978-0538468077 Chapter 5 Solution Manual Part 3

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Motivation

96. INCIDENT: MOTIVATING AND MAINTAINING MORALE DURING DOWNSIZING

I. OVERVIEW:

This incident focuses on the issue of how to motivate employees during downsizing. In the case,

most of the clerical sta. position are being eliminated, but not for at least a year. The firm apparently

has not decided which employees to retain and which to terminate. Furthermore, they want to keep

most everyone until their new information system has been fully implemented.

II. OBJECTIVES:

1. To familiarize students with some of the problems associated with downsizing.

2. To examine ways that firms can deal with morale and motivation problems

associated with downsizing.

III. ANSWERS TO INCIDENT QUESTIONS:

1. What action should be taken in order to increase the morale and motivation level of

the clerical sta. at the Rutledge Company?

There are numerous things a firm might do in this case. However, one cannot expect that

motivation and morale will be high given that most of the clerical employees are expec$ng to be

In this case, the firm actually did try numerous ways to deal with the morale and motivation

issues. First, they conducted teambuilding seminars that focused on how employees could work

together with less conflict. They also held award banquets and gave out awards in the form of gi?

2. What action can be taken to motivate those employees who are not using the

technology required of their job?

Whenever employees don’t want to use new technology, a key issue is why. In this case it says

that employees received four days of hands on training, so one might think that they know how to use

the new technology and that they simply aren’t motivated. But, how e.ec$ve was the training? Do

appropriate. If it is a motivation problem, one needs to ask if it is worth solving in this situation. Given

that most of the clerical sta. will be terminated in about one year, perhaps it is not necessary that they

all learn the new technology. As long as some know it, that may be suCcient. One alternative here is to

3. What criteria should be used to determine which clerical employees should be

retained?

The criteria to be used will depend on the job duties and responsibilities required in the new

clerical jobs that will exist a?er “moderniza$on” is complete. These ultimately will be determined

4. Should the firm a<empt to solve its motivational problems by conducting further

training?

conducting further training to solve motivation problems is not likely to be e.ec$ve. The

97. INCIDENT: MOTIVATING EMPLOYEES DURING A BUYOUT

I. OVERVIEW:

This incident focuses on one of the many problems that develop in firms when they are involved

in a buyout, merger, or acquisition. Firms are always in the middle of an array of projects and

work-related ac$vi$es when one of these events takes place. They are not siIng still. Students are o?en

not aware of the problems that occur within the organization when drastic organizational change events

take place.

II. OBJECTIVES:

1. To make students aware of some of the problems that occur when a firm

decides to merge or be bought out by another firm.

2. To familiarize students with some ways firms can motivate and enhance

employee motivation and morale during mergers and buyouts.

III. ANSWERS TO INCIDENT QUESTIONS:

1. Should the awards banquet be held as scheduled, or should it be canceled or

postponed?

There is probably no “right” answer to this question. The important thing is for students to look

at the pros and cons of the three alternatives: continue with the awards banquet, postpone the banquet,

One could argue that the banquet should be canceled because the excitement, fun, and value of

The firm could postpone the banquet. By wai$ng for perhaps a month, some of the uncertainty

Note: the firm in this case actually cancelled the awards banquet without explanation. The buyout was

2. Assuming that Radio,Inc. is bought, what can the firm do to retain desirable

employees and to enhance employee motivation?

One of the downsides of mergers and acquisitions is the terri0c uncertainty it creates among

employees. Will they have a job or should they start sending out resumes. One of the risks here is that

many of the key people leave so that the acquiring firm has only acquired an empty shell of a firm. This

has happened in the financial industry where one firm buys out a brokerage firm, and most of the good

Labor Relations, Collective Bargaining, and Contract Administration

98. CASE: UNION ORGANIZING AT SGA INDUSTRIES

I. OVERVIEW

This case focuses on the union representa$on election process. specifically the case addresses

events leading up to the 0ling of the pe$$on for the election and management’s response to the union’s

campaign.

II. OBJECTIVES

Possible learning outcomes for students include:

1. A be<er understanding of why workers seek union representa$on.

2. Introducing the students to possible illegal ac$vi$es (management unfair labor

practices) during the representa$on election process.

3. To illustrate the importance of management developing a well defined strategy to

manage their response to union organizing e.orts.

Instructors should stay abreast of current legisla$on under consideration in Congress with respect to the

Representa$on election Process. The Employee Free Choice Act (EFCA) would drama$cally alter the

Representa$on election Process if passed in its initial form, including the elimina$on of the secret ballot

election process. The following link to govtrack.us provides information on the status of the EFCA

h<p://www.govtrack.us/congress/bill.xpd?bill=h111-1409 .

The next two links provide alternative viewpoints concerning the act.

h<p://www.heritage.org/research/Labor/bg2027.cfm

h<p://www.a=cio.org/joinaunion/voiceatwork/efca/

III. DISCUSSION

There are several factors leading up to the election that you will want to explore. initially, the

change in ownership of SGA and the resulting change in management style may be a jumping o. point

While the change in ownership and management style were substantial jolts to SGA’s employees

and the community, the situation created by growing foreign competition and imports led to additional

problems for SGA management. Reeling from a $16 million drop in sales, SGA was forced to layo. 1,500

employees, reduce pay scales, and rescind many of the perks that the workers had enjoyed under the

Anderson family.

The composition of SGA’s work force is also an issue that may be developed early in your class

discussion of events leading up to the election. Females have generally not been as recep$ve to union

organizing e.orts in the past while minori$es have.

There are several questions to explore in the analysis of SGA’s response to the organizing e.ort.

You will want to re-emphasize the fact that the manner in which SGA management found out about the

e.ort was not typical of the vast majority of organizing e.orts that take place. The fact that the union

was very open with respect to its e.orts to organize SGA employees well in advance of 0ling a pe$$on

gave management ample opportunity to study the factors leading up to the campaign and develop an

appropriate response to defeat the e.ort.

Key factors to explore include the utilization of community support and the outside law firm to

develop strategy and policy associated with management’s response. The fact that SGA had been an

important force in the economic development of the community for such a long $me should have

enabled SGA’s management ample opportunity to become involved in political and social a.airs of the

community. This certainly would give SGA the inside track and enable the labeling of the union as an

outside threat to the quality of work life of Anderson and SGA employees. Since very few firms keep

qualified sta. on board who possess the knowledge, skills, and abili$es to mount an e.ec$ve campaign

against union organizing, the use of the outside law firm in this situation should provide management

with up to date information in developing its strategy. The direct contact with employees that Phillips

and White engaged in previously might have been viewed as unacceptable conduct during the campaign

process. In light of the 1985 national Labor relation Board decisions which approved some means of

direct dealing between the employer and its employees in organizing situations, Phillips and White made

numerous forays into the plants to explain SGA’s feelings on the issues. In addition, the le<er home (see

the exhibit) in $mes past may have been construed as a threat or misleading, thus providing grounds to

set the election results aside. In the Tri Cast, Inc, case (274 NLRB No. 59 (1985) ) the board found that

statements like those made by Phillips in his le<er to SGA employees are reasonable and permissible.

(See Managers Newsfront, “NLRB and Reasonable election Conduct,” Personnel Journal, June 1985, pp.

33-35.)

This case is based on an actual union organizing e.ort. The union tried for a third $me and they

lost by 200 votes. The e.ort was unsuccessful for a second $me and the union lost by over 1,000 votes.

IV. ANSWERS TO CASE QUESTIONS

1. What was the impetus for the union organizing e.ort at SGA Mills?

Several factors may be addressed in answering this question. Paramount in any discussion here

will be the threat of additional loss of job security as a result of the changing management and economic

2. Discuss SGA’s strategy in managing the representa$on campaign?

SGA played it by the book all the way to the end. They obtained expert legal advice from the

outside. Management was actually able to portray the union as the outsider even though the union had

3. Discuss any potential unfair labor practice charges SGA management might face as a

result of their campaign strategy?

As was mentioned in the answer to question 2, SGA played this one by the book. Recent NLRB

decisions enabled SGA to engage in a tremendous amount of personal contact with employees. The

The preceding teaching note was prepared by Gerald E. Calvasina, Professor of Management, Southern

Utah University.