Case Notes
Case 1-1
Summary
At Zynga, a very strict and rigid control system was utilized that focused on the bottom line over
employee health, welfare, and satisfaction. Zynga, known for FarmVille and CityVille, employed a CEO,
Mark Pincus, who thrived under authoritarian watch over his employees, utilizing top-down management
strategies to increase employee productivity.
Analysis
This case introduces many of the HR concepts that are discussed throughout this text including employee
motivation, organizational culture, ethics, employee retention, compensation, and employee management.
Because this is the case for the first chapter of the text, the instructor may wish to refer to Exhibit 1–3
The Practitioner’s Model for HRM to reference all of the topics which could be discussed in this case
study.
Questions
1. Imagine you are the new HR director at Zynga. What do you think you might do in this situation to
limit the potential loss of a large number of very talented employees?
First, try to talk with Pincus about the cost of driving away talent. Your job as the HRM is to “advise”
him concerning people matters. Talk to him about the costs of low productivity, low satisfaction, and high
2. Are there any benefits or incentives that you can think of that might make more people want to stay
on at Zynga after the IPO is complete and they can “get their money”?
The best incentive in this case would be to change the work environment. It is unlikely that anything else
3. HR managers frequently have to teach other senior managers how to deal with their employees better.
What do you think you can do about Mr. Pincus? Is there anything you can do? Can you coach him
concerning his management style? Do you think this will be effective?
First, remember that he is the CEO!
4. Do you think that big cash and stock rewards for top performers and “the boot” for poor performers
are the appropriate ways to manage talent in this type of high-tech business? Why or why not?
This is not the best thing to do, simply from a turnover cost standpoint. With this type of high-tech,
knowledge-based company, it would not be unusual to spend $100,000 or more to recruit and select a new