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increase again?
Fahad Usman
Shahzaib Mubassar
Intro and Overview
● There has not been a wage increase in two years (2009 & 2010) at his
company.
● Many internal employee problems have surfaced.
● Impaired corporate culture due to its general manager/owner’s failure to
implement an impactful managerial motivational approach.
● No wage increase for the third year in a row would probably lead to
discontent and tensions among the staff members.
2. -The expectancy theory shows a direct link between personal effort and
rewards. Indeed, individuals tend to adapt their amount of effort respectively to
the outcome that this effort will procure them.
-If ‘House, Hearth & Home’ employees feel that their efforts and good
performance is not going to lead to any external rewards, they might adapt their
amount of effort and therefore be less motivated and effective.
3. -Adam’s Equity Theory (1967) states that employees are interested maintaining
balance of the scales between how much they put into their organisation (effort),
and how much they receive from their organisation as an outcome (rewards).
-By now allowing them rewards for the efforts, these “life-blood” employees are
receiving an equal output for their input which is likely to satisfy these employees
(Adam’s Equity Theory).
Key Stakeholders
1.Owners/general Manager: Mark – Lack of financial growth
severally impacts employees and himself
Weaknesses:-
● Low employee motivation to perform their duties with the goal of
excellent customer service.
● Mark having a lack of managerial control of company corporate
culture.
Opportunities
Threats
● -Economic downturn that is affecting businesses
worldwide
● -Employees wages to be set at more competitive rates
which will increase costs
● -Competing organizations
Alternatives:
Alternate 1:-
● House, Hearth & Home will provide monetary raises higher than 3% for select
employees who have continuously demonstrated corporate values
● In addition the company will dismiss unproductive employees from its personnel.
Alternative 2:-
● Home, Hearth, & Home will increase wage rates for all employees and
management by 3% through the reduction of other arenas of expenditures in the
company
● At the same time the organization will create a standard ‘three strike’ demerit
system that will provide negative reinforcement.
Alternative 3
● House, Hearth, & Home will keep all staff wages at their current rates.
● At the same time the company will create a Hybrid Reward Program as a means of
positive reinforcement.
● Incentive program that will provide rewards for individual employee efforts that
strive to excel in the two areas the company most values, hard work and excellent
customer service.
Recommendations