Preview

Case Study : Managing Motivation in Economy

Powerful Essays
Open Document
Open Document
1941 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study : Managing Motivation in Economy
BGB1023/BAGB1023
Organizational Behavior
Group Assignment (25%)

Case 1: Managing Motivation in a Difficult Economy (15%)

Learning Goals

In this case, you’ll have an opportunity to assess a motivational program designed to re-energize a troubled company’s workforce. Acting on behalf of the company’s executive board, you’ll evaluate the board’s current strategy based on survey data. You’ll also advise board members about improving the effectiveness of this program based on what you’ve learned about goal setting and motivation in organizations.

Major Topic Areas
• Changing nature of work
• Diversity and age
• Goal setting
• Organizational downsizing
• Organizational justice

The Scenario

Morgan-Moe’s drug stores are in trouble. A major regional player in the retail industry, the company has hundreds of stores in the upper Midwest. Unfortunately, a sharp decline in the region’s manufacturing economy has put management in a serious financial bind. Revenues have been consistently dwindling. Customers spend less, and the stores have had to switch their focus to very low-margin commodities, such as milk and generic drugs, rather than the high-margin impulse-buy items that used to be the company’s bread and butter. The firm has had to close quite a few locations, reversing its expansion plans for the first time since it incorporated.

Being that this is uncharted territory for the company, Jim Claussen, vice president for human relations, had been struggling with how to address the issue with employees. As the company’s fortunes worsened, he could see that employees were becoming more and more disaffected. Their insecurity about their jobs was taking a toll on attitudes. The company’s downsizing was big news, and the employees didn’t like what they were hearing.

Media reports of Morgan-Moe’s store closings have focused on the lack of advance notice or communication from the company’s corporate offices, as well as the lack of

You May Also Find These Documents Helpful

  • Good Essays

    In this scenario, InterClean, had a plan in place that would assist the sanitation company in increasing its profitability. In doing so, there was a possibility of having to completely restructure the sales teams and marketing strategies that were already in place. The CEO of InterClean, David Spencer, is a middle aged businessman, who remains focused, and is completely driven in his efforts to ensure that this cleaning company increases its growth to become a leader within the sanitation industry. Initially, David and his team proposed a new service focus that entailed being the first within the industry to expand their cleaning company by introducing an all-inclusive service. While this is a great opportunity for growth, a huge concern is that the current sales team at InterClean is not knowledgeable on the current sanitation regulations, based on legal and environmental requirements. Because of this, Janet in HR began to work on screening new sales hires that had existing sales experience, which caused the existing employees to feel threatened for their job security. However, with the company headed in this new direction, mandatory training would take place for all employees, in hopes for boosting morale. As employees began to start rumors about the changes, the morale began to drop and they felt there was no long time employee loyalty.…

    • 1035 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    NICHOLAS LANDRY WILL MACHADO JO WEN JON WIKSTROM Van Horn’s Storied Past •National Convenience Stores • top 20 in U.S. in size • 725 stores in 6 cities: Houston, San Antonio, Dallas Ft. Worth, Austin, Los Angeles, Atlanta • gas, lottery, alcohol, & other high inventory turnover items • customers stop in for a few items and want fast service •President & CEO Pete Van Horn Strategy • superior quality products • remodel stores according to 3 demographics • eateries • value pricing strategy Liquidity Trouble •NCS liquidity trouble • mixed results from Van Horn’s Strategy • terms loans 1985 - 1988, E/D from 2.5 to 4.6 • asset sales and sale/leasebacks •Unforeseen Events • escalating costs of State of Texas worker’s compensation • Gulf War • gas price war between major oil companies • heavy rainfall, twice normal weather •Last Ditch Efforts • unable to sell California stores • unable to get equity infusions through strategic partners • was able to defer principal payments • defaults on $170 million in debt, loses vital trade credit Chapter 11 Reorganization •Chapter 7 Bankruptcy • usually involuntary, forced upon by creditors • Van Horn claims (threatens) that liquidating company will yield $83.610 million •Ch 11 is voluntary: needs cash for inventory • Bankruptcy Court, Debtor in Possession financing • $8 million line of credit…

    • 1516 Words
    • 47 Pages
    Satisfactory Essays
  • Powerful Essays

    BUS 490 assignment 1

    • 1208 Words
    • 5 Pages

    First, we shall not forget that Sears and K-Mart signed a merger agreement in 2004 which means that Sears and K-Mart are combined into a new major retail company. Sears has become the third largest retailer in the United States. Sears appears to have forgotten one of the first and basic Marketing lessons “Never forget what made you famous”. There have been three major strategic mistakes that Sears has made throughout the past decade. In 1981, Sears made their first strategic mistake, which was the “diversification outside its “core” retailing business into financial and real estate services, by purchasing the Dean Witter Reynolds securities firm and the Coldwell Banker real estate operation”. This was a big mistake, because this new business lines had little synergies with the company’s core business. In 2006, Sears’s made their second strategic mistake, which was a strategy to reorganize its operation in several departments that often run by personnel with little retailing knowledge. “It should come as no surprise that this policy was doomed to fail, as evidenced by the company’s financial results in recent years”. At this time Sears’s strategy is to sell off companies’ stores. The problem with this strategy could be that it is a sale of wrong assets at the wrong time. In brief, Sears has adopted the wrong strategies over and over again; still it is able to stay in the top 5 retail stores. Marketing is a key factor…

    • 1208 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    walgreens

    • 733 Words
    • 3 Pages

    This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the company as the industry leader with its wide portfolio of products and services, as well as establishing the benchmark for growth through acquisitions. The company’s weaknesses include prescription errors resulting in death and being unable to keep pace with a price competitive structure against large discounters. Walgreens is positioned to capitalize on the growing e-prescription demand and benefit from the recent health care reform policies. Has negatively impacted customer count resulting in a top line revenue decrease. Finally, this paper will conclude with my decision as a mutual fund manager to invest in Walgreens.…

    • 733 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Note: This is a self-contained case study. “Millard’s” is a fictitious store. Therefore, you must limit yourself to information in this write-up only.…

    • 1389 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    In conclusion, Team B performance, motivation, and satisfaction can be measured and improved in different ways. A positive motivation plan includes compensation for encouraging emotions, performance, quality, performance evaluations, employee surveys are great tools to use. Therefore, using these tools for increasing employees motivation, satisfaction, and assess issues within the team. The most difficult aspect of being a leader is increasing an employee motivation, satisfaction, and performance. By developing a motivation plan, a manager can be successful in changing all three aspects for a better…

    • 925 Words
    • 4 Pages
    Good Essays
  • Better Essays

    By closing two stores which happen to be in higher-crime-rate areas of the city and justifying these closures with simplistic explanations that the stores were “consistently losing money,” Company Q leaves room for speculation that the closure decision was likely predicated upon the more obvious challenge: greater expenses associated with risk management of operations in higher-crime-areas. Without any more diligence of effort in providing an explanation to the community regarding these closures, closures which will have a very dramatic, negative effect on individuals and families living in the affected areas, it appears as though Company Q is simply pulling out of a part of the community already suffering significant economic difficulties because profits are not as easily generated at these locations. Pulling out of these areas may be short sighted and might have a blowback effect that could ultimately do more harm than good to the organization as a whole.…

    • 1373 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The Concord Bookshop did not consider employee resistance to change and went as far as to disregard communication stating the reasons for resistance. A business that view employees as a liability and a cost, fail to see employees as human capital and assets. This view is counter to how vendors and customers view them (Spector, 2010).…

    • 686 Words
    • 3 Pages
    Good Essays
  • Good Essays

    MSA 601 PHILOSOPHY SIGLAR

    • 1042 Words
    • 4 Pages

    The human relation’s movement proved to the world that humans are not “things” doing the work, but that they are human with emotions that need management’s attention. Organizations who took an interest in their employees’ working conditions and ideas only benefited in the business world. The increased attention given to the employees by their employer was a good way to reach out and let the worker know that they were valued and their welfare was a concern of the company (Charles, 2005). Employees want to feel as if they are contributing to the overall mission otherwise all of their work is for nothing. An organization who is willing to learn what their employees are feeling and take into consideration McGregor’s Theory Y Assumptions will complete their mission faster, better, and more profitable than any business who operates with the mindset that their employees are “just worker bees”.…

    • 1042 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Article Report

    • 542 Words
    • 3 Pages

    In her article, “Ron Johnson Acknowledges J.C. Penney Isn’t Apple”, Diane Brady narrates the complex situation that Johnson, former Senior V.P. of Retail Operations at Apple, Inc. faces since he got appointed as the new CEO of J.C. Penney. Johnson is well known for his retail marketing strategies, creator of the Apple Stores which is listed today as the “highest performing stores in retail history” (Chazin, 2013). But with over a year in his new position, Johnson has not been able to mirror his previous retail success at the J.C. Penney Stores; instead stock prices have steadily dropped.…

    • 542 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Motivation Concepts AnalysisGoal-Setting Theory is based on the idea that particular and strenuous goals conduct to higher performance. The work of Edwin Locke proposes "people are motivated to work toward and achieve goals," (Locke 1968). The point would give precise goals can extend performance. Then to show with demanding goals, when accredited, would overcome in the huge achievement then the easier goals. This achievement of public commitment to the goal can result in a higher commitment to the goal achieve. Feedback can provide a higher performance then non-feedback. The paper will discuss how the theory would be applicable to a specific workplace situation from the author's experience. The second part of the paper will focus on a situation in the workplace which goal setting theory does not explain behavior.…

    • 1187 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Many factors must be considered when creating a motivation plan. Some of these are as follows: employee base, managers, business goals, and employee benefits. While all motivational plans are intended to increase productivity, only the well-orchestrated and managed plans are truly able to fulfill their intended purpose. In the PCS Business unit which our learning team belongs to has culture that has been created by our leader and is considered flat with a wide span of control. Business Unit manager has 15 people in the department that are very skilled and trained in a wide variety of technical applications. Including corporate level tools that monitor the actual enterprise architecture rather than application availability itself. The next few paragraphs will show how motivational plan has to be developed around each member 's personality. Four team members will be discussed with each possessing different behaviors and skills. According to Maslow 's Hierarchy of needs model, there are five levels that exist within each human being: Physiological, safety, social, esteem, and…

    • 1127 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Motivation Case Analysis

    • 472 Words
    • 2 Pages

    3. Adjust pay bonuses so that they are not affected by fluctuations in sales, but by worker productivity. There are not enough measurements given, but it seems that after sales decreased, workers were less motivated to produce, which should not affect the production plant. This would cause workers to…

    • 472 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Motivational Methods

    • 1458 Words
    • 6 Pages

    Many organizations throughout the nation have resorted to downsizing and it is becoming more common. As a manager, having the strength to motivate your staff even when your business has hit its darkest hour can be daunting. Some organizations have downsized departments, as others have to cease operations completely. Everything from fortune 500 to ambulances companies are making adjustments to adapt to fiscal changes. Downsizing is a big part of a broader workforce strategy, designed to closely align with the overall strategy of the business. Layoffs become a tool in a business portfolio as an alternative to improve the firm’s performance. Management may view this as an opportunity to enhance the organization’s medium- and long-term agility through well-planned and targeted coaching, change and career-management interventions (Employee Policy Research Network, 2013). In downsizing a company, one needs to motivate your staff. Motivation is used in management to describe forces within individuals that account for the level, direction, and persistence of effort they expend at work. Simply put, a highly motivated person works hard at a job; an unmotivated person does not (Lombardi, Schermerhorn, & Kraver, 2007). Motivational methods are what can make a difference with your employees.…

    • 1458 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Helen Bowers

    • 310 Words
    • 2 Pages

    Although Helen grew up in the family business, she never understood her father’s approach. Jake had treated his employees like part of his family. In Helen’s view, however, he paid them more than he had to, asked their advice far more often than he should have, and spent too much time listening to their ideas and complaints. When Helen took over, she vowed to change how things were done. In particular, she resolved to stop handling employees with kid gloves and to treat them like what wisdom in this. People worked to make a buck and didn’t want all that participation stuff.…

    • 310 Words
    • 2 Pages
    Good Essays

Related Topics