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THE WORK STATION BONUS


OBJECTIVES

• To consider the relationship of performance appraisal, feedback,and reward to motivation • To consider the interdependency of teammembers • To explore the difference between bonus rewards andsalary


Background

You are the manager of the high-technology department in anindustrial design firm. Several months ago, your company decided tobid on a project to design the housing for a new generation ofcomputer work stations to be based on the latest RISC technology,Realizing that this could ultimately turn into a million-dollarcontract, you carefully selected two three-member teams and setthem to work to deign the prototype, giving each team thecustomer’s specifications and the following clear instructions: thehousing had to be designed quickly; it had to be high in qualityand durability; it had to be aesthetically distinctive; and it hadto be modular, cost-effective, easy to assemble and service, andeasy to ship.

Yesterday, you were excited to learn that your company got the job.Your very happy CEO has authorized $35,000 in bonus money for youto divide among your employees in any way you deem fair. You knowthat the way you give out the bonuses can have a serious impact onthe morale and motivation of you employees and can affect theirparticipation on future projects.

Knowing something about equity, expectancy, and other theories ofmotivation, and understanding the basic tenets of performanceappraisal and feedback, you know that you have to have a clearbasis for apportioning the bonuses. In addition, you know that thisproject would never have gotten done well and on time without ateam approach.

The way you give out the bonuses may affect how well your employeeswork together in the future.

Instructions Read the background information and the profiles ofeach of the team members as they appear below and answer thequestions at the end of the case.

TEAM A

You had assigned the following people to Team A:

Jennifer

Jennifer had worked off and on for you on a part-time basis forfive years. A divorced mother with two young children, it had beenimpossible for her to come on full-time until both of her childrenwere in school. Jennifer began full-time this past September. Youwere pleased to hire her, because she is an unparalleled designerwith a sense of the practical. Indeed, you weren’t let
down by her abilities on this project. Her initial sketches servedas an excellent starting point and as the basis upon which thehousing was ultimately designed. What did cause some problems,however, was that her children both came down with the chicken poxin the middle of the project, causing her to miss almost a fullweek at work. During that time, she came in nights, weekends, andwhenever else she could find child care.

Abdul

Abdul is a true workaholic. Whenever you have assigned him to aproject, he has worked virtually seven days a week, twenty-fourhours a day, until completion. This project was no different. Abdulis pretty much of a loner, and you’re aware that he frequently madehis teammates angry when he made changes to their design planswithout consulting them. When confronted, Abdul always acteddisgusted as he pointed out just why the changes were necessary;more often than not, his teammates grudgingly went along with him.Unfortunately, you ended up spending a lot of time putting out theemotional fires that Abdul regularly seemed to start. Abdul is ajob hopper; he has been looking for another job since he startedwith your company just eight months ago.

Hank

Quiet, competent, and self-assured, Hank goes about his business asbusiness. You wanted Hank on this team because he is stable andreliable. He isn’t, however, particularly creative and innovative.What he does best is to take other people’s ideas, refine them, andexecute them. He is also an excellent model builder, and the modelshe produced for this project are meticulous. Hank rarely stays lateor works overtime, unless absolutely pushed. Instead, he prefers tospend nights and weekends with his family and in communityactivities. He is very active in his church and occasionally getscalls during working hours from church members who have pressingquestions. In the past, you have asked Hank to limit hisnonbusiness telephone time. Over the course of this project, youhave noticed that he has had few calls, and those he has had havebeen brief. Hank has been very understanding about Jennifer’sproblems and has done everything he can to help her out and coverfor her.


TEAM B

You had assigned the following people to Team B:

David

When David first came to the company, you were concerned that hewouldn’t work out. He had been fired from his previous job. Youwere told by a friend that it was for frequent absences; however,David tells you it was because his boss didn’t like him. While hehasn’t been absent very often since joining your department, he hascome to work late on a regular basis. David never did very muchactual work on this project, and he couldn’t be counted on to meetdeadlines; but he is the only person other than Jennifer who hasthe design expertise and an understanding of aesthetics necessaryto do this job. He is a brilliant innovator, and he came up withsome terrific ideas, a couple of which were incorporated into thefinal design. They may have been the reason that your company gotthe contract.

Mei-Ling

Mei-Ling is your most reliable materials expert, but she knowslittle about design. She selected the materials for the project’sprototype, and Hank tells you that her ideas were brilliant. Thanksto Mei-Ling, the work station is durable, lightweight, and can bebroken down into modules for easy assembling, servicing, andshipping. You’re not sure whether it is out of modesty or loyaltyto her team that she tells you that she selected the materialsbased on David’s suggestions and that she couldn’t have chosen thecorrect materials without him. Mei-Ling has been excited about herproject and about her team. She has asked that the three members beallowed to work together again on any upcoming projects.

Maida

Maida is one of those people who organizes things, gets afterpeople to do their jobs, and picks up the pieces for others whenthey don’t follow through. She generally does this withoutcomplaining, and she constantly praises those around her as knowingmore and being more able than she is. On this latter point, she maybe right—she isn’t particularly brilliant or creative, but she is aplodder. So long as Maida is around, things get done and generallyon time. When projects bog down or team members become upset withone another, Maida is there with support, homemade brownies, andoccasionally a joke—she’s a real team player. You put Maida on thisteam because you thought she would be able to offset some ofDavid’s irregularities, and that is exactly what she did. Maida,Mei-Ling, and David generally eat lunch together, and you haveoverheard them making weekend plans with one another on a number ofoccasions.


THE RESULTS

Team A finished their project in seven weeks. It was largely theirdesign, combined with a few of Team B’s innovations, that resultedin the company’s winning bid. Team B had actually finished ten daysearlier than Team A, but there were a number of small flaws intheir design that resulted in its being rejected. The $35,000 inbonus money is ready to be distributed.

Questions for Discussion

1. What criteria would you use to determine how to award thismoney? 2. How would you divide up the $35,000? Provide explanationto support your answer. 3. Based on your allocation, what would bethe potential positive and negative effects on their behavior andproductivity, as individuals and as team members? How might itimpact their future performance and cooperation with one another?4. Would it be advisable to bring the team members into yourdecision-making process? Why/why not? If so, how would you do this?5. How would you distribute the money (e.g. in their paycheck? toeach person or group?) and why?