Reference no: EM133077538

Mahindra Insurance Brokers Limited (MIBX), a 5 percent subsidiary company of Mahindra & Mahindra financial services Limited provides direct insurance broking for corporate and retail customer. It also offers a range of products for the non-life and life segments. In addition, MIBL also offers value-added services like risk management/ audit which includes risk inspection and gap analysis, and portfolio management which includes claims handling insurance, unlike any other service sector business, depends on the consistent high commitment and performance of its employees. MIBL has aggressive growth plans and thus regularly sets stretch targets for its people to reach. Insurance in India is also a highly regulated industry and, thus, all action of the company are constantly monitored.

In recent years, a small dip in the performance of its newly hired employees was observed. Additionally, the performance levels of all its employees showed greater than normal variation. The CFO and the HR team thus worked towards improving the performance and productivity level especially of the underperformers. Rather than punishing its underperformers, a multi- pronged approach for performance improvement named as the 'Magnificent Comeback' was put in place. The performance improvement plan included a reward and recognition program, performance feedback, and dialog on a regular basis. The rewards were designed to motivate underperformers to put in greater effort.

Questions:

1. Do you think that the performance improvement program would have been successful in motivating the underperformers? Give reasons for your answers.

2. Do you think you would personally be more motivated to perform if your boss paid special attention to you?

3. What would be the impact of such a performance on the high performers? Substantiate your answer with different motivation
and leadership concepts