Introduction to Business

Business Case: ‘A Zero Wage Increase Again’

Student Name: Shubham Kaushik

Case Study Aid: Scenarios Evaluation

Analyzing Scenarios Evaluation

Subject of evaluation:

Mark Coglin’s dilemma of providing a wage increase to its employees.

What you need to evaluate:

We need to evaluate whether Mark should provide-

• A wage increase at all.
• If yes, then wage increase to all its employees.
• Only increase wages of minority employees who are working way better off than others in terms of dedication & dispensing their
duties towards their job roles.
Introduction to Business
Business Case: ‘A Zero Wage Increase Again’
Student Name: Shubham Kaushik

Exploring the Evaluation

• Identifying causes of demotivation amongst employees.

• Where is the gap in communication?
• How does equity theory of motivation hold importance here?
• What should be best way of increasing motivation within the team?
• Will giving a wage increase beneficial to the company’s future growth.

Potential concepts and frameworks to help answer the questions. Example: Macroeconomic concepts are useful for evaluating a country's
economic development.

o Equity theory of motivation.

o SWOT Analysis
o PESTEL Analysis
o Free Reign leadership style

Possible Criterion #1: Communicating with employees on a regular basis

Facts/Evidence
Anne & Marie does not take
customer’s presence seriously.
What the evidence indicates Short Term Steps Long Term Steps
about the evaluation
There is lack of communication Weekly/Bi-weekly/Monthly Penalizing employees for
and internal motivation in review meetings. repeated instances of
employees. carelessness.
Introduction to Business
Business Case: ‘A Zero Wage Increase Again’
Student Name: Shubham Kaushik

Possible Criterion #2: Deciding upon a detailed action plan on wage increase to be made

Facts/Evidence
Mark meets Aaron to desperately
understand about possibility of
wage increase
What the evidence indicates Short Term Steps Long Term Steps
about the evaluation
Mark wants its employees to Monitoring performance of each Rewarding hard working and
receive a wage increase but employee and maintaining a performance-oriented employees
wants to be sure if he should do detailed record. with wage increase.
the same with all employees or
only few of them.

Possible Criterion #3: Rewarding the performing employees.

Facts/Evidence
Aaron & Wesley working hard to
fulfill their duties towards their
job even when no one is
watching.
What the evidence indicates
about the evaluation
These employees are internally
motivated and do not loose their
sincerity with respect to their job
role.
Short Term Steps Long Term Steps
Recognising these employees and Rewarding employees like them
appreciating them often. with wage increase to motivate
them to keep working hard.

Possible Criterion #4: Appreciating the hard-working employees

Facts/Evidence
Kyle has been sincerely working
to prove his determination and
loyalty towards his employer.
What the evidence indicates
about the evaluation
Employees like Kyle prove to be
great achievers in the long run.
Short Term Steps Long Term Steps
Recognising these employees and Rewarding employees like Kyle
appreciating them often. with incentives and maybe a
higher designation.
Introduction to Business
Business Case: ‘A Zero Wage Increase Again’
Student Name: Shubham Kaushik

My overall evaluation is that Mark should reward only it’s hard working and performing minority group of employees with a wage increase.

What are the major reasons that support your overall evaluation?

▪ Rewarding everyone with wage increase will make nonperforming employees sluggish making them feel the success of reward
without working hard.
▪ Rewarding hard working employees with wage increase will provide external motivation to them to work even harder.
▪ Rewarding only minority group of employees and communicating with the ones who did not receive increase will make under
performing employees to start working harder to achieve something they missed with their sluggish attitude.
▪ Communicating with under performing employees and explaining them the reason of their non appraisal due to their low
performances.
Introduction to Business
Business Case: ‘A Zero Wage Increase Again’
Student Name: Shubham Kaushik

Overall Evaluation Mark should move forward with a hybrid rewards program wherein only those employees will be
rewarded who have shown hard work and satisfactory performance.

Summary of Major Reasons for Those employees who have been performing despite of not receiving wage increase should be given
Recommended Evaluation raise as this will instill a sense of loyalty and motivation in them to work even better.

Evidence Proving Overall Evaluation

Criterion 1
a. Communicating with employees on a regular basis.

Criterion 2
a. Deciding upon a detailed action plan on wage increase to be made.

Criterion 3
a. Rewarding the performing employees.

Criterion 4
a. Appreciating the hard-working employees

Provide a wage increase to only deserving employees based upon their performance and seriousness towards their job role.

Short Term

Recognising and appreciating performing employees.

Introduction to Business
Business Case: ‘A Zero Wage Increase Again’
Student Name: Shubham Kaushik

Long Term

Rewarding satisfactory performing employees with a wage increase.

Major Risks

Some employees might not like detailed analysis of their job work as they tend to run away from their responsibilities and not work sincerely.

Mitigation of Risks

Regular communication and counselling of under performing employees.