Reference no: EM132927373
Case Assignment #1
Darla Lucero is the highly successful Regional Sales Manager for Western Canada at Kapster Enterprises. She enjoys her job and earns a good enough salary to comfortably support her husband and two children in an upscale area of Calgary.
She was recently offered a promotion to General Sales Manager for Central Canada, based in the company's head office building in Toronto. The promotion will increase her salary by $10,000 per year and place her a notch higher on the organization chart. She has also been assured that by moving to the head office, and given her excellent performance, she will have a 75% chance of getting a further major salary increase within 5 years and an 80% chance of another promotion within the same time frame.
However, the move to Toronto will also result in much higher living expenses. There is a 10% probability that Darla's husband will have to go back to work if they want to maintain the same overall living standards in Toronto as they currently have in Calgary.
Darla is 75% certain that she would make an excellent GM in Toronto. But she's also 60% sure that she'd qualify for the same salary increase within 5 years if she stays in Calgary as she would get if she moved to Toronto. Further, she estimates that if she stays in Calgary, she'll have a 25% chance of getting a promotion within 5 years that would not require her to move.
In order to make her decision through the use of Vroom's Expectancy Theory, Darla assigns a valance of 8 points to a salary increase, 5 points to a promotion, -10 points to a cost of living increase that might require her husband to go back to work and -5 points for the inconvenience associated with a move across the country. The first-level outcomes she is comparing are staying in Calgary versus moving to Toronto.
- Perform the calculations (and show your work) to predict whether or not Darla will accept the new job in Toronto.
- Identify and explain the key factors that led to the outcome you arrived at in the previous step.
- The C-suite executives of Kapster really want Darla to move to Toronto. Give three examples of specific tactics Kapster could employ that might lead Darla to adjust her expectancies, instrumentalities or valences in a way that would increase the likelihood that she would choose to accept the promotion and move to Toronto. Show how these tactics would affect the calculations you previously performed.