Motivation and Incentives
Chris Rivard is the general manager in the human resources department of a software firm. Unlike most other software firms, the company does not have a turnover problem. However, the issue with the firm is productivity. People do not seem to work hard enough. The output is just too low for the time they spend in the office. Chris is wondering what the problem could be. The company pays near the top in the industry, the fringe benefits are very attractive, and the work conditions are satisfactory. As he discusses the issue with his colleague, Ryan, in the HR department, he discovers that people want “other things.” Some of them are also discouraged as they feel that no matter how hard they work, they get the same pay. Chris’ goal is to increase the performance of the employees. What should he do? Using the theories covered in class, discuss 1) What the “other things” are to which Ryan might be referring? and 2) Why would the people in Rivard’s firm feel discouraged by the same pay?