Question: Read the following case and answer QUESTION 1-3. In addition to applying course material, you are also expected to use evidence from the case in
Read the following case and answer QUESTION 1-3. In addition to applying course material, you are also expected to use evidence from the case in supporting your logic.
Avery Consulting
Adrian Evans is one of the most outstanding management consultants at Avery Consulting. An organized, goal-oriented, and highly qualified individual with a deep sense of responsibility, Evans obtained his M.B.A two years ago from one of the leading business schools in western Canada. Before graduating from business school, Evans interviewed a with number of consulting firms and decided that Avery Consulting offered the greatest potential for rapid advancement. Avery Consulting was the top firm in the area, with an excellent reputation among clients and a proven track-record for profitability.
Evans had only been at Avery Consulting for two years, but had already gained a reputation as a top performer. He was able to handle more work than most employees and had a knack for handling demanding clients that other consultants found difficult to work with. If an angry client called the firm, Evans seemed to be able to always calm things down. Evans had recently been promoted to manager. This made him the youngest person in a management role at Avery Consulting. Two years with the firm was an exceptionally short period of time in which to achieve this promotion. Although the promotion had been announced, Evans had not yet been informed of his new salary. Evans thought this was strange, but was still very happy about the promotion. Despite the fact that his career had progressed well, he was concerned that his salary would be somewhat lower than the current market value for similar jobs. He knew the current salary rates in the industry because he had recently been contacted by a recruiter specializing in consulting work that was trying to poach him for another firm.
Evanss wife, Amy, was close to finishing her M.B.A and would be graduating soon. One night over dinner, Evans was amazed to hear the salary levels being offered to new M.B.A grads. He commented to Amy: I certainly hope I get a substantial raise this time. I mean, it just wouldnt be fair for me to be making the same amount as recent graduates when Ive now been Avery Consulting for two years!
The next day, Evans was working at his desk when David Barron, a friend and colleague, came by Simpsons office. Barron had been hired at the same time as Evans and had also been promoted to manager recently. Barron said, Hey Adrian, check this out! I was in the photocopy room and saw this memo from the personnel manager just sitting there in the middle of the table. This is confidential stuff! Someone must have forgot to take it with them.
The memo showed the proposed salaries for next year for all the individuals in the consulting group. Evans saw the amount of his raise for next year and then looked over the rest of the list and was amazed by what he found. He said, I cant believe this David! Frank and Julie will be getting $12,000 per year more than me. Frank and Julie had just been hired within the past few months, although they had both been hired from another consulting firm, where they had gained one year of experience. Barron said angrily, Wow, I knew that Avery had to pay them an awful lot to attract them here, but to pay them more than the people above them is ridiculous! Evans responded, You know, I wish I if I hadnt seen Frank and Julies salaries. That sort of ruined my excitement about my raise. Barron replied, Dont worry about it Adrian. Its not that bad; after all, you are getting the largest percentage raise, right? Evan realized his heart was pounding and he was feeling a strong sense of anger. As a person who did not often feel a lot of negative emotions, he was worried that he might say something he would regret, so he stormed out of the room. After taking some deep breaths at his desk, he gathered himself and finished off the rest of his tasks for the day.
On his way home, Simpson tried to think about the situation more objectively. He knew that there were a number of factors influencing the compensation structure at Avery Consulting. If the firm wished to continue attracting M.B.A.s from top schools, it would have to offer competitive salaries. Starting salaries in the industry had increased about $20,000 over the last two years. As a result, some of the less experienced M.B.A.s were earning nearly the same amount as others who had been with the firm several years. These employees had started at lower salaries, although their pay had been gradually increasing over time. Recently, because of expanding business, Avery had found it necessary to poach consultants from other firms. This required Avery to offer these external hires higher pay in order to convince them to come aboard.
One of Evans colleagues, Stacey, had just rejoined Avery Consulting after having left to work at a rival firm. She ended up not liking it at the other firm and was rehired at Avery with a salary considerably higher than her previous level. Evans noticed on the memo that she was now making more than he was, even though she was not in a management role. He also noticed that there was less variation and more parity among salaries for Avery staff in areas like I.T. and accounting.
When Evans arrived home, he discussed the situation with Amy. He told her about his raise for next year, but also mentioned that he thinks he should be getting around $20,000 more. Amy agreed that this situation sounded unfair, but reminded him that his boss at Avery (Fred) does not negotiate salaries after they have been approved by the compensation committee. She suggested that he book a meeting with Fred to communicate that he is dissatisfied with pay.
Evans was feeling unsure about his situation. He wondered if he was thinking clearly or if he was being overly influenced by the events from the last couple of days. He really enjoyed his job and felt proud to work at Avery. Avery Consulting was a top firm and he was having a lot of success there, but seeing that memo had made him think that the firm was making some questionable decisions.
QUESTION 1
Part A: Based on the facts of the case, it is obvious that Avery Consulting has a problem motivating their employees. Use your knowledge of The Job Characteristic Model (JCM) in discussing how to overcome the challenges of motivating and retaining the employees at Avery Consulting (10 marks).
Part B: At the end of the fiscal year, the Management at Avery Consulting decide to use the Mars Model to evaluate the success of the new implementation(s). Explain this process within the context of Avery Consulting (10 marks). Please explain your logic making specific references to the case.
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