ORGANIZATION BEHAVIOR GROUP ASSIGNMENT DRAINFLOW CASE

Employees will most likely enhance their performance based on the cash reward they expect to earn if the reward system should be kept in mind.. Finally, the relationship between incentiv

TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN VIỆN TIÊN TIẾN, CHẤT LƯỢNG CAO VÀ POHE

-ORGANIZATION BEHAVIOR

GROUP ASSIGNMENT

DRAINFLOW CASE

Students: Le Kieu Trang - 11207198

Nguyen Nhu Minh Ngoc - 11206350

Vu Nguyen Huong Nhi - 11206457 Pham Trang Nhung - 11203051 Nguyen Le Gia Huy - 11205477 Hoang Mai Duc Minh - 11206082 Lecturer: Asscoc Prof Doc., Pham Thi Bich Ngoc

Hanoi, 2022

Table of Contents

A INTRODUCTION 3

B BODY 3

1 Overview of the company 3

2 Case summary 3

3 Relevant Theories 4

4 Analysis the cause and problems of the case 4

4.1 Motivational and employees satisfaction 4

4.2 Job Structure and Organizational Design 5

4.3 Incentive Structure 5

5 Answer the questions 6

Question 1: 6

Question 2: 7

Question 3: 8

Question 4: 8

Question 5: 9

Question 6: 10

C RECOMMENDATIONS 11

D CONCLUSION 12

REFERENCES 13

2

A INTRODUCTION

In thisbreport, our group willbprovide an overviewbof the company, thebeffectiveness

of Reynaldo'sicash rewardsband structuredbinterview programs Furthermore, inbthis report

we also providebanswers to the questionsbsuch as what typesiof interviewpprograms we can use for ourkcompany to findithe people thatisuited the companyjmost

B BODY

1 Overview of the company

DrainFlow is a largejresidential andecommercial plumbingnmaintenance entrepreneurnin themUSA The Drain-Flowkplumbing teamihas many years of practicalmexperience in thejprivate, commercial, corporatesand industrialosectors, andounderstand that thesepeach have their own individualaservice requirements

Their focusmis onpproviding their clients withbsolutions, notojust temporarymrelief from a messylproblem Everyaplumbing problemahas a cause, and everylcause has aicure! Drainflow's aim is to informsclients of the bestaoption in order to preventiaire-occurrence

“When the drain won't go, call Drainflow" has beenbplastered on theiribillboard since then1960s

2 Case summary

DrainFlow has effectively used specialization to minimize expenses in order to stayiahead of theicompetition Althoughispecialization can significantly cuts costs, consumer complaints have recentlyescalated Because of client unhappiness, the company has been losing customers to competitors such as LightningmPlumber Customers have voiced displeasure with response times, disorganized service, and expense As a result ofoverspecialization, employees have reported a decline in job discontent and motivation LeemReynaldo, a regionalmmanager who previously worked at Lightning Plumber, was hired She discovered that the employees are unmotivated, and polls revealed that 40% of clients had

a negative experience with the firm's service and 30% would switch to competitors

As the company struggles and revenues continue to fall, Lee suggests utilizing cash incentives to boostbemployee performance, jobisatisfaction, and customeropleasure She also wants to locate employees who are better suited to the company's new goals She believes that standardizingbhiring processesito discoveriqualifiedipersonnel would improveithe situation

As a result, the study will focus on significantntopics such as jobisatisfaction, jobbdesign, personalityi attributes, and organizationalbbehavior

3 Relevant Theories

In addition i to the job m characteristics model i (JCM), many more i models and i theories can be applied

to the b DrainFlow case i study According to the i JCM, any job may be characterized in terms of five b core job m dimensions: skill i variety, task i identity, task b significance, i autonomy, and feedback The goal of boosting staff performance and customer happiness reflects the goal-setting theory in the proposed solutions at DrainFlow Specific and demanding goals with feedback, according to goal-setting theory, contribute to improved performance (Robbins, 2001) If DrainFlow creates a reward system, it will motivate employees to strive for higher targets in order to be eligible for such a bonus Furthermore, the availability of these bonuses is dependent on the amount of customer i satisfaction as assessed i by customer i input According to b goal-setting theory, difficult u goals help m employees focus and work i harder to achieve i them (Robbins, 2001) Employees are persistent in attempting to achieve their goals with the support of an incentive.

According to the expectancy theory, which is also provided at DrainFlow, the strength and tendency for someone to act in a certain way is reliant on the strength of an expectation that will be followed by a given occurrence and the attractiveness of that consequence to the individual (Robbins, 2001) Employees will most likely enhance their performance based on the cash reward they expect to earn if the reward system should be kept in mind When compared to other sorts of awards, this cash reward system appears very plausible to employees due to the possibility of receiving an additional sum of money If the reward is less valuable, the consequence is less appealing to the employee, and they are less driven to enhance their performance The expectancy theory focuses on three types of relationships: effort-performance, performance-reward, and rewards-personal goals (Robbins, 2001) If DrainFlow employees put up their best effort, the effort-performance relationship predicts that they will enhance their individual performance and be rewarded for it According to the performance-reward relationship, employees will perform at levels that they believe will lead

to their earning organizational incentives, which in this case are cash awards Finally, the relationship between incentives and personal goals predicts that DrainFlow employees will be

so delighted with the organizational rewards that they will set more personal goals that will also result in enticing benefits Employees have decided not just on their own personal aims or needs, but also on potential benefits

4 Analysis the cause and problems of the case

4.1 Motivational and employees satisfaction

According to the problem of DrainFlow, we could predict that the attitude toward work can determine success or failure The employees at DrainFlow have plenty of dissatisfied respondents to their extrinsic factors, especially in work conditions Plumbers, plumber’s assistants, order processors and billing representatives all have their own problems that make them unmotivated to work For example, the plumbers resent being sent to do simple jobs, the order processors do not have enough knowledge to explain everything to the customers and send the wrong person to the clients The corporation does not give them the motivation or goal to

work harder, the salary and the unstructured rotation work makes them frustrated Thus, there are no intrinsic reasons for them to perform better or be pleased with their job, feel they fit into their organization If these conditions continue, they will try their utmost to do the bare minimum.

Therefore, it will significantly affect the turnover and customer satisfaction rates Due to the workers attitude table, we could see that the organization also does not really understand what level of hierarchy that their employees are on Most figures in DrainFlow are lower than those

of average employees from other companies DrainFlow’s objective is cost containment, not employee satisfaction Hence, it is obvious that the level of employee satisfaction and their motivation at work cannot be high

4.2 Job Structure and Organizational Design

DrainFlow’s current organizational structure is designed to keep costs as low as possible by specialization of its workforce Plumbers are the most specialized and highly trained and are therefore paid the highest wages Utilizing plumber assistants on less technical work provides a cost savings to the company as well as the customer This uneven reward structure can lead to tension and resentment between employees DrainFlow should work to minimize this tension because each group depends on information from their peers to perform their jobs efficiently It is clear that the existing job design and organizational structure at DrainFlow is generating employees dissatisfaction with their work and, in 25% of cases, driving consumers away from the company The existing jobs at DrainFlow may be described using the job characteristics model It comprises five core dimensions of a job

There is also no structure in place to send information back to the rest of the

organization in the form of a performance review As a result, given the current employment structure, it is impossible for plumbers, plumber assistants, and order processors to receive feedback on their performance The current job structure does not meet the job characteristics model's requirements in any area, and hence should be redesigned

4.3 Incentive Structure

Currently, DrainFlow does not have an incentive structure that motivates employees to put any extra effort into their job There are no rewarding variable-pay programs Lee

Renaldo presented a monetary award system to improve her employees' performance Order processors would receive a small bonus for successfully completed calls under Lee's proposed scheme For on-the-job work, if a job is completed promptly with no complaints, the plumber

or plumber’s assistant would be given a small cash reward This variable pay method is a form of piece-rate compensation, in which employees are paid a specific amount for each successful call or visit Because of DrainFlow's client retention concerns, an incentives system should emphasize quality over quantity Her recommended strategy encourages employees to execute orders rather than ensuring client satisfaction DrainFlow must also assess the advantages and disadvantages of a financial rewards system Financial incentives can have harmful consequences by encouraging unethical action to achieve personal goals

As a result, the incentive structure should not be only based on cash rewards Finding a balance between intrinsic and external rewards is not mentioned by Renaldo Private and public

recognition, employee of the month awards, or simply a personal thank you card are examples

of intrinsic rewards According to several studies, financial incentives motivate people in the short term, but intrinsic or non-monetary rewards inspire people in the long run This makes employees feel important and valued in a fast-paced setting, and it would be beneficial in DrainFlow's incentive structure

5 Answer the questions

Question 1:

“Although it’s clear employees are not especially satisfied with their work, do you think this is a reason for concern? Does research suggest satisfied workers are actually better

at their jobs? Are any other behavioral outcomes associated with job satisfaction?”

Employees who are dissatisfied with their occupations are less likely to work hard to achieve organizational goals This is a disturbing factor for the company because it indicates that meeting organizational objectives may take even longer In this scenario, DrainFlow employees are

unmotivated, and as a result, they are unable to give the level of customer service that they should Competitors such as Lightning Plumber, on the other hand, provide exceptional customer service Lightning Plumber has also boosted the workplace's life and vibrancy.

Job satisfaction is linked to a number of behavioral outcomes that influence job performance These connections could be advantageous or disadvantageous in terms of performance Employees' organizational citizenship activity is influenced by their level of job satisfaction (OCB) Employees who are happy in their jobs are more likely to go above and beyond their responsibilities simply because they appreciate what they do Employees commonly engage in OCB as a result of positive employment experiences and coworker support Customer satisfaction has also been demonstrated to positively influence job performance DrainFlow is currently receiving a number of surveys from customers expressing unhappiness with the service In the overall poll, 40% of respondents stated their experience was unfavorable, and 30% indicated they would use a competitor if they had a plumbing problem again.

Some work satisfaction correlations, diversely, can lead to unfavorable behavioral outcomes Absenteeism, turnover, and workplace misbehavior all have an impact on job satisfaction Employees who are unhappy with their jobs and have other possibilities are more likely to miss work When there are few other employment available, dissatisfied

employees have the same low absenteeism rates as satisfied ones Similarly, turnover is caused by a variety of job options Employees are affected by the "pull-push" process, the appeal of other work, and the unattractiveness of the existing job Employees disengage as a result of workplace wrongdoing Employees are so unsatisfied with their jobs that they will attempt to control the situation using a variety of solutions rather than recognizing the source

of the problem Workplace deviance can take many forms, including substance abuse,

attempts at unionization, and theft

Question 2:

“Using job characteristics theory, explain why the present system of job design may be contributing to employee dissatisfaction Describe some ways you could help employees feel more satisfied with their work by redesigning their jobs.”

Employee unhappiness is presently being exacerbated by DrainFlow's employment design They are poor not only in organization, but also in coordination and knowledge The positions at DrainFlow can be characterized by five core work aspects, according to the job characteristics model (JCM): task identity, skill variety, autonomy, task significance and feedback Task identity, task relevance, and feedback are all high for plumbers and plumber's assistants Plumbers and plumber's assistants are responsible for all of the work that has been given to them Nevertheless, even if they are assigned to a job, they may not be able to fix the problem When the wrong employee is given to work that is too difficult for them, for example, the job must be postponed The customer and employee both wasted time by sending the incorrect staff, and in most situations, the customer denies further

interaction with DrainFlow As a result, employees are compelled to deal with customer complaints on the spot and explain that they have no control over appointment scheduling Employees are

overworked, not only in terms of their jobs, but also in terms of providing customer service As a result, sending the incorrect personnel to a work can affect the prices the customer must pay A highly skilled plumber who is dispatched to do a simple task, such as snake a drain, charges a big cost.

Despite the fact that the current work design looks to be pretty simple and

straightforward, employees at DrainFlow have expressed dissatisfaction with having to perform duties outside of their job description As previously said, employee dissatisfaction has been attributed to a lack of coordination and expertise

If I had the opportunity to boost employee satisfaction, I would implement two distinct strategies Using job rotation, I would move an employee from one work to another on a regular basis This method would most likely be utilized on plumbers and plumber's helpers, who would be tasked with processing orders DrainFlow may benefit from this because plumbers and plumber's assistants are already trained in plumbing and know who to assign to each project When employees' roles are rotated, they become less bored and more motivated This method improves the worker's capacity to plan, execute, and evaluate their work This, I assume, would motivate people in all types of jobs and lead to higher job satisfaction As a result of job enrichment, employees with more independence and responsibility can analyze and correct their own performance I'd make the jobs better by including the JCM in each guideline DrainFlow staff can hopefully develop a greater grasp of the importance of their work and how customer happiness affects employee job satisfaction by adopting these two methods.

Question 3:

“Lee has a somewhat vague idea about how to implement the cash rewards system Describe some of the specific ways you would make the reward system work better, based on the case.”

Based on the facts of the case, I believe that a monetary incentive program would motivate staff, resulting in improved performance Lee has so far established a plan for implementing the reward system She's come up with a few strategies for evaluating work performance and determining how each job group will be compensated She hasn't decided how the billing reps will be rewarded, how much the monetary rewards will be, or how often they would be given out

I believe that adopting a set of guidelines would improve this incentive system This reward program should be introduced on a monthly basis to begin with I feel that this time frame allows billing professionals to collect just enough data to gauge client satisfaction and work success Employees will also have till the end of the month to make any necessary tweaks and enhancements The monetary rewards will be granted depending on the

information acquired through surveys by billing agents

The quantity of completed surveys received by billing agents will determine their compensation Order processors will receive a bonus for every 20 successful calls

Individual financial incentives will be awarded rather than a category-wide payout, resulting

in a large number of slackers and a small number of hardworking employees As a result, employees will be even more encouraged to work more in order to delight customers

When I think back to Lee's original concept, I don't believe the benefits are minor, moderate, or significant There's no way to know how big the prize is As a result, regardless

of whether an employee receives a $50 bonus or a $100 incentive, all benefits will be the same I believe that everyone should be recognized for their work as long as they are doing their best and aiming to boost customer satisfaction

Question 4:

“Explain the advantages and disadvantages of using financial incentives in a program

of this nature What, if any, potential problems might arise if people are given money for achieving customer satisfaction goals? What other types of incentives might be considered?”

There are pros and cons of using financial incentives The fundamental benefit of monetary incentives is that they create high motivation for employees Pay more, better-qualified, more

motivated staff who will willing to stay company for a longer period of time Pay-for-performance plans may force employees to work harder to satisfy customers We cannot deny the practical

effectiveness of financial incentives in the short term However, using financial incentives in a program of this nature can still create disadvantages in the long term Workers may be more concerned with getting monetary rewards than with the organization's objectives Furthermore, organizations will face higher compensation costs as a result of the increased bonuses Lastly, instead of increasing competitiveness outside the company, financial incentives boost workplace competition, which may bring negative consequences to the company If employees are continuously meeting satisfaction goals, organizations may begin to lose money Despite achieving these objectives is important, using money as a motivator can be

costly The clients can also be put under strain by constantly demanding feedback, which should be spontaneous

There are other types of incentives that might be considered For example, an employee recognition program is suitable in a program of this nature It is a plan to encourage specific

behaviors by formally appreciating specific employee contributions In the long term, the

organization may face a tight budget, so the nonfinancial become more attractive Part of the

incentive is simply to receive recognition, but there are also drawings for prices based on the number

of cards a person receives Centralized programs can ensure that all staff, regardless of where they work, can be recognized for their contribution to the work environment Regional managers at

DrainFlow could highlight employee achievements or even establish a prominent employee

recognition wall for all to see This program is associated with self-esteem, self-efficacy, job

satisfaction, and broadening outcomes from intrinsic motivation Furthermore, DrainFlow could reward their employees by giving them some value incentives, such as: a free pair of movie tickets, a coupon These methods are inexpensive and allow management to be more creative with their

incentives while also keeping staff interested in the prospective reward.

Question 5:

“Create a specific plan to assess whether the reward system is working What are the dependent variables that should change if the system works? How will you go about measuring success?”

Lee Reynaldo, as regional manager of DrainFlow, should be responsible for evaluating client feedback on a weekly basis It is critical that she is informed of the staff’s success as well as client comments Lee Reynaldo should evaluate which individual employees and specific jobs category are getting the highest awards after about three months of establishing the reward system The assessment should be repeated every three months to keep track of the employees and job types that appreciate this reward strategy Therefore, she could determine how effective the system is and analyze whether the system of the financial incentive is effective for all staff at DrainFlow or only for the particular job classifications Thus, she can decide to preserve the incentive system, make some improvements, or eliminate this strategy.

There are some dependent variables that should change if the system works, for instance the growth of job satisfaction and productivity This reward system is seen as a goal for employees to achieve, and once they get it, they will be more pleased with their work Personnel will be much more eager to work and enhance their opportunities of receiving monetary rewards Therefore, the absenteeism and turnover rates decrease The workers will place a higher value on their job titles and not quit their current jobs On the other hand, turnover could bring an advantage to the corporation Because if ineffective staff leave and be replaced by skilled workers, the company will achieve its objectives

It is obvious that the effectiveness of the strategy is based on customer evaluations Thus, if clients are happy with DrainFlow's services, the company will be a lot more successful Customer satisfaction is reflected in the number of new referrals and returning customers The customer feedback

in the survey will be collected and kept on record The form could use the

scale to rate the staff, the scale of 1 to 5, with 1 representing the most unsatisfactory and 5 representing the most satisfactory As a result, customers could rate them on a variety of factors and, if desired, write extra remarks Thus, the achievement of employees could be evaluated by customer reviews in the survey

Question 6:

“What types of hiring recommendations would you make to find people better suited for these jobs? Which Big Five personality traits would be useful for the customer service responsibilities and emotional labor?”

As Reynaldo mentioned, the unstructured interviews of DrainFlow need to change Every job category should undergo a comparable interview procedure, futhermore, the

interviews in each job sector should be standardized Therefore, employers could easily assess

a candidate’s suitability for a certain position The applicant needs to perform all the duties associated with that employment Even if a recruit appears to be qualified for a position, they still have to undergo at least 2-week apprenticeship

With this new type of hiring recommendations, the general managers and regional managers at DrainFlow could be more faith in their employees’ abilities Basic knowledge relevant to organizational behavior, customer service, job category, customer service, and a quick overview of other contributing jobs at DrainFlow will be covered in the courses

Personality tests should also be included in the employment process It helps the employers to understand more how an employee will act in different scenarios and how well they can interact with others by looking at personality features

Big Five personality traits are all useful for customer service responsibilities and emotional labor Extraversion and conscientiousness are primarily shown in customer service responsibilities the latter describes a responsible and structured person whereas, the former depicts a gregarious person The customer service must know the way to communicate effectively with their clients They are trusted to manage any problems that a customer may have Therefore, the agreeableness dimension is needed There will be times when employees have to suppress their emotions to express themselves in a certain way, to influence and create

a state in the mind of the customer Thus, emotional labor generally reflects extraversion, neuroticism, and the openness dimension