A company, ‘Octopus’, was founded in 2018. As a young company, it does not have a big budget, and so offering competitive salaries is not a viable option. For this reason, the company had to set its salary level at the mean of other companies in the same industry. However, to incentivise employees, Octopus decided to introduce some organisational practices. Specifically, employees can freely decide when to take vacation, spend 30% of their working hours for their own projects or personal development, and can even propose a new project that they lead themselves. In addition, this company provides many opportunities for social interactions and gatherings for employees in order to promote close social relationships. The company publicises these organisational practices on its website so that anybody can see and understand its HR practices. Assessment instructions (a) Discuss the strength of this company’s practices by drawing on motivation theories. [50 marks] (b) Briefly explain the basic tenets of Expectancy Theory. Which additional organisational practices would this theory suggest to further increase employee motivation? [50 marks] Note 1. Whenever you draw on a theory, you should explain the basic tenets of the theory.

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