CARROT AND STICK GROUP 2

GRADUATION SCHOOL OF BUSINESS
MASTERS OF BUSINESS ADMINISTRATION
SEMESTER II ACADEMIC SESSION 2023-2024
ASSIGNMENT
COURSE CODE: ZCMA6092 (SET 8)
COURSE TITLE: HUMAN RESOURCE MANAGEMENT GROUP ASSIGNMENT
CARROT OR STICK - GROUP 2
GROUP MEMBER
TEE SHIN LE P132241
MUHAMMAD SYAHMI BIN BAHARUDIN P137640
JASON LIM TAU YI P133788
TOGAIMALAR SEMATHERY P132347
CHONG SHIN YIT P137284

1. ISSUES FROM ARTICLE
• The first is, which approach must an organization take to ensure all employees are
motivated in achieving the intended target - carrot or stick?
• Secondly, should an organization start with listing down the rewards or incentives that will
be given if the target is achieved or better than expected? If it is done, there will be
employees who will strive to achieve the tasks to get the reward.
• The third issue is, should an organization first introduce the list of punishments that will
be imposed if the target is not fulfilled? In effect, the punishment imposed might force
employees to achieve the target, but will not improve their motivation.
• Lastly, is the punishment or reward introduced necessary to see the changes in employees'
motivation?
• Studies show money is no longer the primary source of motivation. There are other factors
such as training and development, work environment and employee-manager relationships.
2. GROUP OPINION
Agree, carrot and stick approach can enhance the motivation of employees. However, it must be
implemented at the same times in balance way to create the best result for company. This also
necessary to announce in advance to clarify the working direction.
Understanding what the organization needs?
• Get more profit, increase productivity, a strong team
Understanding what the employee needs?
• To have a better life for self and families, earn more money, self-development
How HR do to improve productivity?
• Use the limited resources to motivate the most valued employees.
• BEST result: Improve productivity and help the organization to earn more money + reward
given to the best employees.
• The article discusses the balance between reward (carrot) and punishment (stick) in
motivating employees. An effective management strategy might involve a combination of
both approaches, adapting to the specific needs and behaviors of employees.
• Theory X: Assumes employees are inherently lazy and will avoid work if they can. Eg:
Managers using this approach may rely more on the "stick" – strict supervision,
punishment, and control. Theory Y: Assumes employees are self-motivated and enjoy their
work. Eg: Managers using this approach might prefer the "carrot" – encouraging
participation, providing opportunities for growth, and rewarding achievements.
• Positive Reinforcement (Carrot): Providing rewards like bonuses, promotions, or
recognition to encourage desired behaviors. For example, rewarding employees for
meeting targets boosts motivation and productivity. Punishment (Stick): Applying
consequences to reduce undesirable behaviors. For instance, disciplinary actions for
repeated tardiness.
3. What can do to enhance motivation with Carrot & Stick:
3.1 How to give Carrot Stick? 🡪 Implement with performance management: HR have
to support the upper-level management to identify who is the TOP performers, either
UP or OUT, set up the ratio for the A(15%)/B(65%)/C(20%).
• Tastiest carrot to top performers who always exceed expectation (15%), eg 6 months bonus
+ 15% increment + promotion
• Normal carrot to the performers who achieved expectation (another 65%), eg 1-2 months
bonus + 5% increment
• Sticks to the lower performers (20%), eg no bonus + increment + promotion for certain
period (appraisal period) --- Avoid wasting of resources, mgmt need to help the low
performers to improve capability or decruit them to create vacancy for the better
employee;
3.2 Non-cash carrot 🡪 Increase non-monetary incentive: Publicity of quarter star, best
employees award, new employee awards or etc ;
3.3 Learning & development: Job rotation policy, Mentorship program, professional
skills training program
4. Comparison with different scenario either all negative or all positive. How to balance?
How to reward employees to create a positive environment?
Balancing All Negative and All Positive Scenarios
Negative reinforcement and penalties rule the workplace, and this can quickly create a
poisonous climate that lowers productivity overall, increases employee stress and anxiety,
lowers morale and job satisfaction, and increases turnover rates. It is crucial to implement
positive reinforcement techniques in order to combat this. Creating incentive programs for
reaching goals and exhibiting desired conduct helps change the environment for the better.
Effective strategies include praising and acknowledging little victories, offering bonuses
and promotions, and offering non-cash prizes like certificates and public acknowledgment.
Improving communication by encouraging management and staff to have honest and open
discussions, routinely asking for and acting upon employee input, and hosting regular
meetings to go over accomplishments and areas for development can greatly enhance the
atmosphere at work. Further ways to raise morale include investing in ergonomic office
layouts, enabling flexible work schedules, fostering a friendly and inclusive work culture,
and supporting wellness programs. Important actions include putting a strong emphasis on
professional development by giving employees access to training and career advancement
opportunities, promoting work rotation and cross-functional initiatives, and providing
mentorship programs to assist with staff development.
On the other hand, a workplace where there is no accountability and just positive
reinforcement can breed complacency among staff members, lack of discipline, a drop in
standards, make it harder to spot and resolve performance difficulties, and even open the
door to favoritism and inequality. It's critical to set clear expectations by outlining job
positions, duties, and performance standards in detail. You should also set measurable goals
and conduct regular progress reviews to provide a balanced and good work environment.
Fostering continual progress requires introducing constructive criticism that, in a
supportive and developing manner, recognizes both strengths and places for improvement.
Putting accountability measures in place—creating an equitable and transparent
performance appraisal system, providing support and improvement plans for
underperformance, and guaranteeing repercussions for persistently falling short of
expectations, such as reassignment or additional training—helps maintain self-control. A
just and inspiring work environment is ensured by promoting fairness and equity by making
sure rewards and recognition are based on objective criteria, avoiding favoritism through
transparent reward criteria and decisions, and fostering a meritocracy culture where
performance is the primary determinant of rewards.
A combination of monetary and non-monetary rewards can be utilized to recognize staff

members and foster a healthy work environment. Profit-sharing plans, regular wage
increases based on performance evaluations, and incentives based on performance are
examples of monetary rewards. Non-monetary rewards can include access to conferences,
workshops, and professional development programs; chances for career promotion and
additional responsibilities; and public recognition of accomplishments through prizes and
certificates. A good work environment can be created by encouraging work-life balance
through flexible work schedules, more paid time off, or sabbaticals for exceptional
performance. It can also be created by making investments in the workspace's aesthetic and
ergonomic upgrades. Additionally beneficial are wellness programs that provide mental
health assistance, gym memberships, and wellness workshops, among other health and
wellbeing benefits. Effective strategies to empower and involve employees include
planning team-building exercises, social gatherings, and retreats; commemorating
individual milestones like birthdays and anniversaries; involving staff in decision-making
processes; and granting autonomy in task execution. Organizations can cultivate a happy
and productive workplace by striking a balance between the use of rewards and
accountability, as well as by upholding open communication and a friendly work
atmosphere.

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GRADUATION SCHOOL OF BUSINESS

MASTERS OF BUSINESS ADMINISTRATION

SEMESTER II ACADEMIC SESSION 2023-2024

COURSE CODE: ZCMA6092 (SET 8)

COURSE TITLE: HUMAN RESOURCE MANAGEMENT GROUP ASSIGNMENT

CARROT OR STICK - GROUP 2

TEE SHIN LE P132241

MUHAMMAD SYAHMI BIN BAHARUDIN P137640

JASON LIM TAU YI P133788

TOGAIMALAR SEMATHERY P132347

CHONG SHIN YIT P137284

Balancing All Negative and All Positive Scenarios

A combination of monetary and non-monetary rewards can be utilized to recognize staff

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