At the independent firm she will be prospecting her own wells with a team consisting of only two or three other people, whereas Petrolin teams are very large and are made up of several geologists. It will also be easier for her to get approval for drilling, since proposals go straight to the president of the company, instead of going through several levels of management.
Petrolin is loosing to many of their top scientists, which can jeopardize the productivity of the organization. There is also concern that inside information is being taken to the independent firms. Action must be taken to lower the turnover, by making the independents offers seem unattractive in comparison to what Petrolin has to offer.
The Solution
Possible Solutions
One possible solution to the problem would be to discourage the employees from leaving by pointing out the negative aspects of being part an independent firm.
Bruce informed Virginia that the positions they offer have a heavier workload and have no support staff to do paperwork that is normally done by the bonus babies. Employees are not free to take vacations when they want, since there is no one to cover them. Another set down would be that only 10% of prospects actual yield oil, which does not make override as attractive as it sounds. Leaving Petrolin also removes easy access to current information. His attempt was unsuccessful and brought realization that it is going to take actions not words to get employees to stay with the organization.
Another possible solution would be to increase the earth scientists’ pay. Unfortunately, this will probably result in a negative reaction amongst other employees, but can still be considered as a possibility.
Overrides are out of the question, since larger firms have difficulty distributing the royalty. This is due to the fact that they concentrate on larger and more complex oil
prospects, requiring several earth scientists. It is difficult to determine who is responsible for the discovery.
Providing employees with company cars and giving out large cash bonuses based on exceptional performances are also other solutions that will help make employment at Petrolin look more attractive, however it still does not solve the underlying problem.
A temporary solution that Bruce may consider would be to instate strict contracts, which would require employees to give significant notification before departing from the company. This would allow for new personnel to be hired and trained for the job, without disrupting the productivity of the company.
It is obvious that the earth scientists are demonstrating a behavioral problem, which is lack of motivation. As the director of human resources, Bruce must considered creating motivation, allowing for ultimate job satisfaction that would result in earth scientists loving their positions at Petrolin and refusing other offers, which may present them with larger salaries and better benefits.
Alternative Solutions/ Groups recommendations
The analysis of the case reveals a lack of motivation amongst the earth scientists. The organization is failing to meet both their intrinsic and extrinsic motivational needs. Workers, such as Virginia, are demonstrating this behavior due to the following three reasons: dissatisfaction of their needs,
the job has failed to meet their expectations and furthermore, they are showing feelings of inequity. Actions that can reverse these feelings and increase motivation must be considered and are the basis for alternative actions.
Virginia has several higher level needs, which include a need for achievement and power. The lack of achievement is a result from using large teams, consisting of dozens of geologists doing the same line of work. This prevents the workers from making their own achievements, as well as not providing the recognition deserved. Since Petrolin is not satisfying her higher level needs, Virginia is forced to revert towards her extrinsic motivations, such as more money.
Bruce should revise the set up of teams. It is understandable that the company requires large teams, because the prospects involved are larger territories, however it is possible to break up the team into branches, where the earth scientist would be the leader. This would provide them with a sense of independence, leadership and it would allow them to have a sense of accomplishment. It would also benefit Petrolin, by revealing which scientists are producing to their maximum capacity, as well as those who are not.
Consideration should also be directed towards the revision of procedures for attaining drilling approval. Lengthy procedures only discourage geologists, especially since independents allow them to bring their proposals straight to the president.
Motivation is further increased when people receive outcomes, which they expect to receive. It is obvious that their jobs are not meeting up to their expectations. People are motivated to work where they find activities attractive and where they feel they can make an accomplishment. Petrolin needs to create incentive plans and provide recognition and benefits for their employees in order to make their organization more attractive and meet up to their expectations.
Feelings of inequity further contribute to decreased motivation. For example, Virginia has fourteen years of experience in the oil and gas industry, however her salary is only $5,000 more than the “bonus babies”. Job offers made by small firms are more equitable and are therefore more attractive. Bruce should consider providing earth scientists with a pay increase and provide annual raises. Override payments are definitely out of the question, however cash bonuses should be provided based on individual performance to help acknowledge achievements made by employees.
Conclusion
In conclusion, the main solution to this problem would be to increase the motivation of earth scientists. Motivational tactics must be applied using a contingency approach. Each individual has unique needs and expectancies, which must all, be taken into consideration. Motivation is further increased when employees’ jobs are equitable.
Managers should conduct interviews with employees and determine their feelings towards their positions at Petrolin. This would not only allow for managers to determine, which approach is necessary to take, but would also make employees feel that their opinion is valued at the company.
Applying these solutions would cause an increase in motivation amongst the earth scientists, resulting in a decrease in the turnover rate.
