Richer Sound’s Case
The measures above effectively increased the valence, which highly motivate employees so they can give the best. Equity theory: the fact that the pay level in Richer Sounds is at the highest in the hi-fi industry + benefits given to employees is actually rarely seen in other organizations. Richer Sounds employees enjoy a higher ratio of input to output that of staff in other hi-fi retailers, which is actually positive inequity. When people realized the over-reward they received, they tend to reduce the inequity by working harder, according to Buchanan and Huczynski.
Good work recognition, gratitude: very present in the case. The trust put by the management to its employees is actually a kind of recognition in itself for the honesty and credibility. The fact that the staff is working for a reputable company + great pay = pride from employees, which is also a strong motivator. Richer sounds = formal group: people are formally allocated to form into psychological groups to work together for their common goals as a basic function unit of the organization. Cohesiveness of group: in the case, we see the efforts put on the cohesiveness establishment of groups and the whole organization.
To achieve good results, Richer Sounds tried many methods: 1) Membership: small teams better than big temps (big = reduction of communication, higher absenteeism rate). Richer sounds only hire candidates with similar interest, knowledge and enthusiasm in the hi-fi industry 2) Work environment: the nature of tasks given by Richer Sounds is similar in different stores and the fact that some of the surveyed staff claim that they laugh a lot implies that the communication among group members is good.
That improves the cohesiveness of the work groups within Richer Sounds. 3) Organizational elements: The sense of trust increase cohesiveness of groups. The success that has been achieved so far by Richer Sounds contributes to the cohesiveness. Leadership: The company leader, Julian Richer, tends to establish a sense of trust between the employees and him via the trust culture and policies in the company. Richer also shows his respect to his employees, calling for a mutual respect as well.
That way, the staff will be more inclined to work harder in a very enthusiastic way. The combination of transactional and transformational leadership approaches worked well and led to good performance of the whole organization, which is why Richer sounds has the highest record in sales per square foot amongst retailers. In Richer Sounds, many organizational behaviors are consolidated as rules, procedures policies and contracts. This tends to shape the good behavior of employees.
Success of Richer Sounds: motivation strategies, group and team building strategies and the proper leadership adopted by the organization play a significant role. In the motivation area, appropriate measures like professional training programs could be adopted to improve the instrumentality and the expectancy to motivate employees. Performance management with clear set goals may also be helpful. Regarding the groups and teams, outdoors activities could be introduced. To what extend do you think that this leadership/management approach is replicable to other organizations? Google Apple Facebook?