Chris Rivard is the general manager in the human resources department of a softw

Question

Chris Rivard is the general manager in the human resources department of a software firm. Unlike most other software firms, the company does not have a turnover problem. However, the issue with the firm is productivity. People do not seem to work hard enough. The output is just too low for the time they spend in the office. Chris is wondering what the problem could be. The company pays near the top in the industry, the fringe benefits are very attractive, and the work conditions are satisfactory. As he discusses the issue with his colleague, Ryan, in the HR department, he discovers that people want “other things.” Some of them are also discouraged as they feel that no matter how hard they work, they get the same pay. Chris’ goal is to increase the performance of the employees. What should he do?

1) What the “other things” are to which Ryan might be referring?

2) Why would the people in Rivard’s firm feel discouraged by the same pay?

Explanation / Answer

1) Chris's firm pays the same salary to the people who in his organization irrespective of the fact how hard working they are or they are sitting idle throughout the day. This takes away the motivation to do hard work and stand apart from the crowd. The other things which Ryan is referring to are the Bonus which the employee can get if they work hard or have a performance above average employees. They want their hard work to be compensated more.

2) At work people have two options sit idle and don't do any work or work hard and achieve goals. If both the people are getting the same pay no matter how hard they work, the hard-working employee will find their salary equal to the average employee in the office who doesn't work much. This takes away the motivation to work hard and secure higher pay or position in the office. And in the end, they both choose to be lazy bringing the whole productivity down.

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