Goodbye to the Annual Pay Rise Case Study - Arts & Humanities Assignment Help

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Assignment Task

 

Goodbye to the annual pay rise?
How do you feel when you get a pay rise? Happy? Rewarded? Motivated to work harder for that next pay rise? The hope of an increase in pay, followed by a pay rise, can increase employee motivation. However, the effect may not last. In fact, the ‘warm fuzzies’ from a pay rise last less than a month, according to a recent study. If pay rises are distributed annually, performance motivation can drop for many months between evaluations.
Some organisations have tried to keep the motivation going by increasing the frequency of pay rises, although the practice isn’t widespread. As of 2014, only about 5% of organisations in the United States awarded pay rises more often than annually. The element of surprise and the timing of the pay rise is important too. In a recent study in Germany, researchers looked at the effect of providing a small, unexpected pay increase to temporary workers employed on a short-term administrative project in a library. Interestingly, they found that those workers who received the pay rise in two parts instead of one performed substantially better than those who received the same amount of money as a one-off increase before they began working. Study author Dirk Sliwka noted that, ‘The fact that you get a [pay] increase increases your motivation’ although he warned that the effects of a pay rise tend to wear off quickly.

 

Questions

1. Do you think frequent small pay rises versus annual larger pay rises are more motivating? Why or why not?
2. Do you think you would personally be more motivated by more frequent pay rises or by performance bonuses if the annual amounts were the same?
3. According to government forecasts, annual wages in Australia are projected to rise by around 3.5% in the next few years. Do you think this percentage is motivating to employees? Why or why not?

4. Do you think managers are sometimes justified in not taking their employees’ advice? Why or why not?
5. How should managers handle their employees’ dissatisfaction with not having their advice put into practice?

6. Which do you think is the more effective employee involvement and participation (EIP) program: participative management or representative participation? Is it possible to implement elements of both? Why or why not?

 

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