HAP 200 – Happiness Studies
Instructor: Layal Hmaidi
Spring 2024
Case Study
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Question 1: Implementation of the expectancy theory of Motivation
The expectancy theory of Motivation gives insights into different ways to encourage team members and helps managers learn how to motivate their teams. It has been observed that employees generally make decisions according to the rewards that they can receive from their team members. In the Ferrari company, the elements of expectancy theory help to improve employee performance. The company has established a correlation between performance and efforts based on three core variables:
- Expectancy: The company has raised its reward level according to the insights and performance of the employees. It increases the expectancy of the individuals to correctly get the right tools and resources for the job. The leaders of the company always try to improve the self-efficacy level of the employees and provide autonomy to the employees regarding their performance. It significantly affects the level of effort among the employees.
- Instrumentality: It signifies that the level of rewards should be according to the level of performance. The leaders of the organization properly communicate about the rewards expected by the team members. On the other hand, the employees share a trustable relationship with their leaders which assures them to get appropriate rewards according to their performance. As the employees of Ferrari have more control to receive rewards, they are more motivated to excel in their performance.
- Valence: It mainly highlights the importance of expecting the level of performance. This is directly related to the needs of the individuals and their Motivation and values. The Ferrari company implements lucrative reward policies such as yearly competition for blue collar workers, it increases Motivation of the employees along with their needs to achieve the goals.
Question 2: One theory of positive psychology
Ferrari can use “Martin Seligman’s Positive Psychology Theory” to enhance employee well-being. The theory is associated with three basic needs, which are to provide positive emotion, to engage in meaningful activities, and to have positive relations with others. The leaders of Ferrari can ensure a positive working atmosphere for the employees, which can provide positive emotions to the employees. On the other hand, it is essential to understand the needs of the employees. It helps the company fulfill the desires of the employees, which gives them a feeling of being valued and appreciated. The theory also suggests that savoring accomplishments can also provide positive feelings and develop their well-being within the organization. It can also give them the opportunity to flourish and enhance the engagement capability of employees in all works of the organization. Seligman also describes the need for characteristics such as strength, resilience, and gratitude to increase well-being. In this regard, it can be stated that the leaders of the company incorporate positive values and traits among the employees, which also improves their well-being within the workplace.
Question 3: Two strategies to foster a growth mindset
Two strategies that can be used by Ferrari to improve the growth mindset among their employees are as follows:
- Providing proper feedback: It is imperative to provide constructive feedback to the employees for their work. It helps them to identify the errors and strengths in their work. The employees also get an opportunity to assess their weaknesses and work on them. Managers of Ferrari can also suggest concrete actions to the employees to overcome their errors and ensure skilled performance. Detailed feedback is more effective than simple identification of wrong things. The younger employees are given mentors to make career decisions. With the help of feedback, the employees feel important and receive a sense of belonging within the workplace. It also motivates them to increase their efforts and performance and get a growth mindset. Apart from this, the leaders can also give proper strategies to help employees fulfill their goals and boost their performance skills.
- Remaining autonomous and taking action: People with a growth mindset have a flexible mind to encounter any type of adversity in their work. The employees are trained to work collaboratively to embrace the adversities as a ladder to their improvement. People with a growth mindset are generally braver than others, for which the employees of Ferrari should be trained to understand the paralyzing effect of anxiety and fear and the strategies to overcome them in their performance. The employees are given autonomy and encouraged to take action to overcome any inappropriate situations. It has been observed that taking action can help them to change their concern regarding failure into focused energy, which is vital to go the extra mile.