KPMG International is a Swiss cooperative that provides tax, audit, and advisory services to companies. A few years ago, KPMG realized that turnover was too high and employee motivation was too low. The company knew it had to make some changes because the lack of employee motivation was negatively affecting the business. Bruce Pfau, vice-president of human resources at KPMG, says that there are many different factors that motivate people at work, but it really boils down to just four things. First, do employees feel that they are working for a winning organization that they are proud of, or do they feel that they are working for a loser? Second, do employees feel that they can get their job done? Frustrations like “my computer doesn’t work,” or “I don’t have the right information to help a customer” are demotivating to employees. Third, do employees feel that they are being treated well in terms of both fairness and in terms of the economic rewards they are receiving for working? Employees want things like competitive pay, a share in the company’s annual profits, good earning power, and good career development. Fourth, do employees enjoy the work that they do? Fortunately, most people select occupations they enjoy. Liz Harper, a senior manager at KPMG, describes how the motivating factors have changed over the years. She started at KPMG in 1992, but back then there was not much emphasis on work-life balance. When she decided to start a family, she left KPMG and went to work part-time for a smaller firm. Twelve years later, she rejoined KPMG and found that much had changed. The firm is much more flexible now and has many initiatives on work-life balance. She places a high priority on work, but the flexibility she is given allows her to achieve a good balance between her job and her personal life. Employees were interviewed and asked to describe what they liked most about KPMG. Interviewees mentioned the adoption credit, good people to work with, release time to do volunteer work, paternity leave, and being recognized for their hard work. Employees were also asked what motivated them. Answers included career growth, recognition for doing good work, and support from managers when difficult situations arise at work.
1. What is motivation? When KPMG concluded that employee motivation was low, what did that mean?
2. Bruce Pfau, Vice President of Human Resources at KPMG, identified four important areas that influence employee motivation. Explain how each of these areas relates to the motivation theories discussed in Chapter 4. Be specific.
3. What is the difference between extrinsic and intrinsic motivation? To what extent do the human resource practices and managerial behaviour at KPMG encourage intrinsic motivation? Explain.
4. When they were asked what motivated them, KPMG employees gave a variety of answers. How well do these answers match with the key ideas of the motivation theories discussed in Chapter 4? Be specific.
5. What is the difference between distributive, procedural, and interactional justice? Which type of justice is the focus of Bruce Pfau’s third question? Explain.
6. Describe the different ways that employees at KPMG are motivated. What does this tell you about the employees at KPMG? What does this tell you about KPMG?
7. How did KPMG know that it was time to make changes in its human resources policy?
8. Bruce Pfau, Vice Chair for Human Resources at KPMG, says that without commitment from the top, it is difficult to implement change in an organization. Explain what he means.
9. Liz Harper had been a senior manager at KPMG, but then left the firm for a period of time? Why did she leave? What prompted her to return? What does Harper’s return mean for KPMG?