1) Critically evaluate if ABC’s new labour contract is likely to improve motivation within the company?
2) Identify a sound performance evaluation system that could be established alongside the new labour contract and critically evaluate its likely effects.
3) Critically evaluate the culture and dominate leadership styles at ABC, are they likely to support the change programme?
4) Identify and evaluate the best methods of eliminating sources of conflict during contract negotiations and its subsequent implementation.
The case refers to areas of motivation, performance evaluation, organization culture, leadership and conflict resolution which form an integrated system ...view middle of the document...
The case mentions that the new labor contract links compensation to the success of the business. Similar to job security, monetary benefits will definitely motive employees to an extent but after a certain point, it may cease to drive them as they would look towards other avenues.
With reference to Maslow’s hierarchy of needs, job security and monetary benefits sits on a lower rung in its evolutionary pyramid. Job security is classified as a safety need and will motivate an employee at a point in his career, but over time he will aspire to reach higher intrinsic benefits as social or ego needs.
Further insight into Herzberg’s two factor theory identifies job security as a hygiene factor. This would keep employees attached to the organization and eliminate dissatisfaction – but not necessarily motivate them towards superior performance. In order to ensure that the workforce is motivated, it is important to include growth factors which relate to what people are allowed to do and the quality of human...