Herman Miller Inc Case Study Essay

1167 Words Dec 28th, 2012 5 Pages
Q4
Until 2003, HMI offered lifelong employment. How did this practice affect the company’s ability to staff the organization with managers and employees capable of executing the strategy? How did this practice build the organizational capabilities required for successful strategy execution?

Lifelong employment is known as permanent employees work for a single employer and are paid directly by that employer. In addition to their wages, they often receive benefits like subsidized health care, paid vacations, holidays, sick time, or contributions to a retirement plan. Permanent employees are often eligible to switch job positions within their companies. Even when employment is "at will", permanent employees of large companies are
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Most importantly, organization focused on improvement through lessons learned, translating knowledge gained with each project into innovative opportunities for projects worldwide. Experienced, lifelong employment makes this challenge a reality, capturing lessons, observations and new ideas for ongoing and future applications. (Bruce Crager, World Energy, Vol.9, No. 1, P88-90)

Q5
Do non-monetary incentives facilitate strategy execution at HMI? Explain.

Yes, non-monetary incentives facilitate strategy execution at HMI.
Justifiability
Tangible incentives offer features that recipients often see as luxuries. In other words, a trip or item that a sales person may not be able to justify purchasing themselves, even if they had sufficient funds, is now attainable through their performance. The need to justify the consumption of the tangible reward is eliminated by the hard work put forth to create the opportunity. The value increases in the participant’s mind with the increased difficulty to obtain it. This lack of need to justify the use of the reward increases the motivational impact of working to obtain it. ( Jeffrey, Scott A., Shaffer, V. The Motivational Properties of Tangible Incentives. Compensation and Benefits Review. May/June 2007)

Social Reinforcement
The high level of visibility of this reward increases the ability for family,

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