Herman Miller Inc Case Study Essay

1183 Words Jan 28th, 2013 5 Pages
Q4
Until 2003, HMI offered lifelong employment. How did this practice affect the company’s ability to staff the organization with managers and employees capable of executing the strategy? How did this practice build the organizational capabilities required for successful strategy execution?

Lifelong employment is known as permanent employees work for a single employer and are paid directly by that employer. In addition to their wages, they often receive benefits like subsidized health care, paid vacations, holidays, sick time, or contributions to a retirement plan. Permanent employees are often eligible to switch job positions within their companies. Even when employment is "at will", permanent employees of large companies are
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Tangible
Tangible non-cash incentive rewards offer an immediate visual imagery and associated experience. The ability to see oneself sitting on the beach in Hawaii or watching the 60” plasma television has an immediate motivating response to individuals over the monetary value that would be equal to these items.
Separate Impact
A tangible non-cash award is immediately separated from the sales person’s income and therefore typically not ‘lumped’ with other funds. This separation from regular income has positive association back to the awarding firm and provides more motivational impact for sales people or employees.

Promotability/Communication Value
Companies get extended value from offering tangible non-cash awards because the recipients often will share their rewards or experiences with others. They also are proud to communicate their accomplishment with others, spreading the word about the company in the process.

Discretionary Reward
Because tangible non-cash rewards are not designed to be used for regular bill paying, recipients feel good about using them for aspirational, memorable items or experiences. These good feelings extend toward the company whenever they use the items or look at the trip pictures.

Success Creation in Program Design
The incentive non-cash program should include the following key components building on the motivating factors to insure its success during implementation, acceptance and

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