8/8/2019 Loyal Empl

1/34

LOYAL EMPLOYEEA CASE STUDY

8/8/2019 Loyal Empl

2/34

GISTOFTHE CASE

MR. RAMAN IS THE

SALES MANAGER OF A

REPUTED CORPORATION

8/8/2019 Loyal Empl

3/34

For the past three years, the companysproducts have been in good demand.

The staff has met this growing demand in

the market with increased sales.

8/8/2019 Loyal Empl

4/34

Mr. KRISHNAN IS A 56 YEAR

OLD EMPLOYEE WHO HAS

BEEN WITH THE COMPANYFOR MORE THAN 20 YEARS.

8/8/2019 Loyal Empl

5/34

Mr. Krishnan is a very friendly man and is liked

by his peers and the regular clients of thecompany.

The company has always consideredMr.

Krishnan as an asset and a dependable loyal

employee.

BUT

8/8/2019 Loyal Empl

6/34

THE PROBLEMMR. Krishnan is old and has entered a state of semi-retirement.

His sales have not increased like that of the other employees.

He lacks the determination to improve his sales.

8/8/2019 Loyal Empl

7/34

WHAT IS TO BE DONE ABOUT MR. KRISHNAN ?

8/8/2019 Loyal Empl

8/34

SUPPORTINGTHEORIES

8

Individual Job Performance

Ability MOTIVATION ENVIRONMENT

Can I do it? Will I do it? Will I get the

support?

8/8/2019 Loyal Empl

9/34

1. PHYSIOLOGICAL

2. SECURITY

3. BELONGINGNESS

4. SELF-ESTEEM

5. SELF-ACTUALIZATION

Recognition, Prestige,Recognition, Prestige,

Awards, AutonomyAwards, Autonomy

Sense of Belonging, EmployeeSense of Belonging, Employee

Social ActivitiesSocial Activities

Safety, Job Security, StableSafety, Job Security, Stable

Wages & Salaries,Wages & Salaries,

InsuranceInsurance

Clean Air, Space, Food,Clean Air, Space, Food,

Lighting, TemperatureLighting, Temperature

Well Being of others &Well Being of others &

meaningful workmeaningful workMASLOWS NEEDS

HIERARCHY

8/8/2019 Loyal Empl

10/34

HERZBERGS MOTIVATOR-HYGINE THEORY

Motivators

(associated with work itself)

Promotion Growth

Opportunities

Responsibility Recognition

Achievement

Hygiene

(conditions)

Wages and Salaries

Quality of Supervision

Policies

Working Conditions

Relationship

Job Security

8/8/2019 Loyal Empl

11/34

ADAMS DISTRIBUTIVE JUSTICE / EQUITY THEORY

Individual Rewards

Individual Inputs

ComparedOthers Rewards

Others Inputs

8/8/2019 Loyal Empl

12/34

Effort to

performance

expectancy

Performance tooutcome

Expectancy

Valence of

outcomes

EXPECTANCY THEORY

EFFORT

ENVIRONMENT

PERFORMANCE

ABILITY

OUTCOME

OUTCOME

OUTCOME

8/8/2019 Loyal Empl

13/34

OTHER THEORIES

Porter-Lawler theory:

Satisfaction is determined by Intrinsic and Extrinsic

rewards.

Reinforcement theory: Punishment vs Positive

Reinforcement.

8/8/2019 Loyal Empl

14/34

THE VARIOUS ALTERNATIVES

1. SHOULD WE FIRE HIM ?

8/8/2019 Loyal Empl

15/34

Why sack him ?

1. It will increase the organizational effectiveness ,if he

is replaced by a suitable person.

2. He is hindering the progress and smooth working of

the organization.

8/8/2019 Loyal Empl

16/34

Why not sack him ?

1. He has been loyal to the company since 20 yrs.

2. He is an asset to the company.

3. It has a negative impact on the morale of other employees.

4. His old clients wont be comfortable with the new person who

replaces Krishnan.

5. The company will lose the advantage of his experience and ideas

in the field of marketing.

8/8/2019 Loyal Empl

17/34

SHOULD WE INCREASE HIS COMMISSION ?

1.Monetary factors may motivate an employee.

2. Providing group incentives is also a good idea.

8/8/2019 Loyal Empl

18/34

1. Monetary incentives have generally not proved to be

effective on senior employees.

2. His subordinates and other groups may also expect

the same.

8/8/2019 Loyal Empl

19/34

SHOULD WE INCREASE THE RETIREMENT BENEFITS ?

8/8/2019 Loyal Empl

20/34

1. Increasing the post-retirement benefits may helphim decide if it is time for retirement.

2. But it depends on how he values monetary

incentives.

8/8/2019 Loyal Empl

21/34

SHOULD WE OFFER HIM A HIGHER STATUS, NEW

CAR AND MORE LUXURIES IN THE OFFICE ?

8/8/2019 Loyal Empl

22/34

1. High status titles have a great motivational value in the

case of senior employees.

2. Extrinsic factors like car and luxuries are only anaddition.

8/8/2019 Loyal Empl

23/34

COUNSELING

8/8/2019 Loyal Empl

24/34

DEFINITION OF COUNSELING

Counseling is basically a process in which the counselor

or a therapist helps the person understand the problem

and guides through the whole process so that the personcan handle his responsibility efficiently..

8/8/2019 Loyal Empl

25/34

Ingredients of counseling

Performance counselling: It should cover all the aspects related

to the employee performance like the targets, employee's

responsibilities, problems faced, employee aspirations, inter-

personal relationships at the workplace.

Personaland Family Wellbeing: Families and friends are an

important and inseparable part of the employee's life.Many a

times, employees carry the baggage of personal problems totheir workplaces, which in turn affects their performance

adversely.

8/8/2019 Loyal Empl

26/34

Therefore, the counsellor needs to strike a comfort level

with the employees and, counselling sessions involving

their families can help to resolve their problems and

getting them back to work- all fresh and enthusiastic.

OtherProblems: Other problems can range from work-

life balance to health problems. Counselling helps to

identify the problem and help him / her to deal with the

situation in a better way.

8/8/2019 Loyal Empl

27/34

Advantages of counseling

Helps the company to know more about employee.

Understand the situations and look at them with a new

perspective and positive outlook

Helping in better decision making.

Coping with the situation and the stress.

8/8/2019 Loyal Empl

28/34

SHOULD WE MAKE HIM THE HEAD OF A GROUP

OF HIGHLY MOTIVATED/EFFECTIVE EMPLOYEES ?

8/8/2019 Loyal Empl

29/34

Heading a group of highly effective employees may

boost up his enthusiasm and also ease his

responsibilities a bit.

But the group members may not always be willingto share his responsibilities.

Also, motivation is no guaranteed.

8/8/2019 Loyal Empl

30/34

Should we shift him from the sales branch to another

one ?

A shift in the working environment and nature of work

is sometimes refreshing.

But, in the case ofMr. Krishnan who is already aged, it

may not have same effect.

8/8/2019 Loyal Empl

31/34

OUR CONCLUSION

MR. KRISHNAN SHOULD BE PROMOTED AND

MADE THE ADVISOR OF THE SALES

DEPARTMENT OF THE COMPANY.

By doing thus, the company still has the benefit of his

experience and also his clients would be happy.

Most importantly, it would give satisfaction toMr.

Krishnan which would motivate him to perform his

new role with enthusiasm.

8/8/2019 Loyal Empl

32/34

8/8/2019 Loyal Empl

33/34

8/8/2019 Loyal Empl

34/34