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LOYAL EMPLOYEEA CASE STUDY
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GISTOFTHE CASE
MR. RAMAN IS THE
SALES MANAGER OF A
REPUTED CORPORATION
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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.
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Mr. KRISHNAN IS A 56 YEAR
OLD EMPLOYEE WHO HAS
BEEN WITH THE COMPANYFOR MORE THAN 20 YEARS.
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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
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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.
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WHAT IS TO BE DONE ABOUT MR. KRISHNAN ?
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SUPPORTINGTHEORIES
8
Individual Job Performance
Ability MOTIVATION ENVIRONMENT
Can I do it? Will I do it? Will I get the
support?
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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
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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
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ADAMS DISTRIBUTIVE JUSTICE / EQUITY THEORY
Individual Rewards
Individual Inputs
ComparedOthers Rewards
Others Inputs
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Effort to
performance
expectancy
Performance tooutcome
Expectancy
Valence of
outcomes
EXPECTANCY THEORY
EFFORT
ENVIRONMENT
PERFORMANCE
ABILITY
OUTCOME
OUTCOME
OUTCOME
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OTHER THEORIES
Porter-Lawler theory:
Satisfaction is determined by Intrinsic and Extrinsic
rewards.
Reinforcement theory: Punishment vs Positive
Reinforcement.
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THE VARIOUS ALTERNATIVES
1. SHOULD WE FIRE HIM ?
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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.
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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.
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SHOULD WE INCREASE HIS COMMISSION ?
1.Monetary factors may motivate an employee.
2. Providing group incentives is also a good idea.
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1. Monetary incentives have generally not proved to be
effective on senior employees.
2. His subordinates and other groups may also expect
the same.
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SHOULD WE INCREASE THE RETIREMENT BENEFITS ?
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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.
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SHOULD WE OFFER HIM A HIGHER STATUS, NEW
CAR AND MORE LUXURIES IN THE OFFICE ?
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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.
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COUNSELING
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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..
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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.
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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.
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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.
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SHOULD WE MAKE HIM THE HEAD OF A GROUP
OF HIGHLY MOTIVATED/EFFECTIVE EMPLOYEES ?
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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.
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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.
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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.
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