This case focuses on the high turnover rate of employees at Alderson &Zwindski Architects, PC. It was also revealed that the performance of the employees for the first year was satisfactory but in the second year of their job, their performance started to deteriorate and some of the employees quitted their job while other were asked to leave due to their under performance.It seems that the morale of the employees is too low in the organization and there had been no performance review since three years.
If we talk in terms of the equity theory, it says that perception is something that motivates an employee and not the actual reward. It seems that the employees in this organization have formed a negative perception regarding their pay raises. This has significantly affected the morale of the employees which has ultimately resulted in high turnover. If we analyze the results of the independent sample t-test which has been performed between the responses of the draftsmen and the architects it further reveals further problems in the organization. First of all, if we look at the p-values (significant values) of all the 7 variables, the output shows that the p values of perception, training, aptitude, resources, incentives and reward salience is insignificant. The means for draftsmen and architects have also been calculated.
With regard to the variable perception, the mean scores for draftsmen of around 8 as compared to a mean score of architects of around 4 indicate that the perception of draftsmen regarding their quality of performance is not good. As the mean for draftsmen is above 7, therefore, more emphasis should be placedon the coordination between the employees work performance and the supervisor’s knowledge of it. The supervisors should be advised to monitor the performance of the employees. With respect to the variable training, architects think that they are not getting adequate training. They are so much de motivated that they have formed the belied that training could not even improve their job performance. This shows again that the employee morale is too low.
The results of the variable aptitude are somehow positive. Employees believe that their native skills match their job responsibilities very well. The difference between the responsesfor resources given to the employees is almost same for the architects and the draftsmen. The employees are getting adequate resources to perform their jobs well. The p-value for the variable expectations is less than 0.05, therefore, the difference is significant. Both the architects and draftsmen believe that the expectations of the seniors are not clear to them and the expectations are unrealistic and unclear.
The results of the variable incentives shows that the difference between the means is not significant, however, draftsmen strongly believe that the rewards are not distributed fairly and that favorites exist in the organization for the managers. Finally, the last variable reward salience shows that the difference between the means is not significant, but draftsmen believe that the rewards and opportunities available to the employees are not attractive to them.
The management needs to base their pay on performance of the employees. The equity theory should be followed strongly and employees should be rewarded exactly for the effort they put in. If the management of the organization rewards its employees fairly and the employees perceive that incentive as equitable, the motivation level of the employees of the organization increases. Therefore, management should first of all conduct a performance review. Each and every employee’s job duties should be evaluated against their job descriptions and based on their appraisal, they should be awarded incentives and bonuses.
Apart from that, in terms of goal-setting theory, the goals and objectives of the organization should be made clear to the employees; they should be given adequate training and resources to perform their jobs perfectly. When the objectives of the individual workers of the organization are clear, they will be motivated to perform above the standard and work hard. Also the employees should be given autonomy and important tasks should also be delegated to them to experience decision making so that they become the Theory Y employees, in terms of the Douglas McGregor’s motivation theory, who accept responsibility and enjoy the work.
If we look at the multiple regression performed on the draftsmen salary data, than it is revealed that around 93% of salary is affected by changes in number of years of draftsmen, years of experience, knowledge, performance and ability to use AutoCAD software. If we look at the individual independent variables, then it is clear first of all that the independent variables are not the right predictors for the salary of draftsmen in this organization, as revealed by the p-value of the F-test. Individually it is evident that a draftsmen’s salarydecreases by $ 3062 with each extra year spent with the company..........................
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