2.1 Discuss the relevance of Herzberg’s motivational theory in relation to the case study provided. 2.2 Argue the importance of a contingency approach to leadership within the context of the case.
Question 2
Case study below:
As a junior software developer, Colin Lollback landed his first role in IT with a company that was doing Research and Development for IBM. For Colin, this was a dream come true. The work at Stowe Computing in Sydney, Australia was challenging and cutting edge for the time with a lot of freedom to explore new ideas and concepts. Collin had the opportunity to work alongside some extraordinarily brilliant and resourceful colleagues as well as some of the most talented IBM personnel in a global industry. Everyone was engaged, challenged and motivated.
There was roughly 60 employees in the division who were responsible for work on a range of projects such as conceptualising, designing and implemented the Multi-Lingual Messaging System for the IBM mainframe Operating System MVS-ESA. Double-Byte character enablement of IBM Products and some of the work on Kanji-DOS amongst other projects. The IBM development process was onerous and thorough but everyone enjoyed working hard and contributed whatever it took to ensure each project was a success.
The working conditions were above average with great coffee (very important!), tea and beverages that often included the quintessential for Australian culture “Tim Tams”. The coffee room was where everyone gathered to stay connected with colleagues and other projects, sharing ideas, information and experiences. There is a lot to be said for good coffee. Friday afternoons everyone stopped work early for drinks and pizza in the board room. Often there was an informal presentation or informational discussion that went with this, it was the perfect job! Although the salary wasn’t anything above average at Stowe, the opportunity for achievement, recognition and feedback was very high. With regular interactions and positive relationships with clients and counterparts from all over the world.
The Downfall : Along came the day when an Insurance Company from South Australia bought out the parent business and set its sights on the most profitable division in the company. There was one individual who was made responsible to make as much profit as possible from Collin’s division. One of the first actions implemented was to cut back on tea, coffee and snacks, followed closely by Friday night drinks. The effect caused was to instantly demoralise and destabilise the work environment and created dissatisfaction within the ranks of the workers and managers. Questions started to be raised about job security as the company policies started to change and a pay freeze was instigated.
It didn't take very long before some very key people abandoned the company and along with them went a lot of support from key clients. The new management’s response to this was to assign staff to internal CICS-COBOL/DB2 work on their own insurance software and systems. This wasn't what people had signed up for and in a relatively short timeframe of less than two months, over half the workforce had left the division.
The new owners had treated the division as if employees were part of the machinery without
understanding the real assets of the business. The only real assets that made the business successful and profitable were the Human Assets.
There were some questionable decisions and actions on a number of levels and what the new
owners ended up with was an empty shell. The tea and coffee room isn't just a nice thing to have
in the workplace. This is where employees will get together to talk about their current challenges
and exchange ideas that will improve the business or it can be the place employees will get together to express how dissatisfied they are in their role and air their grievances with others.
Questions:
2.1 Discuss the relevance of Herzberg’s motivational theory in relation to the case study provided.
2.2 Argue the importance of a contingency approach to leadership within the context of the case.
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