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Managing People In Organization: Maples Retail Organisation Add in library

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Question:

Discussion  on  concerns  related with  maintenance of  staff morale and  motivation during recession  and identification of  the  ays for  motivating  staffs  in Maples  during recession?

 

Answer:

Performance  of an  organization  is  influenced   significantly  by  activities of the staffs. The  influences  of  the  activities  conducted by employees  on organizational  performance  are more evident in case  of  retail  organizations (Armstrong, 2006). In  case  of  Maples also  the  sales  figures are greatly influenced  by attitude  of  staffs.   However the  behaviors of  employees are  influenced  by several external factors.   Wright, Moynihan and Pandey, (2011) stated that the  organizational policies are  impacted by economic condition of the  market. It  indicates that  behavior of employees  can be changed  due to fluctuations in economic condition.

Discussion on  impacts of  behavior of  employees  indicates  that managements of the organizations  require giving  importance  on  maintaining  morale and motivation of  employees  to  avoid   any  degradation in  organization. The  factors which influence  motivation  level  of  employees can be  identified by analyzing  Herzberg’s  two  factor  theory. Analysis  on  the theory proposed  by Herzberg indicates that the  level of dissatisfaction among employees  significantly  depends on salary  structure  of the  organization.  However discussion on the  two  factor  theory  also  indicates that organizational  policies also  influence    morale  and motivation  level of  employees.

Van De Voorde, Paauwe and Van Veldhoven, (2011) stated  that  management  of an  organization  require  ensuring that  employees  are  being  provided with  reasonable  and  appropriate  salary. It  also  required  ensuring  that the  organization is  providing employees  with  salaries  as per  industry  standard.  Analysis  on the problems faced  by Maples management  during  recession  indicates that the  management failed  to   keep  promises regarding  salary  structure. However, management  of the  organization also   failed to  provide  employees with  opportunities  for growth  in career. As  an impact, chances of  reducing satisfaction level  of  employees are  increasing.   Discussion  on  the  current  situation  indicates that management of Maples  require  giving  importance on ensuring  that  motivation  level of  employees are not reducing due  to absence of  career  growth  and monetary benefits.

Although  lack of  monetary rewards reduces the satisfaction  level of  employees, analysis on  Herzberg’  hygiene  factors also  indicate that   lack of  non monetary benefits  also  impacts  on  satisfaction  level  of  staffs. As  stated by Petrou et al., (2012) management of  an organization  requires ensuring that   positions of staffs are secured  in an organization. Martin, (2009) opined  that status  of an  employee  in the organization  requires  being  retained in order to  increase job satisfaction  level among  staffs. During recession,  management of Maples  is  facing several problems  for maintaining  their profitability without  affecting  motivation  and morale of  staffs.  The  problems  faced  by Maples  management during  recession  are:

  • Reduced  job  security
  •  Issues  in  Payment
  •  Reduced  size  of  workforce due to  closure  of few stores
  • No  opportunity for  promotions
  • Increased  pressure on  staffs due to fluctuations  in  market  condition
  • Financial  issues  due  to global  recession
  • Breaking of  promises  as  an impact of  reviewing  pay structure

Discussion  on  the  condition of  Maples indicates  that  job security for all  employees was reduced. Management  of  the  organization not only failed  to  keep their promises, but the  process  of  paying  staffs  was also interrupted during  recession. Apart  from this, management of Maples  needed to reduce size  of  their workforce  in  order  to reduce  size  of their  workforce.  Reduction  in  number  of stores  also reduced  job  security of  employees  in  different position of the  organization.  Reduction  in job  security  also leads to  reduction  of  satisfaction level  of employees (Armstrong, 2006). Reduction  in  motivation  level  of  employees  can reduce  their  productivity  also.  Reduction in motivation level  of staffs can also  lead  to increase  in turnover  rate  of efficient staffs.  It  will affect long term profitability  of  the  organization. It  is  evident that  Maples  management requires  taking steps  for  increasing  motivation  level  of  employees so  that  they  can  retain efficient staffs.

Discussion  on motivational  factors  identified in  Herzberg’s theory  indicates  that    recognition  obtained at  workplace increases  intrinsic  motivation  level  of staffs.  As  stated  by Inceoglu and Warr, (2011) intrinsic  motivational forces enable  employees to  enhance  their dedication to  duties. It  indicates that presence of  intrinsic motivational factors   improves performance of  staffs. Analysis on the  motivational  factors  identified  in Herzberg’s theory  also  indicates that extrinsic motivation level of  employees  is impacted  by  disciplinary  actions  taken  by an  organization.  However, GIAUQUE et al., (2011) also stated  that the  extrinsic motivation  level  of  staffs is  also influenced by monetary  rewards  and  incentives  provided  by  management  of an organization.  The  opportunity for getting incentives  and rewards encourage  staffs  to perform better.

From  analysis on  the  two factor theory  of  Herzberg  , it is evident  that  the  factors which  motivate employees  are  reward  and  recognition. Gallie et al., (2010) also  opined  that  the  availability  of opportunities  for promotion  impacts on motivation  level of  employees.  Analysis on  the  problems faced  by Maples retailers  during  recession  indicates  that  management of the  organization  failed  to provide employees  with adequate  opportunities  for  promotion. As the staffs  are  not getting  monetary  and  non monetary rewards, they do not show  interest  for  improving  their skills  and abilities (Fernet, Austin and Vallerand, 2012). Such nature of  employees  will not  restrict  organizations   from  achieving short  term goals; degradation  in performance  level of  staffs  affects future growth  of  the  organization.  It  also  indicates  that  motivation  level of staffs  may  reduce  during recession.  Analysis  on the  condition also  indicates the Maples  management  needs  to ensure  that  motivation  level of  staffs is not degrading.

 

Ways for  motivating  staffs  in  Maples  during recession:

Applying motivational  theories can help Maples retailers to survive now and  also to  enable the employees for upgrading their morale. The application of Hertzberg`s motivational theory  for solving  issues  faced  by  Maples  management will  be  helpful. The Herzberg  theory  reflects that  there are two types of factors, hygiene and motivational factors that govern the working of employees in an organization (Cerasoli, Nicklin and Ford, 2014). The hygiene factors  define  the needs like company policy, salaries working condition etc. motivation factors. On the other hand, discussion on  motivational  factors  give information on  importance of  gaining higher degree of advancement in job like attaining status, responsibility, recognition etc.

Now the  problem is how to apply  the  motivational factors  in  order to find solutions of the  problems faced  by  Maples  management.  Analysis on the situation of market during recession indicates that Maples management was not able to provide  monetary rewards  to  staffs as  it can  reduce profitability of the organisation. However the  management can  use non monetary  techniques  for motivating staffs of the company.  Discussion on  the  condition  also  indicates that  providing  staffs with opportunities for  promotion  is  not  possible for  management of Maples. It reflects that the  management  need  to take steps so that  employees  get opportunities for  improving their skills without being promoted. Extending  responsibilities of  staffs  will  not  only be effective to avoid reduction in  profitability, but  is  will also  be beneficial  for developing highly skilled  workforce  in future.  Hertzberg had argued that  for  solving issues related with very low employee morale the company  requires encouraging its employees by doing the following activities:

Job Enlargement: Job enlargement  can be considered as  the process  of  increasing the scope of a job by enhancing the range of its duties and responsibilities generally in the same level of work (Bellé, 2012). At Maples the  management requires modifying  scopes of work for employees. Implementation of this strategy will  provide employees with the  opportunities  for   improving  their skills. As  employees  will  be  able to  improve their abilities, number of  satisfied  staffs  will  also  increase.

Job Rotation: At Maples, the employees were working at a particular designated post and they had skills required for the job. Now if the company rotate its employees amongst various departments,  the  staffs will  also  be  able to  gain new skills. It  will  also  be helpful for  Maples  management  to  avoid generation  of  issues  related  with low motivation level of employees.

Job Enrichment: It aims at redesigning the job in such a way that the job appears to be more challenging to the employees (Armstrong and Mitchell, 2008). The new challenges in the job will instil new enthusiasm in the employees.

Utilization of the Hertzberg motivational factors would certainly help the organization  to motivate its employees but there are many internal changes that the company will have make in its policies to retain these employees. These changes include: The obstructive company policies will have to be changed. Before venturing into the new market, the company will have to bring big issues under its purview. The organization will now at any cost try to provide job security. Ensure that the salaries they would provide at least meet up the expectation of the employees. Create a status for all jobs by providing them a meaning and good position. Company should provide scopes for achievement for growth and offer training and development for the employees who would work in the new venture of Maples. More responsibility must to the employees and along with that recognize the contribution of employees.

 

References

Armstrong, M. (2006). Strategic human resource management. Kogan Page.

Armstrong, S. and Mitchell, B. (2008). The essential HR handbook. Career Press.

Bellé, N. (2012). Experimental Evidence on the Relationship between Public Service Motivation and Job Performance. Public Administration Review, 73(1), pp.143-153.

Cerasoli, C., Nicklin, J. and Ford, M. (2014). Intrinsic motivation and extrinsic incentives jointly predict performance: A 40-year meta-analysis. Psychological Bulletin, 140(4), pp.980-1008.

Fernet, C., Austin, S. and Vallerand, R. (2012). The effects of work motivation on employee exhaustion and commitment: An extension of the JD-R model. Work & Stress, 26(3), pp.213-229.

Gallie, D., Zhou, Y., Felstead, A. and Green, F. (2010). Teamwork, Skill Development and Employee Welfare. British Journal of Industrial Relations, 50(1), pp.23-46.

Giauque, D., Ritz, a., varone, f. And anderfuhren-biget, s. (2011). Resigned but satisfied: the negative impact of public service motivation and red tape on work satisfaction. Public Administration, 90(1), pp.175-193.

Inceoglu, I. and Warr, P. (2011). Personality and Job Engagement. Journal of Personnel Psychology, 10(4), pp.177-181.

Martin, J. (2009). Human resource management. SAGE.

Petrou, P., Demerouti, E., Peeters, M., Schaufeli, W. and Hetland, J. (2012). Crafting a job on a daily basis: Contextual correlates and the link to work engagement. J. Organiz. Behav., 33(8), pp.1120-1141.

Van De Voorde, K., Paauwe, J. and Van Veldhoven, M. (2011). Employee Well-being and the HRM-Organizational Performance Relationship: A Review of Quantitative Studies. International Journal of Management Reviews, 14(4), pp.391-407.

Wright, B., Moynihan, D. and Pandey, S. (2011). Pulling the Levers: Transformational Leadership, Public Service Motivation, and Mission Valence. Public Administration Review, 72(2), pp.206-215.

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