Allen and Co Case Study

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Joseph Wibowo Professor Sousa GB 215 November 14 2012 Case Study Allen and Co. Allen and Co. is an investment banking group that specializes in creating lasting relationships with high-profile investors, media executives, and other powerful figures such as Bill Gates, Rupert Murdoch, and Warren Buffett. The investment firm has had much success since its creation in 1920 due to the company’s peculiar philosophy, procedures, and policies regarding its employees. The company is located in an unexpectedly ordinary building in Manhattan, New York, and it only employs around 175 people, however, these employees are given a large amount of power and responsibilities. According to Herzberg’s Two Factor Theory, hygiene factors are only important up to a threshold and become unimportant after that. Allen and Co. have created a work environment where the motivation factors are so strong that hygiene factors are no longer needed to drive their employees to succeed. An example of that is found in employees such as Richard Fields who was willing to pass up job offers from other firms with higher salaries just to work at Allen and Co. This indicates that the workers there are content with the job itself and do not require hygiene factors such as a higher salary to prevent job dissatisfaction. Also, the job itself Allen and Co. offers its employees is a big motivation factor for many of them. For Richard Fields and Nancy Peretsman, two managers of the company, the opportunity to personally invest and perform agency work simultaneously pushed them to leave other firms for Allen and Co. When an employee is allowed to invest in his or her clients it proves how confident the person is in his decision, and it also allows the person to have a sense of ownership and responsibility. This “hands-on” approach with clients makes the job exclusive and fulfilling rather than impersonal

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