Question

In: Operations Management

Subhan is well-educated and well-trained for his job as a financial analyst for the local office...

Subhan is well-educated and well-trained for his job as a financial analyst for the local office of a national stock brokerage firm. He is highly dependable and does all aspects of his job efficiently and accurately. His co-workers, who recognize Subhan as a high performer, often turn to him for suggestions about how to solve various problems.
Subhan reports to Rameez, his section supervisor. Rameez gives little regular performance feedback to his subordinates, feeling it is better to give feedback during annual performance appraisals. He also gives little praise to those like Subhan who perform at a high level. Rameez has a simple management philosophy: "That's what they get paid for."
Rameez has authority to recommend pay increases following a performance appraisal where an employee receives a summary evaluation of "Above average" or "Superior." He can recommend a pay increase of 5 to 10 percent of a person's base pay. Higher management typically has accepted his recommendations, a fact well understood by all employees. Rameez, however, usually recommends the same percentage increase for all his employees who receive an "Above average" or higher performance evaluation. He has said that he feels employees will react with jealousy if he recommends varying pay increases for different employees. He also believes that his employees will work harder with the belief that a 10 percent pay increase is always possible in the future.
Subhan can use the money (increase in salary) because he wants to replace his aging car. He also discussed receiving a larger pay increase with Rameez who simply said he would think about it.
Six months pass and Subhan has his annual performance appraisal in which he receives a "Superior" rating. He learns from co-workers that he was only one who received that high an appraisal. Surprisingly Subhan gets a 5 percent pay increase just like everyone else.
a) Do you agree or disagree with Rameez’s style of motivating his subordinates and his philosophy? Why or why not? [8]
b) Make an analysis of the situation presented in the case using expectancy theory concepts. What affect is Rameez having on Subhan's motivation? [14]
c) If Subhan is made to work in a group, under the current circumstances, how do you think he will work? Will his contribution be beneficial for the group or will he be creating hurdles in group performance? Relate your answer with group properties (roles, norms and cohesion in particular).

Solutions

Expert Solution

As given in the case:

  • Subhan is a talented and high performance employee.
  • Subhan gets appreciation by his co-workers too for his performance.
  • Rameez is the supervisor and has the power and authority to make appraisals in salary.
  • Rameez considers every employee equal when it comes to performance.
  • To avoid any kind of conflict, Rameez always gives almost same salary hikes to each subordinate and it doesn't matter an employee is an average performer or superior performer.
  • Subhan wants to replace his old car so he requests Rameez to give him a better salary increment according to his performance.
  • In spite of performing well and getting the superior ratings, Subhan gets only 5 percent hike like others.

a) No, I don't agree with Rameez's style of motivation and his philosophy because of following reasons:

  • Rameez considers each employee equal according to their performance i.e. average performer is also getting the same hike as superior performer is getting.
  • This is not motivating for superior performers at all.
  • Appreciation leads to work motivation for all the employees but Rameez gives small and same appreciation to all the employees.
  • Subhan is a superior performer and he is also getting the increment like average performer, this can demotivate him towards performing well.
  • Same appreciation and appraisal for all the employees could lead to conflicts between average and superior performers.
  • Demotivation due to same appraisal could impact organization's productivity negatively.
  • Employees can also leave the company for better offers.

So, these are some reasons describing why Rameez's style of motivation and philosophy is not appropriate.

b) Expectancy theory of motivation:

  • Expectancy theory is given by Victor H. Vroom.
  • Vroom defined motivation as a process which is controlled by an individual.
  • Vroom defined motivation as a process governing choices as an alternative forms of voluntary activities.
  • Expectancy theory tells that an individual expects desired results for his or her performance.
  • If results are according to the performance then individual is motivated otherwise he may get demotivated if results are not according to the expectations.
  • In other words, motivation is the product of individual's expectancy.

According to the expectancy theory we can analyse given situation as follows:

  • Subhan is the best performer in the company.
  • He is talented and hardworking and result oriented.
  • Rameez, Subhan's supervisor, gives him little praise as appreciation.
  • According to Rameez's philosophy every worker gets paid for their work there is no role of appreciation.
  • To avoid conflicts, Rameez gives equal increments to all the employees.
  • Subhan wants increment according to his performance and he requested for this also as he wants to replace his old car.
  • Rameez following his philosophy doesn't give him increment which Subhan is deserving for.
  • Subhan gets only 5 percent increment like other employees in spite of getting superior ratings.

This analysis shows that this behavior of Rameez could impact Subhan in following ways:

  • Subhan could get demotivated as he will be unable to replace his car.
  • Subhan's performance can get impacted negatively due to the less increment.
  • Subhan can lower down his performance due to the similarity with other average performers.
  • Subhan could feel inferior and depressed before other employees who are getting same increment with average ratings.
  • Subhan could choose to leave the company if he gets another opportunity.
  • Subhan's demotivation could set a negative example before other good performers of the company.

c) Properties of group:

1) Role: Role is a set of expected behavior patterns from an individual which is given a position or role.

2) Norms: Norms are the standards of behavior which are expected in a group.

3) Cohesiveness: It is the degree of enjoyment by which group members collaborate with other group members.

As asked in the question, on the basis of these three group properties, if Subhan is made to work in a group under the current circumstances he will work as follows:

  • Due to demotivation he will not follow his position in the group.
  • Subhan is the best performer so expectations from him will be high, but due to less recognition and appraisal he will not perform according to the expectations.
  • As average performers are also getting the same appreciation and recognition like Subhan, Subhan will not cooperate with other members.
  • Subhan will not contribute in the group according to his capabilities.
  • Subhan could also create conflicts.

According to the current circumstances if Subhan is made to work in group then his contributions will not be beneficial for the group and he may create hurdles in group performance due to less appreciation, appraisal, recognition and demotivation and depression.

If you like the answer then kindly give good ratings this will motivate me to answer well. Thanking you.


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