Research has shown that nonfinancial incentives can have equal effect
Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 International Business CASE STUDY (20 Marks) Research has shown that nonfinancial incentives can have equal effect on employee motivation when compared with standard financial incentive systems. In a society that does not allow for significant income disparity, nonfinancial incentives can play a key role in motivating employees to sell. Nonfinancial incentives for employees include: Reserved preferred parking spaces Increasingly flexible work hours (e.g. late start) Additional vacation hours Reduced work hours on Fridays Free meals or gym membership Access to a company vehicle Tickets to popular events The specifics of these incentives can be tailored to fit the available incentive budget. In addition, management should query the employees to determine other areas of interest for future incentives. In order to emphasize the desired corporate culture, recognition for high performing employees should be public; moreover, attendance for public recognition events should be mandatory for all employees. By providing such recognition, a social structure can be established that intrinsically motivates employees to perform and thus gain status. Public recognition can be combined with nonfinancial incentives in order to establish a focused strategy for motivating employees to perform to their utmost. Since the societal nature of Austrians promotes herding of people, there is a danger of social rejection if an employee is seen as different from the group. Hence, the employee must be perceived as being rewarded for contributing to the collective good. When establishing culture change, it is critical that employees be comfortable with management so that they have confidence in the path forward and are not afraid to raise new ideas and objections, which can often be incredibly helpful to the process. It also increases the likelihood that employees will “buy in” to the new culture. In order to conquer the gap between both multinational Backgrounds and between management and employees, teambuilding events that mix cultures and job functions should be established. The type of events can be tailored to the employees’ interests (e.g. lunches, company retreats, sporting events, or other activities). Cross functional collaboration between various service departments is essential for client to implement core mission value and transition from a service based company to a solutions based company. Managers and employees must be educated on the various offering in other departments. Cross functional team projects and activities will ensure that employees get to know their counterparts in other departments and understand the benefits of solutions based offerings. Answer the following question. Q1. Give an overview of the case. Q2. What are the nonfinancial incentives? Explain about each. Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224
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