What course of action would you recommend? Why?
One of the courses of action I would recommend in this situation is persuading Suzanne to stay for a few months as the company tries to find the best replacement. I would tell her that leaving the company is her right, but doing so would greatly impact the company’s performance because of the crucial role she has been playing (McShane & Glinow, 2021). I would try to convince her that she has a right to leave but also make her understand how the company will suffer due to her abrupt exit. I would request her to stay for a few months, with some rewards such as paying her 25% more than her usual salary, some allowances, a flexible working timetable and more. I would offer the bonuses to make her stay longer, change her mind, and also give the company enough time to find the right person to take up her position.
During the grace period, she will decide to be around, and I will try to find the real reasons why she wants to leave and again try to persuade her not to go. If she finally decides to stay, I would insist on renegotiating the work terms to make her comfortable. If she insisted on going after the grace period, the company would have had enough time to find her replacement. The most important aspect of this action is to avoid an impromptu exit from the company because of the consequences. I would try to buy time by making her stay around as the company plans for transition to avoid disruptions. Paying her 25% more on her salary for about three months would not greatly affect the company’s expenditure, especially for highly valued employees like her.
How would your recommended course of action impact the leadership of this organization?
My recommended course of action may not influence the leadership of the organization because this would be a private arrangement with Suzanne. Very few leaders would know about this arrangement, and other leaders may not understand whatever is happening. Therefore, there will be no impact on the organization’s leadership. However, a few people leaders may see the arrangement with Suzanne to be an unfair arrangement. Some may question why a colleague is paid more with some privileges than them (Hom, Allen, & Griffeth, 2020). For my action to work, it must be very confidential to avoid unnecessary questions from her colleagues. Such arrangements are supposed to be very personal to prevent demoralizing other employees. I would also ask Suzanne to keep silent about the issue until the grace period is over, and then I would announce her departure to the rest of the employees.
What kind of motivational theory is displayed in this case?
One motivation theory that manifests itself in the “keeping Suzanne” case is Vroom’s Theory of Expectancy. Expectancy theory states that behaviors result from conscious choices among many alternatives whose main purpose is maximizing pleasure and minimizing pain. This theory explains why an individual chooses one behavior over the other (Channel, 2021). Suzanne has decided to leave the company to seek a job with a startup. It is likely that she weighed the alternative of staying in the company and leaving and found that joining a startup would maximize her benefits more than when she could stay. Suzanne was likely straining a lot while working in this company, and looking into the future, she could not see her stocks adding more value. She decided to leave and join a startup where her stock would rise fast. Thus, joining the new startup could maximize her benefits more than staying at API.
Channel, A. (2021). Vroom’s Expectancy Theory: How to Motivate Staff and Increase Performance. https://www.tsw.co.uk/blog/leadership-and-management/vrooms-expectancy-theory/
Hom, P., Allen, D & Griffeth, R. (2020). Employee Retention and Turnover: Why Employees Stay Or Leave. Routledge,
McShane, S. & Glinow, M. (2021). Organizational Behavior: Emerging Knowledge. Global Reality. 9th Ed. McGraw-Hill.
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After reading the case study in the textbook, in a Word document, answer the following questions:
• What course of action would you recommend? Why?
• How would your recommended course of action impact the leadership of this organization?
• What kind of motivational theory is displayed in this case?
Text Book: Organizational Behavior: Emerging Knowledge. Global Reality
Steven McShane and Mary Von Glinow
2021 McGraw Hill