Casestudy on managing motivation in a difficult econom
1. MADE BY :
SHREYA GOSAIN (MBA/4526/11)
DEEKSHA SHARMA (MBA/4528/11)
ABHISHEK (MBA/4527/11)
2. MAJOR TOPIC AREAS
Changing nature of work
Diversity and age
Goal setting
Organizational downsizing
Organizational justice
3. What is motivation ?
The process that accounts for an individual intensity ,
direction and persistence of effort towards attaining a
goal
It is the result of the interaction between an individual
and the situation
motivated person says ‘nothing is impossible ’ He will
put his best effort .
4. FACT SHEET
R-3 mart is major regional player in the retail industry and has
100 of stores.
A sharp decline in economy has put the management in a serious
financial position.
The firm had to close quite a few locations, reversing its
expansion plans for the first time since it was incorporated .
Hari Prasad is the vice president of human relation , has been
struggling with how to address the issue with employees .
A few angry blogs developed by laid off employees made the
morale and public relation even worse .
The company is changing in other ways as well. The average age
of its workforce is increasingly rapidly .
5. MAJOR ISSUES OF THE CASELET
The older workers has been a great asset to the company
but they might leave the organisation if things get bad .
The employees insecurity was taking a toll on attitude .
Lack of advance notices and communications
Lack of self confidence and moral .
Vice president was himself not sure of how to respond to
employees hopelessness
6. STRENGTH OF THE CASE
The company had more qualified and experienced workers
The vice president was motivated by a book named “man
search for meaning” . He applied his lessons to his
workforce .
The company used performance management system .
The company used different programs to motivate the
employees .
The managers were free to choose the program that suited
best for them .
7. METHODS FOR MANAGEMENT
SYSTEMS
PROGRAM1: providing employees with no information or
opportunities for participation and continuing to stay the
course .
(traditional management )
PROGRAM2: track employee absence and sick leave &
sharing it with employees and giving feedback about things
they can control .
PROGRAM3:track sales and inventory replacement rates .
As in program 2 information is shared but without
feedback .
PROGRAM4:sharing information and conducting weekly
brain storming sessions .
PROGRAM5:brainstorming without sharing information .
8. program methods No. Of Average Weekly Monthly
stores turnover profit per staff time
month cost
Program 1 Traditional 83 Mean=30% Mean=3lak _
method SD=10% h
SD=1lakh
Program 2 Share 27 Mean=23% Mean=4lak 1lakh
absence SD=14 h
and sick SD=2.8lakh
leave
Program 3 Share sales 35 Mean=37% Mean= 2.24lakh
and SD=20% 6.2lakh
inventory SD=2.5lakh
Program 4 Share 67 Mean=17% Mean= 3lakh
information SD=20% 7.9lakh
and SD=3lakh
brainstorm
Program 5 Brainstorm 87 Mean=21% Mean= 2.5lakh
without SD=12% 8.2lakh
informatio SD=2.4lakh
n
9. SUGGESTIONS
i. Employee involvement is necessary in this organisation .
The underlying logic is that if we involve workers in the
decisions that affect them . This will make employee
motivated committed , satisfied and more productive .
ii. Major forms of employee involvement
a) Participative management : process in which
subordinates share a significant degree of decision
making power with their immediate superiors .
b) Representative management :in which workers
participate in decision making through a small group of
representative .
c) Quality circle :a work group of employees who meet
regularly to discuss their quality problems ,investigate
causes , recommend solutions and take corrective actions
.
10. iii. To motivate people on their job it is necessary
emphasise on the factor which is associated with the
work itself such as recognition ,responsibility ,
achievement .
iv. As in the case the HR team came up with the 5
options for the management system . They think that
the 4th method (sharing information and brain
storming ) is the most effective method . We feel that
5th method ( brainstorming without sharing
information )is better in some aspects because some
information should be kept confidential with the
company otherwise there might be misuse of
information.
11. V. There should be organizational justice as while we
are conducting the brain storming sessions there
might be conflict between the employees regarding
their ideas and opinions . Management should give
proper explanations that why they are accepting a
particular idea .
12. LEARNINGS FROM THE CASE
1. A person should not be demoralised even if the situation
had worsened.
2. A person should have a clear sense of purpose .
3. Sharing information with the employees so that they can
perform better
4. Employee should participate in decision making .
5. Performance = f(A*M)
6. communication between employees and top
management should be there .
7. Weekly brain storming sessions helps employee
determine what they can do better in the future .
13. Look over the data and decide which method of management
system appears most effective in generating revenues and reducing
turnover . Which method appears least effective
4th method is most effective . In this method managers
share information and conduct brainstorming sessions .
This method increases the motivation level and they feel
participative .
Traditional method is least effective as in this no
information is shared with the employees and no
participation in decision making .
As the turnovers are high and revenue is low in this method
14. How does changing nature of workforce affect your conclusion
about how to manage retail employees
To manage the workforce in a retail company it is
important to change their attitude as it directly affects
the customers and growth of the company
By increasing the intrinsic factor employees are more
likely to be satisfied and motivated to perform it.
15. Does the participation of a more experienced workforce help or
hurt these programs
R3-mart average workforce is more experienced so they
may have similar kind of thinking or view point which
helps in implementing the programs .
But on the other hand the avg work force is
experienced so they may try to take the advantage of
their experience
16. Are there any concerns you have about the data given .
Does the no of stores using a particular method influences your
conclusions
Yes , by this we get to know which method is opted by
the maximum stores .
Higher the no of stores using a particular method
higher will be the effectiveness of that particular
method