1. Mr. Alok Banarjee is the Chief Executive of a medium- sized pharmaceutical firm in Calcutta. He holds a Ph D in Pharmacy. However, he has not been involved in research and development of new products for two decades. Though turnover is not a problem for the company, Mr. Banarjee and his senior colleagues noticed that the workers on hourly basis are not working upto their full potential. It is well known fact that they filled their days with unnecessary and unproductive activities and worked only for the sake of a pay cheque. In the recent past the situation has become quite alarming as the organization began to crumble under the weight of uneconomical effort. The situation demanded immediate managerial attention and prompt remedial measures. Mr. Banarjee knew very well that the only way to progress and prosper is to motivate workers to peak performance through various incentive plans.

One fine morning, Mr. Banarjee contacted the Personnel Manager and enquired: "What

is the problem with the workers on hourly basis? The wage bill shows that we pay them the highest in the industry. Our working conditions are fine. Our fringe benefits are excellent. Still these workers are not motivated. What do they require really?"

The Personnel Manager gave the following reply: "I have already informed you a number of times, that money, working conditions and benefits are not enough. Other things are equally important. One of workers in that group recently gave me a clue as to why more and more workers are joining the bandwagon of 'non-performers'. He felt bad that hard work and efficiency go un-noticed and un-rewarded in our organization. Our promotion and benefit plans are tied to length of service. Even the lazy workers, accordingly, enjoy all the benefits in the organization, which, in fact according to workers, should go only to those whowork hard." Mr. Banarjee then wanted the Personnel Manager to look into the problem more closely and find out a solution to the problem of workers on hourly basis.

Answer the following questions. (30 marks)

Q. 1 Explain the motivational problem in this case by relating to Herzberg's theory.

Q. 2 What would be your response to Banarjee's statement, if you were the Personnel Manager of the Company?

Q. 3 If you were the manager, how would you motivate the employees so that they work better.