Leadership, Engagement and Motivation

Waltham’s is a leading retailer specialising in a high end clothing, food and home wear products.

Annabelle has been a Senior Manager at Waltham’s for four years and leads the Customer Services
Department of the company. In a recent appraisal, Annabelle undertook a 360-degree leadership survey
and scored above average in the competency ‘Inspires and Motivates Others to High Performance’. Her
report also indicated that her manager, peers, and direct reports saw this competency as critical for
someone in her position. Some of the written comments in her survey indicated that if she
demonstrated and applied this competency more often, it would have a significant positive impact on
her success on the job. For these reasons, she’s focusing her personal leadership development over the
next year on this competency.

Robin is a Customer Service Team Leader who reports directly to Annabelle. He has worked at
Waltham’s for nine years and his historical performance in sales has been excellent. He joined
Annabelle’s team twelve months ago from the home wear sales team. It is generally known among the
team however that Robin does not have as strong an ability to manage time and communicate decisions
effectively to enable his team to deal with customer queries and complaints. At the same time it is also
well known that he is reluctant to put in any extra hours needed to meet personal and team goals and
regularly emphasizes that he does not ‘live to work’.

Unfortunately, Robin has had several performance setbacks on the job over the last three months. One
of them revolved around some critical missed deadlines, which resulted in unresolved customer
complaints that had to be escalated to senior management level.
Annabelle had also assigned him two projects with some goals that were not easy for Robin to hit, but
she had issued those tasks specifically to give him development opportunities he had requested. This
approach was typical for her, as she generally has a positive, confident approach with her employees.
She worked together with him on his plans and checked in regularly with him during the weeks leading
up to the deadlines. Each time she was assured by him that everything was on track. These were very
visible failures that ended up impacting the performance of Robin’s entire team.

Other setbacks were related to workplace confrontations Robin has had with several of his team
members following the missed deadlines. Annabelle has met with Robin during the past few months,
moving quickly to pick him up on his missed responsibilities and inappropriate behaviour, to make clear
to him and the team that she was holding him accountable for his actions. She interviewed Robin’s team
to get their understanding of what happened and the impact these situations were having on the team.
She’s also spent a good deal of time with Robin to try and establish the reasons for his behaviour and to
help him get back on track. During her meetings with him, she sometimes downplayed the seriousness
of the situations in order to make him feel better about himself.
At Waltham’s, a single reward system is implemented whereby end of year bonuses are awarded to
employees based on annual performance ratings of teams. However, staff turnover is currently
increasing, particularly amongst Customer Service staff, and recent interviews conducted by Annabelle
have identified that Robin’s team feel that rewards based on team performance, rather than individual
performance, are unfair. Team members expressed their lack of enthusiasm for going above and beyond
for the organisation when their bonus was impacted by Robin’s missed deadlines.
Going forward, Annabelle planned regular meetings with Robin, where he expressed concerns about his
ability to lead and motivate others since his role change, which has caused him to withdraw from his
day-to-day responsibilities. Robin would much prefer to have a social life than a bonus and he can’t
understand why his team are so angry. Annabelle suggested she would put Robin forward for
management training to develop his skills and confidence. She also promised to feedback concerns
about the current reward system to the Senior Management team. Although Robin has accepted
Annabelle’s feedback and has shown willingness to take responsibility for his actions, he is feeling
demotivated by the tensions in his team and with Annabelle.
With reference to academic literature, critically discuss the problems within the case study and outline a
practical plan for how these could be resolved in relation to three of the following topics:

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Sample Answer

 

 

 

Critical Analysis of Problems:

1. Motivation and Reward:

  • Problem: The single reward system based on team performance is creating dissatisfaction, particularly among Robin’s team. They perceive it as unfair, especially given Robin’s performance setbacks. This system fails to recognize individual contributions and undermines motivation.
  • Impact: Decreased engagement, increased staff turnover, and a reluctance to exceed expectations. Robin’s team feels demotivated because they are penalized for Robin’s failures.
  • Theory: This aligns with expectancy theory, which states that motivation is driven by the perceived likelihood of effort leading to performance, performance leading to outcomes, and the value of those outcomes. In this case, the team perceives that their effort does not directly correlate with their rewards, thus decreasing motivation.

2. Leadership:

  • Problem: Annabelle’s leadership style, while positive and confident, lacks appropriate levels of accountability and directness. She downplays the seriousness of Robin’s failures, which can be perceived as a lack of effective feedback and a failure to hold him properly accountable.
  • Impact: Robin’s performance issues persist, negatively impacting the team. Annabelle’s attempt to “make him feel better” may undermine her credibility and the team’s confidence in her leadership.
  • Theory: This connects to situational leadership theory, which suggests that effective leaders adapt their style to the needs of their followers and the situation. Annabelle’s approach is not effectively addressing Robin’s performance issues, which require a more directive and corrective approach.

Full Answer Section

 

 

 

 

The Psychological Contract and Perceptions of Justice:

  • Problem: The perceived unfairness of the reward system and the handling of Robin’s performance issues have likely violated the psychological contract between the employees and Waltham’s. Employees expect fairness, recognition of individual contributions, and accountability.
  • Impact: Decreased trust, reduced commitment, and increased turnover. Robin’s team likely feels that their contributions are not valued and that the organization is not upholding its end of the psychological contract.
  • Theory: This is rooted in organizational justice theory, which emphasizes the importance of fairness in organizational processes and outcomes. Distributive justice (fairness of outcomes) and procedural justice (fairness of processes) are both compromised in this case.

Practical Resolution Plan:

1. Motivation and Reward:

  • Implement a Hybrid Reward System: Introduce a system that combines team-based rewards with individual performance-based rewards. This could include:
    • Individual performance bonuses based on specific metrics.
    • Team-based bonuses for overall team achievements.
    • Recognition programs for individual contributions.
  • Increase Transparency: Clearly communicate the criteria for rewards and ensure that they are perceived as fair.
  • Gather Employee Feedback: Regularly solicit feedback on the reward system and make adjustments as needed.

2. Leadership:

  • Adopt a Situational Leadership Approach: Annabelle should adapt her leadership style to Robin’s specific needs. This involves:
    • Providing clear and direct feedback on performance issues.
    • Setting clear expectations and holding Robin accountable.
    • Providing support and development opportunities, but not at the expense of accountability.
  • Enhance Feedback Delivery: Annabelle should receive training on delivering effective feedback, focusing on specific behaviors and their impact.
  • Implement Performance Improvement Plans (PIPs): For employees with performance issues, implement structured PIPs with clear goals, timelines, and regular check-ins.

3. The Psychological Contract and Perceptions of Justice:

  • Address Perceived Inequities: Conduct a thorough review of the reward system and performance management processes to identify and address any perceived inequities.
  • Enhance Communication: Communicate openly and transparently with employees about organizational decisions and changes.
  • Promote Fairness and Consistency: Ensure that all employees are treated fairly and consistently, regardless of their performance or position.
  • Actively Listen to Employee Concerns: Create channels for employees to voice their concerns and provide feedback.
  • Implement 360 Degree Feedback for Robin: This will give him a better understanding of how his actions are perceived by his team.

Implementation Steps:

  • Conduct a team meeting: Annabelle should hold a team meeting to discuss the concerns about the reward system and performance issues.
  • Develop a revised reward system: A working group composed of team members and management should develop a hybrid reward system.
  • Provide leadership training: Annabelle should receive training on situational leadership and effective feedback delivery.
  • Implement a PIP for Robin: Annabelle should work with HR to develop a structured PIP for Robin.
  • Regular follow-up: Annabelle should regularly meet with Robin and his team to monitor progress and address any further concerns.

By implementing these strategies, Waltham’s can address the identified problems, improve employee engagement and motivation, and create a more positive and productive work environment.

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