A research for determining the motivators for employees in public as well as private sector companies revealed that “employees’ motives for work in both sectors tended to emphasize intrinsic or motivator factors of employment, while those who worked in the public sector tended to value the extrinsic or hygiene factors significantly higher than those in the private sector. Also, the satisfaction of employees in both sectors was not attributable to hygiene factors” (Maidini, 1991).
In this case Karen’s performance has been significantly good however her continued performance at the same level and potential is stagnant which can reduce the future ROI for the company (Fitz-enz, 2000). Moreover in the face of the current market pressures when the employee numbers have to be reduced in the company to cut down the costs, Karen’s termination is one of the choices available to the company. However, before the termination is carried out the competence and the future potential of Karen needs to be assessed. A competence assessment tool which uses feedback from three supervisors in the form of ratings which can be averaged into one score can provide an overall average competence score for an individual (Aukiran and Turner). This is to ensure the best suitable selection of the alternatives available.