Motivation II Hausser Foods Case BMGT 364 Managing People and Organizations Housekeeping No class Wednesday please complete assessment via email check your SPAM Exam Tuesday 10 23 Office Hours M 2 3 VMH 3340 Tu 6 7 and We 11 noon VMH 4521 Copyright 2010 Copyright 2010 A Basic Framework for Motivating Managing Performance EFFORT PERSISTENCE PERFORMANCE 1 Are people doing work that is interesting fits their own personal needs 2 Do people see a connection between the effort they put in their job performance Goal Setting Theory Expectancy Theory Maslow s Heirachy of Needs Herzberg s Two Factor Theory Person Job Fit Theory OUTCOMES Extrinsic Intrinsic 3 Do people find that achieving high performance leads to outcomes that they value Reward desired behaviors and discourage undesired behaviors SATISFACTION TRUST 4 Are decisions made in ways that inspire trust build commitment promote satisfaction Organizational Justice Theories Applying Motivation Theory Initech Copyright 2010 Copyright 2010 1 From Theory to Application The Challenge of Motivating Noah Noah Get has worked in the marketing department of Curtis Inc for 11 years Noah is obviously the most likely person to step into the marketing vice president s position when the current executive retires in 18 months In fact the current vice president Mr Edwards has been grooming Noah to take over Noah has been putting in 60 hours a week since Mr Edwards told him that if his work output increased significantly for the next several months Noah would be given Mr Edward s strongest recommendation for the promotion Noah has been working to rise in the Curtis organization since he started 11 years ago His long range goal is to ultimately be the president Noah has three children about to enter college so the pay raise that accompanies the promotion would be most helpful Yesterday Mr Edwards called Noah into his office and showed him a memo from the president that read Due to immediate need to infuse new blood into our organization to deal with our changing economy and markets all openings at the senior management level will be filled by experienced candidates from outside Curtis This moratorium on promotion from within will be in effect for at least the next five years 1 Is the valence or importance of a promotion high or low to Noah High Low 2 Is Noah s belief that he will get promoted if he continues to produce work at his current 60 hour a week level high or low P O 3 Is Noah s belief that he can continue to produce at the current elevated level for the next few months high or low E P High Low High Low 4 Is Noah therefore likely to continue to Yes No produce at this level Copyright 2010 Copyright 2010 Hausser Food Products Company You re charged as a consulting team What should Brenda Cooper do Your team should prepare for a meeting with Brenda to give her a recommendation that Identifies the motivational challenge what is currently motivating the sales managers and how does this benefit limit the company Provides a recommended solution action plan to address the motivational challenge Motivational Advantages for the Florida Sales Team Strong relationship with District Manager Jay Boyar Boyar good at PROVIDING Setting expectations CHALLENGE and goals under the AUTONOMY existing sales plan DISCRETION Holds bi monthly team meetings that help with sales strategies EFFORT PERSISTANCE Helps team make their bonus USING VALUED INTRINSIC EXTRINSIC OUTCOMES Commitment GOALS EXPECTATIONS ENSURING FAIR DECISIONS PERFORMANCE OUTCOMES Extrinsic and Intrinsic SATISFACTION TRUST Makes sure the team is treated fairly under ENSURING PERSON JOB FIT an unfair system FACILITATING ACCOMPLISHMENT ENSURING TIMELY ACCURATE REWARDS Copyright 2010 Absenteeism and Turnover Copyright 2010 2 Key problem Lack of Alignment Between Organization s Needs and Team Performance Florida Sales Team Performance USING VALUED INTRINSIC EXTRINSIC OUTCOMES Commitment PROVIDING CHALLENGE AUTONOMY DISCRETION sales volume GOALS EXPECTATIONS ENSURING FAIR DECISIONS EFFORT PERSISTANCE PERFORMANCE OUTCOMES Extrinsic and Intrinsic SATISFACTION TRUST ENSURING PERSON JOB FIT FACILITATING ACCOMPLISHMENT ENSURING TIMELY ACCURATE REWARDS Hausser Foods Performance identifying new sales markets and leveraging them organization wide The Folly of Hoping for A While Rewarding B We hope for Long term growth environmental responsibility Teamwork Setting challenging stretch objectives Downsizing rightsizing restructuring Commitment to total quality safety Surfacing bad news early But we often reward Quarterly earnings Individual effort competition Achieving goals making the numbers Adding staff and budget Shipping on schedule despite defects Reporting good news agreeing with short cuts the boss Absenteeism and Turnover Copyright 2010 Source Kerr S 1975 On the folly of hoping for A while rewarding B The Academy of Management Journal 769 783 Copyright 2010 Motivation and Performance Management Problems in Sales at Hausser Foods Sales plan sets goals and expectations on volume not on sharing innovations PROVIDING CHALLENGE AUTONOMY DISCRETION GOALS EXPECTATIONS USING VALUED INTRINSIC EXTRINSIC OUTCOMES Suggestion plan not Commitment valued seen as unfair ENSURING FAIR DECISIONS Paperwork seen as an EFFORT obstacle to activities that PERSISTANCE lead to new sales PERFORMANCE OUTCOMES Extrinsic and Intrinsic SATISFACTION TRUST ENSURING PERSON JOB FIT FACILITATING ACCOMPLISHMENT ENSURING TIMELY ACCURATE REWARDS Sales plan seen as unfair because sales team has little input into goals Absenteeism and Turnover Copyright 2010 Brenda Cooper s Mistakes Failed to identify the central problem with the sales plan plan works against what she has identified as her central role Failed to actively establish trust with Regional Manager Boyar to open communication and understanding Has not tried to understand motivational drivers for the team Copyright 2010 3 An Action Plan for Brenda Cooper Meet with District Manager and then with sales team and follow through on commitments Establish trust begin by proactively sharing information take steps to be an advocate for the team e g so they are not penalized for sharing sales innovations Understand the problem take steps to understand the motivation issues Gain commitments active public and voluntary Use non monetary rewards to encourage sharing of ideas Work with senior managers to address problems with the current Take steps to ensure that the process used to arrive at the
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