Company U is a chemicals broker, which is operating over 77 years. Hence, the employees of the firm feel like a big family. As they are happy and comfortable, only a few members were working hard. There are a sales drops in specialty chemicals and pharmaceutical division. They have contacted management consultants to analyze the situation. They have examined problem-related to motivation which affects the sales. The sales representatives receive salary and year-end bonuses automatically. There is no incentive for hard-working employees. To determine: Whether high morale have a downside and the way to prevent stagnation.

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Chapter 8, Problem 8.16TE

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Company U is a chemicals broker, which is operating over 77 years. Hence, the employees of the firm feel like a big family. As they are happy and comfortable, only a few members were working hard. There are a sales drops in specialty chemicals and pharmaceutical division. They have contacted management consultants to analyze the situation.

They have examined problem-related to motivation which affects the sales. The sales representatives receive salary and year-end bonuses automatically. There is no incentive for hard-working employees.

To determine: Whether high morale have a downside and the way to prevent stagnation.

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