Manuel S.

Enverga University Foundation

Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

ENGINEERING MANAGEMENT
( MNAB 3323 )

CASE ANALYSIS NO. 7

THE COMFORT ZONE

Submitted to:
DR. GUILLERMO M. RAGO JR.

Submitted by:
GREGORIO A. CAÑARES JR.
BSME

Date of submission:
NOVEMBER 23, 2019

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
 Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

Case Analysis

Nell Ludwig is the manager of a residential real estate office in New Orleans. She has been a
successful sales associate and broker for 15 years, winning almost every conceivable award
from her company and the local board of realtors several times. Every year she personally lists
and sells over $2 million of residential real estates; one year she sold over $6 million dollars’
worth. She gets to work at 8 o’clock every morning, works several nights each week, puts in 6
to 10 hours on weekends showing and listing property. She loves her work and earns $50,000
annually from personal commissions and overrides from her 25 sales associates. However, she
wants to make $75,000 this coming year and knows the only way to do it is to get her associates
more productive.
One thing Ludwig cannot understand is why her associates will not work harder. Sixty percent
of them are women and earn an average of $10,000-$12,000 annually; the remaining men earn
only slightly more than the women. The two top producers are women, who average about
$30,000 annually each. Many of the associates don’t get work until 10 or 10:30 in the morning,
and they don’t work evenings or weekends unless specifically requested to do so by Ludwig.
Most agents want to have “floor duty” (sitting in the office waiting for the phone to ring) rather
than going out and calling on For Sale by Owners (FSBOs) on the phone or physically going
out and “farming an area,” which involves knocking on 25 doors a day and introducing
themselves to the homeowners in a community.
All the associates have been through extensive sales training classes, which showed them how
to farm and how to call on FSBOs, expired listings, and friends. However, most associates just
try to handle “call-ins” from floor duty and friends who call to list a house or look for a home
to purchase.
Ludwig was lamenting her problems with a friend who is sales manager for Lanier Business
Products and asked him for advice. His response was the following:
“Why don’t you make them set weekly goals for calls, presentations, and listings from the
various sources and have them come in at least one evening a week for two hours of FSBO
calls? Put all their names up on a big chart and review progress every week. Your problem is
that all your sales associates have reached a comfort zone and you’ve got to get them
uncomfortable and off dead center.”
“I can’t do that, Jim,” Ludwig responded. “All my associates are independent contractors. They
are not salaried, like your people, but are just on straight commission compensation. If I make

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
 Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

them set goals and hold them accountable, they’ll leave. And FSBO calling frightens the
daylights out of them-I don’t believe any of them would show up to do that on a regular basis.”
I. Executive Summary

Nell Ludwig is the manager of a residential real estate office in New Orleans. She has been a
successful sales associate and broker for 15 years, winning almost every conceivable award
from her company and the local board of realtors several times. Every year she personally lists
and sells over $2 million of residential real estates; one year she sold over $6 million dollars’
worth. She gets to work at 8 o’clock every morning, works several nights each week, puts in 6
to 10 hours on weekends showing and listing property. She loves her work and earns $50,000
annually from personal commissions and overrides from her 25 sales associates. However, she
wants to make $75,000 this coming year and knows the only way to do it is to get her associates
more productive.
One thing Ludwig cannot understand is why her associates will not work harder. Ludwig was
lamenting her problems with a friend who is sales manager for Lanier Business Products and
asked him for advice. His response was the following: “Why don’t you make them set weekly
goals for calls, presentations, and listings from the various sources and have them come in at
least one evening a week for two hours of FSBO calls?”. Her response was, “I can’t do that,
Jim,” Ludwig responded. “All my associates are independent contractors. They are not salaried,
like your people, but are just on straight commission compensation. If I make them set goals
and hold them accountable, they’ll leave.

II. Statement of the Problem

The problem is that Ludwig’s employees are not working harder to achieve Ludwig’s target of
$75,000 on this coming year. As stated by her friend, her employees are already on their
comfort zone that is why they don’t have any motivation to work harder.

III. Causes of the Problem

The main cause of the problem is the lack of motivation from Ludwig to her employees. That
is why her employees feel that they are in the comfort zone and will perform the job to its
minimum requirement. Unmotivated employees will not go to the full extent of their
capabilities as they are already limited to what their daily routines are.

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
 Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

IV. Decision Criteria and Alternative Solutions

There are multiple possible solutions to the problem stated above. These are the following:

Option # 1: Give Effective and Good Rewards and Recognitions (Increase Incentives
& Bonuses).

 Pros:
a) Employees will be motivated to perform well and get more clients since the
more clients they have, the more incentive they can get.
b) Increase profit and target might reach due to hard working employees.

 Cons:
a) Slight increase in cost due to increase incentives.

Option # 2: Give Quota or Targets

 Pros:
a) Employees will get more clients and will increase the profit.
b) Target set by Ludwig can be achieved.

 Cons:
a) Employees will be force to perform well and might not accept this change.
b) Employees might leave due to job pressure.

Recommended Solution, Implementation and Justification

Recommended Solution:

Choose Option No. 1: Giving effective and good rewards and recognitions such as
incentives and bonuses will be a big motivation to perform well.
People are working to earn money for their families and this will
be a great motivation to boost their moral in working harder.
Ludwig can prepare a budget for rewards and recognize the
individuals who has a highest productivity at least monthly or
weekly.

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
 Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

Case Analysis Questions:

1. Who do you believe is right—Jim or Nell? Justify you answer.

 I think Nell is right. We all know that changes are essential for good company
development, but this kind of change might have a bad result due to the
current attitude of the employees. What her employees need is motivation not
pressure. Giving pressure instead of motivation will have a very bad effect on
employee’s attitude and behavior. Worst comes to worst is that they will leave
the company due to unnecessary pressure from the boss.

2. How would you motivate the sales associates to list and sell more real estate?
 They can be motivated by giving them effective and good rewards and
recognition. Allotting a budget for rewards is a small thing compare to what
you will gain when the employee performs at his best. Moreover, giving
recognitions or acknowledgements increases the moral of the employees and
motivate them to enhance their performance and productivity.

3. How would you motivate associates to make FSBO calls?

 I will motivate them by giving them a small quota with an attractive reward.
When I see that this method is working and the company is earning more and
more client, little by little, the quota will increase as well as the rewards. After
every month, there will be an acknowledgement for the top 10 highest
performers and rewards shall be given to them. In addition, non-winners will
have a consolation prices for them to strive more for the next months. Friendly
competitions can help motivate the people.

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

ENGINEERING MANAGEMENT
( MNAB 3323 )

ASSIGNMENT NO. 7
MOTIVATION

Submitted to:
DR. GUILLERMO M. RAGO JR.

Submitted by:
GREGORIO A. CAÑARES JR.
BSME

Date of submission:
NOVEMBER 23, 2019

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
 Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

Assignment No. 7:

1. Conduct a job satisfaction survey in your department/company. Choose at least 10

respondents. Summarize and discuss the result using the format below. Prepare your
report: (survey instrument will be provided).

Survey Result:

Conclusion:

Recommendation (What techniques of motivation you can use to improve the satisfaction of
your respondents?):

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

ENGINEERING MANAGEMENT
( MNAB 3323 )

CASE ANALYSIS NO. 8

LEADERSHIP LESSONS

Submitted to:
DR. GUILLERMO M. RAGO JR.

Submitted by:
GREGORIO A. CAÑARES JR.
BSME

Date of submission:
NOVEMBER 23, 2019

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151
Manuel S. Enverga University Foundation
Lucena City, Philippines
Granted Autonomous Status
CHED CEB Res. 076-2009

COLLEGE OF ENGINEERING & TECHNICAL DEPARTMENT

Manuel S. Enverga University Foundation
University Site, Brgy. Ibabang-Dupay Lucena City, Philippines; Telephone No. (042) 710-3151