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Human Resource Management(MGT501) Spring 2014 Assignment No. 02 Due Date: August 03, 2014 Marks: 10

Human Resource Management(MGT501) Spring 2014
Assignment No. 02
Due Date: August 03, 2014  Marks: 10   
A new CEO of a telecommunications company knew that there has to be a better 
way to get his employees to be more productive. Earlier, this company had a good 
incentive program that those employees who produced well in accordance with 
established company goals would receive award at weekly, monthly and quarterly 
intervals. Something, however, was not working right. It appeared to CEO that after 
an award was given, productivity would slack off until the next major award was 
The CEO implemented his new system‐one in which no systematic process was in 
place to provide reward. Rather, he now takes it upon himself to administer the 
rewards as he sees fit. This means that employees don’t know when they may be 
rewarded but understand that any reward given is attributed solely to company 
Since its beginning, this unusual incentive plan has resulted in significant changes in 
the company. Productivity has shot up, while simultaneously work force has shrunk; 
company sales record  are being broken each  year;  and employees  are receiving 
more reward than ever before. One difference, however, is that these rewards are 
tailored to the unique needs of each employee; that is, rather than a rigid incentive 
plan whereby employees receive a similar reward, employees are now afford the 
opportunity  to  receive  what  they  want.  And  what  are some  of  these  tailored 
rewards? One employee got a five‐day, all‐expense‐paid trip to Dubai for the entire 
family; another got an expensive suit and a set of pearls for his wife; yet another 
got an expensive Laptop (portable personal computer). 
1. How CEO has  linked his self‐determined reward system to the motivation 
process? (5‐Marks) 
2. Would you consider new incentive plan to be fair, when one employee can 
get  a trip to Dubai for the  entire family, while  another  got  an  expensive 
Laptop (portable personal computer)? (5‐Marks) 
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Replies to This Discussion

No need to discuss Maslow's Hierarchy. 

if not then it is perfromance appraisal hu skta h

bcz  on the basis of any parameter  a ceo can link his self reward system  so bcz as   maslow hierchy bary ys ly bola h that as a motivtion drive from need  so think dear

eitehr they can link organization reward system  ort they can link organizaion  goal  so discuss

Rewards are catalysts to increase performance. These are motivational force not for doing work but for smart and hardworking performance.

First plan wasn't fully motivational as in case study we see

when reward is announced, every one try to perform at their best but after receiving reward they became again Hadd-Haraam. :-)

In second policy of the reward system CEO introduced surprised factor.

no one know that when the announcement is made of the title holder,,,so they keep doing work at their best... 

second question is more technical

why he tailored reward system more flexible for employee to employee? 

ys its unfair to giv biger rewards to som employees. i thnk there should be system of positions between employees. 

I think rewards customization is need based, so this fulfill more sanctification level of the employee. I am in favor.

If my wife demands a necklace, then sair spataa in Dubai, then a necklace would satisfy me more...rather my wife    

But i thnk needs wll increase day by day they wll not satisfy n wll use  (kash k mn woh chez ly lyta) because they r human beingz. Company wll face loss in this situation. 

Rewards are performance based not need based.

Shape of Reward is based on the sanctification of the need/desire of the employee.

They can mention their need but first they have to WIN the reward. It is now hidden and surprising. (Uncertain Situation)

So in uncertain situation CEO should have to maintain sanctification level. 


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