116. Refer to Pay TV. According to the reinforcement theory, DirectTV’s practice of giving free satellite
television after three months of work would be an example of:
reinforcement on a variable ratio schedule
117. Refer to Pay TV. According to the goal-setting theory, DirecTV call reps:
have a high level of goal acceptance
can only be motivated to achieve extrinsic goals
perceive their jobs to have low goal difficulty
use intrinsic goals to modify their behaviors
are unconcerned about performance feedback
Wegmans
Wegmans, a supermarket chained based in the northeast United States, has been in business since
1915. Its founder believes that if the company could survive the Great Depression, it can survive the
intense competition of today’s grocery industry, fueled, of course, by Wal-Mart. The grocery business
has average margins between 2 and 4 percent. Plus, because of low pay, long hours, and, frankly, a
mundane industry that doesn’t attract and keep top-notch talent, employee turnover averages 100
percent per year. In fact, turnover costs are so high and profit margins are so low (because of intense
competition) that over the last 13 years, 13,500 individual grocery stores, 17 percent in all, have closed
because they weren’t profitable. Wegmans plans to beat those odds by differentiating itself through
service. Providing great service requires a highly educated, motivated work force, and accomplishing
that won’t be easy.
The first step in Wegmans’ plan to recruit a highly motivated work force is to offer workers
excellent medical, dental, and life insurance, as well as long-term disability coverage. Everyone who
makes less than $55,000 a year receives complete medical insurance and a 401(k) retirement plan in
which every employee dollar is matched by 50 cents from Wegmans. In addition to benefits for
full-time workers, part-time workers such as cashiers and baggers, most of whom are high-school
students, can earn a scholarship bonus (for good grades) of $6,000 over their four years of high school.
In fact, Wegmans has given 17,500 full- and part-time employees $54 million for college scholarships
over the last 20 years. Wegmans also pays some of the highest salaries in the grocery industry, which,
combined with the company’s benefits package, keeps Wegmans’ turnover rate at an astronomically
low 6 percent!
Wegmans also invests in its employees through training. Employees must pass 30– to 55-hour
long training classes before they can work in the meat or fish departments. And some are sent to Italy
to learn about cheeses or to work in French patisseries (pasty shops). Produce employees might be sent
to California to learn from strawberry growers.