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Approximately two months after implementing the plan Jake spoke with several senior workers over several days, as he made his rounds of the business, Most
Approximately two months after implementing the plan Jake spoke with several senior workers over several days, as he made his rounds of the business, Most of these senior workers appeared quite dissatisfied and wanted to discuss several Issues with Jake. For example, the workers claimed that they had been working large amounts of overtime with the recent upswing in business (Jake had won several new government contracts and had not fully staffed all the required positions). As a consequence workers had lots of money, but they had little time to spend enjoying life with their families. The region boasted many opportunities for family activities such as camping, picnicking, four wheeling and swimming. They also felt that the new Incentive system for productivity was not clear and they were quite certain that they would end up working harder, but not receiving a trip or other Incentive. Further, rumours had circulated among the workers for a couple of months about the impending move of the main plant to another region. Many workers felt that they would have to move or be thrown out of work. Jake was very surprised to hear these comments from his workers. In fact, Jake had just finished some discussions with his partner in which both business men indicated how pleased they were with the workers and the region in which the firm operated. They both had high hopes for growth. Jake stayed late at the office that night and wondered what the real problem was and how he could resolve it.1. Assume that the views of the group of workers represent the view of all of the workers. How do you explain their dissatisfaction in terms of Expectancy Theory?Eastern Equipment was operated by Jake MacDonald and his partner. Jake tended to take care of the business on a clay-to-day basis and left his partner to tend to some of their other business affairs. During the last 10 years business had been very good, it had increased dramatically in the last two years, and there was a possibility of expanding operations. However, competition had become more intense and Eastern was required to continually increase productivity. Money had always been an important motivator to Jake and he wanted to be sure that others were well paid for doing good work in his company. Eastern. Equipment had always been a good employer and workers were very well paid, slightly above the average for the industry and well above the average forthe region. With the upswing In business the workers had put in lots of overtime. The workers, who were not unionized, also had very good benefit plans and were always provided with exoelient equipment and training. Jake thought that he could increase productivity by increasing the motivation level of his workers mainly by offering an incentive for productivity increases. With the help of alconsultant Jake devised an incentive plan which would result in selected workers being awarded trips to popuiar tourist destinations or gift cards or various electronic items such as iPads. A survey conducted by the consultant indicated that most employees would enjoy these types of incentives very much. Jake thought that this incentive system was closely tied to performance and decided to implement It. However, the plan was quite complicated and difcult for people to fully understand and many employees believed that the only ones who would receive any incentives were those who were favoured by management
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