RGH Lears Ltd. is one of the top most companies in the energy sector. They slashed down an incentive scheme for their employees few years ago when they had cash problems. This resulted in low productivity and almost closed down the company.

(i) What was the reason behind poor performance of workers?

(ii) What should be done by management to motivate their employees?

(iii) How can the managers resolve the cash flow problems?

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Solution

(i) Productivity based wage incentives were reduced that led to poor performance of the workers.

(ii) The management should motivate employees by ensuring job security.

(iii) Managers can resolve the cash flow problems by encouraging employee participation, controlling absenteeism and enabling employees to take up more responsibilities.

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