After reading the case below please answer the 3 questions below. (Case from Managing Organizational Behavior) Maintaining Employee Motivation When Gamal Aziz became president of MGM Grand Hotel & Casino in 2001, the huge hotel was doing ex-tremely well—as was Las Vegas. The challenge for Aziz was to take something good and make it even better. Under Aziz, revenue zoomed, and along with the Bellagio, the MGM Grand became one of the most profitable hotels on the Las Vegas strip. But ask Aziz what was the single most important factor in the jump, and he won’t talk about twirling acrobats or signature dishes such as free-range quail stuffed with foie gras. His answer is the employees. Now with times getting tougher in Las Vegas as tourism drops and gambling revenues fall, Aziz says his people have become even more critical to the company’s success. Cost-Cutting Moves “Employee engagement in times of difficulties and severe economic climate is far more profoundly important now,” says Aziz. “Employees are willing to give their all when they are well-treated, appreciated. And the ability to unlock that potential is a competitive distinction.… It’s their decisions, their actions, their attitude that really make the difference. Imagine taking 10,000 employees, and each and every one of them wanting to give more. That’s really the difference between [us and] a company that has its employees just punching the clock and trying to get through the day.” But Aziz, like all managers, is under pressure to justify every cost. Although his hotel still had high occupancy rates, groups are canceling, and those that do come are spending much less per visit. That’s forced Aziz to reduce costs associated with some of these successful programs. He still does regular employee appreciation dinners for top performers, but he’s spending about half as much this year as last. He’s started recruiting managers from other properties to attend his MGM Grand University as a way to reduce the costs of training his own top managers. And he’s put on hold one program that trains next-generation line managers. Rank-and-File Insight Aziz shares with employees the challenges he’s facing. Employees, the CEO says, were what got the hotel to the next level, and they are the key to pulling through hard times. “We will get through this, we will survive,” says Aziz. “Once we get through this, the employees will be the ones who have gotten us through.” When Aziz arrived in 2001, he quickly sought out rank-and-file insight into the hotel and how it could improve. A survey of the hotel’s 10,000 employees made clear that very little was being communicated to the staff about the events going on in the hotel on a daily basis, including such basics as who was staying there, and what the hotel had to offer those particular guests. Employees sometimes didn’t even know what conventions were at the hotel. That made it difficult for the staff to give the level of service that would affect customer loyalty, return visits, and spending in the hotel. Aziz came up with a simple fix. There is a short meeting now at the start of every shift in which every employee is given the rundown of what’s happening in the hotel that day. It’s a simple concept based on meetings that restaurants have long held to get waiters up on the daily specials. But rolled out across 10,000 employees a day, it’s a major undertaking. MGM Programs The MGM Grand made other moves to help employees grow. In his recent book, Closing the Engagement Gap, co-author and Towers Perrin Managing Director Don Lowmanhighlights many MGM programs, including the MGM Grand University that offers dozens of classes on an invitation-only basis for high achievers. The MGM Grand Leadership Institute is a 24-week program for executives. And REACH! is the hotel’s six-month course on basic supervisory skills for ambitious hourly workers. All this investment in the staff, along with recognition dinners and other rewards, has led to more than 90 percent of MGM Grand employees saying they are satisfied with their jobs, and 89 percent saying their work has special meaning. According to the book, 91 percent report they are proud to tell others where they work. “One of the ways we’ll get through this dire economic circumstance we find ourselves in is if leaders set this tone that we’re all in this together,” says Lowman, who worked with a multitude of companies as a consultant at Towers Perrin and ranks MGM Grand among the best at connecting with employees. “It’s very easy to say ‘Let’s just whack 15 percent of the company.’ You can immediately take a lot of costs off your books. But that has a big cost both on the people doing the whacking [and on the company] in the long term, when you’ll need those people [you let go] again.” In the book, Lowman sites a finding from the firm’s survey of tens of thousands of employees in six countries—including the U.S., China, and India—that the No. 1 thing that engages employees is senior management’s interest in their well-being. That trumped career advancement, relationship with one’s direct supervisor, and even pay. Visiting the MGM Grand, Lowmansays he found evidence of that connection in spades. Aziz was impressive, Lowman says, for his tendency to ask questions and listen to the answers. Engagement starts at the top. 1.Identify some powerful rewards mentioned in the case and explain why they are so powerful. 2. Apply the expectancy theory of motivation to the case and explain what Gamal Aziz is doing well. Now, pick another theory discussed in the chapter and apply it as well. Can multiple theories provide insight about why Aziz is successful? 3.Instead of focusing on cutting employees, this case argues that there are other routes to success (even in difficult times). Why do you think this is true? Can you think of cases where it may not be true?

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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