Chapter 2

To reduce costs, Morris decreased the total number of full-time employees. This resulted in

employees feeling the need to work longer hours, increased pressure from management, and

overall employee dissatisfaction. “Our decisions are guided by personal values because those

values generate positive or negative toward the available choices” (McShane et al., 2021, p. 44).

We experience more positive feelings towards choices aligned with our values, which can be

seen in the case of the employees. “Values help regulate the consistency of behavior” (McShane

et al., 2021, p. 44). People are motivated to act consistently with their values and other aspects of

their self-concept. When Morris introduced “Management Culture,” he did not account for

management culture’s flaws. Managers who understood what Morris was measuring acted

accordingly by increasing inventory velocity. In this management culture, the value of employees

was diminished; those who had been seen as collaborators and peers were now being told how

they should do their jobs. This made employees unhappy with the company, and their value

toward the company deteriorated. 2 “Self-Esteem is directly related to expectations for success.

People's self-esteem has to do with their self-perceived competence and self-image"(McShane et

al., 2021, p. 43). The most recent studies indicate that self-esteem plays at least an important

moderating role in areas such as emotional and behavioural responses and stress of

organizational members. Employees with high self-esteem feel unique, competent, secure,

empowered, and connected to the people around them. This can be seen in the case study when

Colombo introduced ROWE. “Job Satisfaction refers to an individual’s general attitude toward

his or her job.” A person with an elevated level of job satisfaction holds a positive attitude toward

the job. In contrast, a dissatisfied person has a negative attitude toward the position. When
people speak of employee attitudes, they often mean job satisfaction. In the case study, we see

that the employees’ attitude was negative when Morris took over the CEO position.

Chapter 5 and 6

The reduction of employees resulted in Electronics Shack losing out to its competitors due to

decreased performance and changes in behaviors from the employees. Determining motivational

drive is step one in understanding what affects a person's performance or behavior. Motivation is

the force that drives someone's "effort for voluntary behavior" (McShane et al., 2021, P. 115);

this drive includes focus on achievement, the amount of energy given to achieve the objective

and their sustainability. Under Morris, the employees were demotivated, which decreased their

loyalty and productivity to attain their goals. The loss of motivation can be attributed to many of

the changes Morris made during his time as CEO. Many motivation theories come to mind in

understanding the cause and effects of the changes.

One of those theories is the "Four-Drive Theory," which is described as "innate drives to

acquire, bond, comprehend, and defend that incorporates both emotions and rationality.

(McShane et al., 2021, P. 118). These four drives are proactive in the mindset of everyone, and it

is something that needs fulfillment. Of the four drives, the one related to the problem is the drive

to bond, which is the motivation gained from the feeling of "belonging and affiliation."
(McShane et al., 2021, P. 118). It motivates people to cooperate to achieve a common

organizational or social goal. The "Management Culture" introduced by Morris removed the

collaborative culture that Electronic Shack originally had in favor of a more hierarchical one.

The new way of management focused on discipline, and only the higher-level managers had

authority and control, causing the managers to demand more from their employees rather than

working with them to solve a problem. The high work demand caused the employees to burn out,

resulting in the work chain breaking apart.

Another theory that takes effect is the social cognitive theory. According to the social

cognitive theory, "by observing and modeling others as well as by anticipating the consequences

of our behavior" affects one's behavior and performance (McShane et al., 2021, P. 127). Morris

seems unaware of the consequences of his "management culture," which damaged the work

culture Electronic Shack originally had. The lack of anticipation and self-regulation demotivated

many staff members, effectively decreasing their performance

to bond, which is the motivation gained from the feeling of "belonging and affiliation."

(McShane et al., 2021, P. 118). It motivates people to cooperate to achieve a common

organizational or social goal. The "Management Culture" introduced by Morris removed the

collaborative culture that Electronic Shack originally had in favor of a more hierarchical one.

The new way of management focused on discipline, and only the higher-level managers had
authority and control, causing the managers to demand more from their employees rather than

working with them to solve a problem. The high work demand caused the employees to burn out,

resulting in the work chain breaking apart.

Another theory that takes effect is the social cognitive theory. According to the social

cognitive theory, "by observing and modeling others as well as by anticipating the consequences

of our behavior" affects one's behavior and performance (McShane et al., 2021, P. 127). Morris

seems unaware of the consequences of his "management culture," which damaged the work

culture Electronic Shack originally had. The lack of anticipation and self-regulation demotivated

many staff members, effectively decreasing their performance.

Lastly, a theory that applies is the "expectancy theory." The approach is that work effort

contributes toward behaviors that will affect the desired outcome (McShane et al., 2021, P. 123).

Employees felt pressured to work night and weekend shifts while not recording their hours due

to the increased workload and decreased staff members. The employees worked for an

inappropriate amount of time to complete their tasks, and there were no rewards for their work if

they were to. Over time, this caused work efforts and loyalty to diminish and lessened their

probability of putting in a specific effort and performance level for the desired outcome. The

company soon lost to its main competitor, completely losing what Morris wanted to achieve.

On the other hand, Colombo's management style is consistent with Maslow's hierarchy

of needs theory, which states that people prioritize the satisfaction of higher needs when lower
needs are met (McShane et al., 2021, P. 119). Employee satisfaction is Colombo's top priority

for improving morale and productivity. The goal of introducing more flexible working

arrangements is to increase employee commitment and productivity by revitalizing their sense

of purpose and belonging to the company. But improving performance and behavior at work

requires more than simply recognizing motivational variables. Clearly defining goals and

implementing incentive systems are important factors in motivating employees. Colombo's idea

of a results-driven work environment emphasizes results rather than working hours. It aims to

motivate employees and increase morale and productivity without increasing working hours.

This method is based on the performance of the gear (McShane et al., 2021, P. 146).