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APPLIED SUMMARY PAPER
STRATEGIC MANAGEMENT
PREPARED BY RICHARD JOHN
Motivational Concepts.
The New York City Transit Authority being a public benefit company cannot give
economic rewards, for example bonuses, profit sharing, stocks, to motivate its employees,
it instead uses being employed by the company and the comprehensive benefits packages
that comes along with it, as the main motivator for its employees system wide. The
comprehensive benefits package includes, Equal Employment Opportunity, protection
against discrimination based on gender, race, religion, and sexual orientation. Wages are
usually comparable with other companies. Employees are also entitled to paid vacation and
sick leave, collective bargaining, the right to arbitration of disputes, medical and dental
benefits, on going training and opportunities of promotions, generous pension plans, and
the option to join other retire plans such as 401k plans, free transportation in New York
City on its trains and buses. These benefits, along with the retirement plans, make the
NYTCA a very desirable place to work and as such it is very competitive to become an
employee. Other motivational methods are letters sent to all employees for different goals
that have been achieved, and there are various competitions that employees can enter
voluntarily to win cash prizes. Competitions such as The Suggestion Program enables
employees who win, earn cash prizes if their suggestions have value and it can save the
company a lot of money by either improving something like a mechanical device, or a way
to do something different. These competitions give extrinsic and intrinsic value to the
winner and intrinsic value to the other participants (Bateman & Snell pg, 407).
Motivational and congratulatory letters are sent to employees who have reached a number
of year service, or having a clean record, or having a good attendance record.
These motivational approaches are very effective, and they encompass and facilitate the
five categories that motivates productive people (Bateman and Snell pg, 398). The five
categories are (1) Joining the organization; Most titles requires passing a test. This gives
legitimacy, levels the playing field and creates a standard of high skill level for the process.
Prospective employees are motivated to trying to get the highest score. (2) Remaining in
the organization; Employees remain in the organization because of the good benefits and
also the knowledge that when they retire they will be receiving 70% of their salary every
month in addition to other entitlements due to them. (3) Come to work regularly;
Employees know that not coming to work regularly and on time is grounds for termination
