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MGT501 - Human Resource Management Assignment No. 2 Solution and Discussion Spring 2014of Virtual University (VU) Due Date: August 03, 2014
Assignment # 02
Human Resource Management (MGT501)
This is to inform that Assignment No. 2 will be opened on July 22, 2014 and due date of assignment submission will be August 03, 2014.
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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
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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