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Question Paper

1944 words - 8 pages

Section A: Short Answer Questions (total 15 marks)
Answer all SIX (6) of the following questions (see individual questions for mark and word allocations).

Question 1A. Select ONE concept in the theory of organisational culture and discuss how it informs what went wrong at Enron, as explained by Sherron Watkins in the Beenan and Pinto (2009) article (see Moodle). Do not simply describe the concept; the emphasis should be on discussion and application. (100 words; 5 marks) Question 2A. Given your knowledge of communication theory, what can you do to improve communication by email? (50 words; 2 marks)

Question 3A. When you are leading a team or facilitating decision making, what will ...view middle of the document...

Keeping employees motivated isn’t just about money. ‘Bonuses are over-rated’, says Robyn Walshe, principal of Davidson Kemp Consultancy. She states that though bonuses have been the ‘currency of appreciation’ for some time, and are still used to reward performance, ‘they let us down when funds are short and there is less in the pool to share around’. Kevin Gaunt, NZIM Northern chief executive, believes that focussing on money as a motivator is ‘part of the old style management world’. Some recent research by global management consultancy McKinsey & Company suggests that the economic slump offers business leaders a chance to more effectively reward talented employees by emphasising non-financial motivators, rather than bonuses. McKinsey & Company found that companies are cutting back their financial incentive programs, yet few of them have used other ways of motivating staff. ‘Numerous studies have concluded that, for people with satisfactory salaries, non-financial motivators are more effective than extra cash in building long-term employee engagement.’ The survey specifically identified three non-cash motivators as no less, or even more, effective than the three highest rating financial incentives (cash bonuses, increased base pay, and stock or stock options). The three non-cash motivators they found effective were, 1) praise from immediate managers, 2) leadership attention (such as one-on-one conversations), 3) a chance to lead projects or task forces. As Walshe points out, research has been telling us for decades that financial rewards are limited in their value to motivate. So why haven’t more organisations made more use of cost-effective non-financial motivators? The McKinsey survey suggests that many executives hesitate to challenge the traditional management wisdom that money is what really counts. One reason provided by a respondent to the researchers was: ‘While executives themselves may be equally influenced by other things, they still think in terms of the size of the compensation.’ Another, and probably the real reason for sticking with bonuses, is that non-financial ways of motivating people ‘require more time and commitment from senior managers’ – real leadership laziness. Walshe states that it’s interesting that organisations are still focused on bonuses when there’s so much more available to keep individuals motivated and engaged. However, she does think that some companies are becoming more aware of the power that comes with giving people opportunities to grow and develop and not just be richer. One of her Page 3 of 7

clients recently won a salesperson of the year award that wasn’t ‘simply a stack of money’. It was training. ‘Once we would have said that a top-performing employee didn’t need training and that their performance was evidence they had already arrived’, says Walshe. ‘But the opportunity to grow, develop and expand their talent and career was considered a fabulous prize. That company has changed its currency of...

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