College of Business Administration
MGT211- Human Recourse Management
Course Code: MGT 211
Academic Year: 1439/1440 H Students ID Number:
Level of Mark:
Instructions for Assignment
Due date for Submission
End of Week 13
Only WORD DOCUMENT
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Imagine working in an organization where employee morale is low, turnover is high, and the
costs of hiring are astronomical.
If that were the case, you’d imagine the employer would go to great lengths to find, attract, and
retain quality employees. Couple this goal with the reality of the economic picture—you simply
cannot afford to provide expensive benefits for employees who may leave you for a different
employer offering an extra $1,000 in salary or benefits. Knowing that 41 percent of all
employees have no loyalty to their employers and will move on if a better offer comes adds to
the dilemma. These issues clearly are a concern for organizations likeGenentech or Zappos. But
they don’t fret over them. That’s because they have found that treating employees with respect,
and giving them such things as bonuses, rewards for longevity, onsite child care, lunches, and
sending employees home with prepared dinners really works. Genentech is a California company
that “develops and produces drugs that cure diseases,” according to the company website. The
company celebrated its thirteenth year on Fortune’s “Best Places to work” list in 2011, also
receiving “Best Places to Work” honors from Working Mother, LGBT Equality, and
Computerworld. The reasons for this recognition are the important work that they do and the
strong company culture that values equality and communication. Any discussion of how great it
is to work at Genentech always circles back to the benefits that show a real respect for
employees. In addition to traditional benefits like retirement and healthcare, they provide familyfriendly perks such as unlimited sick leave, personal concierge service, flexible work scheduling,
childcare, nursing mother’s rooms, onsite nurses, adoption assistance, and company sponsored
family events. The list of innovative benefits goes on to include unusual benefits like pet
insurance, free snacks, and paid six week sabbaticals every six years! Zappos, the online shoe
retailer, offers perks that match their fun-loving culture like pajama parties, nap rooms, regular
happy hours, and a full-time life coach. Have these benefits worked for Genentech and Zappos?
If you translate longevity to morale and loyalty, you’d say they have. Both boast low turnover
rates and high employee ratings for workplace satisfaction.
1. Describe the importance of employee benefits as a strategiccomponent of fulfilling the goals
of HRM at Genentech andZappos?
2. Explain how Genentech and Zappos use employee benefits asa motivating tool?
3. Do you believe the incentive benefits such as those offered atGenentech and Zappos can be
used in other organizations?Why or why not?
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