Individual Analysis

Equity Theory

According to Robbins, Bergman, Stagg and Coulter (2003) equity theory was developed by J. Stacey Adam.

Campebell, Dunnette and Miller (1969) states the purpose of this theory is aim at employees’ assimilation from a job situation. Kaplan, Reckers and Reynolds (1986) notes these are outcomes, in relation to the efforts they put in, inputs, and then compare with others. In the case, Lisa compares her input-outcome ratio with Leanne, which seems imbalance and unfair. Lisa feels jealous as Steve decided to go again her suggestion to hand over half of her workload to the youngest team member, Leanne. She also sees that Leanne became more dominant.

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Lisa was treated unfairly by two other members putting the blames at her who forced Steve to reprimand her. The distraught Lisa’s thinking was to give other members of the team who has more experience to take over some of her work rather than Leanne. In the end Lisa lodged a compensation claim for her nervous breakdown cased by Leanne. Also stated by Robbins, Bergman, Stagg and Coulter (2003), employees’ motivation is influenced by rewards. Base on the above-mentioned, Steve should use the equity method in treatments of staff. Therefore, whenever an employee assess their own equity and perceive inequity, he or she will act to correct the situation rather than lack of motivation.

Expectancy Theory

According to Montana and Charnov (2000), expectancy theory shows that rewards could motivate employees to increase their efforts. Taylor (1964) notes this encourages better performance leading to a positive outcome. Steve applied the expectancy theory under his management.

By doing this, he made an announcement that he will increase employees’ salary base on performance rating. Due to massive increase in training loads, Lisa was overworked and with projects behind schedule. Then Green (1992) states on of the believing is that employees believe if they perform well, they will get the reward. Leanne is an ambitious person that is why she offers help as she believes in good performance could get better outcome and reward. On the other hand, according to Montana and Charnov (2000), an employee can decide on which outcome they prefer.

Due to immense pressure from overload and conflict with Leanne, Lisa has made a decision to take stress leave. This reduces the efforts Lisa requires to put into her work.

Three-need Theory

McClelland (as quoted by anonymous, 2008) states an employee’s motivation and effectiveness are influenced by the following: Need for Achievement – McClelland (quoted by Pattanyak, 2006) notes motivation that influences employees to direct his or her behaviour towards attaining goals. According to the achievement explained, Lisa is not motivated to challenge of orking at a problem and do not accept any personal responsibilities for failure, rather leaving the actions and chance for Leanne to achieve the outcome. Need for Affiliation – Courtney (2002) notes McClelland had suggested that people are motivated by different things. Also, base on the statement stated by Tosi, Mero and Rizzo (2000), McClelland’s theory on affiliation has a need for friendly relationships and have good interactions with others. These people can co-operate well in a team. Referring to the explanation of affiliation, Lisa’s jealousy and conflict with Leanne had caused friction and resignation in the team.

It shows there is a lack of communication skills and co-operate for Lisa in the team. Lisa’s personal attitude problem towards Leanne also caused her relationship problems with colleague and manager.

• Need for Power – McClelland (quoted by Pattanyak, 2006) notes that people at a high position would want the power to control other people for their own goals. According to Ved (2005) there are: Social – controls the company’s movement, and Personal – influence others to further the desire. Leanne entered InsureCo. as a new team member under Lisa’s leadership in a team.

Soon after, Leanne quickly made good relationship with the manager and quick to promote her skills, which lead her over stepped the power of Lisa. Therefore, Lisa felt she was unable to control Leanne to achieve her outcome. Lisa has also lost control of her team when couple of the team members resigned. With the lost control of power, Lisa lost the battle to be promoted. Therefore, she is not motivated.

Criticisms of the Management Functions

The management of InsureCo. has several negative practices, they are:

• The way Steve manages the company’s environment
• The way Steve supervise employees, and
• How staff co-operate with each other as a team.

According to Bell and Smith (2006), the use of communication and verbal skills for managers is vital in their management work. By listening to employees, companies could improve employees’ job satisfaction.

According to Deci and Ryab (1985), the greatest motivation act is managers could do for his or her employee is listening. In this case, Steve does not communicate effectively to his staff about his expectations and resolving problem issues within the working environment.

He does not think of the concern that if he recognise the new employee, Leanne, Lisa would complain about the recognition. To prevent the complaining obstacle, Steve should listen to Lisa when she complained about Leanne in regards to her I. T. skills. Steve should act on the complaint and assess Leanne’s ability in the I. T. field. If it does prove that she has the skills, there would not be jealousy in Lisa. Schuler and Jackson (1999) mentioned that fair treatment of employee which will make them more committed in an organisation.

It means, Steve should treat Lisa and Leanne equally. It is not where he should reprimand Lisa in front of her colleagues and in a way without her giving reasons. This is an embarrassment for Lisa. This also shows there is a lack of fair treatment within the management system of the company. According to Cook (1999), employees will produce more effort in their work when they are appreciated, valued and understood by the employer. Steve should set up a guide of basic principles to coach employees when there is a problem.

Base on the value of Lisa to the company, Steve should not reprimand her straight away without any options for explanation and when he did reprimanded her he should explain his decision. Steve could improve the relationship between Lisa and Leanne by informing them how others feel, how much effect can cause, and suggest them how to improve themselves. Steve’s management at InsureCo. he is committed to the company’s goals, according to Salaman (2001), it sometimes refers to as mission statement. In the case, increase salary was any approach that Steve regarded as important.

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