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Hovey and Beard Company

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Joo-Hyun Lee

on 5 November 2012

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Transcript of Hovey and Beard Company

Hovey and Beard Company Group #4 Case introduction Painters learned more slowly than had been anticipated and it began to look as though their production would stabilize far below what was planned.

They voiced the same complaints again: the hooks went by too fast,
the job was too dirty and the room was hot and poorly ventilated. After some discussion with the painters, managers took some of their proposals. For instance, they installed fans to improve ventilation.

The speed of the belt could now be adjusted anywhere between the lower and upper limits that the engineers had set.

Painters were operating at 30 to 50 percent above the level that had been expected under the original arrangement. They were collecting their base pay, earning a considerable piece-rate bonus and still benefiting from the learning bonus.

And, the other workers in the plant raised equity issue

Superintendent revoked the learning bonus and returned the painting operation to its original status: the hooks moved again at their constant, time-studied, designated speed. Job design approaches Performance Management Five Core Job Characteristics Analysis Job Simplification Advantages Increasing efficiency

Hiring low-cost labor

Need for training minimized Disadvantages Low quality of product
Job dissatisfaction due to boring work High rates of absenteeism and turnover Skill Variety YES NO Task Identity NO Task Significance YES Autonomy NO YES Job Feedback NO YES Expectancy Theory Reinforcement Theory Equity Theory Goal Setting Theory E * I * V = motivation High instrumentality
High Valence
but Low Expectancy Learning bonus
Piece rate bonus Decreasing learning bonus was interpreted as extinction Difficult, but not too difficult goals

Specific goals

Task Feedback

Accepted & Committed goals High Performance Hovey and Beard Discussion Questions 1. motivating potential score
(SV + TI + TS)
(MPS) = * AU * FB
Do you think you're motivated?
If not, what should managers
do to motivate employees in
this case? 2. If you were the superintendent

How would you solve the equity

issue that other workers of plant

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