Mark's Company Case Study

Introduction
This case presents the financial challenges that faced Mark's company. It is a large hardware, furniture and building center. It had been negatively affected by the global downturn. There was no increase in wage since last two years. Mark faced a dilemma regarding how to manage the upcoming wage review process. Employees are unhappy about the reward process. The morale of many employees is very already low, and no wage increase this year will push them over the edge. Many internal employee problems have surface. Many employees are careless in the work. However, some employees are hard working with a good performance under the same financial challenges. Mark beliefs that a good reward system should be designed to attract, retain,

Aaron, Simon, and Wesley possess strong intrinsic motivation. Managers desire to strengthen within their employees. Monetary rewards are not necessarily the right solution as money is an extrinsic motivator, meaning it is a tangible reward that is not achieved solely individually but rather received from another source (Evans 1970). As Hertzberg’s motivation theory explained. "Hertzberg’s motivation theory concentrates more on the factors which lead to job satisfaction or dissatisfaction. Factors that lead to job satisfaction are called satisfiers or motivators because they elicit positive feelings towards the job and provide personal satisfaction. These include achievement, the nature of work itself (challenging work provides job satisfaction) and advancement and responsibility. Satisfiers motivate the employee to greater productivity. The Dissatisfies (hygiene factors) describe the relationship of the employee to the context of the environment in which he performs his job. These are those elements within a working environment which help generate negative feelings towards the job and do not induce people towards greater effort. Dissatisfies include uncomfortable work conditions, company policy and administration, technical supervision, salary, interpersonal relations, the superiors, subordinates and

Hygiene factors are present in the lower level needs of physiology and safety, referred to in Maslow’s Theory of Motivation, these needs are likely to be met. These factors are perceived to be acting as motivation for individuals to reach superior performance and effort. If the hygiene factors are ineffectively met, they cause dissatisfaction, however, if effectively met, the employee is neither dissatisfied nor satisfied. The employee is thus not dissatisfied but not motivated (Evans 1970).
Furthermore, the expectancy theory shows a direct link between personal effort and rewards. "It refers to the probability perceived by the individual that exerting a given amount of effort will lead to performance"(Hsu et al 2014, p.49).
Employees put in their efforts on the perception that their efforts will lead to performance and that effective performance will result in obtaining positive