Deck 16: Motivating Employees

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سؤال
In response to security threats in today's world, the U.S. government federalized airport security workers. Many argued that simply making screeners federal workers would not solve the root problem: bored, low-paid, and poorly trained security workers have little motivation to be vigilant. How might these employees be motivated to provide the security that travel threats now demand?
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سؤال
Using Hackman and Oldham's core job dimensions, compare and contrast the jobs of these two state employees: (1) Jared, who spends much of his time researching and debating energy policy to make recommendations that will eventually be presented to the state legislature and (2) Anise, who spends her days planting and caring for the flower gardens and grounds surrounding the state capitol building.
سؤال
If an experienced executive assistant discovered that she made the same amount of money as a newly hired janitor, how do you think she would react? What inputs and outcomes might she evaluate to make this comparison?
سؤال
A survey of teachers found that two of the most important rewards were the belief that their work was important and a feeling of accomplishment. According to Maslow's theory, what needs do these rewards meet?
سؤال
Use Herzberg's two-factor theory to explain why motivation seems to be high and turnover low at Mars, based on the information provided in the chapter opening example.
سؤال
How does empowerment provide the two conditions (vitality and learning) for a thriving workforce that are described in the chapter? Do you see any ways in which a manager's empowerment efforts might contribute to demotivation among employees? Discuss.
سؤال
Lauren's balancing Act
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff 's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where 'everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as " Katherine at DeMarco's helped me select this outfit," or "Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me" became the typical boast of savvy shoppers.
Now, two years into the experiment, Corporate urged Lauren to submit a full assessment of the program as a potential model for implementation throughout the department store chain. Sales numbers vouched for the overall success, particularly over the last two quarters of the second year. Certain associates, including Katherine Knowles in designer dresses and Damien Fotopolous in women's shoes, showed significant gains as a result of straight commissions, and sales associates and customers responded favorably overall, urging a continuation of the program. Reliance on commissions inspired these and other sales associates to treat their individual department as if it were their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers.
The satisfaction level of customers was apparent in the numbers-not only sales numbers, but in repeat business, customer referrals to friends, and customer comment cards, all of which had been tracked since the beginning of the program.
The down side of the experiment was that while some associates soared, others either veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren't making sales. The once-proud tradition of cooperation among sales staff was, in many instances, being eaten away by relentless competition. Work assignments away from the sales floor were resented. In addition, the managers and sales associates of certain departments, such as women's accessories, complained of lower wages because, as one sales associate pointed out, "My commission on a $50 belt is nothing compared to Katherine's commission on a $2,800 designer dress." Resentment was mounting among those who witnessed the extravagant wages of a few.
"If we change this program, if we keep straight commission for some and return to hourly pay for others, how does that fit with our new image?" Lauren said to Jack.
"How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not return to what we were before-just another store?"
What do you see as the advantages and disadvantages of the incentive system that DeMarco's is using for sales associates? What impact do you think it is having on the DeMarco's culture? Explain.
سؤال
A recent Gallup survey shows that highly educated workers are significantly less likely to be engaged than are those with a high school diploma or less. What might be some reasons for this lower level of engagement among more-educated employees?
سؤال
Why do you think making progress ranks as the most important factor contributing to motivation according to a recent study? How can managers provide a sense of progress for employees working on long-range projects that might not show results for months or even years?
سؤال
To Renege or Not to Renege? 73
Federico Garcia, vice president of sales for Puget Sound Building Materials, a company based in Tacoma, Washington, wasn't all that surprised by what company president Michael Otto and CFO James Wilson had to say during their meeting that morning.
Last year, launching a major expansion made sense to everyone at Puget, a well-established company that provided building materials as well as manufacturing and installation services to residential builders in the Washington and Oregon markets. Puget looked at the record new housing starts and decided it was time to move into the California and Arizona markets, especially concentrating on San Diego and Phoenix, two of the hottest housing markets in the country. Federico carefully hired promising new sales representatives and offered them hefty bonuses if they reached the goals set for the new territory over the following 12 months. All the representatives had performed well, and three of them had exceeded Puget's goal-and then some. The incentive system he'd put in place had worked well. The sales reps were expecting handsome bonuses for their hard work.
Early on, however, it became all too clear that Puget had seriously underestimated the time that it would take them to build new business relationships and the costs associated with the expansion, a mistake that was already eating into profit margins. Even more distressing were the most recent figures for new housing starts, which were heading in the wrong direction. As Michael said, "Granted, it's too early to tell if this is just a pause or the start of a real long-term downturn. But I'm worried. If things get worse, Puget could be in real trouble."
James looked at Federico and said, "Our lawyers built enough contingency clauses into the sales reps' contracts that we're not really obligated to pay those bonuses you promised. What would you think about not paying them?" Federico turned to the president, who said, "Why don't you think about it, and get back to us with a recommendation?"
Federico felt torn. On the one hand, he knew the CFO was correct. Puget wasn't, strictly speaking, under any legal obligation to pay out the bonuses, and the eroding profit margins were a genuine cause for concern. The president clearly did not want to pay the bonuses. But Federico had created a first-rate sales force that had done exactly what he'd asked them to do. He prided himself on being a man of his word, someone others could trust. Could he go back on his promises?
What Would You Do?
1. Recommend to the president that a meeting be arranged with the sales representatives entitled to a bonus and tell them that their checks were going to be delayed until Puget's financial picture clarified. The sales reps would be told that the company had a legal right to delay payment and that it may not be able to pay the bonuses if its financial situation continues to deteriorate.
2. Recommend a meeting with the sales representatives entitled to a bonus and tell them the company's deteriorating financial situation triggers one of the contingency clauses in their contract so that the company won't be issuing their bonus checks. Puget will just have to deal with the negative impact on sales rep motivation.
3. Recommend strongly to the president that Puget pay the bonuses as promised. The legal contracts and financial situation don't matter. Be prepared to resign if the bonuses are not paid as you promised. Your word and a motivated sales team mean everything to you.
سؤال
What Motivates You?79
Indicate how important each characteristic is to you. Answer according to your feelings about the most recent job you had or about the job you currently hold. Circle the number on the scale that represents your feeling- ranging from 1 (very unimportant) to 7 (very important).
1. The feeling of self-esteem that a person gets from being in that job
1 2 3 4 5 6 7
2. The opportunity for personal growth and development in that job
1 2 3 4 5 6 7
3. The prestige of the job inside the company (i.e., regard received from others in the company)
1 2 3 4 5 6 7
4. The opportunity for independent thought and action in that job
1 2 3 4 5 6 7
5. The feeling of security in that job
1 2 3 4 5 6 7
6. The feeling of self-fulfillment a person gets from being in that position (i.e., the feeling of being able to use one's own unique capabilities, realizing one's potential)
1 2 3 4 5 6 7
7. The prestige of the job outside the company (i.e., the regard received from others not in the company)
1 2 3 4 5 6 7
8. The feeling of worthwhile accomplishment in that job
1 2 3 4 5 6 7
9. The opportunity in that job to give help to other people
1 2 3 4 5 6 7
10. The opportunity in that job for participation in the setting of goals
1 2 3 4 5 6 7
11. The opportunity in that job for participation in the determination of methods and procedures
1 2 3 4 5 6 7
12. The authority connected with the job
1 2 3 4 5 6 7
13. The opportunity to develop close friendships in the job
1 2 3 4 5 6 7
Scoring and Interpretation
Score the exercise as follows to determine what motivates you:
Rating for question 5 = ______.
Divide by 1 = ______ security.
Rating for questions 9 and 13 = ______.
Divide by 2 = ______ social.
Rating for questions 1, 3, and 7 = ______.
Divide by 3 = ______ esteem.
Rating for questions 4, 10, 11, and 12 = ______.
Divide by 4 = ______ autonomy.
Rating for questions 2, 6, and 8 = ______.
Divide by 3 = ______ self-actualization.
Your instructor has national norm scores for presidents, vice presidents, and upper-middle-level, lower-middle-level, and lower-level managers with which you can compare your mean importance scores. How do your scores compare with the scores of managers working in organizations?
سؤال
Should, Need, Like, Love
Step 1. Divide into groups of three to five students. Individually, write down your responses to the following four instructions.
1. Think of a school or work task that you felt an obligation to complete, but that you did not want to do.
Write the task here:
_____________________________________ _____________________________________
2. Think of a school or work task that you did only because you needed an extrinsic benefit, such as money or course credit. Write the task here:
_____________________________________ _____________________________________
3. Think of a school or work task that you do because you like it-it is enjoyable for you. Write that task here:
_____________________________________ _____________________________________
4. Think of a school or work task that you love to do-one in which you become completely absorbed and from which you feel deep satisfaction when finished. Write the task here:
_____________________________________ _____________________________________
Step 2. Reflect on those four tasks and what they mean to you. Rate how highly motivated (high, medium, low) you were to perform each of the four tasks. Then rate how much mental effort (high, medium, low) was required for you to complete each of the four tasks.
Step 3. Compare your ratings with other members of your team. What is the correlation between doing a task because you Should-Need-Like-Love, your level of motivation, and the amount of mental effort required to complete the task? Develop conclusions from your analysis to present to the class.
Step 4. Discuss in your group: Are you more highly motivated when engaged in tasks that you like or love versus tasks you should do or need to do? Why? Does this corroborate any motivation theory in the chapter? How can you increase the number of "like" and "love" tasks in your life? How might you reduce the number of "should" and "need" tasks? When you become a manager, will you want to increase the number of "like" and "love" tasks for your employees? How might you do so?
سؤال
On the Job: Mike Boyle Strength Conditioning: Motivating Employees
Questions
1. In the video, Mike Boyle talks about establishing a work environment that motivates employees to do great work. List two or three specific ways Boyle has created this type of environment in his gyms, and explain how these actions empower the employees.
2. Co-founder Bob Hanson says that education is an important part of their approach to management. How does education relate to employee motivation and job enrichment?
3. The two trainers featured in the video seem very satisfied with their jobs. Use Maslow's hierarchy of needs to explain why you think they feel the way they do.
سؤال
Lauren's balancing Act
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff 's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where 'everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as " Katherine at DeMarco's helped me select this outfit," or "Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me" became the typical boast of savvy shoppers.
Now, two years into the experiment, Corporate urged Lauren to submit a full assessment of the program as a potential model for implementation throughout the department store chain. Sales numbers vouched for the overall success, particularly over the last two quarters of the second year. Certain associates, including Katherine Knowles in designer dresses and Damien Fotopolous in women's shoes, showed significant gains as a result of straight commissions, and sales associates and customers responded favorably overall, urging a continuation of the program. Reliance on commissions inspired these and other sales associates to treat their individual department as if it were their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers.
The satisfaction level of customers was apparent in the numbers-not only sales numbers, but in repeat business, customer referrals to friends, and customer comment cards, all of which had been tracked since the beginning of the program.
The down side of the experiment was that while some associates soared, others either veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren't making sales. The once-proud tradition of cooperation among sales staff was, in many instances, being eaten away by relentless competition. Work assignments away from the sales floor were resented. In addition, the managers and sales associates of certain departments, such as women's accessories, complained of lower wages because, as one sales associate pointed out, "My commission on a $50 belt is nothing compared to Katherine's commission on a $2,800 designer dress." Resentment was mounting among those who witnessed the extravagant wages of a few.
"If we change this program, if we keep straight commission for some and return to hourly pay for others, how does that fit with our new image?" Lauren said to Jack.
"How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not return to what we were before-just another store?"
Do you think the complaints of lower-paid sales associates are legitimate? Why? How do you suggest Lauren respond to these complaints, such as the gripe that the system offers few opportunities for large commissions in some departments?
سؤال
Psychologists have identified three pathways to happiness:pleasure, engagement, and meaning. Do you thinkthat it is the manager's responsibility to help peoplefind these elements in their work? Discuss.
سؤال
Lauren's balancing Act
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff 's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where 'everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as " Katherine at DeMarco's helped me select this outfit," or "Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me" became the typical boast of savvy shoppers.
Now, two years into the experiment, Corporate urged Lauren to submit a full assessment of the program as a potential model for implementation throughout the department store chain. Sales numbers vouched for the overall success, particularly over the last two quarters of the second year. Certain associates, including Katherine Knowles in designer dresses and Damien Fotopolous in women's shoes, showed significant gains as a result of straight commissions, and sales associates and customers responded favorably overall, urging a continuation of the program. Reliance on commissions inspired these and other sales associates to treat their individual department as if it were their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers.
The satisfaction level of customers was apparent in the numbers-not only sales numbers, but in repeat business, customer referrals to friends, and customer comment cards, all of which had been tracked since the beginning of the program.
The down side of the experiment was that while some associates soared, others either veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren't making sales. The once-proud tradition of cooperation among sales staff was, in many instances, being eaten away by relentless competition. Work assignments away from the sales floor were resented. In addition, the managers and sales associates of certain departments, such as women's accessories, complained of lower wages because, as one sales associate pointed out, "My commission on a $50 belt is nothing compared to Katherine's commission on a $2,800 designer dress." Resentment was mounting among those who witnessed the extravagant wages of a few.
"If we change this program, if we keep straight commission for some and return to hourly pay for others, how does that fit with our new image?" Lauren said to Jack.
"How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not return to what we were before-just another store?"
Have the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers is stronger than loyalty to the store? For example, if a successful associate leaves DeMarco's, might the customer leave also?
سؤال
Assume that you are a front-line manager at a call center. Try to come up with a specific motivational idea that fits in each of the four quadrants in Exhibit 16.2: Positive Extrinsic; Positive Intrinsic; Negative Extrinsic; Negative Intrinsic.
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Deck 16: Motivating Employees
1
In response to security threats in today's world, the U.S. government federalized airport security workers. Many argued that simply making screeners federal workers would not solve the root problem: bored, low-paid, and poorly trained security workers have little motivation to be vigilant. How might these employees be motivated to provide the security that travel threats now demand?
Airport security workers are often bored, low-paid and poorly trained which leads to a low level of motivation on the job. To better motivate these employees to ensure the security of air travel, management could:
• Focus on relatedness needs by emphasizing the teamwork needed to counteract threats to air travel security.
• Focus on growth needs by offering additional training. If there are insufficient funds for training courses, on the job training checklists could be developed for managers to use when showing staff how to perform various activities while at work.
• Utilize expectancy theory by emphasizing that future managers will be selected from the current ranks based on job performance and training accomplishments.
• Redesign jobs to increase the level of interest in them. For example, lifeguards also have a job that requires high attention for long periods and only an occasional situation requiring action. In that field, the lifeguards are rotated several times per hour through different work stations - such as different lifeguard towers, the check-in desk, and a break - which breaks up the monotony and improves their concentration. Airport security stations might be able to implement a similar method to add interest to a position that could otherwise be boring.
2
Using Hackman and Oldham's core job dimensions, compare and contrast the jobs of these two state employees: (1) Jared, who spends much of his time researching and debating energy policy to make recommendations that will eventually be presented to the state legislature and (2) Anise, who spends her days planting and caring for the flower gardens and grounds surrounding the state capitol building.
According to the Core Job Dimensions theory, there are 5 areas that determine a position's motivational potential. The two jobs presented - those of an energy policy analyst and a gardener - vary in several of these dimensions:
• Skill variety : both positions listed have a high level of skills variety.
• Task identity : the policy analyst position has a much higher level of task identity, as the proposals are generated from idea to final product. The gardening position requires ongoing maintenance activities, and will not have a sense of completion, unless a special project such as installation of a new flower bed is performed.
• Task significance : the policy analyst position has a higher level of task significance. Although both positions' efforts impact many people, the impact of a new energy policy will have a more significant impact on the lives of many than the beauty of the landscaping at the capital.
• Autonomy : both positions listed have autonomy, though the policy analyst position would be higher as the gardener position would have set hours and likely a specific schedule for when gardening tasks must occur.
• Feedback : both positions listed offer feedback on performance. One will be based on proposals presented to the legislature, and the other on the beauty of the landscaping at the capital. Both have clear feedback on the quality of results.
3
If an experienced executive assistant discovered that she made the same amount of money as a newly hired janitor, how do you think she would react? What inputs and outcomes might she evaluate to make this comparison?
If an experienced administrative assistant discovered her compensation was the same as a newly hired janitor, she would likely be upset and feel that her own compensation is inappropriate.
Inputs to this evaluation:
• Information that her compensation is the same as the janitor.
• Belief that her position requires a higher level of skills, and therefore should be more highly compensated.
• Belief that she has more extensive work experience, and therefore should be more highly compensated.
Some possible outputs from this evaluation include:
• Change in work effort, to make output from her position more in line with her perceived low compensation.
• Request for raise, to increase compensation to a level more appropriate for her skills and experience.
• Leave the company, and take a higher-paying position with another organization.
4
A survey of teachers found that two of the most important rewards were the belief that their work was important and a feeling of accomplishment. According to Maslow's theory, what needs do these rewards meet?
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5
Use Herzberg's two-factor theory to explain why motivation seems to be high and turnover low at Mars, based on the information provided in the chapter opening example.
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6
How does empowerment provide the two conditions (vitality and learning) for a thriving workforce that are described in the chapter? Do you see any ways in which a manager's empowerment efforts might contribute to demotivation among employees? Discuss.
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7
Lauren's balancing Act
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff 's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where 'everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as " Katherine at DeMarco's helped me select this outfit," or "Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me" became the typical boast of savvy shoppers.
Now, two years into the experiment, Corporate urged Lauren to submit a full assessment of the program as a potential model for implementation throughout the department store chain. Sales numbers vouched for the overall success, particularly over the last two quarters of the second year. Certain associates, including Katherine Knowles in designer dresses and Damien Fotopolous in women's shoes, showed significant gains as a result of straight commissions, and sales associates and customers responded favorably overall, urging a continuation of the program. Reliance on commissions inspired these and other sales associates to treat their individual department as if it were their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers.
The satisfaction level of customers was apparent in the numbers-not only sales numbers, but in repeat business, customer referrals to friends, and customer comment cards, all of which had been tracked since the beginning of the program.
The down side of the experiment was that while some associates soared, others either veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren't making sales. The once-proud tradition of cooperation among sales staff was, in many instances, being eaten away by relentless competition. Work assignments away from the sales floor were resented. In addition, the managers and sales associates of certain departments, such as women's accessories, complained of lower wages because, as one sales associate pointed out, "My commission on a $50 belt is nothing compared to Katherine's commission on a $2,800 designer dress." Resentment was mounting among those who witnessed the extravagant wages of a few.
"If we change this program, if we keep straight commission for some and return to hourly pay for others, how does that fit with our new image?" Lauren said to Jack.
"How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not return to what we were before-just another store?"
What do you see as the advantages and disadvantages of the incentive system that DeMarco's is using for sales associates? What impact do you think it is having on the DeMarco's culture? Explain.
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8
A recent Gallup survey shows that highly educated workers are significantly less likely to be engaged than are those with a high school diploma or less. What might be some reasons for this lower level of engagement among more-educated employees?
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9
Why do you think making progress ranks as the most important factor contributing to motivation according to a recent study? How can managers provide a sense of progress for employees working on long-range projects that might not show results for months or even years?
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10
To Renege or Not to Renege? 73
Federico Garcia, vice president of sales for Puget Sound Building Materials, a company based in Tacoma, Washington, wasn't all that surprised by what company president Michael Otto and CFO James Wilson had to say during their meeting that morning.
Last year, launching a major expansion made sense to everyone at Puget, a well-established company that provided building materials as well as manufacturing and installation services to residential builders in the Washington and Oregon markets. Puget looked at the record new housing starts and decided it was time to move into the California and Arizona markets, especially concentrating on San Diego and Phoenix, two of the hottest housing markets in the country. Federico carefully hired promising new sales representatives and offered them hefty bonuses if they reached the goals set for the new territory over the following 12 months. All the representatives had performed well, and three of them had exceeded Puget's goal-and then some. The incentive system he'd put in place had worked well. The sales reps were expecting handsome bonuses for their hard work.
Early on, however, it became all too clear that Puget had seriously underestimated the time that it would take them to build new business relationships and the costs associated with the expansion, a mistake that was already eating into profit margins. Even more distressing were the most recent figures for new housing starts, which were heading in the wrong direction. As Michael said, "Granted, it's too early to tell if this is just a pause or the start of a real long-term downturn. But I'm worried. If things get worse, Puget could be in real trouble."
James looked at Federico and said, "Our lawyers built enough contingency clauses into the sales reps' contracts that we're not really obligated to pay those bonuses you promised. What would you think about not paying them?" Federico turned to the president, who said, "Why don't you think about it, and get back to us with a recommendation?"
Federico felt torn. On the one hand, he knew the CFO was correct. Puget wasn't, strictly speaking, under any legal obligation to pay out the bonuses, and the eroding profit margins were a genuine cause for concern. The president clearly did not want to pay the bonuses. But Federico had created a first-rate sales force that had done exactly what he'd asked them to do. He prided himself on being a man of his word, someone others could trust. Could he go back on his promises?
What Would You Do?
1. Recommend to the president that a meeting be arranged with the sales representatives entitled to a bonus and tell them that their checks were going to be delayed until Puget's financial picture clarified. The sales reps would be told that the company had a legal right to delay payment and that it may not be able to pay the bonuses if its financial situation continues to deteriorate.
2. Recommend a meeting with the sales representatives entitled to a bonus and tell them the company's deteriorating financial situation triggers one of the contingency clauses in their contract so that the company won't be issuing their bonus checks. Puget will just have to deal with the negative impact on sales rep motivation.
3. Recommend strongly to the president that Puget pay the bonuses as promised. The legal contracts and financial situation don't matter. Be prepared to resign if the bonuses are not paid as you promised. Your word and a motivated sales team mean everything to you.
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11
What Motivates You?79
Indicate how important each characteristic is to you. Answer according to your feelings about the most recent job you had or about the job you currently hold. Circle the number on the scale that represents your feeling- ranging from 1 (very unimportant) to 7 (very important).
1. The feeling of self-esteem that a person gets from being in that job
1 2 3 4 5 6 7
2. The opportunity for personal growth and development in that job
1 2 3 4 5 6 7
3. The prestige of the job inside the company (i.e., regard received from others in the company)
1 2 3 4 5 6 7
4. The opportunity for independent thought and action in that job
1 2 3 4 5 6 7
5. The feeling of security in that job
1 2 3 4 5 6 7
6. The feeling of self-fulfillment a person gets from being in that position (i.e., the feeling of being able to use one's own unique capabilities, realizing one's potential)
1 2 3 4 5 6 7
7. The prestige of the job outside the company (i.e., the regard received from others not in the company)
1 2 3 4 5 6 7
8. The feeling of worthwhile accomplishment in that job
1 2 3 4 5 6 7
9. The opportunity in that job to give help to other people
1 2 3 4 5 6 7
10. The opportunity in that job for participation in the setting of goals
1 2 3 4 5 6 7
11. The opportunity in that job for participation in the determination of methods and procedures
1 2 3 4 5 6 7
12. The authority connected with the job
1 2 3 4 5 6 7
13. The opportunity to develop close friendships in the job
1 2 3 4 5 6 7
Scoring and Interpretation
Score the exercise as follows to determine what motivates you:
Rating for question 5 = ______.
Divide by 1 = ______ security.
Rating for questions 9 and 13 = ______.
Divide by 2 = ______ social.
Rating for questions 1, 3, and 7 = ______.
Divide by 3 = ______ esteem.
Rating for questions 4, 10, 11, and 12 = ______.
Divide by 4 = ______ autonomy.
Rating for questions 2, 6, and 8 = ______.
Divide by 3 = ______ self-actualization.
Your instructor has national norm scores for presidents, vice presidents, and upper-middle-level, lower-middle-level, and lower-level managers with which you can compare your mean importance scores. How do your scores compare with the scores of managers working in organizations?
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12
Should, Need, Like, Love
Step 1. Divide into groups of three to five students. Individually, write down your responses to the following four instructions.
1. Think of a school or work task that you felt an obligation to complete, but that you did not want to do.
Write the task here:
_____________________________________ _____________________________________
2. Think of a school or work task that you did only because you needed an extrinsic benefit, such as money or course credit. Write the task here:
_____________________________________ _____________________________________
3. Think of a school or work task that you do because you like it-it is enjoyable for you. Write that task here:
_____________________________________ _____________________________________
4. Think of a school or work task that you love to do-one in which you become completely absorbed and from which you feel deep satisfaction when finished. Write the task here:
_____________________________________ _____________________________________
Step 2. Reflect on those four tasks and what they mean to you. Rate how highly motivated (high, medium, low) you were to perform each of the four tasks. Then rate how much mental effort (high, medium, low) was required for you to complete each of the four tasks.
Step 3. Compare your ratings with other members of your team. What is the correlation between doing a task because you Should-Need-Like-Love, your level of motivation, and the amount of mental effort required to complete the task? Develop conclusions from your analysis to present to the class.
Step 4. Discuss in your group: Are you more highly motivated when engaged in tasks that you like or love versus tasks you should do or need to do? Why? Does this corroborate any motivation theory in the chapter? How can you increase the number of "like" and "love" tasks in your life? How might you reduce the number of "should" and "need" tasks? When you become a manager, will you want to increase the number of "like" and "love" tasks for your employees? How might you do so?
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13
On the Job: Mike Boyle Strength Conditioning: Motivating Employees
Questions
1. In the video, Mike Boyle talks about establishing a work environment that motivates employees to do great work. List two or three specific ways Boyle has created this type of environment in his gyms, and explain how these actions empower the employees.
2. Co-founder Bob Hanson says that education is an important part of their approach to management. How does education relate to employee motivation and job enrichment?
3. The two trainers featured in the video seem very satisfied with their jobs. Use Maslow's hierarchy of needs to explain why you think they feel the way they do.
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14
Lauren's balancing Act
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff 's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where 'everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as " Katherine at DeMarco's helped me select this outfit," or "Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me" became the typical boast of savvy shoppers.
Now, two years into the experiment, Corporate urged Lauren to submit a full assessment of the program as a potential model for implementation throughout the department store chain. Sales numbers vouched for the overall success, particularly over the last two quarters of the second year. Certain associates, including Katherine Knowles in designer dresses and Damien Fotopolous in women's shoes, showed significant gains as a result of straight commissions, and sales associates and customers responded favorably overall, urging a continuation of the program. Reliance on commissions inspired these and other sales associates to treat their individual department as if it were their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers.
The satisfaction level of customers was apparent in the numbers-not only sales numbers, but in repeat business, customer referrals to friends, and customer comment cards, all of which had been tracked since the beginning of the program.
The down side of the experiment was that while some associates soared, others either veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren't making sales. The once-proud tradition of cooperation among sales staff was, in many instances, being eaten away by relentless competition. Work assignments away from the sales floor were resented. In addition, the managers and sales associates of certain departments, such as women's accessories, complained of lower wages because, as one sales associate pointed out, "My commission on a $50 belt is nothing compared to Katherine's commission on a $2,800 designer dress." Resentment was mounting among those who witnessed the extravagant wages of a few.
"If we change this program, if we keep straight commission for some and return to hourly pay for others, how does that fit with our new image?" Lauren said to Jack.
"How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not return to what we were before-just another store?"
Do you think the complaints of lower-paid sales associates are legitimate? Why? How do you suggest Lauren respond to these complaints, such as the gripe that the system offers few opportunities for large commissions in some departments?
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15
Psychologists have identified three pathways to happiness:pleasure, engagement, and meaning. Do you thinkthat it is the manager's responsibility to help peoplefind these elements in their work? Discuss.
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16
Lauren's balancing Act
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff 's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where 'everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as " Katherine at DeMarco's helped me select this outfit," or "Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me" became the typical boast of savvy shoppers.
Now, two years into the experiment, Corporate urged Lauren to submit a full assessment of the program as a potential model for implementation throughout the department store chain. Sales numbers vouched for the overall success, particularly over the last two quarters of the second year. Certain associates, including Katherine Knowles in designer dresses and Damien Fotopolous in women's shoes, showed significant gains as a result of straight commissions, and sales associates and customers responded favorably overall, urging a continuation of the program. Reliance on commissions inspired these and other sales associates to treat their individual department as if it were their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers.
The satisfaction level of customers was apparent in the numbers-not only sales numbers, but in repeat business, customer referrals to friends, and customer comment cards, all of which had been tracked since the beginning of the program.
The down side of the experiment was that while some associates soared, others either veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren't making sales. The once-proud tradition of cooperation among sales staff was, in many instances, being eaten away by relentless competition. Work assignments away from the sales floor were resented. In addition, the managers and sales associates of certain departments, such as women's accessories, complained of lower wages because, as one sales associate pointed out, "My commission on a $50 belt is nothing compared to Katherine's commission on a $2,800 designer dress." Resentment was mounting among those who witnessed the extravagant wages of a few.
"If we change this program, if we keep straight commission for some and return to hourly pay for others, how does that fit with our new image?" Lauren said to Jack.
"How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not return to what we were before-just another store?"
Have the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers is stronger than loyalty to the store? For example, if a successful associate leaves DeMarco's, might the customer leave also?
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17
Assume that you are a front-line manager at a call center. Try to come up with a specific motivational idea that fits in each of the four quadrants in Exhibit 16.2: Positive Extrinsic; Positive Intrinsic; Negative Extrinsic; Negative Intrinsic.
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