What Monetary Rewards Can and Cannot do: How to Show Employees the Money SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of What Monetary Rewards Can and Cannot do: How to Show Employees the Money
Monetary rewards can be a very powerful determinant of employee motivation and performance which, in turn, can lead to important returns in terms of firm-level performance. However, monetary rewards do not always lead to these desirable outcomes. We discuss in this installation of Human Performance what monetary rewards can and cannot do, and reasons why, in terms of improving employee performance. Also, we offer research-based recommendations, including the following five general principles to guide the design of successful monetary reward systems: (1) define and measure performance accurately, (2) make rewards contingent on performance, (3) reward employees in a timely manner, (4) maintain justice in the reward system, and (5) use monetary and nonmonetary rewards. In addition, we offer specific research-based guidelines for implementing each of the five principles. In short, our article summarizes research-based findings and offers recommendations that will allow managers and other organizational decision makers to understand when and why monetary reward systems are likely to be successful in terms of enhancing employee motivation and performance.
Authors :: Herman Aguinis, Harry Joo, Ryan K Gottfredson
Swot Analysis of "What Monetary Rewards Can and Cannot do: How to Show Employees the Money" written by Herman Aguinis, Harry Joo, Ryan K Gottfredson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Monetary Rewards facing as an external strategic factors. Some of the topics covered in What Monetary Rewards Can and Cannot do: How to Show Employees the Money case study are - Strategic Management Strategies, Employee retention, Human resource management, Motivating people and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the What Monetary Rewards Can and Cannot do: How to Show Employees the Money casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, there is backlash against globalization, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices,
increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of What Monetary Rewards Can and Cannot do: How to Show Employees the Money
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in What Monetary Rewards Can and Cannot do: How to Show Employees the Money case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Monetary Rewards, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Monetary Rewards operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of What Monetary Rewards Can and Cannot do: How to Show Employees the Money can be done for the following purposes –
1. Strategic planning using facts provided in What Monetary Rewards Can and Cannot do: How to Show Employees the Money case study
2. Improving business portfolio management of Monetary Rewards
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Monetary Rewards
Strengths What Monetary Rewards Can and Cannot do: How to Show Employees the Money | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Monetary Rewards in What Monetary Rewards Can and Cannot do: How to Show Employees the Money Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the What Monetary Rewards Can and Cannot do: How to Show Employees the Money Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Monetary Rewards is one of the leading recruiters in the industry. Managers in the What Monetary Rewards Can and Cannot do: How to Show Employees the Money are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– What Monetary Rewards Can and Cannot do: How to Show Employees the Money firm has clearly differentiated products in the market place. This has enabled Monetary Rewards to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Monetary Rewards to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Monetary Rewards in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Monetary Rewards is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Monetary Rewards in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Monetary Rewards is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Monetary Rewards is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in What Monetary Rewards Can and Cannot do: How to Show Employees the Money Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Monetary Rewards is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Herman Aguinis, Harry Joo, Ryan K Gottfredson can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Monetary Rewards has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Monetary Rewards to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Monetary Rewards in the sector have low bargaining power. What Monetary Rewards Can and Cannot do: How to Show Employees the Money has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Monetary Rewards to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Monetary Rewards has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Monetary Rewards
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Monetary Rewards does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Monetary Rewards has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Monetary Rewards has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses What Monetary Rewards Can and Cannot do: How to Show Employees the Money | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of What Monetary Rewards Can and Cannot do: How to Show Employees the Money are -
High operating costs
– Compare to the competitors, firm in the HBR case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Monetary Rewards 's lucrative customers.
Products dominated business model
– Even though Monetary Rewards has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - What Monetary Rewards Can and Cannot do: How to Show Employees the Money should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As What Monetary Rewards Can and Cannot do: How to Show Employees the Money HBR case study mentions - Monetary Rewards takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money, is just above the industry average. Monetary Rewards needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the What Monetary Rewards Can and Cannot do: How to Show Employees the Money HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Monetary Rewards has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Monetary Rewards has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case What Monetary Rewards Can and Cannot do: How to Show Employees the Money can leverage the sales team experience to cultivate customer relationships as Monetary Rewards is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Monetary Rewards supply chain. Even after few cautionary changes mentioned in the HBR case study - What Monetary Rewards Can and Cannot do: How to Show Employees the Money, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Monetary Rewards vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Monetary Rewards products
– To increase the profitability and margins on the products, Monetary Rewards needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Need for greater diversity
– Monetary Rewards has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities What Monetary Rewards Can and Cannot do: How to Show Employees the Money | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money are -
Developing new processes and practices
– Monetary Rewards can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Monetary Rewards can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Monetary Rewards in the consumer business. Now Monetary Rewards can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Monetary Rewards in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Monetary Rewards can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Building a culture of innovation
– managers at Monetary Rewards can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Creating value in data economy
– The success of analytics program of Monetary Rewards has opened avenues for new revenue streams for the organization in the industry. This can help Monetary Rewards to build a more holistic ecosystem as suggested in the What Monetary Rewards Can and Cannot do: How to Show Employees the Money case study. Monetary Rewards can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Monetary Rewards can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Monetary Rewards can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Monetary Rewards can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Monetary Rewards can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Monetary Rewards to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Monetary Rewards can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, What Monetary Rewards Can and Cannot do: How to Show Employees the Money, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Monetary Rewards can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. What Monetary Rewards Can and Cannot do: How to Show Employees the Money suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats What Monetary Rewards Can and Cannot do: How to Show Employees the Money External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Monetary Rewards can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Monetary Rewards with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Monetary Rewards in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Monetary Rewards needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Monetary Rewards can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money, Monetary Rewards may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Stagnating economy with rate increase
– Monetary Rewards can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Monetary Rewards.
Consumer confidence and its impact on Monetary Rewards demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Monetary Rewards business can come under increasing regulations regarding data privacy, data security, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Monetary Rewards in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Monetary Rewards is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of What Monetary Rewards Can and Cannot do: How to Show Employees the Money Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study What Monetary Rewards Can and Cannot do: How to Show Employees the Money is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of What Monetary Rewards Can and Cannot do: How to Show Employees the Money is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Monetary Rewards needs to make to build a sustainable competitive advantage.
