Q.1 In a case study provided by NZIE, Dr. Lock, amechanical engineer who worked as the CEO and founder of a boatbuilding firm, noticeda decline in employee productivity within their organization over a five-yearperiod. She reasoned that the decline was due to the employees’ need for moremoney as she discovered that most of them had other jobs to compound theirincome. This seem to explain why they were coming to work very tired and werenot achieving the expected results. She decided to increase their salariesbecause she assumed that the low salary was the reason.
After reading and analysing the case studyprovided by NZIE and other very relevant research articles and journals, it becomesclear that the increasing the salaries in Dr. Lock’s company did not have thedesired effect because she did not consider other important variables. Beforemaking her decision, she believed that simply increasing the employees’ salaryby 20% would solve all her challenges and increase productivity. She didnot consider other factors mentioned in the research discussed below: · Dr. Lock also failed to consideraspects related to intrinsic motivation. In reference to that, Stringer,Didham, and Theivananthampillai (2011), argue that good performance andproductivity are more associated with intrinsic motivation.
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Likewise, theseauthors also claim that pay is extremely related to intrinsic motivation aswell. Furthermore, they suggest that pay fairness play a significant role infirms that use the pay-for-performance goals.· Possibly, because she didnot have much knowledge about management since her training was in engineering,Dr. Lock had difficulty understanding and applying a more effective solution toprevent the decline of productivity. However, according to Rynes, Gerhart,and Minette (2004), there are some contradictions between what people say aboutpay and what they actuallythink of it. The same authorspostulate that, in most cases, the employees’ answers are the ones that do notreally reflect their thoughts and that they respond to external pressures.
· Dr. Lock did not take intoaccount the positive effects that the environment in the workplace can have onproductivity. Hence, referring to that, Leblebici (2012), states that one ofthe most relevant factors for increasing and/or maintaining good productivityis building good relationships among managers and employees and the team as awhole. Rynes atal., (2004), also clarify that in the long run pay is not either the first northe only motivator for increasing productivity or job satisfaction, but itreally has a big impact on many employees’ performances as a motivator. Although this may be true, competitive salaries are predictorsneither of high productivity nor of self-actualization in the workplace or inlife itself.
(Chamorro-Premuzic, 2013) Based on what was discussed previously in thispaper, it is clear that, although pay is an important factor to be considered,it is not the only one. Dr. Lock intuitively assumed that the problem was pay-relatedwithout doing any further analysis or consulting managers and other supervisorswho could help her to better understand the facts and make a more effectivedecision.
Q.2After conducting my own research, I haveconcluded that the root cause that Dr. Lock should address is intrinsic motivation.Accordingly, Janus and Browning (2014), assert that, nowadays, manyorganizations use the pay-for-performance plan as a motivator for theiremployees’ good production. Nevertheless, they are not taking into account thatit might come up with negative effects such a disengaged team by fosteringcompetition among the group to see who’s the best or most efficient.
Q.3 My recommendation to Dr. Lock to improveproductivity and worker commitment is to have a better communication systemamong CEO, managers and employees so they have a better understanding of whatthe firm expects from them. Consequently, the company could also implement aplan of clear goals and expected results that the organization is pursuing sothat the employees feel more engaged and knowledgeable about what they need todo, when they need to do it and why they are supposed to accomplish the tasks.Moreover, the company could offer the employees some personal benefits asintrinsic motivators such as tuition assistance for a higher education,promotion, an employee recognition program and prompt acknowledgement of accomplishments.As an illustration, one the most effective and powerfulelements that can motivate employees is recognition. Its effects in the teamengagement and in the employees’ productivities are exceptional (Shetcliffe, 2007).
Q.4 My recommendation for Dr. Lock as strategy for identification, selectionand development of staff is to use the talent management theory. According toJulia and Rog (2008), the implementation of talent management in the workplaceis an essential tool for improving engagement in the workforce. Likewise, the authors affirm that it will bevery effective and beneficial to decrease turnover rates and improveproductivity.
Therefore, Dr. Lock should keep an effective communication withmanagers and make sure that the supervisors would be trained to be attentive toidentifying and recognising employees that show good skills and differentiatedtalents. According to the literature review, Talent Managementhas some similitude with HR practices such as recruitment, selection and career(Julia & Rog, 2008). Consequently, some stepsshould be followed for an effective implementation as proposed below by Carter (2014): · Implementation and evaluationIt is a process that should be followed systematically and regularly lookingfor feedback to keep the implementation running on the track. This is a processthat should be implemented efficiently as it is a strategic plan of the companyto achieve pursued outcomes.· Diagnosis It is crucial to HR maintain a good relationship with the main leaders inthe organization and keeping an open channel of communication with them inorder to have feedback of what it isexpected from the implementation process and why the organisation need it andreceive to make the diagnosis.· Technology Technology software can be used to improve the quality of recruitmentand selection of candidates.
· LeadershipThe company needs to select some leaders and form a group to lead theimplementation. They must be well trained and focused.· Buy-inIt is very important an effective communication using memos, webinarsand the company internet page frequently updated to keep everyone knowledgeableof what is happening in the company so that everybody could be on the samepage. Q.5My recommendation in the case of a low cost boat manufacturer and ahighest possible quality yachts could be pretty much the same, but of course,there are some slights differences that need to be addressed. First, in thecase of high cost yachts the company needs to recruit employees with morespecific skills, high qualification and talent because they will be producingto high income people. Therefore, they will be working for more demandingclients that normally look for firms that have good reputation and hightechnology.
In contrast, the low cost company does not have clients as demandingas high cost companies and the small firms do not need high-qualified workforceas in the case of the high quality yachts firm. Stringer, C., Didham, J., & Theivananthampillai,P. (2011).
Motivation, pay satisfaction, and jobsatisfaction offront-line employees. Qualitative Research in Accounting andManagement, 8(2), 161-179. http://dx.doi.org/10.
1108/11766091111137564Rynes, S. L., Gerhart, B., & Minette, K. A.(2004). The importance of pay in employeemotivation: Discrepanciesbetween what people say and what they do.
Human ResourceManagement, 43(4), 381-394. Retrieved from https://search.proquest.com/docview/222115358?accountid=188056Leblebici, D. (2012). Impact of workplace quality on employee’sproductivity: case study of abank inTurkey.
Journal of Business Economics and Finance, 1(1), 38-49.Janus, K., & Browning, S. L., F.A.
C.H.E. (2014).The effect of professional culture on intrinsicmotivation amongphysicians in an academic medical Center/PRACTITIONER APPLICATION.
Journalof Healthcare Management, 59(4), 287-303; discussion 303-4. Retrievedfrom https://search.proquest.com/docview/1550823931?accountid=188056Chamorro-Premuzic,T. (2013). Does money really affect motivation? A review of the research.
Harvard BusinessReview, 10.Shetcliffe, J. (2007). The power of employeerecognition. Insurance Brokers’ Monthly, 57(8), 20-20, 22. Retrieved from https://search.proquest.com/docview/200838372?accountid=188056Julia,C.
H., & Rog, E. (2008). Talent management.
InternationalJournal of Contemporary HospitalityManagement, 20(7), 743-757. http://dx.doi.org/10.1108/09596110810899086Carter, L. (2014).
Drive business strategy byintegrating talent decisions. T+ D, 68(6), 76-77. Retrieved from https://search.proquest.com/docview/1537393225?accountid=18805 Submitted by: Flavio Brito (Cohort 3B)