MANAGING MOTIVATION IN A

DIFFICULT ECONOMY
Case Assignment #1, Morgan-Moe`s Drug Store



Prepared By.

Chris DeForce
Michael Freidmeyer
Matthew Jones
Tony Tam


Prepared For.
Dr. John Kammeyer-Mueller
MAN 5246
Organizational Behavior
11/28/2011


'Only in America - do drugstores make the sick walk all the way to the back of the store to get
their prescriptions while healthy people can buy cigarettes at the front of the store.`
-Unknown
DeForce, Freidmeyer, Jones, Tam

1. The independent variable is the Program Type, and the dependent variables are the results
Average Turnover, Weekly ProIit, and Monthly StaII Time Cost.
The manager`s choice oI diIIerent program types had dramatic eIIects on the turnover rate
and weekly proIits. ProIits were more than doubled by using program type 4 and 5, even
aIter subtracting the higher staII costs used to implement these programs weekly proIits
increased. Program 3, 4 and 5 were more proIitable than using traditional management, and
Program 2 actually Iared worse aIter subtracting the monthly staII cost.
When employees learned oI the sales and inventory inIormation in program 3 the turnover
rate jumped dramatically. This is probably due to employees Iinding out negative
inIormation and jumping ship. However, in program 4 when this inIormation was combined
with brainstorming the turnover rate decreased to 17 Irom 37 in program 3. So when
employees have a say in how to improve the store and are able to set goals they work harder
are less likely to leave.
The monthly staII time cost increase as more inIormation and brainstorming that is done.
That is why program 4 cost the most and program 1 is the lowest.

2. Absenteeism - Measuring the absenteeism with each program will show how employees react
to the diIIerent programs. It can show their attitude towards work and how motivated each
program has on the employee.
Deviant Work Behavior - Measuring deviant behavior and putting a cost associated with this
will allow management to determine iI there are other negative impacts oI each program
besides absenteeism. Since deviant behavior will aIIect others beyond themselves, it can
lower sales, increase theIt, or cause tension between coworkers.
Job Satisfaction - When measuring job satisIactions, it is assumed the more satisIied your
employees are the better they will perIorm. This is especially important in customer service
like at Morgan-Moe's, where the employees attitude towards customers can aIIect sales.

3. Based upon reviewing the data provided, program V is the most eIIective method overall.
While program IV has a lower average turnover, program V has a smaller range Ior turnover
at 9 to 33. Program V delivers the highest overall average proIit and ties with program IV
on maximum return. Despite being the second highest cost, it had the highest post-cost proIit
potential. Figure 1 shows the best case scenario Ior each program.
DeForce, Freidmeyer, Jones, Tam

Programs Max Turnover Max Profit per
Month
Max Post-Cost Profit
Program I 40 $8,700 $8,700
Program II 37 $12,800 $10,840
Program III 57 $13,700 $11,260
Program IV 37 $16,400 $12,980
Program V 33 $16,400 $13,650

The least eIIective program was program I. This program has a turnover oI 40 and the lowest
maximum proIit potential. The only good thing about implementing this program was the Iact
that it had the lowest cost.

4.
a. This does not inIluence my decision because aIter having a pool oI several stores, the
most that more samples will do is simply Iine tune the results by a small margin. The
results will continue to hold true as the number oI store using each method increases.
b. The Iact that the managers are selecting a program based upon the employee
demographics and store success has some eIIect on the perceived program success. The
Iact that Program I is being used mostly by the oldest stores and those undergoing the
most economic distress. More awareness and input should be used in stores where
economic distress is present because this would build a sense oI relationship and duty
among the employees. They would work harder, as they would take results more
personally. By assigning various programs to all store types, a true assessment oI each
program can be taken.
c. The advantages oI randomly assigning diIIerent conditions to the stores instead oI the
selI-selection progress are that the true success oI a program can be assessed based upon
its perIormance across all scenarios. Whether economically distressed, urban with young
employees, or rural and more elderly. The Iact that these segments tend to lean on one
type oI program skews the data in such a way that it seems highly successIul in its own
light and until a heavier level oI scrutiny take place, the absolute level oI success cannot
Iully be understood.

5. Younger employees may expect to have input into how a retail operation is managed, while
older workers may have a more passive view oI what is expected oI them. In a diIIicult
DeForce, Freidmeyer, Jones, Tam

economic environment, these views may become more pronounced. Older workers may Ieel
that everyone just needs to work harder, while younger workers may Ieel that their novel
suggestions and insights are needed now more than ever. Participation should be encouraged
but not required. Some employees may not have ideas or may not Ieel comIortable
expressing their thoughts publicly. However, they may still beneIit Irom the suggestions oI
others, or Irom the validation oI their eIIorts in the bigger picture. More experienced
workers who wish to contribute may oIIer valuable insights because they may have been
through similar circumstances in the past, and they can lend their experience to newer
employees. These types oI programs might not be received as well in better economic
circumstances because employees may come to Ieel that business will be good no matter how
they behave, and thus they may disengage Irom the program.

6. Claussen`s approach is creative, but he missed a couple key aspects oI successIul motivation
programs. His approach toward inIormation sharing is a good start as it provides a baseline
to measure against. However, none oI the programs set speciIic goals Ior the teams to work
toward. Similarly, team and individual incentives are missing Irom the programs as well.
InIormation sharing may lead to employees understanding oI the signiIicance oI their eIIorts,
but without goals, it will be diIIicult Ior them to see the eIIects oI their eIIorts. Without
incentives, it will be diIIicult to get them to care. Some ideas Claussen could try would be to
oIIer team or individual cash rewards in the Iorm oI raises or bonuses or employee
recognition programs Ior sustained improved, measured perIormance at the store level or
reduced absenteeism. Claussen`s participative management scheme may contribute to
employee`s Ieelings oI selI-eIIicacy, but without measures and rewards, that motivation may
not be long-lasting.

7. Possible Employee Feelings:
Threatened
Disrespected
Lack oI Concern towards employees
Lack oI Dignity towards employees
UnIair Actions
DeForce, Freidmeyer, Jones, Tam

Unjust Actions
Inappropriateness
Lack oI Control
Hopelessness
Bias
Inconsistency

Mangers MUST make sure employees are perceiving the program as just. More speciIically,
the employees must believe that the outcome produced by the programs and how they receive
them are Iair. The managers also must be aware oI the employee`s 'perception oI justice.
This is a key Iactor / element oI organizational justice. Simply state, Iairness, justice, and
equity are subjective and reside in the employee`s perception. Another potential issue would
be employees having an egocentric or selI-serving bias. The program and accompanying
changes must Iavor these biases as Iair.
The managers must also be aware that justice is multidimensional. For example, the
organizational model is made up oI:
a. Distributive Justice: Perceived Iairness oI outcome
b. Procedural Justice: Perceived Iairness oI process used to determine outcome
c. Interactional Justice: Perceived degree to which one is treated with dignity and
respect
Management needs to be aware oI the above concepts and ensure the transition is perceived
as Iair. Process control and explanations should be to present the points oI view about the
desired outcomes and clears reasons Ior these outcomes respectively.