A qualitative case study was conducted to explore the effects of a variable-pay program on employee motivation and teamwork among employees within a large division of a Fortune 500 chemical manufacturing firm. Consistency of the program with the valence, expectancy, and instrumentality elements of expectancy theory was also investigated. The study addressed the practical business problems of under-motivation of employees and lack of teamwork among employees. The research methodology included semi-structured interviews with some of the affected employees and management personnel and a Likert survey administered to all affected employees. The results of the study were inconclusive with respect to the effect of the program on employee motivation and this was attributed to the program not fully satisfying the instrumentality element of expectancy theory. The results also indicated that lower length-of-service employees were more consistently motivated by the program than seasoned employees. Teamwork among employees was not unfavorably impacted based on triangulated results from the interviews and Likert survey. Employees and managers attributed this outcome to a strong culture of teamwork within the firm and employee appreciation of common fate with respect to the need to work together to improve company financial performance so that all might enjoy a higher variable payment. Recommendations for further research include investigating how best to strengthen the instrumentality element of the firm's program and investigating the possibility of variable pay resulting in different levels of motivation for low-length-of-service employees compared to seasoned employees.
|Advisor:||Flegle, Larry V.|
|School Location:||United States -- Arizona|
|Source:||DAI-A 71/11, Dissertation Abstracts International|
|Keywords:||Chemical manufacturing, Motivation, Teamwork, Variable pay|
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