I. Main Problem The problem of management is determining how to motivate employees at Resource Interactive to take active part in promoting and increasing the value of the stocks of their clients in a way unique from other marketing companies.
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Introduce a stock option program where the employees are given the responsibility to take care of their own stock options in the company’s client portfolios.. III. Recommendations Implementation of the second ACA is recommended because employees are more motivated when they feel that they have increased the value o their stocks. In other words, financial gain is a strong motivating factor in this case. Basically what we are relying on is the extrinsic rewards attained when one sees the value of their stock options go up and they feel comfortable in the feeling that their efforts are also financially rewarded.
Questions 1. What role does the concept of “line of sight” play in this case? Is it a good motivational technique? Explain. The concept of “line of sight” plays a small role in this case since there is no statement from the case as to whether employees understand their organization’s strategic goals and know what actions they need to take, both individually and as team members. In fact, the idea of the REEF program to motivate seems to come from the top management.
This basically leaves it up to the employee’s own initiative to determine what actions are in line with organizational goals and strategic objectives. 2. Is the REEF benefits an intrinsic or extrinsic reward? Despite the case’s portrayal that the REEF benefits are not purely financial in nature, one can always point out the fact that seeking the increase in value of one’s stock options is not intrinsically motivated behavior. The bottom line is that the employees are motivated to work harder and smarter due to the financial or extrinsic rewards that they might gain from such investment.
3. In terms of Thomas’s four building blocks in Figure 9-3, how would you rate Resource Interactive’s potential for generating intrinsic motivation? Explain. In terms of leading for meaningfulness, the company only slightly inspires and models desired behavior by providing a non-cynical climate. In terms of leading for choice, it empowers employees in small quantities by giving them some information about stock options as a form of employee’s benefit. In terms of leading for competence, the company barely supports and coaches their employees and recognizes their specific skills.
In terms of leading for progress, the company attempts to measure improvement by observing how employees develop good working habits from the rewards of increased values in their stock options. In summary, Resource Interactive’s current potential for generating intrinsic motivation can be considered as still in the start-up phase just like its REEF program. If one is to look closely at the way current leadership is trying to motivate employees, it might be described that they focus more on extrinsic motivation rather than intrinsic rewards. 4. Is REEF an effective positive reinforcement program?
Explain. Yes, since it strengthens positive behavior on the part of the employees. The program encourages positive behavior on the part of employees since they would feel responsible in increasing the value of their stock options. Thus, they have to work hard in order to attain financial gain in their respective investments. 5. What is your personal view or REEF? Would it motivate you to be harder working employee? I would say it motivates one to be slightly hard working since it reinforces positive behavior on the part of employees to a certain degree.
Of course, when the stock price dips to a low level, this might initiate different responses from the employees. Others might be motivated to continue despite the small letdown; while others might react oppositely and might develop a negative towards working hard in the long-run. References 1. Mintzberg, H. (2002). Organizational Design: Fashion or Fit. EBSCO Publishing 2. Butler T. and Waldroop, J. (1999)Job Sculpting: The Art of Retaining Your Best People. Harvard Business Review, September 1999 issue
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