Gold Electronics Case Study

1. Introduction

In a business world characterised by fierce rivalry and relentless change, managers are under constant pressure to generate a sustainable competitive advantage. In the search for an enduring source of advantage, many companies have found that the greatest potential for success lies in the unique skills, knowledge and interactions of their employees. For this reason, firms strive to maintain a cadre of qualified individuals that are sufficiently motivated enough to achieve superior productivity and performance. Gold Electronics has recently been experiencing low moral and productivity. The purpose of this report is to explore the possible reasons for the poor performance of Gold Electronics employees and which organisational behavioural theories could be used to resolve the current situation. It uses a systematic approach of analysis, diagnosis and finally provides insight into possible solutions for identified situations.

2. Analysis and Diagnosis

Although Gold Electronics has spent large sums of cash trying to motivate their employees not much has changed in terms of employee moral and performance. Human Resource science suggests that reward systems and other forms of traditional of motivation although usually effective may not be the only way to deal with motivational issues leading to the assumption that poor person job-fit is the causes for the low moral.

Theories that deal with specifically with person job fit mainly revolve around two traits of human nature, personality and ability.

2.1. What is ability?

Ability is the individual’s capacity to perform the various tasks in a job. It is a current assessment of what an individual can do (Robbins 2006). People are not created equal in terms of abilities to perform certain tasks. If people are different in their ability to do certain tasks the issue is knowing how people differ and using the knowledge to increase the likelihood the employee will perform well on his or her job.

Overall abilities consist of two factors

• Intellectual abilities

• Physical abilities

2.1.1. Intellectual Ability

Those abilities that are required to perform mental activities

• South African Wechsler Intelligence Scale (SAWIS) assesses general intelligence

• Jobs differ in the intellectual demands they place on incumbents

• Generally the more information processing required, the more general intelligence is required

• All jobs do not require a high intelligence

• Tests that assess verbal, numerical, spatial, and perceptual abilities are valid predictors of job proficiency at all levels of jobs

• One drawback of using mental ability tests

Seven most frequently cited dimensions of intellectual ability

Dimension Description

Number aptitude Ability to do quick and accurate arithmetic

Verbal comprehension Ability to understand what