Quiz 16: Motivating Employees


Advantages The following are the various advantages of the incentive system used by D: a. Employees feel empowered to make decisions. b. Employees are responsible for their own pay and thus strive harder to please the clients. c. Motivated employees have a sense of competition that allows them to innovate and better the competition. d. Store is making good benefits, higher sales through higher repeat which means happy customers. e. Most employees are happy with the higher pay that they are receiving. Disadvantages The disadvantages of the system are as follows: a. Employees are complaining of a unjust system where some may receive more commission based on the products they sell. i.e. shoes may earn more commission than a belt. b. The employees lost their constant source of income due to the new program. c. All employees might not be as good in selling like others so the incentive system might not work properly. d. Aggressive and pushy sales style might not lure new customers. e. Competition hampered the team culture. f. Employees did not want to work at other places where commission was not possible. Impact The culture at DM is getting affected as some employees don't feel comfortable with the system and often complain. It is clearly mentioned in the case that work assignments that were always from floor were not readily accepted. Thus, people were not taking pride in doing any other work and this is not good for any organization.

Making progress can indeed be rated as the most important factor contributing to motivation. The motivators, that is, the employers in most cases need to understand if the work being put in by them is being done in the right direction and leading the team to the organizational goals. It has to be necessarily understood that all the Quality models/metrics in the world and the continuous improvement process have a key phase of checking the progress that has been made and then the next steps are taken. Deming's cycle or PDCA also discusses the same where Plan-Do-Check-Act are the key phases. It is important for managers as well to understand that the progress is being made on long term projects. This is where the experience that they have acquired over the years comes into play. The Managers should keep the team members motivated at all times as the work may follow a sinusoidal curve and may not be constant at all times. The deadlines have to be met and lethargy should not be allowed to creep into the employees. The following points can be kept in mind for long term projects: • Goal Specificity is important as the employee may get bored and de motivated due to lesser work available. • Growth related targets should be set correctly for employees and they should be kept involved at all times. • Hygiene factors should not be allowed to compromise with and job " dissatisfiers " should be kept away. • Motivators that allow fulfilling of all higher and lower level needs should be understood for all individuals and correctly and responsibly allocated on the job.

Company P hired sales reps to expand their business into a new market, and promised them hefty bonuses if they met company objectives. The reps succeeded - but now the company is facing trouble with the expansion due to changes in the economy. Consequently, it is considering the option of not paying out the bonuses originally promised. Although the company is having some financial difficulties, it should pay out the bonuses to the sales reps. In case payment of the bonus would result in the company's failure, then only the company should back off. Staff members in the company would soon find out through grapevine that the company's word is not reliable. This would damage the company reputation, and make it much more difficult to motivate staff in future. It would also make it difficult to hire top candidates for future positions, since they will hear that the company reneges on its promises.

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