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The manager of the Research and Development (R&D) Department in Mercury Group noted that in recent years, absenteeism has been steadily increasing, as has staff turnover. He has also received a vast number of complaints over the years from staff regarding their working conditions, remuneration and career path opportunities. In particular, R\&D employees have been highly critical of their workspace, arguing that it does not inspire creativity. In terms of remuneration, they are offered bonuses on the basis of the sales that are generated from their specific projects. This scheme has not been well-received by staff as they feel that the sales generated from their new products are not a true measure of their performance, since the sales are dependent on many other factors outside the control of the R\&D Department. Consequently, bonus payments are rarely paid to the R\&D employees and when they are, there can be a lag of up to 18 months between the release of the prototype to the production plant and receipt of the bonus payment. They feel that this is unfair, as many of the other departments receive regular bonuses. There is also a high level of dissatisfaction at the opportunities offered to R\&D employees for training and advancement, compared to other departments within the organisation. For example, the Finance Department hold monthly in-house training workshops to develop and update employee skills, while the Marketing Department employees are sent to annual external training courses to enhance their marketing skills. Required: (a) Using Herzberg's Two-Factor theory, explain the current level of motivation in the R\&D Department. (3 marks) (b) Using Expectancy theory, explain the current level of motivation in the R\&D Department. (3 marks) (c) Using Equity theory, explain the current level of motivation in the R\&D Department. (2 marks) The manager of the Research and Development (R&D) Department in Mercury Group noted that in recent years, absenteeism has been steadily increasing, as has staff turnover. He has also received a vast number of complaints over the years from staff regarding their working conditions, remuneration and career path opportunities. In particular, R\&D employees have been highly critical of their workspace, arguing that it does not inspire creativity. In terms of remuneration, they are offered bonuses on the basis of the sales that are generated from their specific projects. This scheme has not been well-received by staff as they feel that the sales generated from their new products are not a true measure of their performance, since the sales are dependent on many other factors outside the control of the R\&D Department. Consequently, bonus payments are rarely paid to the R\&D employees and when they are, there can be a lag of up to 18 months between the release of the prototype to the production plant and receipt of the bonus payment. They feel that this is unfair, as many of the other departments receive regular bonuses. There is also a high level of dissatisfaction at the opportunities offered to R\&D employees for training and advancement, compared to other departments within the organisation. For example, the Finance Department hold monthly in-house training workshops to develop and update employee skills, while the Marketing Department employees are sent to annual external training courses to enhance their marketing skills. Required: (a) Using Herzberg's Two-Factor theory, explain the current level of motivation in the R\&D Department. (3 marks) (b) Using Expectancy theory, explain the current level of motivation in the R\&D Department. (3 marks) (c) Using Equity theory, explain the current level of motivation in the R\&D Department. (2 marks)

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