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MGMT 452 Group Project Professor Alexandra Panaccio Group #8 Acquired-Needs Theory & Two Factor Theory

By: Affan Jafri Marcin Handzel Tom Glista Aidan Russell Tom Idzik Bastian Harbo

**__Introduction__** Menards is one of the largest home improvement chains in the Midwest; it has more than 250 stores in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, North and South Dakota, Ohio, Kansas, Wisconsin, and Wyoming. Menard is owned by president and CEO John Menard, who founded the company in 1962. Every Menards store shares a common structure. Each store is primarily divided by departments: building materials, hardware, electrical, millwork, wall coverings, plumbing and house-wares, floor coverings, cabinets and appliances, and groceries. Other areas of the store include the front end (cashiers, office functions, carry-outs) and the receiving crew (responsible for the lumber yard, shipments between the store and the distributions centers, and other delivery and merchandise logistics)[3]. Unlike competitors, all the company's stores have full-service lumberyards. In a typical store there is a Store Manager, two Assistant Managers, a Department manager, and various Sales Floor team members, which is dependent upon the guest volume typical at that individual store. Some departments are combined dependent upon store volume and guest traffic or only have a single Assistant Manager. Currently, Menards has 40,300 employees and this number has been rapidly increasing because new stores are being opened up each year. In 2009, Menard Inc. ranked 42nd on Forbes' list of "America's Largest Private Companies." The trade publication Home Channel News estimated 2007 sales at $8 billion[3]. In March 2005, the company opened the first 2-story, 300,000 sq ft (28,000 m2) Menards megastore in St. Paul, Minnesota. It followed in November 2006 with another 2-story store in Hodgkins, Illinois. In March 2009, Menards opened its flagship megastore in Waukesha, Wisconsin, a suburb of Milwaukee. The Waukesha megastore is the largest Menards in the United States and has two glass elevators, two massive industrial escalators, and a snack shop. In 2007, Menards opened two more distribution centers in Holiday City, Ohio and Shelby, Iowa. The Holiday City, Ohio, complex is 669,000 square feet (62,200 m2) and the Shelby, Iowa, complex is 735,000 square feet (68,300 m2). Menards stores are divided into categories based on store size and product range. These categories range from P1 (Prototype size 1) to P5 (prototype size 5), Hardware Plus (smaller than a P1 with fewer building materials item selections) and non-prototype (usually stores that have moved into pre-existing locations or locations where large prototype stores will not fit, such as the 2-story stores). Recently, the 240,000 sq ft (22,000 m2) and larger Menards stores began selling groceries. By adding a second story mezzanine for less often accessed items, space can be made for groceries on the main floor. In 1958, John Menard, Jr. began building post-frame buildings to finance his college education. By 1959, Menard found it necessary to hire extra crews, and to purchase more equipment to keep up with demand. After graduating from college in 1962, Menard purchased land in Eau Claire, Wisconsin and built an office and shop. Menards was founded at this time in 1962. When post-frame building customers often inquired about the possibility of purchasing lumber and other products, Menards opened the first Menards Cashway Lumber. In 1969, Menard began adding manufacturing plants at the Eau Claire site. These plants included facilities for making trusses, treated lumber, boards, pre-hung doors, steel and nails. A distribution center was also added. In 1994, Menards sold the post-frame building division. In 1998, Menards opened a second distribution center in Plano, Illinois. In 2005, Menards created an e commerce website called Menards Online Collection[3]. John Menard Jr.'s brother, Larry, served as Menards Operations Manager for 40 years. Larry retired on March 31, 2009. Dennis Dixon, the longtime Assistant Operations Manager, replaced him. Larry's son Charlie (actually named Larry as well, born 1973) served as the COO until October, 2007 when he became Manager of the Eau Claire Distribution center. John Menard, III ("J.R." Menard) is the current Corporate Treasurer. Menards does not have a very strong culture because organizations with strong cultures would have less levels of management. Strong cultures guide peoples’ behavior and employees have deeply held values the same as the organization; and they identify themselves with their jobs. One reason for the company not having a strong culture is that the stores are very large and have many part-time workers, mostly school students who will not value the organization’s culture if they are not thinking of making Menards a career. Within the higher levels of management, the commitment and the strength of the culture at Menards increases. Menards has a people oriented culture; where one of the main emphasis is on guest service. At Menards the customers are known as guests and should be treated as such. The company's motto is "Dedicated to Service and Quality."
 * History of John Menard Jr. Founder **

Menards can be analyzed through the lenses of both the Herzberg two-factor theory and the acquired needs theory. When examined using these two theories, Menards' strengths and weaknesses can be made visible.

**__Two-Factor Framework/Presentation__** First of all, is the two factor theory. The two factor theory was created by Frederick Herzberg. Frederick Herzberg believed that there are two types of factors in an employee's surrounding work environment. One type of factor, which leads to an employee becoming dissatisfied with the job is called a hygiene factor. The hygiene factor can only create an employee's dissatisfaction with a job, but it cannot create satisfaction or motivation. It can be thought of as something in the work environment that can bother the employee. Typical hygiene factors include company policies and rules, supervision, social relationships, working conditions, salary and compensation, and security [1]. Hygiene factors tend to be only noticed by the employee when they are not there. For example, if an employee that previously worked 40 hours a week gets his hours cut to 35 hours, and then to 29 hours the next week, it would make the employee worried about the lack of job security, and this can cause dissatisfaction. Another example is when an employee that normally works in a quiet room get transferred to a room that has a lot of noise. This lack of good work conditions makes the employee dissatisfied on the job. On the other hand, when an employee lacks about things to complain about and has a good work environment, this does not cause job satisfaction or job dissatisfaction, according to Herzberg. It also does not create a motivating work environment. This is because when hygiene factors are fulfilled, then they are taken for granted. For example, an employee working in the most comfortable working conditions will not be motivated, but will simply lack things that bother or annoy them [5]. The other type of factor does create employee motivation. It is called a motivator. Unlike hygiene factors, the lack of motivator factors cannot cause job dissatisfaction, but instead cause job satisfaction. Motivator factors include achievement, recognition, responsibility, interesting work, job advancement, growth, and promotion [5]. For example, if an employee gets an award for high sales, this will cause job satisfaction and motivation for the individual. But if this same employee does not get an award because of high sales, this lack of a motivator factor will not necessarily create job dissatisfaction, it can only create a lack of satisfaction. When these two factors are combined, they can create four possible combinations. In a job with high hygiene and high motivation, workers will have little or nothing to complain about and will be very motivated. In a job with high hygiene but low motivation, an employee will just see the job as a way to get money and nothing else. In a low hygiene and high motivation situations, workers may have many complaints about the job like poor pay or too many hours, but the job is very motivational and very interesting. The last combination is low hygiene and low motivation, where there the employees don't care about the job and have many things to complain about like lack of resources, high stress and poor pay. The high-high situation is the best one to be in and the low-low situation is the worst one to be in [5]. The Herzberg two factor theory does have some limitations. The biggest limitation is that one hygiene factor may be seen a a motivator or vice versa. For example, an employee may view pay, or a raise in pay, as a motivator even though Herzberg classified it as a hygiene factor [1].

**__Menards Through the Lenses of the Two-Factor Model__** Frederick Herzberg developed the two-factor theory of motivation after asking people what satisfies and dissatisfies them about their particular job. After this information was collected, he realized that employee satisfaction and dissatisfaction were independent of each other; an increase in satisfaction does not imply a decrease in dissatisfaction. Herzberg referred to hygiene factors as the aspects of a job’s environment and context, excluding the job itself. Working conditions, company policies, salary, supervision, and safety are all examples of hygiene factors. Positive hygiene factors alone do not motivate, they merely eliminate dissatisfaction.[1] John Zielinski, a Menards Department Manager, when asked to describe the hygiene factors of his workplace, said that his salary motivates him to work more often because many people are without jobs and he receives overtime in addition to bonus pay. He also mentioned that working indoors in a climate-controlled environment makes work more comfortable and less stressful. John’s representation of hygiene factors at Menards paints a clear picture of positive traits that prevent him from experiencing dissatisfaction. Another employee named Nicholas W. said that the safety and dress code policies are appropriate and contribute to a positive work environment. He thinks that Menards could be doing a better job to inform employees about policy guidelines [2]. Although Nicholas mentioned positive factors, the presence of a negative hygiene factor creates dissatisfaction with his work environment. Herzberg described motivators as factors that are a part of the job itself, such as interesting work, achievement, increased responsibilities, advancement, etc. They are the factors that inspire employees to put greater effort into their work. Motivators create job satisfaction when positive hygiene factors are present.[1] John Zielinski described some motivators of his job in the interview. He felt a great sense of achievement while working for Menards; there was a lot of self-satisfaction when a task was completed. John also felt recognition, as he knew his efforts were appreciated. There was interesting work for him to do, which included new tasks to augment his experience and growth as a person. He was also given increased responsibility over time, which boosted his confidence and informed him of his superior’s appreciation of his work. Nicholas W. stated that Menards provides its employees with empowerment that allows them to make their own decisions, which increases job satisfaction. They promote from within, and are continually expanding, so employees are motivated to succeed knowing they have the opportunity to advance. There are incentives for meeting or exceeding sales goals that includes profit sharing for employees and a monthly bonus for managers. According to Nicholas, the most important motivator is management letting the employees know when they are doing a good job. Managers always maintain a presence on the sales floor to further motivate the employees, instead of being isolated and separate from the daily operations. Team member of the month awards give the winner a $25 store credit check. Nicholas said that overall, his greatest motivators are that he enjoys his job, enjoys interacting with his coworkers, and likes to solve problems.[2] The two-factor theory of motivation has proven to be useful in the analysis of Menards, and it shows that there is far more job satisfaction than dissatisfaction among employees who work for this large organization.

__ **Strengths & Weaknesses Two-Factor Model** __ **Strengths and Weaknesses** At the very top level of strengths Menards possess` is its buying power. As explained by one of our interview subjects, Menards' buying power lets them buy products in bulk and by that save a lot of money on their orders. This enables Menards to charge lower prices and pass the savings on to their customers. Even though Menards` ability to provide their customers with lower prices than their customers has nothing to do with the managerial aspect of their company, it is still worth noting, as it defines Menards` position in the market. Menards is doing well when it comes to their “hygiene factors”. The company provides their workers with clear company policies and rules. According to one of the interview subjects, although the company policies and rules are present, it can sometimes be challenging communicating the policies to their workers. Menards structures it's workers in teams that are supervised by managers. The managers make sure the teams are properly trained to exercise the company`s rules and values. Several of our interview objects felt that their teams were a part of their reason they liked their jobs. Clearly, the relationships created by structuring workers in teams helps motivate the workers to perform better. The working conditions at Menards are good. They are definitely meeting whatever minimum requirements workers may expect. Some of the interview subjects that function as managers stated that treating their coworkers with respect meant a lot to them, and had clearly shown to improve results and spirit among the teams. Also, Menards` workers are given fair and competitive salaries, as well as opportunities to earn small bonuses related to their sales results. Even though our interview subjects feel that most workers at Menards are not looking to stay at Menards for a long period of time, Menards does offer it's workers advancement within the company. Nick W. feels that employees that work at Menards “have a strong need to succeed because Menards does promotion from within. The company is expanding, so there are a lot of opportunities.” Nick W. is also confident that verbal recognition towards his workers is important, and acts accordingly. He feels that a “thank you” goes a long way. As stated earlier, even though Menards has clear company policies and rules, they seem to not be conveying them efficiently. Failure in communicating the policies and rules properly seems to be a small weakness at Menards. This weakness may also lead to role ambiguity amongst the workers at Menards. Another weakness at Menards is their weak follow-up on individual sales result. According to Aidan R, “each employee gets a sales goal at the start of their shift, but no one really logs what they are selling because supervisors don’t look at it.” This is a serious flaw in the follow-ups of workers progress. If this was corrected, workers would probably feel more motivated to sell more, as they would know their results would be recognized. You would believe that with the presence of teams and good relationships amongst coworkers at Menards, a strong culture would come with it. However, Aidan R. thinks differently. Leaving the managerial positions aside, workers at Menards, and especially school students, do not value the organizational culture because most of them are not thinking of working in retail. Aidan R believes that most of these student-workers only look at their jobs as a source of income. These statements are more than likely true, but still a tough problem to solve. Most positions like in-store employees have at Menards are usually temporary. However, Menards states that they do look to expand and will offer opportunities for workers to advance within the company, but maybe they`re not conveying this message efficiently enough to their workers. If they could make their workers more aware of the opportunities that Menards has to offer, maybe workers would be more satisfied with their current position, and even be more motivated to do better.
 * Two-Factor Strengths **
 * Two-Factor Weaknesses **

**__Two-Factor Model Anaylsis__**

**__WE NEED THIS $@#^#%&gsdghnd;gnda;hshfdfh__**

As shown, Menards can be viewed through the lenses of the two-factor theory to show the organization's strengths and weakneses. The same can be done with the next theory. **__Acquired-Needs Framework/Presentation__** The next theory is called the acquired needs theory. The acquired needs theory was created by David McLelland. McLelland stated that based on how someone grew up and based on all that person's life experiences, every person has three types of needs: the need for achievement, the need for affiliation, and the need for power. Every person has a dominant need that motivates them. These needs can be determined by a thematic apperception test where the subject is shown a picture and asked to tell a story about it. The resulting story is analyzed by an expert and tells about how the person ranks in terms of the three needs. The first type of need is called the need for achievement. People who have a high need for achievement want to be very successful, enjoy praise, and enjoy improvement. These achievers like to make goals that are challenging, they enjoy doing a challenge, and they enjoy the success that usually comes with it. At work this can be good because the person will do well, but once the achiever gets into a management position he or she might have difficulties leading and motivating a group because the achiever enjoys doing things alone. The second type of need is the need for affiliation. People with this need have a strong need to belong with others or in groups and want to be accepted. They enjoy working and interacting with others. At work, this can be good for a job that requires working with people, but a person with a high need for affiliation might have some difficulty in a management position because they might find it very hard to discipline an employee or to make honest suggestions or criticisms about an employee, fearing they might be disliked.

The last need is the need for power. People with a high need for power have a need to influence other individuals or groups. When they use this need for power correctly, they can benefit others, like creating a positive work environment or getting a group to do something successfully. It can also be used incorrectly to take advantage of others or to get others to do unethical things. When used correctly, this is a good need for managers or leaders to have. This acquired needs theory tends to be more accepted than the two factor theory, and this needs theory is said to be the most universally accepted need-based theory [1].

**__Menard Through the Lenses of the Acquired-Needs Theory__** In order to get a better understanding of what the situation is at Menards, we applied the Acquired Needs Theory to the people’s responses we got through the interviews in order to get a better understanding. In regards to the Acquired Needs Theory, the prevalent sentiment amongst the employees being interviewed is that the company tries to create the need for achievement as an aspect for its employees in order to keep them interested working for the company. The employees are judged by performance as there are incentive plans created by the company for its workers that make achievement measurable. For instance, employees working the floor are made to meet certain sales goals before each shift. The employees are expected to meet those sales goals, otherwise they could possibly get less hours to work the following week. The rewards for them meeting those goals include being awarded employee of the month for the store or department or receiving a gift certificate that could be used at the store for purchases. The store management has more general sales goals that are rewarded with a system that offers bonuses and profit sharing to those who have departments or stores that perform at a high level. In the need for affiliation scope, the company creates an environment where diversity is encouraged. In fact, John Zielinski stated that it is valuable to hire employees from different cultural backgrounds as it could be easier for those employees to relate to customers from that same background. He used an example of an employee that was able to speak Spanish being beneficial to that employee when speaking to customers that also spoke Spanish. Finally, using the need for power aspect of the Acquired Needs Theory, and based on the interviews, there really doesn’t seem to be that sentiment prevalent amongst the employees. The message seems to be that people advancement in the company is based on achievement and not a need for power. The two managers that were interviewed claimed that empowerment was an important facet for an employee to have while working for Menards. However, they could not give any details as to how they empower their employees to make their own decisions. In fact, the one employee that was interviewed mentioned that agreeableness would be a highly desirable trait for a person working at Menards. Within the parameters of the Acquired Needs Theory, the major issue that Menards seems to be facing is the high employee turnover at its store. The employees working there treat the job as a means to an end. In essence, it’s not viewed as a company that meets people’s long term goals for employment. Aidan and John admitted as much in their interviews. Interestingly enough Nicholas, the store manager, presented Menards as a great company to work for. He said that with the expansion of the company, the stores are always hiring and because the company hires from within, it further promotes the need for achievement. There is obviously a disconnect between the upper management and its employees about the promotion for need for achievement as the employees there are seemingly not staying long enough to reap the rewards of the promotions within the company. Also of note, Aidan mentioned that while the employees are told to meet certain sales goals, oftentimes the supervisors don’t keep track of the results or the accuracy of the results, so it further undermines the need for achievement aspect of the employee’s psyche. The need for affiliation theory is also undermined by the fact that there is so much turnover at the store. It’s hard to feel affiliated when the people that you are working with constantly change. This seems to be the overwhelming problem at the Menards store. Aidan also mentioned that there really isn’t a huge need for affiliation based on the bureaucracy present at Menards. He said that based on there being so many layers of management, it was hard for employees to value their organization when there are so many levels of management above an employee.

**__Strengths & Weaknesses Acquire-Needs Theory__** At Menards, the acquired-needs theory is a big factor being used by managers and employees every day. The three needs are the need for achievement, the need for affiliation, and the need for power. [1] For each need there are both strengths and weaknesses in the company depending on who you are focusing on, and what type of job the individual is occupying. The first need, the need for achievement, is positive and definitely a strength for Menards for certain employees. Those who really want to be successful in the need for achievement must have a strong need to be successful in the organization. Those who are looking to establish a career in Menards must be willing to work hard to move up in management. Nick W said “he feels that the employees that work there have a strong need to succeed because Menards does promotion from within and the company is expanding so there are lots of opportunities available.” [2] Basically Nick W, who is a General Manager at a Menards store, is saying that if his employees work hard and establishes that they want to move up in ranks, Menards is a company where they can incorporate themselves for a long-term career. The book stresses that people who have the need for achievement are suited to positions such as sales, where there are explicit goals, and feedback is immediately available. [1] Menards is an organization which has merit-based rewards and bonuses so it is for employees who are not in managerial type positions. But to this there are also expectations because of how stable the income at Menards is for managers. Aiden, who is a part-time sales associate, said that “In this organization, the people who mostly have the strong need to succeed are the managers. Most of the part-time have other career goals in mind, but sometimes Menards becomes a way of stable income and an opportunity for growth, and then the employee decides to stay.” [2] Aiden also stressed that he did not focus on the amount of hours that he was scheduled, he stressed rather on the sales, as he said “more selling=more hours.” [2] The next need is the need for affiliation, which employees want to be liked and accepted by others. Menards is a very friendly environment, and this need really stands out compared to the others. The family-oriented style is definitely strength at Menards. Nick W. also says that “Menards has a family-oriented culture” [2], he is expressing that in Menards the fellow employees that work with you will become your close friends that will be advantageous to you will working at Menards. This need is strength for the part-timers and sales associates because they are in a job that requires for you to be very social and requires you to be in interpersonal interaction. This means that these two jobs require for you to be talking to your fellow workers and customers to get the job done. The last need in this theory is the need for power, which means you want to influence others and control their environment. [1] This need is strength for managerial positions. At Menards this need is very important because, managerial type and leadership positions, because managers need to be able to tell their employees what to do, and use power to enforce rules broken, such as a worker being constantly late. The use for power can be very helpful at Menards when it’s used to improve the way things are done at the company making the work environment more positive. As the need for achievement has strengths, it also has weaknesses which can be explored in Menards. At Menards, the need for achievement can be a weakness when it comes to the managers and part-timers. The reason for this is because management involves getting work done by motivating others, which means when you are promoted from a sales associate to a sales manager, the job description changes. Also, at Menard's after you become a manager, it is hard for you to be promoted more than that. Menards isn't a company where you can be promoted over and over again, but a company where the need for achievement really relies for employees that are in sales focusing on the rewards achieved when you sell a certain amount. John Zielinski a floor manager, when asked the question if employees are satisfied with their jobs,he answered “including himself, would like to better themselves or pursue a higher career.” [2] Thus this is something that can hamper with your overall goal of succeeding in an organization. As the need for affiliation was strength for most employees in the book and managers in Menards, it was interesting to discover at the same time there was also issues coming with affiliation. Aiden expresses “Menards does not have a very strong culture. The reason I say this is because organizations with strong cultures would have less levels of management. Strong cultures guide peoples’ behavior and employees have deeply held values the same as the organization and they identify themselves with their jobs.” [2] Aiden is expressing that when he goes to work at Menards it’s hard for him to find individuals with the same values as him, as he is just a student looking to make some money. It is also a weakness when it comes to managers dealing with troublesome employees. For example, a manager may have no option but to fire someone due to lack of productivity or layoffs, this individual may be his or her friend. Nick W. said that “when he has to fire employees there is a negative impact on his emotions”. [2] Menards suffers from another weakness dealing with the last acquired-need, the need for power. The book expresses that the need for power can also be destructive. This is due to the relationship between the power you have acquired and the comradeship that you have established with your fellow co-workers. This is because when you acquire power there is a possibility that you may use it for your own good by creating opportunities for you to advance in your career. Doing this can drive a wedge between you and your new work friends. Also, due to the relationship between you and your co-workers it may be difficult for you to gain control over your now subordinate who was previously your co-worker. The now subordinate may feel that you did not earn the promotion thus making the transition difficult for both parties.
 * Strengths and Weakness **
 * Acquired Needs Strengths **
 * Acquired-Needs Weaknesses **

**__Acquired-Needs Theory Analysis__**

**__Conclusion (NEED THIS 3-4 Pages)__** In conclusion, Menards can be analyzed through both the two-factor model theory and the acquired needs theory. It is clear that when looking at Menards through these theories, Menards has both strengths and weaknesses as an organization. Through the two-factor theory it was shown that Menards` workers are given fair and competitive salaries, as well as opportunities to earn small bonuses related to their sales results. Menards should continue to give competitive pay as this is a high motivator for unskilled workers, and it could possibily attract or retain employees.The working conditions at Menards are good .The company provides their workers with clear company policies and rules.Failure in communicating the policies and rules properly seems to be a small weakness at Menards.Another weakness at Menards is their weak follow-up on individual sales result. Workers at Menards, and especially school students, do not value the organizational culture because most of them are not thinking of working in retail. Aidan R believes that most of these student-workers only look at their jobs as a source of income. However, Menards states that they do look to expand and will offer opportunities for workers to advance within the company, but maybe they`re not conveying this message efficiently enough to their workers. If they could make their workers more aware of the opportunities that Menards has to offer, maybe workers would be more satisfied with their current position, and even be more motivated to do better. Some suggestions on how to improve Menards through the two-factor theory are: having employees be more aware of company policies, sales goal follow up and hiring people that fit the organization culture. One way that menards could make their employees more aware of the company's policies is by having monthly semi-annual policy quizzes and the better the results the more opportunity you have for promotion and also Menards could use it to determine what your pay raise will be. I think each department manager could have certain inetervals in the day where the sales floor employees are to show their sales goals. If employyes realise that it is being checked they are more likely to take it seriously. Menards does have profit sharing at the begining of the year and it is based on the profits of the previous year, this should be a motivational factor for employees to want to exceed sales goals. Managers could also make a competition out of the sales goals, and whoever has the largest sum of sale for the week will get lunch or be allowed to get extra hours. Second, when Menards is viewed through the acquired needs theory, it is clear that those who really want to be successful in the need for achievement must have a strong need to be successful in the organization. Those who are looking to establish a career in Menards must be willing to work hard to move up in management.Menards does promotion from within and the company is expanding so there are lots of opportunities available.Menards is a very friendly environment, and this need really stands out compared to the others. The family-oriented style is definitely strength at Menards. Need for power is very important for managerial type and leadership positions, because managers need to be able to tell their employees what to do, and use power to enforce rules broken, such as a worker being constantly late. The use for power can be very helpful at Menards when it’s used to improve the way things are done at the company making the work environment more positive.The book expresses that the need for power can also be destructive. This is due to the relationship between the power you have acquired and the comradeship that you have established with your fellow co-workers. Menards currently rotates managers; in order for someone to be an Assisstant store manager the person gets sent to a new store. This is a good thing that Menards does and it helps to reduce difficulty in gaining control of previuos co-workers.

To improve the organization through the lenses of the acquired needs theory, it is suggested that menards makes the whole store like a family instead of having each department in the store act as a family. With this there can be some conflict of goals but menards should implement a system that all employees get rotated in different departments this way the menards family will have a tighter bond when the employees actually get to work with each other. Overall, the methods that Menards uses to motivate its employees seems to be working very well even though it has some weaknesses, like those mentioned earlier. Since the company has been in business for decades and it grew from nothing to one of the biggest companies in home improvement, it is clear that the founders have been very successful in motivating employees. It is said that 50% of all new business fail within the first five years, and even more fail after that. But Menards hasn't, and continues to grow because of it's very good leadership.

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Menards is a company that has withstood fierce competition along with a constantly changing retail environment. Even though Menards is not perfect, a successful and constantly growing company like this is a very good role model that other new businesses should learn from and look up to.

**__Works Cited__** [1] Bauer, Tayla. Erdogan, Berrin. __Organizational Behavior__. //Theories of Motivation.// [No date]. [2] Interview of Menards Employees. [3] “Our History at Menards.” Menards-Dedicated to Service & Quality. 2004.Web. 26 [4] Nov. 2010. [|http://www.menards.com/main/guest-services/about-us/our-history/c- 3588.htm] [5] “Frederick Herzberg Two Factor Theory” 2010 URL: http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html