Subject category:
Human Resource Management / Organisational Behaviour
Published in:
2004
Length: 3 pages
Data source: Field research
Abstract
The case deals with the problem of declining profitability of an organisation manufacturing readymade garments. Several steps taken by top management in this regard proved ineffective. Finally, management in consonance with the recognised union adopts the strategy of deducting proportionate wages for work not done and promoting two junior good performers, who showed 107 percent achievement of the target in just 45 days, to work on the complex stitching machines. The case tries to draw attention to whether this strategy really worked or whether it was just a lull before the storm. The case presents the participants with a scenario that allows them to apply the concept of work place motivation. More specifically, it allows them to judge the effectiveness of a cost cutting exercise, to examine how employee motivation affects productivity and to consider the measures that could be taken to improve motivation at a time of crisis.
About
Abstract
The case deals with the problem of declining profitability of an organisation manufacturing readymade garments. Several steps taken by top management in this regard proved ineffective. Finally, management in consonance with the recognised union adopts the strategy of deducting proportionate wages for work not done and promoting two junior good performers, who showed 107 percent achievement of the target in just 45 days, to work on the complex stitching machines. The case tries to draw attention to whether this strategy really worked or whether it was just a lull before the storm. The case presents the participants with a scenario that allows them to apply the concept of work place motivation. More specifically, it allows them to judge the effectiveness of a cost cutting exercise, to examine how employee motivation affects productivity and to consider the measures that could be taken to improve motivation at a time of crisis.