will be mortant to you? RSS team exercise TOO MUCH OF A GOOD THING The Situation For years, working for George Uhe, a small chemicals broker in Paramus, New Jersey, made employees feel as if they were members of a big family. Unfortunately, this family was going broke because too few members" were working hard enough w make money for it. Employees were happy, comfortable, amplacent--and lawy With sales dropping in the pharmaceutical and specialty chemicals division Uhe brought in management consultants analyze the situation and to make recommendations. The utsiders quickly identified a motivational problem affecting the sales force: Sales representatives were paid a handsome salary and received automatic, year-end bonuses regardless of performance. They were also treated to bagels every Friday and regular group birthday lunches that cost as much as $200 Employees felt satisfied but had little incentive to work hard. Eager to return to profitability. Uhe's owners waited to the consultants recommendations Method STEP 1 In groups of four step into the role of Uhe's management con- sultants. Start by analyzing your client's workforce motivation problems from the following perspectives and then develop a set of recommendations 5-16. Job satisfaction and morale. As part of a 77-year-old, family owned business, Uhe employees were happy and loyal. in part because they were treated so well. Can high 272 PART 3 PECPLE IN ORGANIZATIONS morale have a downside? How can it breed stagnation, and what can managers do to prevent stagnation from taking hold? 8-17. Theory X versus Theory Y. Although the behavior of these workers seems to make a case for Theory X, why is it difficult to draw this conclusion about a company that focuses more on satisfaction than on sales and profits? 8-18. Two-factor theory. Analyze the various ways in which improving such motivational factors as recognition, added responsibility, advancement, and growth might reduce the importance of hygiene factors, including pay and security. 3-19. Expectancy theory. Analyze the effect on productivity redesigning the company's sales force compensa structure-namely, by paying lower base salaries offering greater earnings potential through a sales te incentive system. Why would linking performances increased pay that is achievable through hard motivate employees? Why would the threat of a job also motivate greater effort? 8-20. What is your group's most important recommendas Why do you think it is likely to succeed