Mr. Brad Holden is the executive vice president of the family-owned business chain of six branches, Plaza Grocery, in the metropolitan area. Mr. Holden's recently been swamped with problems regarding his employees, specifically the stock employees considering they are paid according to what is stated in the hourly wage rate in the Federal Law. He observed that they are not efficient and effective enough in their jobs, which resulted to empty shelves and slow service most of the time. He also had a hard time in obtaining enough applicants for Plaza Grocery and worse is his employees are doing only the menial level of effort in their jobs. He also noticed that his employees are lacking motivational drives to strive harder in performing their jobs.
With all these that he is facing through, he finally decided to look for possible solutions to these problems. He came up with consulting to a local compensation expert and talking to a small group and personally asking them what can remedy their slow and poor performance. The compensation expert recommended to Mr. Holden that he resort to the more contemporary compensation system. In the small group, some suggested an increase in their hourly wage rate, the others pitched in about incentives to be given for them to be motivated and work faster, while others did not have any comment.
For this case study, we will be identifying the likely issues and problems. After which, we will provide the framework or basis of argument which will relate the lack of motivation or drive of the stock employees to the various models, theories and concepts discussed in class. We will recommend and suggest certain alternative courses of actions which might help Mr. Holden to properly motivate his employees as well as his employees to improve their performance.
Brad Holden is facing a situation in his grocery store where there is trouble obtaining enough stock clerks/carryout workers to apply for the job. And when these applicants get hired they seem to lack the motivation to carry out their job which led to inefficient service and long checkout lines. These minimum hourly wage workers have expressed a desire for additional compensation. The problem that Brad needs to solve is which of the major economic incentive system he can use to motivate his employees to become productive and also to attract other applicants to apply for the job.
The objective of this study is to identify different theories, concepts and models under human behavior that can be applied to understand the situation Brad is facing. It will also identify and discuss what possible economic incentive system the management can use and then provide system recommendation that would lead to the best way in solving the problem.
IV. FRAMEWORKS/BASIS OF ARGUMENTS
The difficulties that arise in Brad Holden’s family-owned grocery stores are attributed to the lack of motivation of employees. Lack of motivation can be a result of poor rewarding of employees. In Plaza Grocery, employees are only paid the usual wage rate or the minimum federal hourly wage. This can be a factor as to why the workers lack motivation in performing an effective and efficient job. Money, as a means of rewarding employees may serve as a great help for the company. It has status value and it represents to employees what their employer thinks of them. Using money as a reward is applicable in some of the motivational models previously studied.
The expectancy model can be related to the company’s situation. Employees in Plaza Grocery wanted a higher hourly wage rate which implies that money can act as a strong motivator. If an employee wants more of it (valence), he believes that putting up an effort will produce successful desired performance (expectancy) and he trusts that monetary reward will follow better performance (instrumentality).
Brad Holden can also consider the concept of...