Tennyson Thomson LTD has been a very successful sports equipment company. The company manufactures and sells sports equipment to many sports stores nationwide. The sports equipment, such as exercise machines, football uniforms and helmets, baseball equipment, etc. has been traditionally viewed as high quality. As such, this company that started out as a smaller enterprise of less than 50 people, now has a large headquarters located in Miami, Florida with a large production plant of over 5000 workers in the Miami Beach, area. For years the company has been growing. Their return on investment (ROI) and return on equity (ROE) has far outstripped companies within the same industry. In fact, the company's growth has been so good that the President and CEO has consistently provided their workers with a wage and health benefits package that is within the top one percent of those in the sports equipment industry. However, in the last few years, productivity has become a concern. In fact, some stores have failed to renew their contracts with Tennyson Thomson LTD because they claimed their products are no longer of the same standard as they once were. Profits in the company have also noticeably gone down. Tennyson Thomson LTD has been in business for 35 years. For 32 of those years their company was highly successful. In fact, Jane Doe Smith, the President and CEO has been in this position since the beginning of the company. However, Ms. Doe Smith has noticed in her frequent interaction with her workers that they fail to have the same energy and enthusiasm for their work that they once had. She is confused since they are being paid extremely well by industry standards and their benefits, such as vacation and health care are industry leaders. Ms. Doe Smith has also noted that people are not communicating like they once did, which often leads to mistakes in product manufacturing and even the management staff, who are also very well remunerated on the basis of pay and benefits appear to be apathetic. Tennyson Thomson LTD has been a very stable company for most of its years. In fact, many in the industry sought out employment at Tennyson Thomson. However, over the last three (3) years there has been a loss of many employees, many of whom were with the company for years, with most of these employees going to a number of competitors that were not as large and were themselves newer companies in the industry. As Ms. Doe Smith pondered this loss of employees to her fellow competitors, coupled with her observation of an endemic apathy that appeared to exist, with employees looking like they were just going through the motions, she started to panic over another loss of well-trained employees in her company. Although Ms. Doe Smith's financial reports show that she can hardly afford to provide wage increases, especially during the downturn in her company, she nevertheless does what she has always relied on in an attempt to motivate her employees: She provides across the board raises for all employees in anticipation that this will boost worker enthusiasm and motivation in the company. However, to her dismay, it fails and employees continue to leave, production continues to go down, and financially, her company is now foundering. Students: You have just read the case scenario above. Place yourself in the industrial organizational psychologist role. Ms. Doe Smith has hired you as a consultant. She is at her wits end. There does appear to be a problem of motivation, and even through your cursory walkthrough, you have picked up cues that relate to reduced levels of motivation. Ms. Doe Smith does not know what to do to enhance the motivation of her employees. She is a traditional manager that feels motivation is strongly tied to wages. Now it is your turn. 1. Which two theories on motivation from your text do you feel can most adequately explain what is happening in the scenario. Why?