The owner of a large hardware, furniture, and building centre faced a dilemma regarding how to manage the upcoming wage review process. After two consecutive years of frozen wages, employees were impatient for financial progress, but there was no extra money in the budget. It was possible to pump savings from upcoming process improvement initiatives into wage increases. However, the owner had limited motivation to channel hard-won funds to underperforming employees. On the other hand, he was eager to reward the people who added value. Yet a plan that rewarded only some employees could result in an angry backlash. He had to decide if he wanted to divert the savings into compensation and, if so, he needed an effective distribution plan.
又一次零加薪? A Zero Wage Increase Again? (Simplified Chinese version)
Karen MacMillan
Product #:W33815
Supplier:Ivey
Discipline:General Management, Organizational Behaviour/Leadership
Setting:Canada, 2011
Subjects:
Industries:
Geography:
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Learning Objectives
- 经理和员工就彼此的义务订立一份默示合同。违反合同的后果可能很严重。当员工没有完成他们的职责,或者当组织不承认员工的努力时,正如在这种情况下,合同就会受到威胁。本案例帮助学生探究两种类型的合同违约(组织对员工和员工对组织)的后果。
- 员工根据分配公正和程序公正来评判一个组织。本案例挑战学生设计过程,最大限度地提高这些公正观念。
- 管理者的决策容易受到强烈的情感因素影响。管理者努力实现自己对组织公正的看法。虽然有很多关于如何管理企业的规定性建议,但很少有人致力于管理政策制定和实施的社会方面。本案例探讨了一些可能影响决策过程的局限性,包括有限理性。
- 虽然工资审查通常每年进行一次,但公司的绩效考量全年都在发挥作用。这个案例鼓励学生采取更广泛的视角。系统的绩效管理方法将帮助组织在持续的基础上而不是在有限的时间点上思考绩效改进策略。
This case will help both undergraduate and graduate students improve their understanding of several important aspects of employee motivation and compensation management.
- Managers and employees develop an implied contract with each other regarding obligations. The repercussions when the contract is violated can be significant. When employees do not complete their duties or when the organization does not acknowledge the effort of an employee, as in this situation, the contract can be threatened. This case helps students explore the ramifications for both types of contract breach (organization to employee and employee to organization).
- Employees judge an organization in terms of both distributive and procedural justice. This case challenges students to design processes that maximize these justice perceptions.
- Managerial decision making is prone to strong emotional considerations. Managers strive towards their own perceptions of organizational justice. Although there is much prescriptive advice on how to manage businesses, little is devoted to managing the social aspect of policy development and implementation. This case explores some of the limitations that can affect the decision-making process, including bounded rationality.
- Although wage reviews generally occur on an annual basis, the performance considerations in a company play a role throughout the year. This case encourages students to take a broader view. A systematic approach to performance management will help an organization think through performance improvement strategies on an on-going basis, rather than at restricted points in time.