QUESTION $1$

$[27$ MARKS$]$

Read the scenario below and answer the questions that follow.

JOHN'S BRAVE DECISIONS

It is a well$-$known fact that organisations are realising that in order to be successful they should not only focus on profits and other financial figures, but also on fostering their human capital and motivating their employees to achieve their goals. If organisations demonstrate commitment to their workforce and cultivate long$-$term and fruitful relationships with it$,$ it is attractive to all stakeholders. These are the organisations that offer the most sustainable results and that seem more resilient in troubled times. Organisations that consider their human resources their most valuable asset are more successful than those that still concentrate solely on profit figures and do not pay much attention to the happiness and advancement of their employees. The South African labour market is plagued with high rates of unemployment. It is also associated with a shortage of specific skills and employers are increasingly faced with the need to become ever more innovative when rewarding their people and keeping them stimulated and engaged in their businesses.

John realises that employers cannot afford to lose their valued employees as a result of unsatisfactory working conditions and limited prospects. John also realises that clients, suppliers, investors and job seekers are increasingly favouring organisations that take responsibility for the welfare of their workers. He recognises that he has to start thinking about the importance of engaging, retaining and motivating his employees in an effort to achieve operational and business objectives.

He calls his $20$ employees together and tells them that from now on they must feel that they are co$-$owners of the business and not that he is the only owner. He further states that from now on$,$ they are all bosses. They have to decide what they are worth to the business and tell the pay office what they deserve as a salary. They can decide which days of the week they want to work and what hours of the day, as long as they work at least $40$ hours per week. They have thus an increased choice in terms of their own career development, but at the same time they must understand that it is associated with increased responsibilities and risk. They now take responsibility for their own career movement and professional development. They identify their own needs and how the business might fulfil these needs and steer the course of their own careers. John even goes one step further and points out that they now have an open petty cash system and that it is available to anyone that needs some cash. They can take the cash but must leave a note indicating the amount and their names.

John's employees are amazed at this new approach. A few employees arrange a higher salary for themselves, but soon realise that they have to increase their productivity when they compare themselves with some of their co$-$workers. John finds that his employees are improving their service delivery to customers and that they are making better and informed decisions.

John also emphasises the values of honesty, integrity, loyalty and service orientation to his employees. He believes that by encouraging every employee to live by these values he can create an organisational culture of ownership. He believes that employees will take ownership of their own goals and strive for continuous improvement and industry$-$leading

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Final Summative Assessment: $29$ October $2020$

ADBM$03$B

results. These values will influence the behaviour of the employees within the workplace and make the business a positive place to work. Employees are encouraged to speak positively about each other and focus on their strengths. This involves listening to others and accepting their right to their own views regarding the workplace.

John introduces a few new safety measures at his business as well. He urges his employees to take responsibility for observing these health and safety rules and practices. He introduces weekly meetings in which employees can request to receive information on any part of the organisation. This helps strengthen the workers' sense of belonging. He encourages an open approach to communication and seeing the best in every colleague. To support this open approach in his business, he introduces a suggestion box scheme to generate ideas and improve productivity.

He introduces a wellness programme in the form of a monthly social event. Every last Friday afternoon of the month, employees take part in a three km fun walk, ending with a braai during which they share the success stories of the month.

Source: Adapted from: Lazenby, LAA. Editor. $2018.$ General Management. Van Schaik Publishers. Pretoria.

Questions:

$1\mathrm{.}1$ From the case study, give examples of how John applies Maslow's hierarchy of needs.

$1\mathrm{.}2$ Which other motivation theories does John apply to motivate his employees? Motivate your answer.

$1\mathrm{.}3$ Explain what contemporary m