Please read these two case studies and answer the questions below.

CASE APPLICATION #2 Unlimited Vacation Time? Really? Topic: Motivating professionals, expectancy theory W Could unlimited vacation time offered by an one pioneered by Netflix. After implementing a similar policy. organization be important to you? Would it be an Kronos found recruiting talented professionals not as challenge appealing enough benefit to attract you to an orga- ing as it was without such a policy. nization you might not have considered? Would it motivate you However, open vacation policies aren't without employee as an employee? Some businesses-Netflix, LinkedIn, Virgin complaints. When Kronos implemented its open vacation policy. America, Twitter, and BirchBox, among others-offer employ- there were three major categories of complaints." One of the ees as much paid time off as they want. However, unlimited major complaints came from managers who felt uncomfortable vacation policies continue to be rare in corporate America. Only about the ambiguity created because there was no formal policy. I to 2 percent of companies offer this option according to the These managers believed that they might have to deal with em- Society for Human Resource ployees who wanted to take Management."" Technology has contributed to the impres- How much vacation time is off excessive amounts of time or that they would have to me- sion that employees always feel too much vacation diate scheduling conflicts and like they need to be available, juggle employees' work sched- even while on vacation. And 4/2time? 18:06 PM - 7953utes. To address those con- many employees don't even cerns, the company provided take the typical standard two-weeks' vacation time. In fact, a individual training and coaching to managers and reassured recent survey of more than 7,000 workers said that the average them that HR would support them in whatever they needed. American employee earned 22.6 days of vacation in 2017, but Another major complaint came from employees who had only used 168 of those days." Why have these atypical organi- been accruing their vacation time and who expected to get a cash zations chosen to offer employees unlimited vacation time, and reimbursement when they left the company. Because a company what do employees think about it? eliminates an accrued expense item, some critics of open vaca- One of the reasons organizations choose to offer this op- tion policies say that a company only does it to save money, tion is because they feel their employees are overworked and not to improve employee morale. To address these concerns, stressed, with project deadlines, meetings, and unexpected cri- Kronos' executives decided to reinvest any vacation accrual sav- ses. Even employees who are not in leadership positions may ings into other employee benefits, such as increased maternity be "expected" to be available after business hours. But just be- leave, increased 401(k) match, a child-care assistance program, cause unlimited vacation is offered doesn't mean that employ- and contributing a set amount toward employees' student loans. ees are going to use it. Many employees are hesitant to take The final major complaint at Kronos came from employees advantage of extensive time off because they feel that it sends a who had been with the company for enough years to accumu wrong message to their boss, especially if other employees-or late a significant amount of yearly vacation time. These employ- even the managers aren't taking off for vacation time. ees felt it was unfair for new employees to get as much vacation Another reason that some organizations are offering this time as they desired without having been there for years. Again, benefit is that they're having a difficult time attracting talented Kronos executives attempted to address these complaints in professionals. Kronos, a Massachusetts-based workplace man- informal conversations with individual employees. The percep- agement software company, was struggling to find qualified tion of inequity can be a challenge for managers. college-educated professionals because of its location in a tight As with any type of organizational change that impacts labor market where professionals are in high demand." The employees, managers at Kronos-and any company that has CEO directed the HR department to come up with strategies moved to or is contemplating moving to an open vacation that could make the company more competitive in recruiting. policy-need to think through the change and how employees One suggested strategy was an "open" vacation policy like the might be impacted. 4/2//2022 8:18:06 PM - 795336 - 5. 107.226.216CHAPTER 11 . Motivating and Rewarding Employees 419 Discussion Questions 11-15 What are the pros and cons of unlimited vacation policies for 11-18 Do you think there might be generational differences in both employees and for organizations? how employees feel about unlimited vacation? Explain your 11-16 Why do you think some companies are moving to unlim- answer. ited vacation policies? Is it feasible in small companies? 11-19 How might unlimited vacation affect employee motivation? Discuss. In answering this question, discuss any relevant motivation 11-17 What impact might managers/team leaders have on whether theories (early and contemporary) as they relate to this orga- employees actually take advantage of an unlimited vacation nizational approach. policy? CASE APPLICATION #3 Passionate Pursuits Topic: Motivating unique groups of workers, job design A t its headquarters in Ventura, California, Patagonia's the outdoors that they all love and enjoy. Managers are coached office space feels more like a national park lodge than to define expectations, communicate deadlines, and then let em- the main office of a 5600 million retailer. " It has a ployees figure out the best way to meet those. Douglas fir staircase and a portrait of Yosemite's El Capitan. Founded by Yvon Chouinard, an avid advocate of the natu- The company's cafe serves organic food and drinks. There's ral environment, Patagonia's first and strongest passion is for an infant and toddler child-care room for employees" children. the outdoors and the environment. And that attracts employees An easy one-block walk from the Pacific Ocean, employees" who are also passionate about those things. But Patagonia's surfboards are lined up by executives do realize that they are the cafeteria, ready at a first and foremost a business and. moment's notice to catch Motivating employees even though they're committed to some waves. (Current the right way doing the right thing, the company wave reports are noted on needs to remain profitable to be a white board in the lobby.) able to continue to do the things After surfing or jogging or biking, employees can freshen up in it's passionate about. But that hasn't seemed to be an issue the showers found in the restrooms. And no one has a private since the recession in the early 1990s, when the company had office. If an employee doesn't want to be disturbed, he or she to make its only large-scale layoffs in its history. wears headphones. Visitors are evident by the business attire 95336 - 5.107.226.216 they wear. The company encourages celebrations to boost em- Discussion Questions 216 ployee morale. For instance, at the Reno store, the "Fun Patrol" organizes parties throughout the year. 11-20 What would it be like to work at Patagonia? (Hint: Go to Patagonia's website and find the section on Careers.| What's Patagonia has long been recognized as a great workplace for your assessment of the company's work environment? mothers. And it's also earned a reputation for loyal employees, something that many retailers struggle with. Its combined vol- 11-21 Using what you've learned from studying the various motiva- tion theories, what does Patagonia's situation tell you about untary and involuntary turnover in its retail stores was around employee motivation? 25 percent, while it was only 7 percent at headquarters. (The in- dustry average for retail is around 44 percent.) Patagonia's CEO 11-22 What do you think might be Patagonia's biggest challenge in keeping employees motivated? Rose Marcario says the company's culture, camaraderie, and 11-23 In your assigned group, discuss this: If you were managing a way of doing business is very meaningful to employees and they team of Patagonia employees in the retail stores, how would know that their work activities are helping protect and preserve you keep them motivated