Q1. What is currently motivating the sales managers and how does this benefit/limit the company?
A) The motivating factors are the attractive salaries with potential large bonus based on the profit performance of the entire company. The possibility of advancement within the company is also a motivating factor. Most of the senior staffs started as regional managers and with this perception, the sales managers are motivated to work hard and meet their targets.
B) This motivating strategy helps the company to retain his expertise.
On the other hand, the company’s growth is impaired and declining. The company focuses on how to meet their sales goals at the neglect of other means of improving their revenue. The lack of new ideas by the employees is primary due to a lack of reflective and adequate encouragement from the top management. For instance, the Florida HFP sales team got a great opportunity with elderly ...view middle of the document...
Intrinsic motives include a sense of accomplishment, intellectual fulfillment, the satisfaction of curiosity, and the sheer love of the activity. Extrinsic motives include a “desire for money, fame, and attention or the wish to avoid punishment" (page 221 of Invitation to Psychology by Carole Wade and Carol Tavris).
Intrinsic motivation is when people are motivated by the inherent nature of the activity, their pleasure of mastering something new, or the natural consequences of the activity. Extrinsic motivation, on the other hand, is motivation that is external to the activity and not an inherent part of it.
"People who are intrinsically motivated tend to work harder and respond to challenges by working even harder. They enjoy their work more and often perform more creatively and effectively than people who are extrinsically motivated” (National Advisory Mental Health Council, 1995b). There was also a perception of error on the management side. Most companies believe that employees will respond positively to any form of incentive but you can see from this case that not all forms of incentives can provide the same motivation for employees. In this case, HFP salesmen Alby Siegel states, “$500 for your idea. That amount of money is an insult…” It is apparent that Alby does not value $500 for a good idea, and decides to keep his idea from corporate.
Q3. What is a solution (action plan) you would recommend to Brenda Cooper to address the motivations you identified?
Miss Cooper should contact Mr. Jay Boyar the Florida Team manager on how she can also improve her sales by convincing him that since the company’s bonus is based on the profit performance of the entire company, it would better for the teams if ideas are collaborated. The principle here is “more sales large bonuses”. She should also bring to the attention of the top management style of rewarding employees. There should be Non-Monetary reward and finally she should give her subordinates the opportunity to share their ideas and develop a cordial relationship if she is not doing that.