Practise applying Maslow, Herzberg and Taylor motivation theories and analysing intrinsic and extrinsic motivation with IB Business Management SL questions.
Frez PLC (FR) has 6000 employees in its 100 supermarkets and 250 in its head office. FR operates a 360-degree feedback appraisal system for head office employees. FR’s directors believe that this system has improved retention and morale of head office employees. This year, to reduce head office costs, FR offered head office employees the option of teleworking, which 60 % accepted. They will work at the head office only one day per month.
Frez PLC (FR)
Frez PLC (FR) has 6000 employees in its 100 supermarkets and 250 in its head office. FR operates a 360-degree feedback appraisal system for head office employees. FR's directors believe that this system has improved retention and morale of head office employees. This year, to reduce head office costs, FR offered head office employees the option of teleworking, which 60 % accepted. They will work at the head office only one day per month.
Each FR supermarket has 10 departments. Departmental managers have concerns about their workload caused by their large span of control. Labour turnover at FR supermarkets is increasing each year because departmental managers are leaving. In January, FR increased its supermarket opening hours and hired an additional 1000 part-time employees. FR is considering extending its 360-degree feedback appraisal system to all supermarket employees.
Recently, demand from supermarket shoppers for a home delivery service increased, although industry experts disagree on whether this demand will continue. FR's main competitors already provide delivery services.
FR has decided to launch a home delivery service. It will require 500 vans, which would be replaced every five years. FR is considering two options:
- Option 1: purchase the vans at a unit cost of $34000 each, financed by a five-year bank loan at 3 % interest.
- Option 2: Lease the vans at a unit cost of $13000 per year per van. The minimum term for the lease will be 24 months.
FR already borrowed $50 million in 2019 to finance the modernization of its supermarkets.
Explain, with reference to Maslow's motivation theory, how teleworking may damage employee motivation at F R 's head office.
FR's head office.
Maslow' 3rd level, social needs / teamworking, will not be met as employees that choose teleworking will be working from home for all but one day per month and therefore will have little opportunities to meet with colleagues, to work as part of a face to face team.
Maslow's 4th level may also not be met due to the typical lack of a formal workplace among teleworkers. It may be difficult for remote workers to experience formal recognition of their accomplishments. In addition, the virtual nature of their jobs reduces direct / face to face input that signifies goal achievement and personal development, which affect employees' esteem. This may be further exacerbated by the fact that 40% of workers who chose not to telework will continue to enjoy these benefits. This may cause resentment among teleworkers leading to problems with teamworking ( 3rd level).
Award [1] for demonstrating an understanding of Maslow's motivation theory and a further [1] for a development with respect to FR. Award a maximum of [2].
[2] cannot be awarded if the response lacks either explanation and / or application.
For example:
For an identification or a description of one of Maslow's hierarchy of needs with or without application [1].
For an identification or a description of one of Maslow's hierarchy of needs with no application award [1].
For an identification or a description of one of Maslow's hierarchy of needs and application award [2].
N.B. For application, candidates do not have to say "only one day per month" but they do need to convey the idea that teleworking employees are not coming to the office often.