Case Study

Chris feels that the engineers are not motivated toward superior performance. Without any specific plans to change the situation, he had the following visit with the firm's personnel manager: Chris: "I just can't seem to get my engineers to perform. They are all extremely competent, but they just aren't willing to expert the extra effort required and expected if R&D is going to help our firm to be a leader in the industry. As you know, they perform some important functions in new product design, modification of existing products to meet competition, and help our customers use our product." Personnel Manager: "How do you evaluate their performance?" Chris: "Mainly on whether or not they meet project deadlines. It is hard to evaluate the quality of their work since it is always different, and designs are frequently altered later to facilitate production or meet changing customer requirements." Personnel Manager: "Are they meeting deadlines regularly?" Chris: "No, and they don't really seem too concerned about it." Personnel Manager: "If they meet a deadline, is there any financial reward?" Chris: "No, not really. As you know, company policy doesn't allow us to provide any extra financial compensation during the year. About the only tooli have is when I pass out the yearly raise money. Of course, they don't have any basic salary complaint because we are above average in our industry and our profit- sharing plan is among the best." Personnel Manager: "How about promotions?" Chris: "We have several different grades within R&D." Personnel Manager: "Have you considered dismissing any of them?" Chris: "No way! We need them too much and it is impossible to replace them, to say nothing of being too expensive. Also, Jack Ammou would not allow this because we are so far behind our work." 1. What is causing this apparent lack of motivation? 2. What should the personnel manager suggest to Chris