Ans1: Some of the powerful rewards mentioned in the case are as below along with the reason for their being so powerful:
Appreciation dinners for top performers – First of all, providing appreciation dinners only to high achievers, sets up a performance standard to achieve in order to be called for dinners. Employees will work their best to reach into the ‘top performers’ category. Secondly, the reward is nothing monetary but is a bit more personal. Inviting for dinners instead of giving a monetary award leads the employees to get recognised. This leads to an emotional connection and strengthens the feeling of ownership.
Offering classes on an invitation-only basis for high achievers: Here also, the reward comes as a result of ‘high achievement’. Also, the reward is not monetary reward but a chance to advance their skill. This gives an impression of a ‘growth culture’ in the organization sending signals to the employees that the organization is dedicated to push the achievers higher up the ladder.
All these rewards including recognition dinners and other rewards, has led more satisfied employees with their jobs and inculcated sense of proud among employees for their contribution.
Rewards are beneficial for both employee and employer as:
For employees: Rewards worked as motivational factor.Boost their performance.
For employer: Helped to increase Revenues and better working culture for the organization.
Ans2: Expectancy Theory proposes that people will choose how to behave depending on the outcomes they expect as a result of their behaviour.
As per Expectancy theory, Gamal Aziz is using all three tenets – Expectancy, instrumentality and Valence in a well defined way. Since the organization is clearly defining its policy of inviting top performers for appreciation dinners, the expectancy and instrumentality is crystal clear. There is no doubt in being invited to dinner if one is performing well. The reward that Gamal is giving to the achievers is not just monetary but is related to the employees on an emotional level. Providing training and inviting to dinners are rewards that attaches to the employees on a personal scale.
One of the other motivation theory that explains the success of Gamal is Hertzberg’s two factor theory. As Gamal was taking care of both the motivational factors as well as the hygiene factors.
On one hand, he was providing motivation through dinners and raining opportunities (motivating factors), on the other hand he removed the problematic issues like lack of communication(hygiene factor) between management and employees. These overall lead to his success.
Ans3 –While cutting employees reduces the overall cost burden on the company, but its output also falters. Reduced employees either suffer increased burden which will also lead to eventual reduced output. Instead of focusing on cutting employees, this case primarily argues in favor of three other routes, namely – motivating employees, training and proper communication. The reason behind their contribution to success and the cases where it may not be true are discussed as –
Motivating employees –Instead motivating the same number of employees leads to increased overall output. As is mentioned in the case – Imagine 10,000 employees, all giving something more than what they were giving earlier. This will pave the road to success.
Training – Similar to previous point, training increased the output of every employee. Training also gives them a better perspective to work and even adds to their motivation.
Proper communication – Any organization works on the strength of system of communication between its employees. The smoothly the information flows, the better are the returns.
So, in a way, Communication, training and Motivation are the three pillars of success of any organization.
However, it may not be true in the case where the employees are either not eligible enough to work there or they have become so indifferent that motivating them shows no change in their attitude. Or in the case where technological changes have taken place(introduction of new technology).For example when computers were introduced so to reduce cost retrenchment was the only option.In such cases, cutting and replacing employees is the only option company has.
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