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Hovey and Beard Company Case

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1. Discuss how the principles of job design and reinforcement theory apply to the performance problems at the Hovey and Beard Company.

According to Ivancevich “Job Design is the process by which managers decide individual job tasks and authority” (p.150), furthermore managers decide about the content, responsibility and duties of the job. Managers have the power to determine the method of doing the job; additionally they are able to expect a certain level of relationships between all co-workers, subordinates etc. The advantage of designing a job is that interest people get the information about the qualifications which are required as well as the reward for doing the job. The most important part of designing a job is to design it properly and in detail in order to find the right person, therefore an increase of productivity or profitability can be one of the benefits.

Beyond the job design theory Ivancevich describes in his book “Organizational behavior and management” the reinforcement theory (p.286). Regarding Thomson Gale “Reinforcement theory is the process of shaping behavior by controlling the consequences of the behavior” (Encyclopedia of Management). At this the desired or unwanted behavior will be influenced by either reinforcment or punishment.

Reading case 6.1 “The Hovey and Beard Company” apparently the workers get a learning bonus to keep the learning process effective, but within six months the bonus will decrease and finally not exist anymore. This method motivates the employees to learn the new system faster in short term, and in long-term respectively after six months it is predictable that the employees need a new bonus method to keep their speed, therefore a group bonus is organized when the production standard is exceeded. That method to influence the behavior of the employees through the use of reinforcement or punishment that are

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