EMBA Learning Exercise 2 Motivation, Leadership and Job Performance Dr.

Dan Baugher: Posted 1/21/13; Due 2/4/13 Incident: Motivating and Managing Employees in a Luxury Apparel Firm The Adonis Company makes and distributes fashion clothing for men. You are the sales manager for the New York City Metropolitan Area. You face two problems. First, you must determine which of two employees will have the highest motivation to complete a special assignment and which of the two is most likely to end up performing best. Second, you have several low performing fashion pattern makers. Management has asked that you implement corrective actions and you need to decide which leadership style to use in managing each. Descriptions of the two employees and the response of the fashion pattern makers to their performance problems are provided in the following sections. The special assignment requires that someone collect data on customer tastes in clothing at retail outlets selling Adonis clothing. Since the information is needed in time for the spring selling season, the data collection must take place during the summer months of July and August. The person collecting the data must be sociable and personable so that the necessary responses can be obtained. The total number of responses needed is 500 in equal amounts from 10 different stores located throughout the New York City Metropolitan Area. In one store, it is expected that no one will respond unless they are asked the questions in Spanish. Your work with the Human Resources Department has pinpointed three abilities relevant to success: Sociability (S), Charisma (C), and Spanish Fluency (F). Scores on these can range from 1 to 10 with a high score meaning more ability. For nine of the ten stores, Sociability and Charisma have been determined to be equally important abilities. Spanish Fluency is important in only one of the ten stores with the number of responses needed from each store the same (i.e., 50). While it is possible that the three characteristics impact each other in a multiplicative way, the HR department has recommended a simple additive model for creating an ability estimate for each employee. They have suggested that ability for each employee be calculated as follows: A = (.9 * (S+ C)/2) + (.1 * (S + C + F)/3). This weighted ability score ranges from 1 to 10. But, ability is not enough for estimating job performance. Employee motivation must also be estimated and expectancy theory has been determined to be the best motivation theory for factoring in both motivation and ability. In this theory, the value of a reward, the expectation that it will be delivered upon good performance (referred to as instrumentality), and the expectation that one can do the work are relevant to motivation. Few employees work in a situation where there is only one reward. So, this theory creates an overall value (or valence) for the rewards offered by considering how much the employee values them and their perception of the likelihood the reward will be delivered. Again the HR department has assisted you. They have recommended that the value for each reward range from -5 to 5 in whole number increments. A score of 5 means the reward is highly liked; a score of -5 means the reward is highly disliked; and a score of 0 means that the employee
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can take or leave the reward. A score of 4 means the reward is valued a good bit but just not at the maximum of 5, and so on. Expectancy can range from 0 to 1 reflecting the employees estimate that they can complete the assignment (e.g., 1 means that they feel certain they can accomplish the task, .70 would mean they believe they have a 70% chance of accomplishing the task, and a 0 would mean they believe they have no chance of accomplishing the task.) Instrumentality or the belief that one will receive the reward acts like a correlation coefficient. When a reward is delivered consistent with positive performance, a positive correlation of varying degrees can be expected. When performance is likely to make a given reward or outcome less likely or even impossible, a negative correlation of varying degrees can be expected. In this case, accepting a job and being successful in it would make it difficult to receive the reward. This is especially important if the reward is highly valued. Thus, instrumentality for each reward can range from 1 to +1. Chris Chris has been working at Adonis for five years. He is fully aware of Adoniss bonus program and believes employees always get a bonus if they perform well and never if they perform poorly. He also recognizes that it will be impossible to take a vacation in the summer if he takes the assignment although such a vacation is certain if he doesnt take the assignment. Regarding compliments, he believes managers are somewhat inconsistent in giving compliments for good performance with a correlation between the two of about .20. Fortunately, Chris is a workaholic and highly dislikes vacations. On the other hand, Chris highly values management attention. As for money, Chris claims that he can take or leave money. When asked what he thought of his ability to do the job, Chris felt he would be able to obtain all 500 responses. When hired, Chris was given several tests by the human resources department. His scores are 8 for Sociability, 8 for Charisma, and 8 for Spanish Fluency. Ruth Ruth began work at Adonis just one month before you took your job. Thus, she is not very familiar with the Adonis bonus program. She believes that Adonis is typical and that promised bonuses will be delivered almost all of the time for good performance with a correlation between the two of about .92. She understands that a summer vacation will not be possible if she takes the assignment but it will be possible if she doesnt take the assignment. Regarding compliments, she believes that they are generally delivered consistently by managers for good performance with a correlation of about .80 between the two. Ruth can take or leave vacations. She values money a lot claiming that money is about the only reason she works. Ruth also values compliments but just a bit less than she values money. When asked to estimate her ability to get 500 answers to a survey about the firms clothing, Ruth was a bit unsure but felt she could definitely obtain 400 of the 500 responses needed. As a very recent hire, Ruth was also given a number of tests. Her scores are 7 for Sociability, 7 for Charisma, and 4 for Spanish Fluency. This is not the only employee issue on your plate. Three poor performers have come to your attention; each with different explanations. All are in the position of Fashion Pattern Maker. They have the task of creating pattern designs for sewn design manufacturers including multiPage 2 of 10

colors orders so they can be mass produced. These sewing patterns are provided to Li and Fung, a major supply management firm in fashion located in Hong Kong, which oversees the selection of vendors in China. The task is repetitive in that a design is needed for all and the same development process is used to develop each pattern. The industry has moved from the era when one master designer with substantial experience sketched the patterns by hand and created the designs out of special paper for pattern pieces for each design and range of sizes. Adonis now uses a CAD software program to develop the design for each pattern which can then be converted to a sewing design out of paper or fed into a manufacturers computer which can automate weaving for many designs. The CAD software can be complex to use. Its results must be precise and reflect the designers vision. The steps to create a pattern are clear and must be followed in the same step-by step approach for each pattern. In following these steps, a fair number of intricate decisions must be made to create the patterns. None of these employees has been able to complete the task of pattern design without significant error. The errors are critical and impact costs due to waste and production that must be halted. Their reactions to the problems are shown below: Employee A I just cant do it. I have problems with the new software for design. I know its my fault but I cant seem to figure a way to get my entries to create the appropriate designs. Often, my entries create patterns which are smaller sizes than intended. For example, after spending hours to create a given waste size, my design often ends up with a smaller waste size. Sometimes the resulting sizes, even if relabeled with a more accurate size, would not be sizes purchased by our traditional customers. I know it is my fault but I cant seem to get it done. Id like to overcome these difficulties and move on to even more interesting and challenging work. Employee B You have to understand this task isnt easy. Im new to this task in our firm and I cant seem to sort out what is needed. It seems to be a problem with the software. It often results in my entries for size and shape using more fabric than needed thereby increasing manufacturing cost. Id like to feel more comfortable about doing this job. However, when you have to deal with so many changes in a year, it is quite easy to make mistakes. Id like to succeed in this work. I know I have fellow employees who would like to move on to bigger and better positions but Im fine in this position as long as I can be successful in it. I believe my success in it will provide me with the opportunity to stay with this company which is very important to me and my family. Employee C Prior to coming to Adonis, I often worked with my supervisor on tasks when I had difficulty completing them. I like working with my fellow employees and our time together. I would like to understand this task and do the best I can but, so far, Ive not been able to pull it off. I know that the best performers in pattern development get a bonus each year and Id very much like to
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start getting bonuses. In the long run, Id like to move on to an even more important position where I believe I can make a higher salary which is very important to me. Per lecture, performance can be predicted by multiplying ones motivation by ones ability. Plugging in values into the expectancy formula will lead to the most accurate predictions. Questions: For these questions, focus on chapter 6 and chapter 8 of your text. Base all your answers on lecture material and the text. Do not change facts as stated. (100 Pts) 1. Estimating Employee Motivation/Performance: Will Chris or Ruth have the greater motivation in this situation? Which will have the greater performance? Explain your selections using concepts of the expectancy theory of motivation and its formula for predicting motivation on page 220 of the text. Per this theory, what motivational problem could management easily encounter for different employees, given the reward situation, which it has not encountered for Chris or Ruth? (22) 2. Increasing Employee Motivation: As the manager of Chris and Ruth, youve been asked to improve their motivation and performance without changing the three rewards provided or abilities required. Suggest one thing you might do to increase the motivation of Chris. For Ruth, suggest an approach that might improve her ability AND motivation. Explain why your approach will work for each in the context of the theory. (18) 3. Situational Leadership in Managing Poor Performers: The path-goal theory is one of many situational theories of leadership and like all of these theories it is instructive in that it makes it clear that employees can rarely be managed in the same way even in the same unit. Using the path-goal theory of leadership, which leadership style would best suit Employee A, Employee B, and Employee C? Why?(24)
4.

Leadership Style: Take the self-assessment of leadership on pages 318-319 of the text by being very honest about what you have done or might do in the future so you can better understand the three leadership styles considered. When necessary change the wording from your to subordinate (e.g. Q23 becomes recognized subordinate achievements). Suggest two behaviors you might change to increase your transformational score, two you might change to increase your transactional score, and one you might change to decrease your laissez-fair score explaining why the changes would improve your scores per theory. (20) Applying to Your Experience: Pick ONE personal experience that either conformed to what theory/research predicted or did not conform for the issue of motivation; be sure to note what the theory predicted and what did or did not occur. (16) [Write answer as if you will
have a few minutes with your supervisor to explain, describing the experience briefly and getting your major points out quickly.]

5.

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ANSWER SHEET Exercise 2

Your Name: _____________________________

Date: _________

Q1: Prior to providing my responses to the 2 questions below, I am providing my logic and calculations so that you can see my approach in arriving at my responses.

Chris
Expectancy = 1 because Chris felt he would obtain all 500 responses Instrumentality Bonus = 1 because he believes employees always get a bonus if they perform well and never if they perform poorly Compliments = .2 as stated in the scenario Vacations = -1 because he also recognizes that it will be impossible to take a vacation in the summer

Valences Scores Motivational Force = 1 X ((1X0) + (.2X5) + (-1X-5)) = 6 Ability = (.9X((8+8)/2)) + (.1X((8+8+8)/3)) = 8 Performance = 8 x 6 = 48 Bonus = 0 because he can take or leave money Compliments = 5 because Chris highly values management attention Vacations = -5 because Chris is a workaholic and highly dislikes vacations

Ruth
Expectancy = .8 because Ruth was a bit unsure but felt she could definitely obtain 400 of the 500 responses needed Instrumentality Bonus = .92 as stated in the scenario Compliments = .8 as stated in the scenario Vacations = -1 because Ruth understands that a summer vacation will not be possible

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Valences Scores Motivational Force = .8 X ((.92X5) + (.8X4) + (-1X0)) = 6.24 Ability = (.9X((7+7)/2)) + (.1X((7+7+4)/3)) = 6.9 Performance = 6.9 x 6.24 = 43.056 Bonus = 5 because Ruth values money a lot claiming that money is about the only reason she works Compliments = 4 because Ruth also values compliments but just a bit less than she values money Vacations = 0 because Ruth can take or leave vacations

Who will have greatest motivation: Ruth Per expectancy theory, why: Ruth believes there is a good chance that her strong effort would result in success, expectancy of .8, and perceives strong positive connections between performance and 2 valued outcomes, instrumentalities of .92 and .8, while perceiving a strong negative connection to a non-valued outcome, -1 instrumentality as Ruth can take or vacations. Formula outcome: MF = 6.24, Ability = 6.9, Performance = 43.056 Who will have greatest performance: Chris Per expectancy theory, why: Chris believes he will obtain all 500 responses to the survey which will result in success, expectancy of 1. Chris dislikes vacation and highly values management attention, instrumentalities of -1 and .2, respectively and placing high positive and negative valued outcomes, -5 for his dislike of vacations and 5 as he highly values management attention. Coupling this with his high score on ability, score of 8 on all ability criteria, Chris will have the greater performance than Ruth. Formula outcome: MF = 6, Ability = 8, Performance = 48 Per expectancy theory, what stands out most as a potential demotivator for employees with different needs than Chris and Ruth: Vacation Why? As described in the scenario, both Chris and Ruth were indifferent to taking a vacation and are either motivated by money or management attention, i.e. compliments. However, another employee may place high instrumentality and value on a summer vacation, thus with taking on this survey assignment during the summer not being able to taking a vacation will be a potential demotivator for employees with different needs that Chris and Ruth. ---------------------

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Q2. Suggest one thing you might do to increase the motivation of Chris keeping all rewards and ability requirements the same: Managers can change the inconsistency with their compliments in being more consistent and explicit in giving compliments for a job well done. Why this change will help: Chris highly values management attention; however, has a low correlation between receiving management attention in the form of compliments which is reflected in the low instrumentality rating of .02. With Chris placing high value on management attention, management attention is a meaningful reward and can be perceived as a form of providing feedback. A basic characteristic of high involvement management involves tying rewards to performance. One of the basic principles of operant conditioning is rewards should be tied directly to performance to encourage the desired behavior. Expectancy theory proposes that motivation is a function of the perceived connections between performance and outcomes. Thus, with the managers being more consistent with providing consistent compliments for good performance, this will address Chris need for meaningful individual reward and feedback as he would receive the attention he is seeking. Suggest one thing you might do to increase the ability/motivation of Ruth keeping all rewards and ability requirements the same: I would suggest Ruth take a Spanish language class to improve her Spanish ability. Why this change will help: Ruths Spanish Fluency score was 4. With Ruth taking a Spanish language class it will improve her ability communicate in Spanish. In the scenario, it indicates 500 surveys are to be collected equally amongst the 10 stores. If Ruth improves her Spanish fluency this would have a positive effective on her expectancy for survey completion to at least 450 completed surveys translating to an expectancy rate of .9 (450/500). By increasing her expectancy to .9, this in turn would increase her chances of receiving a bonus as Ruth values money a lot in claiming that money is about the only she works and obtaining compliments from her managers and she values compliments a bit less than she values money. --------------------Q3. Specify optimal path-goal leadership style for Employee A: Participative & Achievement Oriented Leader Why optimal? Employee A indicates the issue is their fault, spends hours on creating a given waste size and would like to move on to more interesting and challenging work. The participative and achievement oriented leader would Employee A has in internal locus of control where they believe the outcome is a function of their own behavior. Participative Leadership would work best for this cognitive concept. Employee A has a high need for growth as they would like to move on to more interesting and challenging work. The achievement oriented leader would work best here as it appears Employee A is intrinsically motivated, thus would appreciate information and goals with increasing levels of difficulty to help in achievement.
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Specify optimal path-goal leadership style for Employee B: Directive Leadership Why optimal? This employee indicates the issue lies with the software, unfamiliarity with the task because it is new, and content in staying their current position. Directive leadership would be optimal because Employee B has An external locus of control (believes outcomes are a function of chance or luck) High need for security and the directive leader would reduce uncertainty by providing clear rules and procedures Lead to an increase in satisfaction on unstructured tasks as the directive leader would help in clarifying an ambiguous task situation A low growth need

Specify optimal path-goal leadership style for Employee C: Supportive and Achievement Oriented Leader Why optimal? Employee C indicates in the past they worked with in their supervisor on tasks they had difficulty completing, likes working with their fellow coworkers and would like to receive a bonus. Supportive and Achievement Oriented Leader would work best because Employee C likes working with their coworkers, thus having a high need for affiliation. Supportive leader would fulfill their needs for close personal relationships. With Employee C in the past working with their supervisor whenever they have difficulty completing a task, the supportive leader would exist leadership behaviors that exhibit concern for an individuals wellbeing and needs. Employee C would like to receive a bonus. The achievement oriented leader would set challenging goals and seek to improve performance, thus putting Employee C in a position to receive a bonus. Also, the supportive leader would be effective here as the pattern design creation is a structured task and this structured task would increase Employee Cs expectation that accomplishing goals would lead to extrinsic rewards.

--------------------Q4: Specify two behavioral changes for increasing your transformational score: Charisma = 34 Intellectual Stimulation = 13 Individualized Consideration = 12

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Two behavioral changes that can increase my transformational score would be Communicate a clearer vision Encourage open sharing of ideas and concerns

Why will they increase your score? In my role of Client Manager, I oversee the day to day operations or the Account Management Team (AMT) where the AMT is comprised of many functional areas across UHCs National Accounts business, i.e. billing, banking, eligibility, benefit programming, underwriting, etc. In communicating a clearer vision for the upcoming plan year, the AMT would have a better understanding of the clients intent as it relates to their health and wellness strategy where the AMT may be able to implement much smoother if the clients intent was more clearly defined. Also, with encouraging more open sharing of ideas and concerns, each functional area can better articulate what the initiatives their dept. is working on that can enhance the clients implementation for their benefit design for that particular plan year. Specify two behavioral changes for increasing your transactional score: Contingent Reward Behavior = 11 Management-by-exception = 8 Two behavioral changes that can increase my transactional score would be Understand what AMT members want from their work and provide recognition they need Clarify the links between performance and recognition

Why will they increase your score? By understanding the needs of the AMT and providing them with the information they need they will be successful in their role on the AMT and do a good job for the client. Thus I will be able to send an email to the AMT members supervisor who may them nominate them for so type of enterprise wide recognition, i.e. Employee of the month within National Accounts or become eligible for a bonus. Also, by clarifying the links between performance and recognition, the AMT member may work that much more hard. In short, one of my clients needed information very quickly regarding UHCs service and provider network area. In working with a member of UHCs network team, they were able to turn this request around very quickly. I sent an email to their supervisor praising the Network Analyst, which in turn allowed the Network Analyst to be recognized within their dept. for that specific month. If I exhibit more of this behavior in recognizing the special effort exhibited by an AMT member and alerting their supervisor to their special effort, the AMT member will be eligible or praise, recognition or bonus opportunity within their department.

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Specify one behavioral change for decreasing your laissez-faire score: Laissez-faire score = 9 One behavior I can change that will decrease my score is displaying less of a behavior of if its not broke, dont fix it. Why will it decrease your score? By displaying less of this attitude, AMT members may be more apt to bring operational issues to my attention where we can collaboratively work on resolving the issue and engage the appropriate business resource for remediation. --------------------Q5: Describe the experience and what theory/research predicted that did or did not occur regarding motivation. Prior to joining UHC, I was the Director of Estee Lauders Consumer Care Center. The reason why I joined UHC is because the Consumer Care Center transitioned to Bristol, PA and I had no desire to relocate. Prior to reaching the making whether or not to relocate to Bristol, PA, the Vice President that I reported to inquired if I had any interest in relocating and being the Director for the Consumer Care Center. As a way to motivate and entice me to relocate to Bristol, PA, they were going to promote me to an Executive Director, increase my salary by $50,000, and pay for my relocation costs inclusive of Corporate housing for 6 months. The

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