1)
Davis having analysed the situation increased rate at which he monitored Eddie Munz' work. Persistently ensured that Eddie's gave more commitment to the job as well as to the team. Because Davis demonstrated a close interest in his performance and welfare, Eddie became more inspired to deliver his best thus become a better culture fit.
If the company had fired Eddie, they would have lost money and time replacing and training someone else. Andy Davis helped to prevent this.
2)
To engender increased performance, Andy Davis used the following elements of Total Quality Management (TQM):
Training: All the other elements of TQM were communicated and reinforced using training. During a training, Andy Davis spoke to Ethics and Integrity (which go hand in hand) and helped Eddie and other staff to understand how those two factors impact the organisation. When an employee, for instance, promised to do something, and they did it, it always increased the value of the organisation. When a staff abided by the ethics and rules, it always protected the organisation from all sorts of unwanted and embarrassing situations and most importantly, it led to Trust. Davis explained that Trust is both internal and external, vertical and horizontal. He explained to Eddie that his customers, his junior colleagues, senior colleagues and contemporaries should be able to trust him.
Leadership: Andy Davis would not have been able to succeed in modifying Eddie's behaviour if he was not living up to the rules he was inspiring Eddie to follow. By exemplifying initiative, and responsibility, Eddie was able to easily mirror the same by working closely with Davis.
Eddie was also encouraged by Davis to always communicate important feedback and details. He explained that it was one of the most important keys to being available to others in the team and vice versa. Davis asked Eddie that if he was unsure what to communicate, he could get clarification from him.
As Eddie began to improve and get better at this work, Davis ensures that he got the recognition he deserved. This motivated Eddie to even put in more efforts.
Concerning Performance Management, Davis adopted a blend of Total Reward System and regular semi-official performance evaluations before the formal one.
At the semi-formal performance evaluations which Davis carried out weekly with Eddie, he gave Eddie the chance to review his performance against goals that had been agreed the following week. Both had sat down to look at the Performance Objective for Eddie's role and therefrom created goals which were broken down into weekly targets. Where Eddie experienced any issues, Davis was always in the know and both looked at possible solutions. Davis also trained Eddie to try to think up solutions for himself. That way he was becoming more of an initiator and more responsible.
All the weekly performance appraisals also enabled Davis to spot problems on time and enabled him to effect timely course correction before it got out of hand. These days, Eddie no longer waits for Davis to check in on the weekly performance appraisals, he thinks up a solution to a problem, proposes them to Davis who in turn modified or ratified such a solution immediately.
At the monthly performance appraisals, all the Key Performance Areas for Eddie's job (which are tied to his monetary compensation) are reviewed. Because Eddie understands that his bonus at the end of the month which sometimes is at par with his monthly gross or even more is tied to his performance in those areas, Eddie quickly learnt to modify his behaviour towards becoming more productive.
3)
Yes. Davis could have relied solely on the financial reward system alone instead of a total reward system which embraces financial and non-financial rewards.
In the method above, Eddie found it rewarding that Davis was interested in training him to become more effective. As he was implementing the lessons learnt through a mentor/coaching system, he got more results. As he got more positive results, his colleagues started to trust and respect him more. All of this added up to motivate Eddie even more than the financial reward. Eddie felt empowered. The more decisions solutions he was able to correctly recommend to Davis, the more Davis felt confident to allow him to solve his problems. This system of management gave Eddie an unquenchable drive to give his best to the company.
So in effect, the non-reward system was also very effective when compared to the financial reward.
Davis could have relied on the Financial Reward system alone which meant that Eddie Munz would just have to figure out on his own how to manage himself such that he can meet up with the organisations' expectations on his Key Performance Areas. However, the company does this at its loss because that system only trains people to become more effective at their work rather than become a well-rounded leader who is capable of leading himself and others as well.
Cheers!
