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case study number 1

Kingfisher School of Business and Finance
McArthur Highway, Lucao District, Dagupan City
A.Y. 2018-2019
Pride Building at
Submitted by:
Block 4
Jerry R. De Guzman
John Eduard P. Soriano
Maricel C. Cantay
Irish Christian Marie G. Daoa
Neriza Kay V. Ferrer
Jessabelle M. Onza
Maria Krisha Auria Q. Tibayan
Neah Sophia V. Visperas
Submitted to:
Ms. Maybelle Ann S. Lopez
BME 12 Instructor
Do extrinsic rewards really make employees more committed to their works?
The main objective of this study is to identify the significant factors that could affect
the employees' work performance and productivity through various motivational
High employee
engagement and job
Dedicated customer
relationship management
will be able to achieve a
high level of customer
Pooling higher revenues
Investing huge resources in
training and development of
its employees results in a
highly skilled workforce
High demands of workers
Attracting new customers
to patronize the company
and customers’ loyalty will
Changing employee
behavior may result to the
abuse in the company
Huge investment in
employee training and
benefit that may lower the
Moderate employee
Imitation of the counterfeit
to the employee motivation
High employee engagement and job satisfaction became a strength since
the intrinsic rewards for increasing company morale and achieving perfect
attendance will lead to high employment. Another is that high customer
satisfaction--- with the dedicated customer relationship management, Aramark will
be able to achieve a high level of customer satisfaction. Moreover, pooling higher
revenues became a strength because the high level customer relationship will
result to the attraction of more customers and thus will increase the revenues of
Aramark. Lastly, Aramark is investing huge resources in training and development
of its employees resulting in a highly skilled workforce.
Changing employee behavior was considered as weakness since high
level of rewards and benefits given to the employees may result to abuse the
company. Another weakness is the huge investment in employee training and
benefit wherein the cost allocated in the employees’ benefits and rewards may
lower the revenue.
More workers will be encouraged to apply in the company due to the high
motivation and benefits. Also, good customer relationship attracts more customer
to patronize the business.
One of the threats of the business is moderate employee turnover since rewards
are based on tangible things. Another threat is the imitation of the counterfeit to the
employee motivation. The company’s strategy to motivate their employees is very
advantageous that other company may imitate it.
Alternative Course of Action #1: The manager must arrange team building events
which can make stronger relationship between the employees and the company, so
that the employees will be more committed to their works.
Increase productivity - the collaborative nature of a team building challenge
teaches people how to work together more effectively.
Improve communication - clear and open communication is key to the success
of projects and relationships within a company. Team building exercises can
help to foster better communication skills in staff and develop their ability to cooperate well.
Keep employees motivated - running a team building activity sends a message
to your staff - you care about their success. Events designed to help them grow
and develop new skills indicate that a company is committed to its employees.
Costly - it is among the biggest drawbacks of corporate team building.
Monetary costs vary based on the type of team building program like
excursions to large fees for seminars hosted by noted public speakers.
Team building can also have unintended consequences that hurt a business's
bottom line. For employees who have specific skills that prove valuable for their
jobs but don't translate well into a social environment, team building may prove
ineffective and actually harm interaction among participants.
Alternative Course of Action #2: Fostering the employee commitment and
engagement by a hands-on supervision of the manager: know their well-being,
influence them to be better, know their problems and give advices, give suggestions
on how they can improve their works and praise them if they’ve done a job well done.
Greater employee commitment by involving employees actively in internal
suggestions of their ideas and perspective, company leaders affirm the value
of their employees. Employees more naturally develop deeper commitments in
the organization
More and Better Ideas - front-line employees that interact directly with
customers or clients often have more insight into customer concerns and
feedback. When company leaders create an environment that encourages
employees to share ideas and to get involved in decisions, they often get more
informed perspectives with regard to what customers want.
increased productivity - involving employees in some input actions makes them
feel more positive about their employers because they feel their opinions are
Manager and employee boundary - there is a risk that the line of distinction
between the management level and employee level becomes blurred.
complex communication - more lines of communication and the potential for
inconsistent decision making are disadvantages with employee involvement
systems. When more employees have input and decision-making ability, more
communication is necessary to make certain that decisions are consistent
across the organization.
Alternative Course of Action #3: The manager must focus on how can his
employees achieve intrinsic rewards than extrinsic rewards since it is more worth it to
receive personal achievements and professional growth than material things such as
gifts and money. Also, an intrinsic motivation makes employees to perform tasks well.
The job is intrinsically rewarding, employees will be loyal and dedicated and
work hard because they enjoy what they are doing.
Employees with high levels of intrinsic motivation can reduce total labor costs.
Since managers spend less of their time working to motivate intrinsically
motivated employees, each manager has more time to focus on more
productive tasks.
Employees can be more creative than those who require outside influence to
get motivated.
Intrinsic rewards are much harder to implement, especially for inherently
routine tasks and that often they require management to trust and empower
Incentive program motivates employees to accomplish organizational objectives
by rewarding them in ways beyond just salary, but it also introduces a host of ethical
issues that businesses must consider. First, the manipulative program. It requires
funds or resources, so an obvious ethical concern is whether those resources or funds
might better serve employees if the organization chose rewarding staff differently. In
other words, the use of company's incentive program might be manipulative rather
than mutually beneficial. Second, its negative effects. The potential negative
consequences of incentive program which designates a performance threshold.
Employees might strive to meet that threshold and be a constant source of stress for
employees -- especially if the base take-home pay is low. The lower worker morale
might be the outcome that undermines the purpose of the employee incentive
program. Since, no company can predict all the outcomes of an incentive program so
careful analysis on a periodic basis must be followed. Another ethical problem arises
when the employee incentive program benefits are not fairly distributed. For example,
some employees’ responsibilities might make it easier for them to earn rewards while
other employees never get the chance to gain similar benefits. In that case, the other
employees may build resentment and feel envy to their co-employees. For this reason,
a business must carefully evaluate its incentive program to ensure all workers have
equal access to potential benefits.
Intrinsic rewards refer to the professional growth, sense of pleasure and
accomplishment. Simply, it refers to personal achievement. Basically, it focuses on
how will you finish the task thinking more about personal growth rather than material
rewards. To be rewarded extrinsically is beneficial to the employee as it may satisfy
them and compensate their work. But it would only be applicable in the short run not
in the long run. To maintain the credibility of one’s image to the company you must
first seek for the things that would make the company better. To be considered a wellperforming employee, you must build your image to the company. Thus, we choose
the alternative number 3 as we see intrinsic reward as the main factor that would help
the employee to work for the company with its best.