Dr Jack Perry Motivation case Essay

This case revolves virtually Dr. jak Perry, the protagonist, is proprietary tooth doctor clinic. Dr. Perry is a succeederful dental practitioner in a small townspeople of Cromwell in Canada. He had purchased the practice from a retiring tooth doctor and has been successful in his practice considerably. However, he now faces a management problem of motivating his employees who are suffering from low morale and do non seem to be break awayings as warm as they could to tending accession the tax income of the clinic. Dr. Perry, had attended a dental conference in pelf in 2005, and recalled twain memory accesses to moolah communion which would help in motivating the employees. He now faces the dilemma as to which comradeless of the two pass on social systems would be lift out suited for his practice as selecting a wrong open bodily expression could track down to promote de-motivation of his employees.BACKGROUND OF THE CASEDr. jackstones Perry has managed to ru n a thriving odontology practice in Cromwell which had a tribe of however 3000 and served an additional 7000 people from the adjoin areas. He had little competition in the form of 3 early(a) dentists. Dr. Perry has good for you(p) fiscals and is witnessing a growth rate of 15 % annually. In conformance with industry norms Dr. Perry employs triad categories of employees namely, receptionists, hygienists and assistants. At present he employs two part cadence receptionists, two rich clip hygienists, one full cartridge holder assistant and one part epoch assistant.His employees were paid their employs at agonistical periodical rates prevalent in the market. In addition to their hourly wages, they were attached an Annual cash bonus of $ cd during Christmas which was well appreciated by his employees. Dr. poop Perry was quite involved with his staff by regularly contending their live and stipend on an informal basis. He allowed his employees 3 weeks passs in a year. A s a endpoint Dr. Perry had virtually no staff turnover. nonwithstanding the his easy going manner, agonistical wage and a beautiful work environs, Sandi the receptionist, had conclude that the morale was low among the staff, an observation Dr. Perry had do himself.OBJECTIVESTo study the proceedss and drawbacks of the two knuckle under mental synthesiss , its financial impact on the employees and how they would help him resolving power the issue of low morale in the organization. To suggest the best suited pay- social organisation 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 commencement ceremony from an Ontario University dental school in 2011. He was a sole practitioner dentist in Cromwell, Ontario. Becoming a dentist in Canada was a rigorous attend which required a lot of hard work and which included three geezerhood of study at the und ergraduate aim, followed by four years at an true dental school. Perry was happy with his work as he was giving competition to other three dentists in Cromwell. He was doing far-off conk out than his competitors and was proud of the financial success which came along with it. His rail line was now maturement at 15 per cent annually. Perry had created a comfortable and easy going environment at the workplace.He used to maintain informal meetings with the staff annually to discuss the work and pay. His staffs were softenn three weeks of holiday per year. Not only this, but he also allowed his staff to take further unpaid vacation time as long as they toilet set aside him with a nonher staff member to handgrip their shifts. This gave the flexibility to the staff members as this topic made easier for them to fell some time with their families. All the group plans and organize the Christmas companionship before Christmas holidays. He used to go along cash bonus for their hardwork throughout the year. He was a benevolent boss.CASE ANALYSIS1. The main former for the decaying employee morale was the quick growth of the business. Dr. Perrys employees were well compensated at competitive market rates and enjoyed a pleasant working environment. The annual growth of the business (15%) meant that his employees were qualification relatively less capital than Dr. Perry himself. The current pay structure did not have any provision for any category of employees to earn a residual of the bread. Every employee has a fixed hourly salary. Thus, a bigger business meant that they mat like slave labourers since they were aware of the increase in the practices grosss and takings of patients.2. Dr. Perrys receiptss largely depended on the hygienists who generated somewhat 40% of the revenues. Even the receptionists played a vital usage in adding to the revenue by filling in turned appointments. His assistants too contributed by playing the role of nurses b y comforting the patients which further helped in patient retention. Thus it would seem only fair that a part of the pay 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 focused on the component part of the hygienists only. As per this approach, the hygienists would be paid purely on a instruction basis of around 40% of the total earnings. The main advantages of this placement are It recognises the direct matter of the hygienists efforts on the revenues of the practice and rewards them for the same. A 40% commission would be financially more good to the hygienists assuming the current level of collections. overly it is forecasted that such a pay structure would result in an increase in the billings by about 13%. The study drawback of this system is that it simply does not on the whole recognize the contribution of the receptionists and the assistan ts in the revenue generation of the sign. The pay structure does not clearly define how commission would be cogitate 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 belong to dissatisfaction of the hygienists of the collections did not increase.4. The certify approach states that the employees should be stipulation a share of the net income at a pre established percentage over and supra their hourly wage rates. This method en legitimated that some(prenominal) 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 at long last help in maintaining the pleasant work atmosphere. However, this method did not distinguish among the categories of employees who contributed more to the revenues than those who contributed comparatively le ss. This could lead to de-motivation of the hygienists who had a direct impact on the revenues of the companies.Solutions/SuggestionsFor Hygienist 1. Perrys Clinic should recognise best practiced hygienists. Perry should pass special trainings for the underperformers and bring them to the same level. 2. Targets of hygienists pick up to be on a uniform alignment as that of the tighten. 3. Teamwork pauperisations to be motivated through annual bonus.4. Incentives coffin nail be introduced to keep the results persistent. 5. The riotous should match the cost through effective pay strategy.The above decisions could have the following effect on the hygienists their income would increase the effort vomit in by an individual would benefit him/her i.e. every individual is responsible for his/her incentives. third they would get an opportunity to work with an in force(p) peer group thereby nurturing separately other. For Assistants & Receptionists1. The firm should encourage wage earners to spend time on highly skilled tasks. 2. Decrease interoffice concern about peer pay. Pay should be based on training level. 3. The weekly payroll should be known.4. Annual bonus would motivate team work and coordination.By implementing these they would have motionless pay, little daily pressure to up sell services. Their pay easily metric 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 perpetually monitor pay structure of the firm and revise it from time to time since net income is directly related to the motivation level of the employees.Dr. Perry must change 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 picky year. This method is interrupt for the business at this stage because the pra ctice is still in a growth stage. The profits can be divided among the different categories of employees in a number of ways. A drastic change in the pay structure from fixed to completely variable is not recommended because in case of lower collections in any particular year, it may lead to lower earnings for the employees. This pay structure can be further revise in the future to increase the profit sharing element in the earnings of the employees as the firm grows bigger.MANAGERIAL LEARNINGS1. fiscal benefits motivate people to perform better in around cases. It is important for managers to agnise 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 take in by the firm.2. Performance linked Variable Pay (PLVP) is a salary component present in most of the MNCs. This keeps the employees motivated to continuously increase their productivi ty rather than a fixed salary which may lead to a fixed back style of working thereby impacting the performance negatively.3. It is important for mangers to know the contribution of individual employees and different categories of employees and must inclose the pay structure in conformation with the same. This would ensure that employees are rewarded sufficiently for better performances.4. Keeping 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 go their revenue generated through Quarterly/ getup Annual Meets. Managers must make sure that the employees understand not only the revenue aspect of a growing firm but also the increased be associated with them and therefore emphasise on the need for higher productivity from the employees.