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Business Scenario
I once was previledged to work with Gimco manufacturing Company. Gimco is a middle-sized family enterprise that was established by Mr. Smith and is jointly run by the family. I worked in the marketing department, which was headed by Brian, who is Mr. Smithss youngest son. The department was made up of six employees who had different ages.
The elderly employees provided professionalism and competency while the young injected enthusiasm, passion and energy into the organization. A month later, after I had started working with the organization, new members of staff were employed. The need for new members of staff stemmed from the expansion experienced in the firm. The organization employed two employees in our department.
The new staffs were employed after convincing Mr.Smith, a renowned engineer by profession that they had the potential to do extensive marketing work. The two employees stirred discord in the organization as they reported to work late and they could also mix their products with those assigned to the other employees. This habit caused alarm in the organization.
Since the organization lacked strong bottom-up conflict resolution mechanisms, all conflicts were referred to the manager. In lieu of what was happening, the manager opted to address the entire department; stressing what was expected of each employee. Before addressing the whole department, the manager had tried using stern warnings followed by some wage deduction to cover the loss sustained by the organization.
The two employees were not punished for their wrongs and the rest of the team was angered by the decision. As it was expected, the trend did not change. The two continued to report late and to misrepresent their sales sheets to reflect a higher sale volume with the aim of attracting a higher commission.
When Mr. Brian was notified of this, he promised to conduct an inquiry into the matter and take stringent measures.
After another month, Mr. Smith decided to affect departmental reshuffles; he appointed one of the two employees to head the department as Mr. Brian was transferred to head the finance department. His decision was based on the completed worksheet returned by sales personnel.
The errant promotion did hurt the organizations morale; all employees in the department complained and confronted the manager. To our surprise, our complaints were given a deaf ear as the autocratic manager imposed his command. Largely, the management made all decisions and employees were not consulted at any instance.
The morale of the employees continued to decrease as well as the trustworthiness. The other reason that instigated this was the unfulfilled promise to increase employees salary biannually. The management remained obdurate and our complaints attracted sucking for the orchestrators. The move not only, violated our rights of holding demonstration but also shuttered all the belief we had in the management.
Further, the organization lacked a strategic plan and working culture to govern the operations. Subsequently, the entire organization started experiencing an increased employee turnover that caused unstable production and paralyzed any progress that was made.
Employee marginalization and prevalence of dictatorial leadership system is to blame for the poor organization morale and poor interpersonal relationship in the organization. If this company was to endure, flourish, and maintain strong market share then strategies for improvement concerning the big picture had to be implemented as a matter of necessity.
Impact of Events on Attitudes and Perceptions
The actions and perception of the employees in the organization have been affected by multi-dimensional issues such as faulty organizational structure that has inhibited delegation of duties, lack organization culture and lack of motivational stimuli. Another thing that has negatively affected the perception is lack of employees voice and involvement in the overall running of the organization.
The definition of perception and attitude has attracted divergent opinions from different scholars and marketers. In their opinion Woods et al (2006, p. 55) assert that altitude is the reaction triggered by individual depending on the surroundings they are in, while perception is the process through which individuals receive, synthesize and construe information (Woods et al, 2006, p. 62).
On the same note, Miner (2007, p.12) connects the two by arguing that employees perception depends on their attitudes. The relationship that exists between makes employee increasingly sensitive to fine details that happens at the place of work.
At Gimco, employees felt underestimated, less appreciated and overall lack of motivation. The exclusion of employees in important factors that pertained to the running of the organization resulted to widening of the gap between the management and employees. The employees felt less useful in the organization as their efforts and contributions were not esteemed.
In addition, the inability to promote workers on merited ground such seniority of service or hard work has been a cause of sustained misunderstanding and chaos. Once the employees are mistreated or their rights are infringed, they become less productive and bad blood develops against the management.
Gimco as an organization lacked internal motivation due to the incommensurate remuneration. ODonnell (2005, p.249) reveals that employee morale is directly dependent on healthy promotion programs and remuneration increases.
The long serving and faithful employees felt an injustice had been done when promotion was given to the unscrupulous new employee. After eroding the meager faith that endured in their mind, the decision rekindled anger, contempt and disbelief. Their faithful service and determination to improve the welfare of the organization had gone unnoticed and unrewarded.
In fact, hefty pay was awarded to the uncharismatic employee who used dubious means to augment their commissions. The situation was even aggravated when employees complaints were dubbed unfounded heresies by the management and instead of an immediate action taken against the ravenous employees; a general sermon to the entire department worsened the situation.
In the organization, employees lack a working job description and organizations goals and objective. The uncontrolled nature of employee activity made it easier for employees to extend their mandate. Instead of supervisor marketing the work sheets, the employee did it to meet their greedy incentives.
From a wider approach job satisfaction was non-existent, Griffeth et al (2004, p. 233) highlight that employees cohesion and better remuneration increases employees satisfaction. In addition, lack of these incentives stimulates employee turnover or instigates thoughts of seeking better pastures elsewhere (Griffeth et al, 2004, p. 232).
With clearly stated goals and objectives, the entire management strives to meet them while each employee also has his or her goals to meet. However, lack of such goals reduces employees output and desire to meet the stipulated mileage.
The organization lacks joint understanding as each individual does his chores without bothering what his colleagues are doing. Since the employees were not involved in-group activities, the interpersonal skills development was inhibited by the dominance of the individualist approach assumed by the organization. This approach denied the employee to freely gather and air their voice in a more unified and harmonious manner.
Simply because the manager disregarded the participation of group performance, the organization found it difficult to adopt new skills and information. Normally, unless employees are allowed to openly express their thoughts, the inherent creativity will not be utilized.
Similarly, individual employees prefer confiding their internal thoughts to their colleagues before they do so to their supervisors and other managers; consequently, lack good interpersonal relationship depresses such.
Although the organization assumes a hierarchical management structure, the structure is non-operational, as the Mr. Smith seems to manipulate the entire organization. In other words, there is no delegation of duties within the organization and the departmental heads assumes ceremonial roles.
During the recruitment of the new staff, instead of Mr. Smith delegating the duty to the human resources manager he single handedly interrogated the interviewee and eventually employs them. Despite his lack of human resource knowledge he blindly hire people with little marketing skill yet very dishonest. Similarly, the manager takes it upon himself to appraise employee and reward them without involving departmental head.
His imposing nature not only embarrassed the employees but it also affected the line managers whose works were reduced to formal portfolio. A dysfunctional structure like Gimcos needs drastic surgery to help reverse the situation and facilitate the flow of information.
Development of a functional structure that allows delegation of duties and free communication amongst employees and the management and eventually to the CEO and vice versa will form a vital role in reinstating the organization to normalcy.
Relevant Motivational Theories and impact of events in scenario upon the motivation of staff
The analysis of the organization will borrow from two theories that are more relevant to the situation at Gimco i.e. Hertzbergs theory and the Expectancy theory.
Hertzbergs Motivation-hygiene theory
In the quest to deal with the problem of unmotivated employees, Herzbergs motivation-hygiene Theory presents substantial measure to enhance employees morale (Fiore, 2004, p. 68). He argued that motivational factors increase employees output while hygiene factors increase employee satisfaction.
In fact these two factors are seriously missed at Gimco where employees lack motivational incentives and have to deal with work dissatisfaction (Hygiene). These factors have been explained in depth as follows.
Achievement
All employees would like to accomplish certain goals that emanate from the hard work and efforts that they reflect at the work place. Since each employee has a goal that he or she has set, the output generated is usually congruent with the goal. Success in meeting the predetermined goals motivates employees to up their production as well as ensuring that they remain true to their goals.
At Gimco employee achievement can be measure in terms of units sold by each employ which attracts a particular amount of money in terms of commissions. In addition, employee achievement can also be measure by successful penetration of a new market niche that was initially unknown.
Miner (2007, p. 47) echoes that employees who finish their duties in time should be allowed to utilize the remaining time as they wish. Once an employ achieves such milestone he attains internal satisfaction and he or she becomes proud of his or her efforts.
Nevertheless, Gimcos employees are rarely appreciated, as the trustworthy employee remained undetected while the cunning ones benefits from the ignorance of the manager.
Recognition
All human beings like acknowledgment for any exemplary job done. Unfortunately, this was not the case at Gimco given the employees efforts were neither recognized nor appreciated. Lack of appreciation-discouraged employees from working to their very best since their superfluous efforts went undetected. Poor supervision prevented recognition and subsequent reward of the deserving employees.
The organization requires having proper employee appraisal mechanism to be able to recognize the hardworking and determined employee. Otherwise, failure to recognize people with extraordinary skills and work rates reduces the morale and the desire to work to their very best (Fiore, 2004, p. 69).
Possibility of growth
Many organizations prefer to undertake internal development promotion rather soliciting employees from external sources. The employees at Gimco are denied this possibility as the management was entirely dominated by Smiths family hence little room of career development exists. The senior employees were dissatisfied by the management decision to replace, Brian with the new and dishonest employ.
The move attracted increased criticism and discourage senior and honest employee who merited the promotion. Due to the current situation, Gimco has a problem of retaining employees for a long time since; employ lack benefits for serving for a long time.
Responsibility
All human beings are motivated by the increase in fulfilling responsibilities and duties assigned to them. As the mandate of each individual increases, he or she becomes more alert and sensitive to details. Increase in responsibility can be achieved through increasing the activities in employees job description or increase accountability.
For instance, employees at Gimco sales department can also be allowed to develop their strategic plan, organize their sub-budget as well as participate in decision-making process. Such increased responsibility will also enhance their accountability and feel appreciated by the organization.
The supervisor duties can also extend to compiling the monthly work list for each employee as well as working in collaboration with the finance department in preparation of the employees salary. Apart from enhancing accountability, increasing responsibility also enhances delegation of duties.
Pay Increment
All employees work to receive financial appreciation for the efforts that they provide the organization. However, each employee expects his or her salary to increase as a times passes by, failure to honor such promises demoralize employees. An increase in salary serves the purpose of improving the welfare of the employees as well as enhancing their morale thus increasing workers satisfaction.
At Gimco the management failed to honor their pledge to increase employ salary according to the prior promise of biannual salary increment. Miner (2007, p. 48) asserts that salary increment promotes self-actualization and personal growth.
Job security
Another factor with analogous effects to that of payment is the aspect of job security. Nearly all organization strives to retain their vital production assets by offering new contracts or even employing employee on permanent basis. Large number scholars argue that many employees prefer working for a small amount of money rather than working for higher pay for a limited period.
Job security (a hygiene factors) eliminates dissatisfaction and prevents workers turnover (Hersey et al, 2000, p. 367). The fact that Gimco is experience high employee turnover prompts organization management to contain this massive exodus by effecting better pay for their employees. This can be done by offering additional monetary incentives such as better health cover, overtime allowance and pension to the employees.
Work Conditions
Although most management fail to see the benefits provided by better environmental facilities, amicable environment enhance workers output. The working environment can be improved by installation of additional amenities such as canteen, fitting first aid kits and generally making the environment safe.
Besides, the organization can also improve the environment by reducing noise, ventilating offices to avoid excess heating and fitting better lighting systems. Better working environment has been identified as one of the most influential aspects that enhance employee performances (Fiore, 2004, p. 68).
Communication
Availability of effective communication in an organization has also been identified as an essential component in a vibrant firm. Miner (2007, p. 49) records that reliable communication enhances better interpersonal relations. Since information can flow freely from the top most to the bottom the organization management is able convey direction and instructions effectively.
For any communication to be effective, good feedback mechanisms, need to be put in place to improve the quality of communication. Apart from aiding in solving conflicts communication form the heart of organization, for instance a good relationship is enhanced between the management and employee and organization with its external factors such as the suppliers and customers.
Good communication is a feature that had dominantly missed in Gimco where autocratic leadership has overshadowed the opinion of employee. Likewise, there is no feedback mechanism in the organization as employee grievances go unattended.
Satisfaction of the motivators and averting problems with hygiene factors help the organization and the management to both enrich jobs and empower staffs, enhancing performance and greater job satisfaction. Similarly, the organization uses this theory to develop employees skills and dexterousness.
When all these hygiene and motivations are blended with an effective communication mechanism, the organization sporadically registers improved performances that attract better profits.
Vrooms Expectancy Theory
Employees at Gimco were unenthusiastic due to the lack of reliable assessment criteria for awarding hardworking employees. Hence, hardworking employees were never rewarded and this made them to reduce their efforts. According to Vrooms expectancy theory, employee reward is equated to the efforts reflected in production activities.
This theory purports that motivation (M), expectancy (E) instrumentality (I), and valence (V) are related according the equation: M = E X I X V. Since all these factors are related, a change in factor will affect the outcome of the satisfaction that is generated. If the expected reward on extra output is low, the motivation appeal generated will be equally low.
On the other hand, an increase in expectations will galvanize the motivation generated. In the above an increase in the any of the variables in the right hand side of the equation leads to the increase in the level of motivation that is generated and vice versa (Borkowski, 2010, p. 129).
According to Vrooms theory, employees are determined to do particular activities to attain fastidious goals in their lives, lack of such provision amounts to increased de-motivation.
The inferences reveal that individuals place specific goals to achieve in the future and they make it responsibility to do everything that would help them to achieve such. The three variables; E, V and I make the motivation equation. These factors are given an exhaustive analysis as follows.
Valence
Valence is the projected satisfaction that is received from a particular outcome. When an employee realizes that he or she can received increased benefits from carrying a particular activity he or she will be determined to carry out the activity rather than forego it. However, if the expected outcome of doing a particular activity is negative the person will opt to forego it in order to retain the current position.
Sometimes individuals prefer to remain indifferent incase an extra participation does not attract any increased incentive; such a scenario is called zero valence. At Gimco, employees were at zero valences since their added efforts did not attract any increase pay.
Since extra output attracted negligible reward in cash and none in terms of promotions, workers remained unmotivated to avoid future disappointments. The promotion that was effected by the organization rewarded the unfaithful employees who did not deserve. Such unmerited promotion blotted the work ethics in the organization and foster diversification of more fraudulent activities.
Instrumentality
This criterion identifies outcomes as first level or second level according to the valence level that is achieved. Commonly, first level outcomes are often influenced by performance while the second level outcomes are influenced by the need. The theory applies that the incentive to acquire a particular thing is seen as the route of achieving a particular outcomes.
If the valence level is highly desired the employee will diligent work out to achieve no matter the hindrances that he or she has to overcome. On the other hand, if the level of valence is low the employee may opt to forego the laborious exercise at all. For second level variances, employees are driven by need to carry out a particular activity or route.
Since needs fall under the category of things that human beings cannot stay without, most often many individuals are compelled by the second level valences to perform a certain activity. However, regardless of the stimulant that stirs employee performances the instrumentality is one of the most cultivating and rejuvenating aspect that promotes the productivity at individual level.
If employee at Gimco are driven by first level valence, their performance would boosted by an intrinsic enthusiasm that propels them to achieve their dreams. The need to achieve a particular thing is not limited to personal gain but it may also include transforming the organization to achieve particular status such become more competitive or even narrow the gap existing between itself and the market leader.
Such aspirations only happen when the employees internalize the organizations strategic plan and the objectives. When the strategic plan is in borne, each employee takes upon himself or herself to improve the current situation to better the welfare of the organization. If Gimco is to experience any of this, the management should learn to appreciate employees contribution to promote their love for their organization.
Similarly, if the need to achieve a particular outcome is propelled by a particular need. Employees become obligated to act as means to meet the requirement of life, for instance if an employee has big family, he will strive to increase sales in order to attract more commission to cater for welfare of the family.
Despite the fact that he or she may not be enjoying a good relationship with company the duty to provide for the family bestowed upon him acts as a stimuli for the argument performance. Therefore, both level one and level two valence works for the better of the organization.
Expectancy
The aspect identifies the choice between alternatives in a scenario characterized by alternative behaviors that have uncertain outcomes. If the alternative selected is highly probable the employee will strive to improve the welfare by injecting extra efforts or even working for extra hours.
The main challenge that is always faced by employee is the determination of the probability accorded to each alternative. If each alternative is known with a particular level of certainty employee would have the easiest of tasks to improve their welfare without much ado. If employees at Gimco have an increasing expectance, the entire output will be improved.
Porter and Lawlers Expectancy Model
Both Porter and Lawler expounded on Vrooms theory further. Their approach is anchored on performance as whole. they argued that the efforts that are generated do not lead directly to the performances but they are determined by employees ability and perception.
The intertwined nature between perception and ability to facility performance become an interested area of study to elucidate the underlying relationship between the variables. Porter and Lawler contend that motivation, performance and satisfaction as individual and separate variables, their analysis reveals the following.
The value of a reward is equivalent to Vrooms valence although it is dependent on the magnitude of the desire. On the same note, the perceived effort-reward is analogous to expectancy as identified by the Vroom. In this argument effort is the intensity of input that is applied by the employee to achieve certain goals.
Meanwhile, individuals abilities and traits are also useful in determination of the outcome received; however, these two are related such issues such as skills and intrinsic intelligence. Thus each individual performance is not just influenced by goals but it is highly dependent on other factors that are mutual included to facilitate an environment that allow better and easier achievement of the goals that are set.
Porter and Lawler commented that the expected outcome is dependent on both intrinsic (coming from the individual) and extrinsic (generated from the working environment). Therefore, to enhance a well-blended performance the organization needs to facilitate a better environment that enhances individual regeneration and amicable working environment.
Group Dynamics and Teamwork
Employees at Gimco work independently and there is no interpersonal competition that exist between them. Jon Katzenbach and Douglas Smith in Goesecke and McNeil (2010, p. 48) define team as small number employees who possess complementary skills who join hands to pursue a common intention.
Goesecke and McNeil (2010, p. 47) assert that managers have a duty to harmonies the conflicting priorities of both the line managers and those of employees to bring enhance attainment of collective goals.
Davis and Davis (1998, p. 279) highlight that for any teamwork to abide, the collective goal should surpass the individuals objectives.
They further argued that managers have the responsibility of identifying the kind of group that they are dealing with as well as understanding the nature of environment that the organization operates in. In order to facilitate group work each organization need to ensure that each department is operation and it has specific goals (Goesecke and McNeil, 2010, p. 48).
Development a group dynamic require a tireless endeavor to accomplish the unified approach that present the personal objectives at the forefront of the strategy. Davis and Davis (1998, p. 280) reveal that this can be done through group interaction or unified team activities.
Further, they proposed that an organization can develop group dynamic by enhancing group opinions, attitudes and fostering group belief. Once the organization collects the opinions and perceptions of members it becomes easier to forge an organization culture that is blended on mutual understanding with the aim of achieving organization goals.
On his side Packer (2008, p.14) perceives a group mentality a social system comprising of various progression and vectors that applied from opposing sides. When the two opposing forces are applied the organization maintains a state of equilibrium
Packer (2008, p. 20) asserts that the requisite of any group dynamic is founded on firm basis such as organization goals, mission, and objectives. The most crucial thing is for the team to understand why it is existent and the purpose for which it was formed.
Once this effected Davis and Davis (1998, p. 281) contends that organization staffs require orienteering to enhance effective bonding and developing mutual understanding. In addition, effective orienteering provides a platform to enhance personal belonging and self-appreciations.
However, Goesecke and McNeil (2010, p. 48) argues that for a team to be effective the organization need organize small groups to enhance contestant interaction and invoke collective participation for members of the group.
Since Gimco is a small organization, each department can be reorganized into a group to enhance effective communication and thorough bonding. However, this can only be done by ensuring that the organization has been restructured to provide a platform to bonding and effecting orienteering.
Essentials of an effective group work
Many organizations fail to develop an effective group dynamic due to lack to relevant group management skills or due to lack of the right person. Several managers argue that an effective group should have complementary skill but not identical skills (Goesecke & McNeil 2010, p. 48).
Complementary skills provide a wide pool of knowledge and understanding, furthermore these group supplies variety of proficiencies that cuts across the entire organization. Since each employee brings unique skills, the organization is entitle with an all round approach.
A team that contains similar skills lacks the depth of dealing with the organization conflicting priorities and other multifaceted phenomenon. Goesecke & McNeil (2010, p. 48) define a group possessing similar skills as a working unit instead of a team.
The second important aspect of a team is prevalence of effective communication. Davis and Davis (1990, p. 290) depicted that when people are put in a group they will automatically talk, however, the question remains who is talking and what are they talking about.
Without structured guidance about the task that is being deliberated by the team, it becomes increasingly difficult for group to achieve any objective. Packer (2008, p. 20) adds that the group should have clear sense of purpose in order to harmonize effective communication within the group.
He further asserted that anxiety and other barriers of communication should be alleviated to foster free communication coupled with lofty degree of trust.
Group cohesion is also another vital aspect that allows different peoples with variant personalities to get along (Davis & Davis, 1998, p. 290). For people to work together as a unit there is need for them to lower their pride, and get committed to the group. Parker (2008, p. 20) suggests that group cohesion can be established by ensuring that the organization assumes shared leadership principle.
Although leadership methods shift from time to time, the organization should be dynamic to ensure that all members in the organization are involved in the running of the organization. On its part, Gimco has a rigid leadership structure that is solely dependent on the CEO who maneuvers all operations. A change to involve other employee would ensure better working environment as well motivating workers.
Lack of adequate conflict management mechanisms has inhibited the development of stable group work. At Gimco no single conflict was given the right resolution, instead the manager imposed his decision leaving employees disgruntled.
Without proper conflict resolution mechanism, any overture to form formidable group mentality will prove futile. It is important to understand that conflicts and misunderstandings are bound to exist in any organization and therefore the management should always be prepared to handle immediately they arise.
Recommendations
From the discussion above the following recommendations are offered in an attempt to improve that management of employees (1) attitudes and perceptions, (2) staff motivation, and (3) Group dynamics. Proper implementation of the recommendations will undoubtedly give Gimco a new lease of life due to a resurgence of staff morale that will result.
Reflection in relation to conclusions drawn from the scenario
Transforming the organization behavior is a difficult mission, due to the inherent motivational and attitudinal developed by the organization. Since human behaviors are inborn, transforming the way people conduct themselves becomes one of the most gruesome activity. In an organization such as Gimco, the management has tough battle to win in order to get back the organization to the required state.
However, no matter how hard the challenge might be, positive outcome is still achievable through deployment of appropriate mechanism and management theories.
Low morale at the work place has been attributed to poor management structure that has facilitated encroachment of defective organization culture coupled with dishonest and greed. Under such environment, the organization has seen it difficult for the management to cope with the high level of demoralization.
Thus, the management structure needs to undergo radical management surgery before dealing employee morale. Similarly, the organization needs to replace the autocratic leadership with participative leadership. In participative leadership, managers are actively involved in production activities and they therefore influence the subordinates in the course of operations.
Their participation enhances mutual understanding with the employees; in addition, barriers between the management and staff are also reduced. Once the gap is narrowed, the management is able enhance an effective communication within the organization.
Conclusion
The above discussion has vividly highlighted the significance of ensuring vibrant employee morale and right perception prevails in any organization. Owing to low morale and few motivation incentives available at Gimco, the organizations performance has been decreasing. Moreover, the de-motivating conditions have generally led to high employee turnover becoming the norm in the organization.
The situation is worsened by the fact that the organization lacks clearly spelt out goals and strategic objectives. Consequently, lack of clear strategic objectives translates into lack of a binding or a collective goal that employees in the organization can identify with.
Despite the state of affairs, everything can be corrected easily if the top management chose to make a mends. Such amends would consist in identifying ways of motivating the employees. One such avenue consists in applying Herzberg theory or expectancy theory to design a motivational framework that uplifts employee morale.
References
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Davis, JR & Davis, AB 1998, Effective Training Strategies: a Comprehensive Guide to Maximizing, Berrett-Koehler Publishers, Inc, San Francisco
Fiore, DJ 2004, Introduction to Education Administration: Standards, Theories and Practice, Eye on Education, Inc, Larchmont
Goesecke, J & McNeil, B 2010, Fundamentals of Library Supervision, ALA, Lincoln
Griffeth, R, Griffeth, RW, & Hom, PW 2004, Innovative Theory and Empirical Research on Employee Turnover, IAP Publishers, New Jersey
Hersey, P, Blanchard, KH, & Johnson, DE 2000, Management of Organizational Behavior: Leading Human Resources, Prentice Hall, New Jersey
Miner, JB 2007, Organization Behavior; from Theory to Practice, M.E Sharpe, New York
ODonnell, MP 2005, Health Promotion in Workplace, Cengage Publisher, New York
Packer, GM 2008, Team Players and Teamwork: New Strategies for Developing Successful Teams, John Wiley and Sons, San Francisco
Santrock, JW, & Halonen, JS 2008, Your Guide to College Success: Strategies for Achieving your Goals, Cengage Learning, Boston
Wood, J, Zeffane, R, Fromholtz, M, & Fitzgerald, J 2006, Organizational Behavior: Core Concepts and Applications, 1st edn, John Wiley & Sons, Milton, Queensland
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