answer the questions

Plaza Grocery

Brad Holden was the executive vice president for Plaza Grocery, a family-owned chain of six grocery stores in a medium-sized metropolitan area. The current problem he was facing dealt with the stock clerks/carryout workers in the stores. Despite paying them the usual wage rate (the minimum federal hourly wage), he had trouble obtaining enough applicants for the job. Worse still, many of them seemed to lack motivation once he hired them. This situation created problems of empty shelves and slow service at the checkout lanes. In an attempt to solve the problem, Brad met with small groups of the workers to get their ideas. He also consulted with a local expert on compensation issues. Some workers said they wanted a higher hourly wage rate; others said they wanted some incentive to work faster; some had no comment whatsoever. The consultant recommended that Brad consider using some of the more contemporary compensation systems.

Answer these three quesitions:

1. Which of the major economic incentive systems discussed in this chapter has the best chance of working for Brad?

2. Can two or more incentive systems be combined, with an even greater likelihood of success? What might be gained through a combination, and what would be the costs (for both Plaza Grocery and the employees)?

3. In your recommendation, which motivational theories are you most specifically using?

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