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Employee engagement literature review
Employee engagement literature review
Employee engagement literature review
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A Zero Wage Increase Again, is a case article written by Karen MacMillan. The case delivers a story about Mark Coglin, a storeowner of a large hardware, furniture and building center called House, Hearth and Home store. Mark has experienced slow growth in his company and does not have the funds to raise his employee’s salaries. Due to an economic crisis, this has happened for two consecutive years about to lead to a third year. Mark 's dilemma is that every day he sees some of his best employees who continue to work hard but on the other hand there are some employees who are unproductive and some who do not even show up for the work day. The company 's attendance shows that employees are not motivated to come to work to receive pay for the hours given for a particular day. Nevertheless, Mark is questioning if he should allot a pay increase to all employees, to no one or selecting the deserving employees. Either way, he knows that there will be a consequence in any outcome but he must choose an effective distribution plan before a new year begins. …show more content…
He is considering raising wages due to the lack of increase in previous years. Mark spoke with his accountant and constructed a plan to give the employees a raise. With consequences for every decision is made, Mark is not sure what he should do. In this case, there is one goal and it is to keep the business running and to do so, he must keep his employees happy. To achieve this desired outcome he needs to come to a conclusion about raising wages or not. Without a doubt, he wants to reward the ones that deserve. But within a business, managers cannot always pick favorites; therefore he needs to make a decision about wages because in the long run it can affect his
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
Poverty and low wages have been a problem ever since money became the only thing that people began to care about. In Nickel and Dimed: On (Not) Getting By in America by Barbara Ehrenreich, she presents the question, “How does anyone live on the wages available to the unskilled?” This question is what started her experiment of living like a low wage worker in America. Ehrenreich ends up going to Key West, Portland, and Minneapolis to see how low wage work was dealt with in different states. With this experiment she developed her main argument which was that people working at low wages can’t live life in comfort because of how little they make monthly and that the economic system is to blame.
Featherstone, Liza. (2004). Rollback Wages! Retrieved July 12, 2005, from the University of Phoenix Library EBSCOhost database.
Regarding this, one starts by identifying a problem such as increasing absenteeism/turnover rate or an opportunity such as the closure of a competing firm. The manager proceeds to set goals that aim at reducing the turnover rate and boosting the employees’ motivation (Griffin, 2015). Imaginatively, the manager generates a list of actions that might lead to the realization of the organizational strategic plans (Fishbein, 1967). Here, the list might be changing the pay, modifying the reward system, providing regular leave and providing training. Precisely, each course of action has associated consequences; thus, the supervisor collects information related to each of the alternatives. Notably, the collected information allows the manager to assess and evaluate the alternatives, systematically, which leads to choosing the best alternative, thus, decision implementation (Beach, 2014). Finally, the manager evaluates the effectiveness of the decision, say provision of training and development avenues, and employs the appropriate control (Griffin,
The concept of having a two-tier wages program is an issue that continues to elicit mixed reactions. The rationale used in the adoption of a two tier wages plan is that organizations will be maintaining a high number of talented employees within the organization. However, the outcome of the two tier wages plan is not as one would expect. On the contrary, the inherent wage disparity for groups in the same job category causes differences in the level of motivation. The argument here is that the two tier wages plan provide an enormous amount of problems than it solves.
... all, we must not forget there comes a time when a worker’s life and happiness is worth more than the hourly wage he is paid.
CEO compensation has been a heated debate for many years recently, and it can be argued that they are either overpaid or that there payment is justified by the amount of work they do and their performance. To answer the question about whether CEO compensation is justified it must be looked at by the utilitarian viewpoint where the good of many outweighs the good of one. It is true that many CEO’s are paid an exorbitant amount of money; however, their payment is justified by the amount of money that they bring back to the company and the shareholders. There are many factors that impact the pay that the CEO receives according to Shah et.al CEO compensation relies on more than just the performance of the CEO, there are a number of factors that play a rule in the compensation of the CEO including the fellow people who help govern the corporation (Board of Directors, Audit Committee), the size of the company, and the performance that the CEO accomplishes (2009). In this paper the focus will be on the performace aspect of the CEO.
In the case study Puckett Animal Hospital: What’s a Veterinarian to Do, Richard decides to end retirement matching and reduce the end of the year bonus to solve his financial dilemma. These cuts free up money to meet the required minimum wage increase, ensure competitive compensation for staff, and achieve customer service goals. Because the receptionist and custodian make less than minimum wages, Richard reduces the end of year bonus and re-allocates those funds towards their pay increases. Incorporating these changes in business operations allows Richard to meet financial obligations and service goals for the hospital.
With Jacob’s financial pressure, his integrity is shaken because he wants to use the money to pay off the bills and Jacob did not mention it to Krystal. Jacob needs to put his personal matter aside and communicate his medical situation and the bonus money to Krystal. By doing so, Jacob will maintain his honesty and not let his personal interest be in the way resulting trust within the workplace will be maintained. Additionally, the bonus money can be fairly divided between the two. Employees have the responsibility to follow and maintain business ethics and the code of ethics in the workplace. Employees have to be honest, communicate at all levels of the organization, deal issues at the lowest possible level, and avoid conflict of interest that would lead to unethical decisions. Also, employees should be educated with the policy and regulations set by the company in order to maintain ethical practices in the workplace. Jacob and employees in general are bombarded by ethical issues and by abiding by their roles and responsibilities will guide them in making an ethical decision. The following five-step model can help employees make appropriate decisions when faced with an ethical dilemma. First step is to recognize the issue. Knowing what is the root cause and the main
As a manager, decision making is much more than simply making a decision. There are steps or methods he/she should take in order to evaluate the situation as well as the possible outcomes. This paper will discuss how managers can make ethical decisions and how they can remove any personal biases they may have. In addition, the paper will state how system one and two thinking affect business decisions and how a manager can keep these two types of thinking in balance. Furthermore, the paper will discuss how rational decision making affects negotiations, as well as suggested steps for a manager to negotiate properly. After, the paper evaluates creative problem solving and how it can help alleviate bounded awareness. Moreover, the papers state that the Kepner-Tregoe method guides a manager into assessing their decision and the risks associated with their decision. Finally, the paper discusses how overconfidence negatively affects a manager’s decision-making skills. After
Making business decisions involves choosing between alternative courses of action. Many factors affect business decisions, yet analysis typically focuses on finding the alternative that offers the highest return on investment or the greatest reduction in costs. Some decisions are based on little more than an intuitive understanding of the situation because available information is too limited to allow a more systematic analysis. In other cases, intangible factors such as convenience, prestige, and environmental considerations are more important than strictly quantitative factors. In all situations, managers can reach a sounder decision if they identify the consequences of alternative choices in financial terms. This unit
In the work environment, people can be separated into two groups, the employers and the employees. Essentially with the rise in labour unions comes an increase in the employees’ demands for better employee benefits, under threat of industrial action. However, there are cases where employees are already given substantial benefits, considerably above industry average, but refuse to lower such benefits in order for their livelihood to remain afloat. In the case, ‘Labour-Management Negotiation Impasse: Union vs. Burns Meats Ltd.’, it is shown that moral decision between the employer and its employees can go awry in that none of the stakeholders involve benefit. The moral issue of the Union v. Burns Meats Ltd. is the refusal of the Union to cooperate with the company in order for the plant to remain open. If the Union had used the Mary Guy decision-making model in conjunction with the theory of Consequentialism and by extension Utilitarianism, the agreement to cut wages would have been agreed upon. Morally speaking, the union should have accepted the wage cut, the plant would then have remained open, and the workers would still be employed, all else being equal.
If part or all of the one’s salary is contingent on how well you actually perform your job, one will go the extra mile. The individual will attack his/her work with vigor and revel in the rewards. And...
Question 1: Outcomes achieve by addressing wages rewards system on the company will discuss in the first
Therefore, to achieve this objective, managers have to make choices in decision-making, which is the process of selecting a course of action from two or more alternatives (Weihrich & Koontz; 1994, 199). A sound decision making requires extensive knowledge of economic theory and the tools of economic analysis, that are directly related in the process of decision-making. Since managerial economics is concerned with such economic theories and tools of analysis, it is very relevant to the managerial decision-making process.