A zero wage increase again?

  Organizational Behavior Case Analysis 

Discussion Questions: A Zero Wage Increase Again 

1. What outcomes does Mark seem to want to achieve by addressing wages & rewards? a. What are Mark’s goals? b. How important is money in individual motivation? c. Will money make people work harder or smarter on a day-to-day basis?

 2. Contrast the outcomes that might be expected in the following two scenarios: (1) Mark uses the process improvement savings to give a 3% wage increase to all employees, and (2) Mark uses the money currently available in the budget to give raises to Aaron, Simon, and Wesley only. a. Do the employees know whether they are currently meeting Mark’s expectations? b. Do you think Mark’s frustration is affecting his decision-making? 

3. As a consultant to Mark, would you advise him to give a raise to all, to none, or to the deserving minority? Explain your reasoning and how you would mitigate against possible repercussions. a. What are the potential reactions of the various employees? Consider the potential individual reactions, as well as costs to the organization. 

4. Design a reward system that will improve the behavior of employees like Anne, Marie, and Dougie. a. What should Mark understand about individual motivation and rewards to help him create an effective reward system?  

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