9.6 Cases and Problems

Lawrence J. Gitman, et al

Learning on the Web

  1. Looking for 1,001 ways to motivate or reward your employees? Bob Nelson can help. Visit his Nelson Motivation site at http://www.nelson-motivation.com to get some ideas you can put to use to help you do a better job, either as a manager or as an employee.
  2. Some companies offer their employees stock ownership plans. To learn the differences between an ESOP and stock options, visit the National Center for Employee Ownership (NCEO) at http://www.nceo.org and the Foundation for Enterprise Development (FED) at http://www.fed.org. Which stock plan would you rather have? Why?
  3. Open-book management is one of the better-known ways to create a participatory work environment. Over 2,000 companies have adopted this practice, which involves sharing financial information with nonmanagement employees and training them to understand financial information. Does it really motivate employees and improve productivity? The NCEO website, http://www.nceo.org, has a number of articles on open-book management. Read several of the articles to get more insight into this practice, and then develop your answers to this question.
  4. You’ve been asked to develop a staff recognition program for your company but don’t have a clue where to start. Three sites with articles and other useful information are Incentive magazine, http://www.incentivemag.com, the National Association for Employee Recognition, http://www.recognition.org, and the U.S. Office of Personnel Management, https://www.opm.gov. Using the material you’ll find there, outline the plan you would recommend for your company.
  5. You have two great job opportunities. Both are equally attractive in terms of job content and offer the same salary. However, one offers year-end bonuses, whereas the other includes stock options for employees. How do you compare the offers? Learn how to evaluate stock options at the Money section of How Stuff Works, https://money.howstuffworks.com. Prepare a comparison of bonuses versus stock options, and determine which appeals to you more. Explain your reasons.
  6. Use a search engine to find companies that offer “work-life benefits.” Link to several companies and review their employee programs in this area. How do they compare? Which benefits would be most important to you if you were job hunting, and why?

Preparing for Tomorrow’s Workplace Skills

  1. Are you motivated more by intrinsic rewards (satisfaction, sense of accomplishment, etc.) or by extrinsic rewards (money, bonuses, etc.)? Interview some friends and classmates to find out what motivates them. Discuss your differences in perspective. (Interpersonal, Information)
  2. Think of a task or project you have completed recently that required a great deal of effort. What motivated you to exert so much energy to complete the task or project? Describe your motivation in terms of the theories presented in the chapter. (Systems)
  3. Not all jobs are intrinsically motivating. For example, many entry-level jobs often involve repetitive and simple tasks that can become rapidly boring. (You may have worked a job that fits that description.) How can managers motivate frontline employees (such as fast-food cashiers, trash collectors, supermarket cashiers, etc.) to perform at high levels? (Systems, Interpersonal)
  4. If you were offered the opportunity to job-share, would you need to have a partner who was motivated by the same things as you are? Why or why not? (Interpersonal)
  5. Team Activity Assemble a team of three to five students. Imagine that you are the management team for a start-up business with limited resources but a need for a highly motivated, skilled workforce. Brainstorm ways you could motivate your employees other than large bonuses and high salaries. (Resources)

Ethics Angle

You join a large bank that encourages and promotes employee volunteerism, allowing employees one day a month, or up to 12 days a year, to volunteer for a cause of their choosing. Shortly after you start working there as a junior teller, your boss’s wife is diagnosed with a particularly aggressive form of breast cancer that carries a very poor prognosis. Realizing it will win you kudos with your boss, you choose the local chapter of the Susan G. Komen for the Cure foundation—a breast cancer charity that sponsors an annual Race for the Cure—for your company-sponsored volunteer work.

In addition to working at the foundation’s office one day a month, you spend your own time actively soliciting other staffers at your firm to sign up for the charity walk in a few months’ time. Impressed with your qualities of tireless dedication, your boss puts your name forward for promotion to junior bank officer, well before the customary two years of service normally required for being considered for promotion.

Using a web search tool, locate articles about this topic and then write responses to the following questions. Be sure to support your arguments and cite your sources.

Ethical Dilemma

Your company is generous in its approach to employee volunteerism. It gives you paid time off, and you acquire enhanced job skills through your volunteer activities. Have you just been smart in recognizing the value of volunteering for a charity that you know will earn your boss’s personal appreciation? Or are you taking unfair advantage of your boss’s vulnerability and manipulating the situation?

Critical Thinking Case

Motivating Employees: A Monster of a Problem

As mentioned in earlier, U.S. businesses will face a decrease in the available workforce due in part to a smaller generation of talented workers replacing retiring baby boomers. “Our study reveals that recruiters and hiring managers are not only cognizant of the issue but are concerned about its current and future impact on organizational growth,” said Dr. Jesse Harriott, former vice president of research at monster.com (http://www.monster.com), one of the leading global online career and recruitment resources. “Businesses of all sizes and across all industries must develop and implement creative programs and strategies to attract and hire top candidates while retaining and motivating current employees. As the talent pool shrinks, it is imperative that immediate action is taken to ensure businesses are properly prepared and staffed for the future.”

In a sampling of over 600 human resource managers, Monster’s survey showed that over 75 percent believe compensation is one of the top three motivators that prevent employees from leaving their job. The fact that money motivates top-performing employees is supported by almost half the human resources professionals surveyed for a Rewards Program and Incentive Compensation Survey released by the Society of Human Resource Management. The survey also found that neither monetary nor nonmonetary rewards were effective motivators for underperformers.

While compensation is clearly a significant issue, not all companies can offer this advantage. Other strategies that motivate employee loyalty and commitment are necessary. Some of these include making supervisors more accountable for worker retention, promoting work-life balance for employees, fostering a workplace where employee expectations are clearly articulated, creating learning and development programs that groom employees for future management roles, implementing performance-based systems that identify and proactively manage top employees and when possible promote from within, creating mentoring programs that match new employees with seasoned veterans, monitoring sentiment throughout the employee life cycle, and creating an employment brand “experience” that not only motivates and energizes employees but can also be used to attract new talent.

Diana Pohly, president, CEO, and owner of The Pohly Company, keeps vigilant watch over the morale of the office, ensuring that employees are satisfied. “Business owners of growing companies must possess strong leadership and management skills in order to solidify the foundation of their business,” said Pohly. “Effective team leadership is imperative to sustain efficient team workflows and contribute to employee morale.”

“Employees are the lifeblood of any organization. Building a positive work environment is an important strategy in attracting, retaining and motivating a team,” says Michelle Swanda, corporate marketing manager of The Principal. Improving employee morale with creative and effective management tactics ultimately boosts employee productivity, and that goes straight to the bottom line.

Critical Thinking Questions

  1. How are social and economic factors influencing companies’ approach to hiring, motivating, and retaining employees?
  2. What are some of the nonmonetary strategies companies must develop to attract and reward employees and keep them motivated?
  3. What “reward factors” would be important to you when working for a company? List at least five in order of importance, and list your reasons for each.

Sources: “Company Overview of Globoforce Group plc,” https://www.bloomberg.com, accessed January 24, 2018; “Diana Pohly,” The Pohly Company, https://www.pohlyco.com, accessed January 24, 2018; “Michelle Swanson,” Zoom Info, https://www.zoominfo.com, accessed January 24, 2018; “70 Percent of HR Managers Concerned about Workforce Retention, According to Monster Study,” Business Wire, Jan 9, 2006, http://www.findarticles.com; “Poll Says Top-Performing Workers Motivated By Money,” Nation’s Restaurant News, April 25, 2005, http://www.findarticles.com; “Team Motivation: Women Business Owners Increase Productivity Through Effective Leadership,” Business Wire, Oct 27, 2005, http://www.findarticles.com.

Hot Links Address Book

  1. What makes a company a good place to work? Find out by reading about the companies on Fortune magazine’s “100 Best Companies to Work For” at http://www.fortune.com.
  2. Expand your knowledge about motivation in the workplace at Accel-Team’s site, http://dheise.andrews.edu/Content/leadership/comps/6b/1biblio/accel-team.htm
  3. How do you keep employees satisfied? The Business Research Lab has a series of tips and articles, which you’ll find at the Articles & Stories page of http://busreslab.com.
  4. For many resources to help motivate, reward, and retain employees, visit https://www.thebalance.com/employee-motivation-4073608.
  5. Wish you could have flexible hours? For advice on making this wish come true, visit this Career Planning page on flextime, https://www.thebalance.com/flextime-hours-and-benefits-1177979.
  6. Association for Training Development is a professional association and leading resource on workplace learning and performance issues. Visit its site, https://www.td.org/, to learn more about it and these topics.

License

Foundations of Business [2024] Copyright © by Holly Jackson, PhD. All Rights Reserved.

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