Action steps for African Business Schools
2011-05-24 13:56:36 UTC
Case Study: Rewarding employees at Data Ltd
Title
Rewarding employees at Data Ltd
Author
Ovadje, F
Pages
8
Product Type
Reference #
407-075-1
Teaching Note
407-075-8
Institute
Setting
Nigeria
Year
2007
Keywords
Employee motivation; Employee retention; Performance management; Reward systems; Nigeria
Summary/
Abstract
Abstract
Data Ltd (the name of the company has been disguised) has been very successful. In just ten years, it has attained industry leadership. Performance during the current year was spectacular. The company faces the challenge of sustaining the industry leadership position in a very competitive industry. The employees however do not feel that they have been successful. A very ambitious performance target was set the previous year. However, only 82% of the target was achieved. To earn a bonus, the company has to achieve at least 85% of the target. Employees are demanding that a bonus be declared and paid. The managing director (who is the majority shareholder) of the company is wondering whether to succumb to pressures to pay the bonus. A consultant was invited to conduct an employee satisfaction survey. Results of the survey are presented. The case presents an immediate and important problem, whether or not to pay the bonus, as well as a bigger issue, staff retention. The learning objective is to help students appreciate the complexity of employee motivation and retention. The case highlights the importance of different human resource practices and their impact on employee morale and retention.
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