Outline two features of an autocratic leadership style.

Apply Daniel Pink’s motivation theory to the programmers at Gen Y.

Explain one reason, other than increased sales revenue, why it is important that Gen Y generates new revenue streams.

Discuss whether Zack should sell Petra half of his shares with her conditions.

• Decision making in an organization is restricted to a very small group of select individuals.
• Limited consultation and discussion in an organization given by autocratic leadership.
• Communication tends to be downward and one-way only.

Award [1] for each correct feature identified.

Daniel Pink’s motivation theory identifies that there are three key drivers, or factors, that influence motivation for cognitive or thinking tasks leading to improved performance for a business. The three key drivers are:
• mastery
• autonomy
• purpose.

From the stimulus we can argue that, before Petra’s potential involvement, Gen Y allows for:
• Purpose – high-quality reports providing innovative market research. The business is providing revolutionary work for its clients. This would act as a motivator for Gen Y programmers as they are carrying out ground-breaking work.
• Autonomy – Gen Y allows for employees to work on individual dream projects. They are also empowered to make their own decisions.
• Mastery – there is evidence from the stimulus that Gen Y has used cognitive training. This would presumably build capacity to develop and refine skills of the programmers, again boosting motivation according to Pink and allowing them to be more creative.

Award [1] if there is some or partial understanding shown of Pink’s motivation theory, the answer is not complete and not applied to Gen Y.

Award [2] if there is a much better understanding of Daniel Pink’s theory. All three drivers of motivation are identified. There is no application to Pink with the answer being merely theoretical. Just mentioning the name of the business does not constitute application.

Award [3] when three drivers are identified and one is applied to the stimulus or two drivers identified and both applied to the stimulus.

Award [4] when three drivers are identified and two applied to the stimulus.

Award [5] when three drivers are identified and three applied to the stimulus.

N.B. For mark awards in the [3-5] range, the application does not have to be exactly as above. For example, some candidates may argue that the ability to work on their dream projects may provide purpose and/or also means autonomy.

Award [6] when three drivers are identified and three are applied to the stimulus largely as outlined above. Each application must be to a different element of the stimulus.

Gen Y’s core business is the creation of innovative market research data reports. The business also allows employees to work on “dream projects” during the working week. In order to remain innovative and sustainable, Gen Y will need to secure new finance through new revenue streams to ensure that the creative and innovative energy continues to flow. New revenue streams will also allow Gen Y to continue to motivate workers through their Pink motivational model, which could be expensive to finance given the cognitive training required. The company has not yet made a profit, so generating alternative revenue streams would be essential, especially if salary costs need to rise to attract new talent in the future.

Award [1] if a reason other than increasing sales revenue is given and explained, with reference to Gen Y for [2].

By selling his shares to Petra, Zack faces concerns not only of ownership but also that the culture of Gen Y – which by assumption has led to the success and motivation of employees – will have to be systematically changed. It is uncertain at this stage whether this change in culture will bring forward any improvements.

In common with many other start-ups, profit for Gen Y remains elusive despite the considerable sums invested. Zack has tried to finance “dream projects” to turn inventions into innovation but without success. The harsh reality is that without funding coming into the business, the long-term sustainability of Gen Y is in doubt. If he does not take some action now and invite Petra into the business, then all jobs and intellectual property at Gen Y are under threat. Some programmers may leave the company if they sense that for some reason the opportunity to work on dream projects is cut back. Taking on Petra as a partner may weaken Zack’s control but will ensure in the short term that Gen Y remains viable.

However, to receive this funding, Petra has added conditions that Zack must accept. These conditions will not be popular in an organization where there are strong links to Daniel Pink’s motivational theory. A leadership style change to autocratic will impact on the autonomy currently enjoyed by the employees. The purpose may also be affected, as Petra will wish to have a strong influence in the type of vision or direction, she wishes to see Gen Y move to. The ending of innovative and revolutionary “dream projects” may be the first casualty. Motivation could be destroyed.

Further, the insistence on specific targets for programmers may impose deadlines/restrictions, which may be too much for the employees to take who have been empowered to make their own decisions.

The short-term situation is difficult for Zack. He has to balance the financial issues present in the case study with the idealism and motivation of his workforce. Petra’s conditions, whilst restrictive, may save Gen Y. Zack may be forced to sell this idea of Petra receiving half his shares to his employees. Some employees may quit and be hired by competitors but perhaps they may not have been committed to Gen Y and Zack’s purpose. Either way, Zack will find it difficult to turn down Petra’s offer.

Marks should be allocated according to the Paper 2 markbands for May 2016 forward.

Many students could identify two features of an autocratic leadership style.

Many students could name the three key ideas in Pink’s motivation theory and many applied it well.

Many students could have been more precise in their response. Many students received one mark and some earned two.

Responses varied, as is to be expected, but on balance were rather good.