interviews will be held to gather information about the matter of working remotely. The grounded theory is a framework that seeks to combine the data and information collected from a pre-decided routine and develop a theory (Collis & Hussey, 2014). As the research does not aim to generate a new theory and the usage of previous theories will be done, the grounded theory is only an inspiration on how to design the study.

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Method

Primary Data

This paper is derived from a qualitative research, based on the significant answers from the empirical findings gathered through the in-depth interviews conducted with a total of eight participants: a manager, and three subordinates from each company. The chosen semi-structured method of interviews invites in-depth discussions that allows the researchers to better understand the types of motivations used in the studied companies. Moreover, semi-structured interviews provide an understanding of the current and past manager-subordinate means of communication, managing, and remote working. Prior to conducting the interviews, a pilot interview was conducted to allow the researchers to test and adjust the questions to acquire the most relevant answers to the study. Therefore, the pilot interview proved to be useful and provided the researchers with input to modify interview questions to provide with appropriate results. Hence, the researchers regarded the questions and structure of the interviews to be applicable and relevant to this study.

Secondary Data

To better understand the theories and models used in this paper, secondary data were mainly gathered in the form of peer-reviewed articles. Search engines such as Primo and Google Scholar offered a large number of articles and hits that were both beneficial and convenient to this paper. These articles were thoroughly examined and analyzed to ensure that all the important information was utilized. Other non-peer-reviewed articles were also used to get a deeper understanding of the current situation that Covid-19 has placed companies in. These articles were gathered through the Google search engine and examined to make sure of their authenticity and credibility.

Sampling Approach

Participants were selected based on their positions in the companies studied. The researchers aimed to have one manager in addition to three of their subordinates to participate in the study. Therefore, convenient sampling was the method of choice used, since the researchers had to use their own personal networks to contact companies for this study.

Due to the situation where most people are working remotely cause by the Covid-19 virus, this sampling approach was the most feasible. The subordinates were picked by the managers

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23 themselves and not by the researchers. This was done to maintain credibility and to not hand-pick everyone being interviewed, since that could interfere with the type of data gathered. Hence, a combination of convenient sampling and voluntary sampling were used to achieve the most representative sample, given the current situation in which the study takes place.

Company X Company Y

Industry Sector Energy Energy

Founded 1913 2016

Number of Employees 91,000 1100

Location Central Europe Northern Europe

Table 1: Company X & Y’s Information

Employees/

Traits Age Gender Position

Experience in the field

Time of employment in the company M1 42 Female Manager in the Finance

Department 17 years 13 years

1A 36 Female Team Lead ─ Trade

Finance 14 years 12 years

1B 41 Male Team Lead ─ Treasury 16 years 5 years

1C 50 Male Team Lead ─

SAP/Finance 20 years 15 years

M2 39 Female Talent Acquisition

Director 12 years 3 years

2A 38 Female Talent Acquisition

Specialist 8 years 1 year

2B 37 Female Talent Acquisition

Specialist 6 years 1,5 years

2C 39 Female Senior Talent Acquisition

Specialist 8 years 1 year

Table 2: Interviewee Participants

The two departments interviewed are the finance department from Company X and the recruitment department from Company Y. Two different departments were chosen to be compared to better understand how different managers with different responsibilities tackled the shift to remote work. As the nature of the roles in these two teams were different, comparing them could provide a deeper understanding of various business functions. Comparing the same departments from the two companies would have possibly yielded similar results when the researchers hoped for diversity and a wider scope of results.

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Semi-structured Interviews

Given the situation with Covid-19 when the research was conducted, video-conference interviews were seen as the best option from a safety perspective. This method also allowed the researchers to get a more complete response from the interviewees since non-verbal cues could also be identified. While interviews, in general, may lead to a smaller scope of answers, the researchers decided to have more in-depth interviews to gather more detailed, deeper responses and gather subjective qualitative data that would help aid shape the research further and build a connection to the research questions. As the phenomena is relatively new and more difficult to understand from an overall glance, the researchers tried to expedite the focus of the interviews by having semi-structured open-ended questions that would allow the interviewees and interviewers to explore the topic freely and go beyond the superficial issue.

Table 3: Interview Data

Interview Questions

The primary objective of the interview questions (Appendix 1) was to better understand what motivated managers and their subordinates prior to the pandemic, during, and at the time of conducting this research and how remote work influenced their motivation in these three stages. The questions were developed to fill the gaps in the research of comparing how the pandemic has changed the method of motivation used in different companies and the gaps mentioned in the literature review. In order to minimize subjectivity and bias, the interviews started with open-ended personal questions to better understand who the interviewees are individually. Following that, more in-depth questions related to motivation in the three different stages mentioned previously were also asked in an open-ended manner to give the interviewees the

Participant Date of Interview (DD/MM/YYY) Duration of Interview

M1 14/4/2021 01:09:43 1A 16/4/2021 00:46:09 1B 14/4/2021 00:58:24 1C 15/4/2021 00:53:55 M2 23/4/2021 01:05:41 2A 21/4/2021 00:37:15 2B 26/4/2021 00:39:44 2C 19/4/2021 00:59:02

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25 freedom of exploring and describing their points of view on the matter. While the interviews followed a determined list of questions, the researchers concluded it was optimal to employ semi-structured interviews to allow them to explore different emerging topics mentioned by the interviewees or that might have been only brushed over that may be of high relevance to the research. In addition, the researchers decided to provide the interviewees with the questions prior to the interviews to allow them to prepare to provide more thorough answers.

Data Analysis

In order to analyze the data gathered through the interviews, Content Analysis was used. According to Bougie and Sekaran (2016), Content Analysis is used when analyzing data in the form of recordings of interviews, newspapers, websites, or other forms. It enables the researchers to identify the data’s properties such as themes, concepts and words which are all categorized and coded beforehand using Conceptual Analysis and then build on it through Rational Analysis. A Thematic Analysis approach was employed in to draw categories which were derived in the interviews as main topics, which were later divided into themes (Bougie & Sekaran 2016). This was deemed the most applicable way of analysis since the study is done through a qualitative lens, which is acknowledged for being subjective and intricate. Hence, the researchers adopted the systematic steps of the content analysis mentioned previously, to decipher and categorize what was shared during the interviews and obtain a better understanding of the hidden meanings seen in the interviewees’ answers.

Firstly, all the interviews were first transcribed, saved on the researchers’ OneDrive, and sent to the interviewees for approval. These steps were already approved by the participants, which were put in place in order to respect their anonymity and privacy rights. Secondly, the researchers read through the transcripts, highlighted important factors and interesting quotes, and discussed the most reoccurring answers among the interviewees. Mind-maps of each company’s answers were drawn which helped aid code the data gathered. When coding, the researchers tried to include all the information shared by the interviewees to avoid bias and steering the findings of the interviews in one direction. The next step of the analysis included the researchers attempt of grouping the identified codes into four major categories. Once these categories were established, the researchers were able to derive themes that went with each category from the codes previously gathered. Once that has been done, the findings were formulated including quotes from the interviews that were later on discussed and looked more in depth in the analysis section.

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Ethics

Ethical considerations in this research are significant to establish the highest degree of quality of the results presented. Therefore, the researchers have taken into consideration the following factors to ensure the trustworthiness of the findings: Anonymity and Confidentiality, Credibility, Transferability, Dependability, and Confirmability.

Anonymity and Confidentiality

Ensuring the anonymity and confidentiality of the interviewees is an important factor for the study in order to collect reliable data. Furthermore, this creates an environment that enables freedom of expression without the participants feeling as though their answers will be traced back to them (Collis & Hussey, 2014). Thus, when referring to individual’s responses, the researchers have designated numeric labels to the respective interviewees to highlight the information without compromising their identity. The participants of this study were also presented with a consent form as well as information about the study beforehand. This was done to relieve pressure off the individuals and inform them of the rights they have as participants. The interviews were also recorded with the verbal and written consent of each individual. Although anonymity could somewhat affect the interviewees negatively by making them feel insignificant or as though they do not receive recognition for their participation, it is imperative to create an open and honest discussion and retrieve trustworthy data.

Credibility

The credibility of qualitative research is based upon three elements. Firstly, the techniques and methods employed to gather high-quality data which are later analyzed. Secondly, the credibility of the researchers themselves. Lastly, the naturalistic inquiry, qualitative methods, inductive analysis, purposeful sampling, and holistic thinking all encompass the philosophical belief in the value of qualitative inquiry (Patton, 1999). The researchers interviewed two different departments, finance and recruitment, from two different companies. The data collected from two vastly differing perspectives may provide with meaningful contribution from various organizational divisions, taking into consideration the potential differing levels of face-to-face interactions required in each division. Additionally, presenting a comparative study between two companies may also show the influence of company culture and procedures in employee motivation when working remotely. Lewis et. al (2019) state that providing themes and meaningful information to interviewees may increase the credibility when carrying

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27 interviews. Therefore, the researchers highlighted the purpose, relevance, and main themes of the interviews beforehand.

This study employs convenience sampling as one of the sampling methods, which may present bias as the interviewees have either direct or indirect contact with the interviewees. Although this relationship with certain interviewees may pose hinders in terms of credibility to some extent, it allows for more trust and openness towards their individual responses and towards the study. As some of the questions posed during the interviews may be personal, establishing a level of trust with the interviewees prior to the interviews may prove to be beneficial regarding the data acquired. Furthermore, understanding underlying motivations can prove to be intricate. Thus, the researchers ensured the language in the interviews was simple and clear. This was done to minimize the chance of miscommunication and further encourages openness during the interviews. Following this same reasoning, the interviewees were given the option of conducting the interview either in English or Swedish to accommodate to their preference.

Transferability

The transferability of the research refers to whether the findings can be employed in other similar situations that allow for generalization. In order to assess the transferability of the research, the researchers provide with thick description of the phenomenon and experiences throughout the data collection process (Guba & Lincoln, 1981). This study is carried out in Sweden; thus, one must consider the cultural context of national culture in the findings in terms of transferability. Furthermore, the researchers are analyzing motivation in remote work during a period of crisis as the Covid-19 virus is still ongoing. Therefore, the researchers cannot guarantee that motivation in remote work in future studies will have the same outcomes, which could be due to the current pressure of factors such as job security and stress at work in this context.

Dependability

The dependability of qualitative research is based upon if the research processes are well-documented and conducted in a systematic and rigorous manner (Guba & Lincoln, 1981). In order to increase the dependability of this research, the interviews conducted were recorded upon the participants’ agreement and later transcribed. The phenomenon of remote work has been increasing over the past decade and will likely continue to do so following the Covid-19 pandemic. However, the integration of remote work post-pandemic and the motivational

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28 factors once employees are allowed to willingly decide where to work may affect the dependability of the research over time.

Confirmability

Confirmability, as described by Koch (2006), refers to the requirement to demonstrate the how the data has been interpreted and how conclusions are drawn upon said data. Furthermore, Guba and Lincoln (1981) determine that confirmability is achieved once credibility, transferability and dependability are attained.

4. Findings

This chapter will further show the context of the study. As well as how the researchers of this study coded the findings into categories and themes. This will then lead to a summary of the findings which will be presented from the derived interviews accompanied by quotes from the participants.

Context of the study

Two companies from the energy sector are studied in this research. The energy sector is comprised of companies producing and distributing energy to other stakeholders, both companies and individuals. Companies in the energy sector are split into renewables such as solar and wind power and non-renewables, including petroleum and natural gas (Investopedia, 2021). The Swedish government is placing greater importance on reducing dependency on fossil fuels and investing in the increasingly growing renewable energy sector. As of 2018 (Eurostat, 2019), Sweden was the country with the overall highest share of energy from renewable sources in the EU. Company X is a global company with headquarters in Central Europe with over 90,000 employees worldwide and a history dating back over a century. In comparison, Company Y is a younger company with 3,000 employees operating in Northern Europe. The divisions participating in this study, Finance and Recruitment, are both operating in Sweden.

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Coding

The coding process in qualitative research refers to the reduction and rearrangement of the raw data gathered. A Thematic Analysis approach was utilized to draw categories that were the main topics of the interviews. Which later lead the authors to divide these categories into themes (Bougie & Sekaran, 2016). Although sectioned into a rigid table, the researchers recognize that these themes are interconnected and may influence one another. During this process, the authors identified the following themes presented in Table 4 below.

Categories Themes

Personal Attributes • Experiential Knowledge

• Drivers of Motivation

Structure • Organizational Structure

• Tasks and Roles

Forms of Communication • Formal Communication

• Informal Communication

Work-life Balance • Productivity

• Flexibility

Table 4: Coding

Personal Attributes

Personal attributes are highly subjective and can differ from person to person. From the individuals’ motivation to join the company, contribution, career aspirations to experience, and confidence within their respective roles. Therefore, the authors were able to identify the two major personal attributes that the participants had in common. Firstly, Experiential Knowledge encompassing experience, which translates into confidence within the role. Secondly, Drivers of Motivation, which include personal sources of motivation and the amount of recognition each individual expects and needs.

Experiential Knowledge

When asked about the experience the individuals had in the field, all participants from both companies had a significant number of years of experience within their respective fields. This was also seen in regard to their confidence within their roles (Appendix 2). Employee 1A elaborated on these aspects in conjunction with the importance of having a supportive manager. Employee 2A, who joined Company Y relatively close to when the pandemic started, commented on the adaptation and confidence in the role being built up from experience within the company.

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30 “I feel very secure [in my job]. Now, it has not always been the case, but the thing that comes

with experience. But I think also that that could change, in case you have a manager, that doesn't give the support, as I mentioned that I have a manager that supports me very well.” –

1A

“It took me a while especially in the pandemic, when everybody was working from home to get into the role and to build up the self confidence that I needed. But I think now I feel very comfortable, I know where I get information if I don't have it, you know whom to contact”. –

2A

Furthermore, both managers discussed the difficulties that arose with managing remotely in terms of knowledge, specifically when there was a gap in experiential knowledge. The difficulty arose when sharing knowledge with less experienced individuals, as well as the difficulty in assessing new employees remotely.

“Senior ones don’t need my help as much because they know more than I do in terms of knowledge. When it comes to them, I have tried to work more with other types of questions like, how can we motivate the entire team and how can we ensure that your knowledge can also be distributed to the other team members, if it's appropriate. While the newer ones with not so much experience, there I can more guide and saying I think you should go this or that

way.” – M1

“Then the next question that you may ask yourself when it doesn't work is; is it due to the pandemic? Or is it the person? That is quite a big question mark today, on whether someone

could perform more if they would have been in a normal environment, with all the information that they needed.” – M2

Drivers of Motivation

In terms of motivation to join and accept the position within the company, all employees from Company X mentioned the company’s reputation as well as location. Location as a factor was presented and reinforced below by Employee 1B in terms of accessibility to be a part of a multinational company in their respective area of residence as well as organizational culture.

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31 Whereas M1 attributed her motivation to join the company to the internal support she would receive from people she had previously contacted as a recent graduate student (Appendix 2).

“It was the company, the size of it. I’ve always been working for large companies, and global multinational companies. And, even if it's located very local... this mixture is extremely interesting. The culture in the company is something that is really attractive. Also, that’s what is kind of an internal factor about it, is the internal term we're working for ownership

culture.” – 1B

On the other hand, all employees from Company Y mentioned the company’s mission, vision, international environment, people, and the challenge and nature of a start-up as motivations for applying and joining the company (Appendix 2). This is exemplified through the quote M2 provides below.

“The mission and vision of the company. I thought it was an extremely ambitious project, almost to the verge of crazy towards the impossible. ... I saw a sparkle in their eyes and a lot

of grit and passion and that was extremely contagious... because we were on to something bigger than ourselves that is projected into the future.” – M2

Employees from Company X seek motivation and recognition from immediate sources rather than contributing to the overall mission and denoted the company’s size as a contributing factor. This is also reflected in regard to the amount of recognition the employees seek (Appendix 2).

“[My] main driver is to provide service and to contribute to the business progress.” – 1B

“You can of course sometimes wonder if you are really that important when you're dealing with a company manufacturing B2B products, which you will never really get to see except in

your yearly manufacturing visit ... sometimes you can also feel that you don't really know what's happening, but I mean it's a really big global organization” “... you need to think of

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32 our mission to make the daily work easier for all the people working with within the system

approach in finance.” – 1C

Conversely, employees from Company Y placed a strong emphasis on the mission, seeing a direct impact on the company’s success as well as their team in terms of motivation and recognition.

“Well, being part of this growth of the company really contributing actively to it. Also, the whole mission of the company. I think it's a fantastic company, and the energy of the people, I really think that every time I talk to colleagues. I think “That's a great person, they are really

smart energetic and ambitious.” – 2A

Both managers mentioned their subordinates as drivers of motivation, suggesting that employees play a large role in their motivation as managers in remote work.

“I try to be the leader that they need... I want them to develop in their role to challenge themselves, to gain new experiences, try to do something new, and dare to fail ... to be there

when they need my support and to be able to push them. That makes my day.” – M1

“They [the team members] really walk the extra mile to deliver and being in an environment with these superstars, you know, that do things better than I do. And I have the same passion. It's really something that motivates me to drive them further and help them to be successful.”

– M2

Structure

The structure of the organization determines how the employees are expected to perform and that in return can influence their motivation and well-being. The participants shared how knowing what they needed to accomplish and who to contact to be extremely important, especially in a remote setting. The authors were able to identify two factors that the participants highlighted. Firstly, Organizational Structure in terms of the number of levels of hierarchy found in the organizations. Secondly, Tasks and Roles referring to the types of work tasks and decision-making.

Managing and Motivating Remotely