Dr Jack Perry Motivation case Essay

This case revolves around Dr. motherfucker Perry, the protagonist, is proprietary dentist clinic. Dr. Perry is a victorious dentist in a small town of Cromwell in Canada. He had purchased the enforce from a retiring dentist and has been successful in his normal considerably. However, he now faces a management problem of motivating his employees who are suffering from offset morale and do not seem to be working as hard as they could to help make up the receipts of the clinic. Dr. Perry, had attended a dental conference in Chicago in 2005, and recalled two approaches to profit sharing which would help in motivating the employees. He now faces the dilemma as to which one of the two leave organizes would be best suited for his practice as selecting a wrong acquit social system could lead to gain de-motivation of his employees.BACKGROUND OF THE CASEDr. knave Perry has managed to belong a thriving dentistry practice in Cromwell which had a creation of only 3000 and served a n additional 7000 people from the surrounding areas. He had little tilt in the path of 3 other dentists. Dr. Perry has sound financials and is witnessing a development rate of 15 % annually. In conformance with industry norms Dr. Perry employs three categories of employees namely, receptionists, hygienists and assistants. At turn over he employs two air division sequence receptionists, two dependable time hygienists, one full time assistant and one fictional character time assistant.His employees were paid their meshs at competitive hourly range prevalent in the merchandise. In addition to their hourly wages, they were have gotn an yearly cash bonus of $400 during Christmas which was well appreciated by his employees. Dr. Jack Perry was quite involved with his stave by regularly discussing their work and honorarium on an informal basis. He offered his employees 3 weeks holidays in a year. As a result Dr. Perry had virtually no mental faculty turnover. Despite the his gentle pass manner, competitive salary and a pleasant work environment, Sandi the receptionist, had conclude that the morale was low among the staff, an observation Dr. Perry had made himself.OBJECTIVESTo study the benefits and drawbacks of the two counterbalance complex body parts , its financial impact on the employees and how they would help him resolve the issue of low morale in the organization. To suggest the best suited pay- complex body part for Dr. Perrys practice which would help him increase his collections by motivating his employees.CHARACTER SKETCH OF DR.PERRYDr. Jack Perry is a dentist who has completed his graduation from an Ontario University dental school in 2011. He was a sole practitioner dentist in Cromwell, Ontario. enough a dentist in Canada was a rigorous process which necessitate a lot of hard work and which included three historic period of study at the undergraduate level, followed by four years at an accredited dental school. Perry was happy with his work as he was self-aggrandising competition to other three dentists in Cromwell. He was doing far emend than his competitors and was proud of the financial success which came along with it. His stock was now out harvest at 15 per cent annually. Perry had created a comfortable and easy going environment at the workplace.He used to have informal meetings with the staff annually to discuss the work and salary. His staffs were addicted three weeks of holiday per year. non only this, but he also allowed his staff to take further unpaid vacation time as long as they rouse provide him with another staff member to handle their shifts. This gave the flexibility to the staff members as this thing made easier for them to spend some time with their families. totally the team plans and organize the Christmas party before Christmas holidays. He used to give cash bonus for their hardwork through with(predicate)out the year. He was a benevolent boss.CASE ANALYSIS1. The master(prenomi nal) reason for the decaying employee morale was the tender growth of the air. Dr. Perrys employees were well compensated at competitive market rank and enjoyed a pleasant working environment. The annual growth of the employment (15%) meant that his employees were make relatively less money than Dr. Perry himself. The current pay structure did not have some(prenominal) provision for any category of employees to get in a proportion of the internet. Every employee has a fixed hourly salary. Thus, a bigger business meant that they felt like slave labourers since they were aware of the increase in the practices taxs and number of patients.2. Dr. Perrys revenues largely depended on the hygienists who generated about 40% of the revenues. Even the receptionists played a vital mapping in adding to the revenue by filling in cancelled appointments. His assistants also contributed by playing the role of nurses by comforting the patients which further helped in patient retention. Thu s it would seem only fair that a part of the profit must be shared with the employees in the form of a variable pay structure.3. As per the conference which Dr. Perry had attended, the first approach of remunerating the employees concentrate on the share of the hygienists only. As per this approach, the hygienists would be paid purely on a commission basis of around 40% of the total dough. The main advantages of this system are It recognises the direct effect of the hygienists trials on the revenues of the practice and rewards them for the corresponding. A 40% commission would be financially more than beneficial to the hygienists take for granted the current level of collections.Also it is forecasted that such a pay structure would result in an increase in the billings by about 13%. The major drawback of this system is that it simply does not completely recognize the contribution of the receptionists and the assistants in the revenue generation of the hard. The pay structur e does not clearly define how commission would be linked to the total earning of the receptionists and the assistants. Also, by making the earnings of the hygienists completely dependent on the revenue, it may lead to dissatisfaction of the hygienists of the collections did not increase.4. The second approach states that the employees should be given a share of the profits at a pre established percentage over and above their hourly wage rates. This method ensured that Some parts of the profits were distributed to all the categories of employees. At the same time since the employees would receive their hourly rates in any case, it would give them a sense of security and eventually help in maintaining the pleasant work atmosphere. However, this method did not distinguish mingled with the categories of employees who contributed more to the revenues than those who contributed comparatively less. This could lead to de-motivation of the hygienists who had a direct impact on the revenue s of the companies.Solutions/SuggestionsFor Hygienist 1. Perrys Clinic should recognise best skilled hygienists. Perry should conduct special instructs for the under seters and bring them to the same level. 2. Targets of hygienists need to be on a similar alignment as that of the firm. 3. Teamwork needs to be motivated through annual bonus.4. Incentives can be introduced to keep the results persistent. 5. The firm should control the cost through effective pay strategy.The above decisions could have the following effect on the hygienists their income would increase the effort put in by an undivided would benefit him/her i.e. every individual is responsible for his/her incentives. Thirdly they would get an opportunity to work with an efficient equal group thereby nurturing each other. For Assistants & Receptionists1. The firm should encourage wage earners to spend time on highly skilled tasks. 2. Decrease interoffice touch about peer pay. Pay should be based on training level. 3. The weekly payroll should be seen.4. Annual bonus would motivate team work and coordination.By implementing these they would have stable pay, little daily rack to up sell services. Their pay easily calculated each week. It would allow them to take time off providing high quality of work.CONCLUSIONSIn the scenario where Dr. Perry business is growing at a healthy rate it is important to incessantly monitor pay structure of the firm and revise it from time to time since remuneration is directly related to the motivation level of the employees.Dr. Perry must transport the pay structure to accommodate profit sharing with the employees in the form of a bonus which would be a percentage of the total profits of the practice, in the case of increased revenues for that particular year. This method is better for the business at this stage because the practice is still in a growth stage. The profits can be divided among the different categories of employees in a number of ways. A drasti c change in the pay structure from fixed to completely variable is not recommended because in case of trim back collections in any particular year, it may lead to lower earnings for the employees. This pay structure can be further revised in the future to increase the profit sharing element in the remuneration of the employees as the firm grows bigger.MANAGERIAL LEARNINGS1. Monetary benefits motivate people to perform better in most cases. It is important for managers to sympathize the link between the pay structure and the motivation levels of employees. Merely high wage rates may not be sufficient to motivate the employees and they must given a fair share of the profits earned by the firm.2. mathematical process linked Variable Pay (PLVP) is a salary component present in most of the MNCs. This keeps the employees motivated to continuously increase their productivity sooner than a fixed salary which may lead to a set back style of working thereby impacting the performance negat ively.3. It is important for mangers to know the contribution of individual employees and different categories of employees and must frame the pay structure in accordance with the same. This would ensure that employees are rewarded sufficiently for better performances.4. tutelage the market standards in mind, pay structures must be constantly monitored and should be revised along with the growth of the firm in terms of revenue earned and the volume of business for employees of all levels.5. Firms disclose their revenue generated through Quarterly/Semi Annual Meets. Managers must make sure that the employees understand not only the revenue aspect of a growing firm but also the increased costs associated with them and therefore emphasise on the need for higher productivity from the employees.