The document discusses a case study of a family business that wanted to modernize its culture while retaining current employees. An analysis found issues like a lack of structure, weak employee satisfaction, and high turnover. An action plan was created over 5 years based on Herzberg's theory, which included restructuring the company, improving salaries, training, and workplace conditions. These changes led to decreased turnover, higher job satisfaction, lower costs, and increased profits.

1. Organization Behavior and
Development
Prof. Aly A. Messallam
EMBA Program – 2022 / 2023
Faculty of Commerce
Alexandria University
Cohort (23) Ibrahim Ahmed Al Sayed Mohamed Mostafa Marzouk

2. Comparing co-workers against each
other: Does this motivate employees?
Case Study (5.1)
Chapter 5: Motivation

3. Preprepared by:
Ibrahim Ahmed Al Sayed Mohamed Mostafa Marzouk

4. Case Study Brief
Rigid Ranking
System
Forced
Ranking
Stack
Ranking

5. Forced Ranking
A system in which employees are ranked from best to worst based on their performance.
Used to identify top talent, to help managers identify employees who need development.
To provide a framework for awarding bonuses and promotions.
Also known as “rank and yank,” or “20/70/10” the practice was championed by former General
Electric CEO Jack Welch.

6. Stack Ranking
System to determine how compensation increases are distributed. It asks managers to rank
employees within each unit on the curve According to their performance.
It’s set in Silicon Valley.
During reviews, employees are told how their increases generally comparable to those of others

7. Ques.1. What’s your opinion regarding forced ranking
performance appraisals? Do they motivate employees? Explain.
Our Opinion: We don’t recommend it & they don’t motivate employees.
• Drake University found that the firing of the bottom 10 %, results in an impressive
16 % productivity improvement, but only over the first couple of years. After that,
the gains drop off, from 6 % in the third and fourth years to basically zero by year
10.
• “It creates a zero-sum game“, decreasing innovations & It’s going to kill morale.
• Discourage cooperation.

8. Ques.1. What’s your opinion regarding forced ranking
performance appraisals? Do they motivate employees? Explain.
• Prof. David Ulrich says: Over time it gets people focused on competition
with each other rather than collaboration.
• Focus only on talented people ( Stars).

9. Ques.2.How would equity theory explain some employees
'negative reactions to forced rankings? Explain.

10. Ques.3. Based on Chapter 5, if you decided not to use forced rankings at
your company, how would you motivate employees?

12. Real Case
When I got my current job back in 2019, I met with one of the board of directors and he is
my direct manager right now.
He explained to me that the company has a special nature, it is a family business but not
like any other firm.
It contains five generations and he is the third generation “Y” he requested the following:
• Helping him to achieve his dream, Transferring the company from the current culture to
(and I quote “Family business with the multinational mindset, becoming attractive
environment for everyone”)
• But under one condition (Not firing anyone from the current employees).
Actually, I accepted the job because of this dream.

13. Real Case
Once I got haired I did several analyzes and questionnaires about the (company -
market in general - employees) such as:
SWOT analysis – PESTEL analysis - Balance scorecards - Employee Satisfaction –
Turnover...etc.
As a result of the above, I found:
• There is no structure.
• There are no policies and procedures.
• Weak employee satisfaction 20%.
• Weak salaries (Lag from the market).
•Turnover rate for the high performer’s employees by 99%.
• Unhealthy work culture (lack of confidence and competencies).
• Unhealthy place to work such as (ventilation – lighting – work tools– a division of
workplaces)

14. Real Case
So I made my action plan divided into the next 5 years. Which was based on
motivation, team building, initiative, and the best theory for the company conditions
at this moment to achieve this was (Herzberg’s theory)
• Defining the vision, mission, and strategic objectives.
• Structure design.
• Designing operational policies and procedures for all departments.
• Establishing of authority and responsibilities scheme.
• Conducting one-to-one meetings with each employee to analyze (strengths -
weaknesses - job analysis - job description).
• Salary Survey and Salary Structure.
• Designing company layout, and SOPs.
• Workplace renovation.
• Establishing the company's training academy.
• Defining the stars (Successors).

15. Real Case
And now after almost three years, the result was:
• Stars (Successors) turnover decreased by 80%.
• Job satisfaction increased by 75%.
• Costs decreased by 35%.
• Net profit increased by 32%.