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ESSAY OUTLINE

Introduction

Todos os Mercados (TM), a South American multinational hypermarket. TM's mission statement is to "have the lowest prices in the market". Due to this main goal for TM, TM has been strictly controlling all aspects of employees performance to achieve lower cost in human resources. Not only are employees not allowed to talk to each other, most TM employees have not had a pay rise fro three years despite the well performance. These have lead to dissatisfaction within the employees.

It is debatable whether TM should or shouldn't implement the possible human resources strategies.

Define the two theories

Positive Arguments of Pink’s Drive Theory (Kenne)

Point: Holding a department team dinner every twice a month

Evidence: This can be done through company giving out funds to the department head/manager to arrange employees dinner. Each department will have their own dinner as a large dinner is not possible especailly with TM that is a hypermarket and multinational company with a large amount of employees. A large dinner or party will not accomplish the objectives of the dinner.

Explanation: By holding a dinner, first it allows the employees to communicate with other people in the team. This will add some enjoyment to the workforce as before TM doesn't allow employees to communicate with each other. By allowing them to do that, employees will feel more relaxed and more eager to work. Secondly, it is also a chance for them to give feedback to the department head which can communicate with people above.

Impact: By giving them a chance to communicate, they will feel more comfortable in working with each other in the same team. This will help build teamwork and lead to the increasing productivity of the company. Moreover, by allowing the employees to give comments on a decision or giving feedback to TM, employees may feel more empowerment and will feel like they are making an impact to the company. According to the Pink's Drive Theory, these two points are two of the three most important factors that affect the attitude of the employees.

Positive Arguments of Adam’s Equity Theory (Kenne)

Point: Improve financial and non-financial rewards for general employees

Evidence: This can be done by cutting down the financial rewards of the senior management team and redistributed depending on employee’s performance (using 360 appraisal).

Explanation: One of the main problem TM is facing is the dissatisfaction within employees. This happens as employees don't feel they are fairly treated, considering the amount of work they put into their job. Therefore, according to Adam's Equity Theory, employees should have a balance input (the amount of effort they put into the work) and output (rewards and bonus). Since, the senior management team is gaining a large amount of financial bonus, employees may feel their works are underappreciated which may lead to conflict and even high turnover rate.

Impact: Therefore, by distributing the financial rewards evenly depending purely on the employees' performance, employees will feel they are treated fairly and will help motivate them to do better in order to get the financial rewards. This will overall help improving the productivity of the employees which will increase the efficiency of the TM. This will hugely impact TM as TM is a hypermarket that needs good services to maintain.

Conclusion