1.

Consider the situation where the manager changed the time period required to receive
free food and drink from 6 to 12 hours of work. Try to apply each of the motivational
approaches to explain what happened, which approaches offers the most appropriate
explanation? Why?

In the present instance, the manager took retaliatory measures. Previously, each employee
was entitled to a free pizza, salad, and all the soft drinks s/he could drink for each 6 hours
of work. The manager raised this threshold figure from 6 to 12 hours of work, but the
employees had received these 6-hour benefits for a long time. Therefore, they simply took
advantage of the situation whenever the manager or assistant manager wasn't in the
building. Though the night manager theoretically had complete control of the operation in
the evenings, s/he did not command the respect that the manager or assistant manager
did. Maybe this was because the night managers were paid the same pay as regular
employees, and maybe it was because they were the same age, or in some cases, even
younger than the other employees.
Thus, apathy grew within the pizzeria. There seemed to be a further separation between
the manager and his workers, who started out as a closely knit group. The manager made
no attempt to alleviate the problem, because he felt the problem would iron itself out.
Either the employees that were dissatisfied would quit, or they would be content to put up
with the new requirements. As it turned out, there was a rash of employee dismissals. The
manager had no problem in filling the vacancies with new workers, but the loss of
personnel was costly to the business.
2. Repeat question 1 for the situation where the manager worked beside the employees
for a time and then later returned to his office.

The company lacks structure in terms of performance management system for the
managers to work through. It has no tools to measure the performance of the manager
except for the low percentage of the usage and unsold food which at the same time be the
basis of the managers bonus.
It provides limited opportunity for management training thus it led to a low effort to
performance expectancy as the managers doubted their capability to perform the duties
as a manager effectively. Hence, the managers lacked the confidence and knowledge to
take initiative in solving certain problem that arose during business operations due to
peer pressures.
There is a vague organization policies and procedures. Because it appears that it is only
be the manager who creates rules or policies or sanctions whereas it should be the
companys work to stipulate and discuss them to the employees. Well, it is expected
because the company has no balanced scorecard to base the objectives, goals, strategy
and tools to measure them.
Compensation and Rewards Strategy
3. Repeat question 1 for the situation as it exist to the end of the case. In this case, the
loophole is very evident. The company has no training and development plan for the
employees.

The manager has no formalized training period and college education is not even a
requirement. Furthermore, employees are mostly college and high school students who
need more training on the task that they need to perform so that mistakes will be avoided.

There is no developmental plan for the employees. There is no room for advancement
beyond management unless the manager decides to invest in the corporation. Let us also
consider the attitudes and motivation of the employees because they could also be a great
contributory factor to the success or failure of the company. And in this case, the attitudes
and motivations of the employees greatly affect the operation of the Perfect Pizzeria as a
whole.
First, the assistant managers and night managers are not respected. Second the inability
to effectively combat high percentage of waste without strict supervision or the manager
sometimes takes the place of the inexperienced employee by working in food preparation
which was against franchise regulations.
Performance Management. Education is not even a requirement. Furthermore, employees
are mostly college and high school students who need more training on the task that they
need to perform so that mistakes will be avoided. There is no developmental plan for the
employees. There is no room for advancement beyond management unless the manager
decides to invest in the corporation.
Let us also consider the attitudes and motivation of the employees because they could also
be a great contributory factor to the success or failure of the company. And in this case,
the attitudes and motivations of the employees greatly affect the operation of the Perfect
Pizzeria as a whole. First, the assistant managers and night managers are not respected.
Second the inability to effectively combat high percentage of waste without strict
supervision or the manager sometimes takes the place of the inexperienced employee by
working in food preparation which was against franchise regulations. Performance
Management

4. Establish and justify a motivational program based on one or a combination of

motivation theories to deal with the situation as it exist at the end of the case.

As it is stated that the Pizzeria is prospering, therefore it should reconsider to raise the
salary of all part time employees above minimum so that they would be motivated and
would give their best performance to the organization. If in case, the organization cannot
increase their salary, the organization can design a compensation or reward system and
benefits for the employees. For example, rewards those are non-monetary such as gift
certificate and coupons or even the establishment of an employee of the month award. It
would boost the morale of the employees and would feel that they are being taken care of
by the organization. Rather than having in mind that they are working merely to survive
and for security purposes they are forced to perform only the minimum or what is
required of them. Furthermore, it should be noted that any form of incentive pay had
advantages and disadvantages because of this the organization should design a mix of pay
programs. The aim is to balance the disadvantages of one type of incentive pay with the
advantages of another type. And one way of accomplishing this goal is to design a
balanced scorecarda combination of performance measures directed toward the
companys long and short term goals and used as the basis for awarding incentive pay.
Performance Management