Herman Miller Inc Case Study Essay

Until 2003, HMI offered lifelong art. How did this rule affect the companys ability to staff the organization with managers and employees resourceful of executing the system? How did this practice build the organizational capabilities required for winning strategy execution?Lifelong barter is known as steadfast employees travel for a single employer and be paid directly by that employer. In addition to their wages, they often receive services like subsidized wellness cargon, paid vacations, holidays, sick time, or contributions to a retirement plan. Permanent employees be often eligible to switch job positions within their companies. Even when employment is at will, permanent employees of large companies are gener completelyy saved from abrupt job termination by severance policies, like enkindle notice in case of layoffs, or formal discipline procedures. They whitethorn be eligible to join a union, and may enjoy some(prenominal) social and financial benefits of their em ployment.Lifelong employment facilitates long-term growth for employees, companies and industries. It develops flavor personnel and allows company and projects to build on lessons learned. Project in particular, benefit from this information transfer, as teams and individual are poised to take the expertise and knowledge of one experience to the next challenge, building continuity for the spotless industry. This experience results in better asset management and improved life-of-field systems that are safe and efficient to operate. Lifelong employment facilitate improved engineer designs longer lead times for manufacturing and sourcing of equipment improved constructability lower cost for trading operations and maintenance opportunities for expanded development stronger knowledge base to tackle high-risk technical issues. face provides lifelong employees a much better benefit package such as paid vacation, sick leave and holidays. most importantly, those employees normally can expect career advancement and the opportunity to be part of a larger team and the pursuit of long-term goals. Organization takes a long-term focus on employees with regard to training, benefits, retention and affair in industry activities. Most importantly, organization focused on avail through lessons learned, translating knowledge gainedwith 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, none 1, P88-90)Do non-monetary incentives facilitate strategy execution at HMI? Explain.Yes, non-monetary incentives facilitate strategy execution at HMI.Justifiability conspicuous incentives offer features that recipients often retrieve as luxuries. In other countersigns, a trip or item that a sales person may not be able to discharge purchasing themselves, even if they had sufficient funds , is now attainable through their performance. The emergency to disembarrass the con trades unionption of the tangible reward is eliminated by the hard work put forth to create the opportunity. The value increases in the participants mind with the increased difficulty to obtain it. This lack of need to justify the use of the reward increases the motivational impaction of working to obtain it. ( Jeffrey, Scott A., Shaffer, V. The motivational Properties of Tangible Incentives. Compensation and Benefits Review. May/June 2007)Social ReinforcementThe high direct of visibility of this reward increases the ability for family, friends and colleagues to recognize and acknowledge the tangible incentive. The swag value is high hence reinforcing the performance to obtain it.TangibleTangible non-cash incentive rewards offer an immediate visual imagery and associated experience. The ability to see oneself sitting on the beach in Hawaii or observation the 60 plasma television has an immediat e motivating response to individuals all over the monetary value that would be equal to these items. Separate ImpactA tangible non-cash award is immediately separated from the sales persons income and therefore typically not lumped with other funds. Thisseparation from regular income has demonstrable association back to the awarding firm and provides more motivational impact for sales people or employees.Promotability/Communication ValueCompanies get prolonged value from offering tangible non-cash awards because the recipients often will share their rewards or experiences with others. They also are proud to communicate their accomplishment with others, spreading the word about the company in the process.Discretionary RewardBecause tangible non-cash rewards are not designed to be used for regular bill paying, recipients regain good about using them for aspirational, memorable items or experiences. These good feelings return toward the company whenever they use the items or look at the trip pictures. advantage Creation in Program DesignThe incentive non-cash program should let in the following key components building on the motivating factors to insure its achievement during implementation, acceptance and rollout. (Jeffrey, Scott, 2004, University of Chicago, Graduate School of Business, The Benefits of Tangible Non-Monetary Incent destination as ives)Describe the market-gardening at HMI. Would you characterize HMIs culture as healthy and more often than not supportive of good strategy execution? Explain.Teams were often cross-functional. Membership on a team was based on the employees ability to append to that team. Teams were often based on product development. When the product had been developed, the members of that team were redistributed to new projects. New projects could come from any level in the organization. Workers at all levels were encouraged to put forth new ideas. Because Herman milling machine workers matte empowered, a new manager cou ld run into some startling behavior. each Herman Miller employees could work 16 paid hours a year with a charitable organization of their choice. The company set goals for the number of employee volunteer hours contributed each year to its communities. Progress toward meeting those goals was reported to the CEO.The environmental Affairs Team had certificate of indebtedness for such activities as recycling solid waste and designing products from sustainable resources. Herman Millers beliefs carried over to the family and the community. For example, one employee chose more costly case cement board over PVC siding when in restoring their home, because Herman Miller had a policy to avoid PVC wherever possible. some other employee was involved in a youth soccer association that increase money to buy uniforms by collecting newspapers and aluminum cans. The companys beliefs carried over to all functional areas of the business. Some of them were obviously beneficial, and some were bar ely the way Herman Miller chose to conduct its business. But we cannot deny HMIs culture as healthy and largely supportive of good strategy execution.To sum up, the overall business goals of any organization are both bottom-line-oriented and employee satisfaction-oriented. In the development of an incentive reward system it is important to implement a program that will help an organization reach its organizational objectives term enhancing employee/customer satisfaction, retention and performance. The implementation of non-monetary tangible rewards in an organizations incentive program will be the best decision for all employee/customer influencing managers to implement when working to reach sales quota, revenue poetry and overall goals for the firm. The motivating factors behind performance can be cold reaching. (Jeffrey, Scott A., Shaffer, V. The Motivational Properties of Tangible Incentives. Compensation and Benefits Review. May/June 2007)