MGMT 591 Week 3 Motivating from the Top; Down Analyzing the COO’s Approach

Motivating from the Top Down: Analyzing the COO’s Approach James Matthews MGMT 591Dr. Mohamad SaouliDue: March Sem.2025 Discuss the motivational impact of the COO's message on the participants. How might his approach affect their intrinsic and extrinsic motivation levels? The COO’s message had a strong but primarily extrinsic motivational impact on the participants. By focusing entirely on increasing the stock price to secure executive bonuses, he framed success in purely financial terms. This approach likely motivated some employees, particularly those whose own compensation or career progression was tied to stock performance. Research suggests that financial incentives can be effective in driving short-term performance (Deci & Ryan, 2000). However, the speech lacked any emphasis on intrinsic motivation, such as professional growth, team collaboration, or the broader purpose of the organization. Personally, I have found that intrinsic motivation is what sustains long-term engagement. When leaders focus only on financial rewards, they risk disengaging employees who seek meaning in their work beyond monetary compensation. Instead of inspiring innovation, creativity, or long-term commitment, the COO’s approach may have made employees feel like tools for increasing shareholder value rather than valued contributors to the company’s mission. Research by Pink (2009) supports this, arguing that intrinsic motivation driven by autonomy, mastery, and purpose leads to more sustained productivity and job satisfaction than financial incentives alone. How might the COO’s emphasis on financial incentives influence the participants' engagement and commitment to achieving the stock price target? What are the potential drawbacks? The COO’s emphasis on financial incentives likely had a mixed effect on engagement and commitment. On one hand, some participants may have felt a heightened sense of urgency and focus, especially if they had a direct financial stake in meeting the stock price target. Studies show that when employees see a clear connection between their efforts and financial rewards, motivation can increase in the short term (Gneezy et al., 2011). However, over-reliance on financial incentives can backfire, leading to stress, burnout, and even unethical behavior as employees prioritize short-term gains over long-term sustainability (Ariely, 2016). A major drawback of this approach is that it may reduce intrinsic motivation and weaken long-term engagement. Employees who are motivated solely by external rewards may become less committed to the company’s broader mission and values. Additionally, when leaders set aggressive financial targets without addressing how employees can achieve them through innovation or collaboration, it creates a pressure-driven culture that can lead to unethical decision-making, manipulation of performance metrics, and decreased morale (Bazerman & Tenbrunsel, 2011). From my own experience, employees are more engaged when they feel a sense of purpose in their work, not just when they are chasing financial targets. A more balanced approach—one that integrates financial incentives with opportunities for growth, recognition, and a supportive work environment would likely yield better long-t