Calculator Allowed: Yes



Transcription of this question: 5.Creative Software Systems (CSS)Creative Software Systems (CSS), a private limited company, designs custom software packagesfor public sector organizations. Ebru Aga is the sole shareholder, though she is considering anemployee share ownership scheme.For years, CSS managed its employees closely, setting individual targets for performance andrequiring regular progress reports. Following Adams’s equity theory, CSS tied financial rewardsto frequently measured perforrnance outcomes. Though managers clearly explained to individualemployees how additional financial rewards were linked to specific contributions they made, manyemployees still felt the system was unfair.After reading Daniel Pink’s theory of motivation, Ebru reconsidered her management style andCSSs system of financial rewards. She liked when Pink reported that a major American companyallowed employees to work 20% of their time on projects of their choice. Ebru implemented thefollowing three changes:• Change 1: Adopting a project-based organizational structure for CSS projects.• Change 2: Eliminating performance-related pay (PRP).• Change 3: Allowing employees to spend 20% of their time on any project they wish, either oneof CSS’s or their own “dream project”.Employees’ reactions were mixed. Some employees were thrilled. They had many ideas of theirown that they wanted to explore. Other employees, however, did not like the change. In the 20%of their time given to any project they wished, they chose to work on projects given to them byCSS. They felt it was unfair. Although they were advancing important projects of the company,they would no longer get performance-related pay (PRP), while others spent their time on projectsthat might not contribute to CSS’s profitability.(a)(b)(c)(d)Define the term public sector.Explain one advantage and one disadvantage for CSS of introducing an employeeshare ownership scheme.Explain one advantage and one disadvantage for CSS of implementing a project-based organizational structure (Change 1).With reference to Adams’s equity theory and Daniel Pink’s motivation theory, discussEbru’s decision to eliminate perforrnance-related pay (PRP) (Change 2) and to allowemployees to spend 20 % of their time on any project they wish (Change 3).[2][10]

Leave a Reply