Motivational Methods used by Mohammad Reza Shah
Mohammad Reza Shah launched the White Revolution in 1963. It was a series of reforms that intended to strengthen the standards of living, especially among the classes that believed in the traditional systems. The Shah considered it a step towards westernization and modernization. A lot of the reforms turned out to be extremely motivational as they caused people to be committed to their jobs. This led to a rapid industrial development. Most of the motivational approaches can be categorized as McGregor’s Theory X and Y, because firstly, the employees were self-motivated due to having ownership of the jobs. Secondly they were coerced and controlled to ensure that they perform well. The motivations caused the organizational structure and the corporate culture to be effective.
McGregor’s Theory X
• Measures to fight against corruption → Imperial Inspection Commission was founded which consisted of mostly administrative bodies. Its responsibility was to supervise the employees and ensure that the clients were treated fairly.
McGregor’s Theory Y
• Land reform program → the feudal lands were bought by the government and sold to the poor peasants 30% lower than market value. The government also gave loans to the peasants which was payable in over 25 years. The peasants had their own lands to cultivate. 1.5 million peasant families, approximately equivalent to 9 million people (40% of Iran’s population at that time) were given freedom and didn’t have to work for the land lords anymore. This caused the workers to become motivated and more committed as they had gained ownership of their job.
• Worker’s right to own shares in the industrial complexes → 49% of the shares of the company were to be sold to the employees. This allowed the employees of an establishment to have the ownership of their job and be able to have a say in the way the business was led.
Financial Incentives
• Profit sharing → the factories were to give 20% of their net profit to the employees in addition to commissions. This evidently motivated the workers to work harder and gain more commission and profit.
McGregor’s Theory X
• Measures to fight against corruption → Imperial Inspection Commission was founded which consisted of mostly administrative bodies. Its responsibility was to supervise the employees and ensure that the clients were treated fairly.
McGregor’s Theory Y
• Land reform program → the feudal lands were bought by the government and sold to the poor peasants 30% lower than market value. The government also gave loans to the peasants which was payable in over 25 years. The peasants had their own lands to cultivate. 1.5 million peasant families, approximately equivalent to 9 million people (40% of Iran’s population at that time) were given freedom and didn’t have to work for the land lords anymore. This caused the workers to become motivated and more committed as they had gained ownership of their job.
• Worker’s right to own shares in the industrial complexes → 49% of the shares of the company were to be sold to the employees. This allowed the employees of an establishment to have the ownership of their job and be able to have a say in the way the business was led.
Financial Incentives
• Profit sharing → the factories were to give 20% of their net profit to the employees in addition to commissions. This evidently motivated the workers to work harder and gain more commission and profit.