Case 1: Managing Motivation in a Difficult Economy
Learning Goals
In this case, you’ll have an opportunity to assess a motivational program designed to re-energize a troubled company’s workforce. Acting on behalf of the company’s executive board, you’ll evaluate the board’s current strategy based on survey data. You’ll also advise board members about improving the effectiveness of this program based on what you’ve learned about goal setting and motivation in organizations.
Major Topic Areas
• Changing nature of work • Diversity and age • Goal setting • Organizational downsizing • Organizational justice
The Scenario
Morgan-Moe’s drug stores are in trouble. A major regional player in the retail industry, the company has hundreds of stores in the upper Midwest. Unfortunately, a sharp decline in the region’s manufacturing economy has put management in a serious financial bind. Revenues have been consistently dwindling. Customers spend less, and the stores have had to switch their focus to very low-margin commodities, such as milk and generic drugs, rather than the high-margin impulse-buy items that used to be the company’s bread and butter. The firm has had to close quite a few locations, reversing its expansion plans for the first time since it incorporated.
Being that this is uncharted territory for the company, Jim Claussen, vice president for human relations, had been struggling with how to address the issue with employees. As the company’s fortunes worsened, he could see that employees were becoming more and more disaffected. Their insecurity about their jobs was taking a toll on attitudes. The company’s downsizing was big news, and the employees didn’t like what they were hearing.
Media reports of Morgan-Moe’s store closings have focused on the lack of advance notice or communication
