Motivation & Demotivation (DP IB Business Management: SL): Exam Questions

Taste Good Catering is a family-run business specialising in providing event catering services. Recently, the company has faced high staff turnover, especially among part-time employees who find the work repetitive and demanding. The management has primarily relied on financial incentives like bonuses and overtime pay to motivate staff. However, productivity levels have stagnated, and complaints about long hours and lack of recognition have increased.

The company is now considering introducing non-financial rewards, such as employee recognition programmes and offering flexible working hours, to address these issues and improve employee motivation. Taste Good’s management believes this approach may also enhance customer satisfaction by fostering a more engaged and enthusiastic workforce.

Taste Good Catering is a family-run business specialising in providing event catering services. Recently, the company has faced high staff turnover, especially among part-time employees who find the work repetitive and demanding. The management has primarily relied on financial incentives like bonuses and overtime pay to motivate staff. However, productivity levels have stagnated, and complaints about long hours and lack of recognition have increased.

The company is now considering introducing non-financial rewards, such as employee recognition programmes and offering flexible working hours, to address these issues and improve employee motivation. Taste Good’s management believes this approach may also enhance customer satisfaction by fostering a more engaged and enthusiastic workforce.

Green Harvest Farms, a mid-sized agricultural company, has experienced challenges with employee motivation. The management has traditionally relied on Herzberg’s hygiene factors, such as competitive wages and safe working conditions, to prevent dissatisfaction. However, these measures have not significantly increased productivity or innovation among workers.

The company is now considering integrating motivators, such as offering training programmes and providing recognition for outstanding performance, to improve employee engagement. Managers hope that fostering a sense of accomplishment and opportunities for growth will drive innovation and improve overall productivity.

Green Harvest Farms, a mid-sized agricultural company, has experienced challenges with employee motivation. The management has traditionally relied on Herzberg’s hygiene factors, such as competitive wages and safe working conditions, to prevent dissatisfaction. However, these measures have not significantly increased productivity or innovation among workers.

The company is now considering integrating motivators, such as offering training programmes and providing recognition for outstanding performance, to improve employee engagement. Managers hope that fostering a sense of accomplishment and opportunities for growth will drive innovation and improve overall productivity.

StyleThreads Ltd is a fashion retailer known for offering affordable clothing. The company has implemented a profit-related pay scheme for its sales team, where employees collectively receive 9.8% of the annual profit as a bonus. In 2023, StyleThreads achieved a profit of $507,635, and the company aims to increase its profit by 21% in 2024.

Green Grow is a sustainable farming company that grows vegetables using hydroponics, a modern method in which plants grow in nutrient-rich water instead of soil. This process reduces the need for large amounts of land and uses water more efficiently than traditional farming methods. The company’s mission is “to grow food sustainably while protecting the planet”

Green Grow supplies fresh produce to supermarkets, restaurants and online grocery services. Customers like the company’s eco-friendly and locally sourced vegetables. Green Grow uses a just-in-time (JIT) stock management system to avoid waste and ensure vegetables are harvested and delivered fresh to customers. However, relying on JIT can cause problems when suppliers deliver seeds or nutrients late. These delays sometimes stop production, which means customer orders are not always delivered on time

Lean production is an important part of Green Grow’s operations. The company uses Kaizen, a system where employees regularly suggest small changes to improve processes. For example, a recent suggestion helped the company reduce packaging waste by 10%. To monitor efficiency, Green Grow tracks key performance indicators such as stock turnover, wastage rates and delivery times. While the company’s stock turnover ratio has remained stable, the average delivery delay has increased slightly due to supplier issues

Employee motivation is essential for Green Grow to achieve its goals. The company offers flexible working hours, training opportunities and performance-based bonuses. Many employees say they are motivated by Green Grow’s mission to protect the environment. However, a staff survey found that some workers feel stressed by the tight schedules required by JIT and others feel that their contributions are not recognised. The company also faces challenges such as a rising absenteeism rate and increased labour turnover, which management is working to address

To improve its operations, Green Grow is considering investing in automation. This would make production more reliable by reducing delays caused by supplier problems. The investment would cost $500,000 and could improve efficiency by 20%. However, the company would need to fund this project, possibly through a loan, which could increase its gearing ratio and financial risks, and we do not know whether shareholders would be keen to take this on

Table 1: Key financial data (2023 and 2022)

Table 2: Employee metrics (2023 and 2022)

Table 3: Operational efficiency metrics (2023 and 2022)

Regal Hotels is a chain of luxury hotels known for excellent customer service and premium guest experiences. The company operates 50 locations across Europe, employing over 4,000 staff. It has a strong reputation for teamwork and innovation. Its democratic leadership style encourages employees to participate in decisions about improving services and workplace practices, fostering a culture of creativity, engagement and collaboration

As Regal Hotels expands into culturally diverse regions, its leadership style has faced challenges. Decision-making processes have slowed, with some initiatives taking up to four weeks due to extensive employee consultation. For instance, a plan to introduce localised room designs faced delays as input was gathered from multiple teams. Managers and regional directors expressed frustration about how these delays affected the company’s ability to stay competitive

Some employees value the democratic leadership style, saying it makes them feel involved and appreciated. However, others find it overwhelming, particularly in departments where consultation disrupts daily workflows. One manager noted, “I love being asked for my opinion, but the time spent in meetings leaves me behind on my core responsibilities”

To address these challenges, senior management is exploring whether elements of laissez-faire leadership could be applied in creative departments, such as marketing, events and design, to provide teams with greater freedom to innovate and act quickly. However, there are concerns about how this change might affect service consistency and accountability, which are central to the Regal Hotels brand

To prepare for potential leadership changes, Regal Hotels has increased its training budget by 15%, focusing on leadership development and conflict resolution. The company has also started conducting regular employee surveys to gather feedback on workload, leadership support and satisfaction. Early survey results show that while 80% of employees value inclusiveness in decision-making, only 50% feel that decisions are made quickly enough to meet customer demands

Table 1: Regal Hotels – Leadership and operational metrics (2023 vs 2024)

Table 2: Employee feedback on leadership styles