Could a seniority Based Pay be used as a Motivation Device (MBA Essay

Could a seniority Based Pay be used as a Motivation Device (MBA DISSERTATION) - Essay Example The purpose of the present research was to establish if the seniority based plan can act as a motivational device. Towards this, a qualitative research was conducted where the managers and the employees were asked to give their opinion about Favourable/unfavourable aspect of the plan, and also to make suggestions to improve it. The responses indicated that employees at Federal Foods Ltd appeared to be approving of the concept of seniority based pay, but were concerned about problems with its implementation. Employees at Federal Foods Ltd appreciated the opportunity to be judged on merit, the money offered by the plan, and the incentive to of raise through seniority; but they were concerned with the quality of the goals that were set and with a lack of fairness or a perception of favouritism in the allocation of rewards. The offered suggestion included an appeal to inculcate fairness in the implementation of the plan, to make relevant goals contingent upon the pay and to involve worke rs in the entire process. The participant observation that was carried out by the researchers revealed that the supervisors who acted as their conduit to the senior managers motivated the workers. Other factors that can be attributed to motivating the employees include, realistic and fair budgets, and the encouragement to exercise self-evaluation. It was also observed that among those hired-with-tenure, Federal Foods Ltd employees with 3 to 15 years of seniority earned approximately 8 to 10 percent more than new hires with tenure; and Federal Foods Ltd employees with 16 or more years of seniority earn over 15 percent more than those with 2 or fewer years of seniority. Among Federal Foods Ltd employees who have exhibited a willingness and ability to change employers there are positive returns to seniority. It was also found that the rising returns to seniority among Federal Food Ltd employees are consistent across gender and across departments. The in depth