Management .

Running Head: MANAGEMENT 1
Management
Name:
Institution

MANAGEMENT 2
Q 1. In what ways is the work environment at SAS consistent or inconsistent with the
implications of Maslow’s hierarchy of needs theory, Alderfer’s ERG theory, and Herzberg’s
two-factor theory?
Maslow’s hierarchy of needs is a five-tier pyramid that shows human needs. These needs
include; physiological, safety, love and belonging and self-actualization. The four levels at the
bottom are the deficiency needs and the one at the top is growth need. Deficiency is caused by
inadequacy and this motivates people when the needs are not met. For progression, one must
satisfy the needs of a lower level to qualify for the next level (Lester, 2013). The SAS satisfy
these needs by offering food and snacks to its employees. The company also offers daycare for
kids and focus on relationships rather than structure in management. Alderfer’s ERG theory is a
3 principled approach that explains human needs. The initials ERG stands for Existence needs,
Relatedness needs and Growth needs. If one fails to achieve a higher need, the person goes back
to a low-level need. This theory differs from Maslow’s in that the order of the principles is not
dependent on each other. This is because the needs importance in individuals varies in each
level. SAS satisfies this theory by offering employees healthcare, promoting relationship
structure and encouraging employees to take different roles. Herzberg two-factor theories state
that there are certain factors that cause job satisfaction and others cause dissatisfaction.
Satisfaction factors include job status, opportunities for growth and recognition. Hygiene factors
include salary, relationship with colleagues and working conditions. In Herzberg theory, there is
no hierarchy of needs. SAS considers Herzberg’s theory by giving employees independence to
work in a project of their choosing and providing them with good remunerations. Maslow’s
hierarchy of need in this context provides the best motivation as employees can measure their
growth.

MANAGEMENT 3
Q 2. If Goodnight’s approach to leadership is evaluated from the perspectives of Vroom’s
expectancy theory and Locke’s goal-setting theory, where is he on track and where is he in
danger of going off track when it comes to employee motivation?
According to Vroom’s expectancy theory, employees’ motivators is derived from their
choices among different alternatives. Vroom’s theory was based on the following beliefs.
Expectancy: employees believe that increased effort will result to increase performance.
Valence: this is the importance placed by an individual in a certain outcome. Instrumentality:
employees believe that if they perform well, there is something in for them. These factors
motivate employees psychologically to work in ways that will maximize pleasure while
minimizing pain (Mansouri & Rowney, 2014). Goodnight is the CEO of SAS Institute. He
applies expectancy theory by giving good bonuses to employees and providing support for
employee’s needs. He fails, however, to focus on individual needs as each employee has
different needs. According to Locke’s goal setting theory, individuals make goals and are
compelled to achieve the goals by the virtue that they set them. The principles of Locke’s goal
setting theory are clarity, challenge, commitment, feedback and task complexity. Mr. Goodnight
applies Locke’s theory by encouraging his employees to set goals through workshops. He is
always open to new ideas from his employees.
Q 3. As a compensation consultant, you’ve been called in to review how SAS pays its
employees and the benefits it offers them. You’ve heard some employees say that they could be
attracted to other employers if they offered higher salaries. Employees overwhelmingly like the
SAS benefits and the working climate, but the fact is that offers of higher pay elsewhere could be
hard to say “no” to. What insights do motivation theories offer about this situation? Should it be
addressed somehow with changes to the way SAS presently operates? Or, is this a situation