1. How would you assess Nussbaums incentive programs?

2.Which basic motivation conecepts and theories are illustrated in this case?

3.If the motivation approach outlined in this case is indeed valid, how might it be used in orher settings?

CLOSING CASE Driving Employee Motivation Drivers for private truck fleets log about 20,000 miles a year. They drive 82 percent of all medium-duty and heavy-duty vehicles in the United States and account for 52 percent of the total miles traveled by commercial motor vehicles (CMV). "The way these employees drive,' says veteran industry journal ist Mike Antich, 'can either increase or decrease and greenhouse gas emissions. If you change driving behavior you have a direct impact on the amount of fuel consumed and (Continued) (Closing Case - continued) many companies with active efficiency programs are finding that further the amount of emissions produced. improvements in sustainability can be Even small increases in mpg can make achieved only by turning to the people a big difference'And, Antich points who are responsible for implementing out that fuel-conscious fleet manag- those programs. 'The low-hanging fruit ers have reported up to 30 percent has been plucked," JLL'S Michael Jordan reductions in fuel consumption by advises clients. "You now need the changing driver behavior. participation of humans." How? By motivating drivers to Nussbaum Transportation, for Robert CameStacho con comply with company sustainability example, has developed a software policies. Unfortunately, of course, it's not that simple. Most program called Driver Excelerator, which collects and analyzes drivers, according to Antich,"want to do the right thing but fuel-related data from various sources, including electronic don't see sustainability as part of their job responsibilities. In control devices for capturing mpg numbers. Using the result- fact, the No. 1 reason corporate sustainability programs are ing data, managers award points to drivers of the 230-truck not sustainable' is driver noncompliance' According to fleet for beating the company's mpg goal. If, for instance, a Antich, a successful sustainability initiative, "requires develop driver achieves an average quarterly mpg of 8.5 against a goal ing programs that motivate employees to comply"He goes on of 6.5, he or she receives 200 points, which are allotted accord- to argue that effective motivational programs often involve ing to a three-tier system: Bronze pays $0.50 per point, Silver gainsharing--programs designed to share company cost $5.00 per point, and Gold $8.00 per point. Some drivers in the savings with employees. Gold tier earn an extra $1,600 every three months. Again, however, implementing the solution isn't quite as Illinois-based Nussbaum was careful to reject an all-or- easy as identifying it. Traditionally, observes Antich, gainshar nothing system in which drivers received a bonus for meeting ing involves financial incentives, but he admits that in today's a target and nothing for falling short. "Our experience," says cost-constrained business environment, offering financial HR director Jeremy Stickling, "shows that that's a big de incentives (may not be a realistic option' Consequently, motivator" because drivers who miss out tend to blame many firms have found that individual recognition can be an external circumstances such as weather or load weights. In effective alternative to financial incentives: "Repeatedly,' says fact, Nussbaum plans to make mileage-based performance re Antich, "respondents to employee surveys rate individual wards a bigger portion of drivers'base pay rate. The idea is for recognition as a key factor that motivates them to want to drivers to get higher monthly checks instead of big quarterly excel or achieve corporate objectives." bonus checks. "Guys want their money now, notes Stickling. Both scientific studies and the experiences of various Companierchow that the importance of amalan Case Questions changing driver behavior. participation of humans." How? By motivating drivers to Nussbaum Transportation, for Robert Corner/Stockphoto.com comply with company sustainability example, has developed a software policies. Unfortunately, of course, it's not that simple. Most program called Driver Excelerator, which collects and analyzes drivers, according to Antich, "want to do the right thing but fuel-related data from various sources, including electronic don't see sustainability as part of their job responsibilities. In control devices for capturing mpg numbers. Using the result- fact, the No. 1 reason corporate sustainability programs are ing data, managers award points to drivers of the 230-truck not 'sustainable' is driver noncompliance." According to fleet for beating the company's mpg goal. If, for instance, a Antich, a successful sustainability initiative, 'requires develop driver achieves an average quarterly mpg of 8.5 against a goal ing programs that motivate employees to comply"He goes on of 6.5, he or she receives 200 points, which are allotted accord- to argue that effective motivational programs often involve ing to a three-tier system: Bronze pays $0.50 per point, Silver gainsharing-programs designed to share company cost $5.00 per point, and Gold $8.00 per point. Some drivers in the savings with employees. Goldtier earn an extra $1,600 every three months. Again, however, implementing the solution isn't quite as Illinois-based Nussbaum was careful to reject an "all-or- easy as identifying it. Traditionally, observes Antich, gainshar nothing system in which drivers received a bonus for meeting ing involves financial incentives, but he admits that 'in today's a target and nothing for falling short. Our experience,' says y cost-constrained business environment, offering financial HR director Jeremy Stickling,"shows that that's a big de- incentives (may not be a realistic option Consequently, motivator because drivers who miss out tend to blame many firms have found that individual recognition can be an external circumstances such as weather or load weights. In effective alternative to financial incentives: "Repeatedly,' says fact, Nussbaum plans to make mileage-based performance re- Antich, "respondents to employee surveys rate individual wards a bigger portion of drivers'base-pay rate. The idea is for recognition'as a key factor that motivates them to want to drivers to get higher monthly checks instead of big quarterly excel or achieve corporate objectives." bonus checks. "Guys want their money now," notes Stickling." Both scientific studies and the experiences of various companies show that the importance of employee Case Questions recognition-including financial rewards-should not be 1. How would you assess Nussbaum's incentive program? underestimated in sustainability efforts, primarily because the 2. Which basic motivation concepts and theories are importance of individual behavior should not be underesti- illustrated in this case? mated. According to a report by Jones Lang LaSalle (LL), a 3. If the motivation approach outlined in this case is indeed professional services and investment management company, valid, how might it be used in other settings