Megalith Case Analysis

Running Head: Megalith Case Analysis

Catch-22 at Megalith: Pay or Leadership?

Introduction

Megalith, Inc. is a large company with a long and consistent history of growth and profitability. Their Finance Group has grown drastically in number of employees – almost doubling – and the manager, John C. Boyd, has made special efforts to recruit young, talented managers, and to pay them as well as possible.  Despite receiving the highest compensation possible under company policy, two of Boyd’s top four people have left recently for higher paying positions.  Boyd wants to raise pay for the two he still has to the point that they will not be open to outside head-hunters, and so that he will be able to attract quality recruits to fill the two positions he now has open. However, the head of Human Resources- Ed Rogers refuses to allow any exceptions to the company pay scale, and claims that he is already offering industry standard.

        Megalith has brought in an outside consulting firm, Personnel and Organizational Psychologists, Inc., to conduct a climate survey.  That firm administered Deci and Ryan’s General Causality Orientations Scale (GCOS) to seventy Megalith managers. The GCOS has scales measuring three causality-related personality constructs, related to Deci and Ryan’s Self Determination Theory (SDT). The Autonomy scale is a measure of the individual’s attraction to situations which foster intrinsic motivation, the Control scale measures the person’s tendency to orient their behavior in terms of external factors, such as rewards, and the Impersonal scale measures the extent to which the person believes that they can control outcomes by their own actions, or whether “luck” or “fate” controls what happens in their lives.

Results

Megalith sample consist a total of 70 managers from different pay categories. These managers and were administered on GCOS scale measuring autonomy, control and impersonal.

Table 1 demonstrates the frequencies based on pay categories that determine the number of managers in each pay category. Maximum numbers of managers (34%) belong to slab of $50-$70, with the least (19%) being in slab of $100-$150. Figure 1 displays a graphical presentation of the same.

        Table 2 shows the Descriptive statistics for 70 managers for GCOS and Pay Category stating the means and standard deviation.

        Table 3 displays the comparison of national norms for private-sector managers to the results of the survey at Megalith. As can be seen, the mean values for Megalith is higher in scales of autonomy and impersonal except for control scale, which is much below the national norms. It shows that managers perceive being controlled in the organization. In a controlled environment, employees’ exhibit behaviors in terms of external factors such as rewards, deadlines, structures, ego-involvements, and the directives of others. Figure 2 shows the graphical presentation of the comparison between means of national norms and Megalith survey results.

Correlations were run on the scales in Megalith sample to rule out any possibility of collinearity, and found no significant correlations, except for a strong negative correlation between impersonal and autonomy. The results also showed that there is a positive correlation between control and impersonal. (Table 4).

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Table 5 shows Analysis of Variances between GCOS scales. It shows that none of the scales are significant.

A multivariate Analysis of variance was conducted to test if the scores for GCOS differ by pay category. None of the scores displayed significance. (Table 6). Table 7 displays Test of Between-subject effects where Pay Category being the independent variable and GCOS scales the dependent variables. It again proves that none of the facets are significant.

Discussion

        Current Megalith managers do not differ much from the national norms except for the control scale which is much below the national norms. Controlling events are ...

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