Case Recap and key facts: Promotion is the primary motivator for employees at Enterprise. Promotion depends on individual and branch-level factors. Employees compete for bonuses. Promotions on a branch-basis depends on scores based on the ESQi (Enterprise Service Quality Index). Relates to goal commitment and task strategies.
Problem Statement: Is it fair to base promotions and transfers for employees on the Enterprise Service Quality Index (ESQi)?
Components of the Problem: Customers may be hesitate to take the survey so there may be inadequate opinions from customers to properly rate the branch. Customers may be dishonest about the survey and give high scores to make the survey time go quicker. The branch may be located in an area where they do not have a lot of customers.
Situation Summary: Employees should be promoted or transferred based on managers' recommendations because this will give more clear …show more content…
indication to whether or not the employee is able to perform the tasks required for job. Employees should also be promoted or transferred based on commitment to the company. If they have seniority and proper management training, they should be able to represent the company in a higher position.
End-of-Case Questions:
6.1 As an Enterprise employee I would and would not be motivated by bonuses by signing up customers for supplemental liability protection.
The reason why I would be motivated is obviously for the money aspect ($50 or $100 would not hurt the bank account!) On the other hand, I don't want the customer to think I don't care about them when trying to explain to them about the supplemental protection package. I want to sell it to the customer for the sake of their safety and protection and not to benefit my own personal status in the company.
6.2 I would and not be motivated by making promotions contingent on my branch's ESQi score. Customers' honest inputs are great ways to determine how well the branch is doing. The ESQi gives a clear idea on how well the branch is doing in general but does not look at the initiatives the employees as individuals puts in. Employees should be promoted or transferred based on their own individual characteristics and not just on based on how well their branch is
doing.
6.3 Goal setting would benefit the individuals who are working towards bonuses. When employees aim to attain the goal of signing a certain amount of customers up for the supplemental protection package and personal accident insurance, this could be looked as an objective to receiving additional money. Equity theory relates to how the ESQi because just because you're exceeding sale limits as an individual it doesn't matter because the view of the customer is going determine how the branch is rated. The Equity theory doesn't look at the individual rather the branch as a whole.