Case Study: Motivating at Eagle Pharmaceutical
Which motivational theories are in use at Eagle?
Human Relations; creating a work environment with incentives to motivate workers. In Chapter 4 of the book there is a figure that shows how raw inputs, equipment and human resources equate to activity which determines output. The Human Relations Motivation Theory would fall under Human Resource, relating to activity and output. In addition to industrial engineering, motivation for employees is improved through the analysis and development of skill variety, task identity, task significance, autonomy and feedback. Human Relations states that employees will contribute more if they feel responsible for their job and valued by the organization. Eagle uses Human Relations to reward employees for their work, showing them their own value and responsibility to the company.
What is the value of getting employees to compete against a goal instead of against one another?
Although the company is set up in a way that employees support one another collectively, it is individualized by work position. Designing a system where employees compete against themselves to reach goals that are specific to their job is essential to the company’s productivity. Different jobs have different goals. Competing with one job against another is counter productive, creating frustration and lowering self-esteem. Making a fish race a cheetah in water puts one at an incredible disadvantage, setting one up for dissatisfaction. Instead of the same race course, the fish is put in water to swim for time while the cheetah is kept on land to race for its own time. The value in challenging themselves to reach goals unique to their job description, is it’s a sort of personal competency testing and intrinsic motivation.
Put yourself in the shoes of one of the four regional sales managers and argue against potential cutbacks to the motivational program?
Eagle’s motivational program is a large expense to the company. It could be possible to offer less in reward and yield the same outcome, without the risk of getting less out of what is being put in. What constitutes as being the most successful employee in the quarter? What if there is a bad quarter while still giving the same rewards? This program finances could be going towards other company aspects such as better equipment. Instead of trying to motivate employees to reach goals, redesign the selection, training or evaluation processes. It isn’t just up to human resources for the output of the company to be positive. Rather than creating an organization based of individual reward, look at job enlargement and adding new goals for recognition and personal satisfaction. Consider job enrichment, giving employees a responsibility and motivation to do their job well without zoning in on the chance of a trip to the Caribbean. Perhaps jobs that are more valuable to the person will outweigh the material and monetary reward.