Question

In: Economics

Employees in a plant in Minnesota are observed to be industrious and very productive. Employees in...

Employees in a plant in Minnesota are observed to be industrious and very productive. Employees in a similar plant in Southern California are observed to be lazy and unproductive. Discuss how alternative views of human behavior and motivation might suggest different explanations for this observed behavior.

Solutions

Expert Solution

The economic model suggests the employees in the two locations have different compensation or incentive schemes. Incentives to be productive appear to be higher at the Minnesota plant. Or, if the compensation plans are the same, the alternative employment opportunities differ so that individuals with different talents are attracted to the two plants. The only money-matters model is similar to the economic model in its explanation. However, the focus is exclusively on monetary incentives. The happy-is productive model suggests that employees are happier at the Minnesota plant. The good-citizen model suggests that employees at the Southern California plant do not realize that it is important to the firm for them to work hard. The product-of-the-environment model suggests that the employees at the two plants are from different backgrounds. The employees at the Minnesota plant have a stronger work ethic.


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