Questions:1. What were the problem/s discussed ? How did these problems influence staffperformance?2. What motivational theory can explain the actions of Charles’s staff to his decisions? Justify youranswer.3. If you are Charles, what decisions would you replace and why? And what decisions are you going toimplement? CASE 2: IMPROVING PERFORMANCE IN BUSINESS SERVICESThe State Department of Economic Development created the Business Service Group (BSG) to providespecial services to out-of-state businesses that consider relocating in the state. Within two (2) years, theBSG put together a good record of helping more than 35 businesses move in the state efficiently.The BSG was staffed with a competent Department Manager and Business Development (BD) Specialists.BD specialists are responsible for working and identifying the needs of each business and making sure thatthese needs are met. Each specialist had a quota of contacts and services to make each month.Charles Thompson was made acting supervisor of BSG after the hasty departure of the previousDepartment Manager. After three (3) weeks, he was then promoted to manager. Charles was originallyhired as a specialist, was then transferred to another related department to serve as assistant manager.Charles was ecstatic when he learned he was moving back to BSG together with John Willis, who is nowthe senior specialist of BSG. Suzy Harris, Barbara Garrett, and Tom Rollins were added to the teamthereafter, and with a fairly high level of experience in the business level function, these individualsperformed really well.In spite of the consistent record, Audrey Downs, Head of the Economic Development, felt that there wasstill room for improvement. Audrey wanted to institute a Service Quality Management program in thecompany and wants to start in the Business Services Group. Charles relays the information to the staff thenext Monday morning.In order to start the program, Charles told them to achieve the following immediately:• Raise the service quotas by 20%• Submit anyone who failed to meet the quota to formal disciplinary action.The specialists didn't give any comments but had exhibited noticeable changes in how they treatedCharles over the next week. They were more distant, hostile, and tense around him.After two (2) weeks, Charles reviewed the performance records of the specialists and found that SuzyHarris hadn't met her quota. Being true to his words, Charles issued a written reprimand to her, whichmade Suzy speechless but angered.After two (2) days, Suzy has filed a grievance in the Personnel Department against Charles. John Willisrequested for transfer, and Barbara is preparing to put in a request, too. Now, none of the employees talkto Charles, and he noticed how services to certain businesses have slightly slipped.

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1) What were the problem/s discussed? How did these problems influence, staff performance?
The…