Webster Group Assignment Final

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  • Topic: Reward system, Availability heuristic, Daniel Kahneman
  • Pages : 3 (719 words )
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  • Published : May 7, 2013
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Describe the functional and dysfunctional aspects of Webster’s culture and reward systems. The current culture is family-like, with close ties between Webster and the Community. Employees refer to Webster as “Poppa Webster.”

* Functional aspects:
* “First-class place to work” – pg A3 quote
* “Webster maintained excellent relations with employees.” * Great, nationally known products made people proud to work at Webster. “You can tell Webster fabrics from a mile away…” * Shared goals and inspiring, which makes working at Webster “rewarding and productive” * Able to attract top talent. “Webster’s employees came from several areas of the United States” (pg A5). One reason: working conditions better than its competitors * “Challenging work and opportunities for advancement.” (pg A4) * The fact that everyone liked to work for Webster allowed for no unions to form, which was an economic advantage of the firm

* Dysfunctional aspects:
* Employees felt loved by the company, which led to a sense of entitlement and safety, with a lack of understanding that their value came from doing good work * Ex: everyone gets good feedback anyway no matter what * “The expectations that if you’re loyal to the company, it would be loyal to you.” Pg A5; one should be rewarded based on their quality of work, not merely loyalty, so that Webster can remain competitive * Withdrawing from this creates a lot of pain amongst the organization * On the flip side, lack of effective punishment mechanism * Although PAS is capable of tracking each employee’s career and development, it currently is not being used properly. * Lack of solid metrics, Lack of use of data

* “Lax in our evaluation of performance”
* PAS data was “hopelessly biased, because of the managers’ tendency to give everyone good ratings.” – pg A7 * Contributed to the incredibility of the data...
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