Fred Maiorino Case

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Case: How to Motivate Fred Maiorino

Fred Maiorino had been a successful sales manager for Schering-Plough Corporation for thirty-one years before Jim Reed was named general sales manager over the South Jersey sales district that included Fred’s sales territory. Afterwards, Reed implemented several changes to try to boost sales including a new performance appraisal system and a hands-on coaching style to motivate his sales staff. The problem arose with Reed’s inability to motivate Fred (Buller & Schuler, 2003).
Major Issues
The major issue is this case is Reed’s inability to motivate Fred, which inevitably led to the dismal of a long-time loyal employee. The major issues associated with this motivation problem include
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22). This is because of manager’s lack of direction and lack of feedback. Employees need to know what their functions, authority, responsibilities, and expectations are in the job and then have continuous feedback to know what they have excelled at and “what opportunities they have for improvement” (Allenbaugh, 1983, p. 22). Many studies have revealed that performance appraisals do not meet the employer or the employees’ expectations because they focus mostly on the individual’s weaknesses. In addition, they determine the individual’s reward while also trying to develop an employee through feedback for improvement. Because of this, employees normally are very defensive about any negative feedback because they want to appear good in order to be rewarded for their past performance. In conjunction with low levels of trust, “management studies have concluded … that negative feedback can lead to deterioration of performance—just the opposite of what the performance appraisal system was intended to do” (Allenbaugh, 1983, p. 23). This makes the performance appraisal ineffective for developing an employee and usually results in the performance appraisals vanishing from the organization (Allenbaugh, 1983). Kuvaas (2006) conducted a study of the effects of performance appraisals on intrinsic motivation. The study included 593 employees from 64 banks in Norway. The results showed that highly intrinsically

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