Final Project

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Operational Risk of Employees' Motivation

Andrew Lyons

MGMT311

American Military University

10/16/2021

Operational Risk of Employees' Motivation

When it comes to hiring and promoting new employees, one of the most important factors to consider is their drive. This factor, together with employee participation, has a significant impact on how employers see their workers. Employee happiness and engagement are the most important factors to consider while making better choices with employee motivation as a side effect (Dvorsky et al., 2021). Following the alignment of the two characteristics above, the manager must establish goals, implement controls, and take into account the efforts of disengaged workers. As a result, the manager will be assessing the "employee motivation programme," which links to strategic, financial, operational, and opportunity risks (Dvorsky et al., 2021). If this analysis is done correctly, silos will be eliminated, resulting in a shift from Risk to goal. As a manager at Alpha Productions Limited, I'll explain the dangers of our staff incentive programme in this article.

Strategic Risks

Aligning the company's purpose, vision, and objectives with the existing resources is part of the strategic plan for Alpha Productions Limited, which may include acquiring new resources. At a price, resources are used to achieve the objectives. Using a predefined financial projection, the business identifies the likely product production and estimates the associated costs. Human resources are a crucial resource. The strategic plan's economic forecast is affected by changes in the resource's maintenance costs. Some of the expenses associated with the employee motivation programme will be addressed later in the report under the section on financial hazards. Assumptions are often made that long-term financial success is dependent on a combination of acquisition and inflation, which is represented by stein figures in strategic planning—because of this, implementing staff incentive programs poses a risk to Alpha's long-term strategic goals (Marlina et al., 2021). Rather than decreasing strategic changes, the implementation of such a programme expands them in the company.

Financial Risks

Managerial thinking has recently changed dramatically, with employees being seen as growth investments subject to depreciation and other risks. As a result of this shift, there will be an increase in overhead costs associated with hiring, training, and motivating new staff. Most employees believe that combining people strategy with cross-functional organizational design is a creative approach to address business problems (Xu et al., 2021). The programme to motivate employees affects the company's overall performance, including financial condition. The topline of this programme is revenue, and the bottom line is profitability.

As a consequence, attempts to motivate employees are characterized as costly initiatives/programs with uncertain outcomes. There were instances when the programme increased sales and profitability, which didn't happen all the time. Initiating an employee incentive programme is a commendable start, but gan must be carefully considered, aligned, executed, and accepted while considering any potential negative consequences. As employee motivation rises, so does the company's overall financial risk. As a result, everyone involved in the programme must treat this as a possible danger and keep it in mind at all times.

Operational Risks

A programme to motivate workers may have varying effects on the people who use it. Different workers have different motivation requirements. Therefore the degrees of incentive they must be exposed to will vary in magnitude. As a result, workers may violate their employer's incentive rules while also violating the non-disclosure agreement. Consequently, there is a division among employees, with everyone preferring to work exclusively with those coworkers with whom the business wants to place them in the same pool. Activities have become intolerable because of the internal strife caused by this split (Xu et al., 2021). Because operational risks affect financial results, they encourage organizations with poor top and bottom lines to take on the program's challenges.

Opportunity Risks

Investment in a programme or a product has opportunity costs associated with it. The business sacrifices another programme that would have been more lucrative than the one it's now pursuing whenever it embarks on a new initiative (Rózsa et al., 2021). When workers are motivated, the saved money goes into increasing supplies and expanding the service area. Employee motivation necessitates a higher level of morale among the workers, while other initiatives are neglected. Any other programs should be avoided after the procedure has begun since the former stands out as the focus. If the programme is poorly thought out, opportunity risk will be significantly expanded and extended, which will harm working capital on a day-to-day basis.

Conclusion

To put the needs and morale of workers first, a fantastic programme for motivating them should be implemented. As a manager, I need the support of a pleasant working environment to achieve high staff productivity levels. To guarantee the organization's success, risks connected with it should be addressed, and strategies for controlling them should be established in advance.

References

Dvorsky, J., Belas, J., Gavurova, B., & Brabenec, T. (2021). Business risk management in the context of small and medium-sized enterprises. Economic Research-Ekonomska Istraživanja, 34(1), 1690-1708.

Marlina, L., Setyoningrum, N. G., Mulyani, Y. S., Permana, T. E., & Sumarni, R. (2021). IMPROVING EMPLOYEES WORKING DISCIPLINE WITH PUNISHMENT, REWARD, AND IMPLEMENTATION OF STANDARD OPERATIONAL PROCEDURES. Perwira International Journal of Economics & Business, 1(1), 37-43.

Rózsa, Z., Belás, J., Khan, K. A., & Zvaríková, K. (2021). Corporate social responsibility and essential factors of personnel risk management in SMEs. Pol. J. Manag. Stud, 23, 449-463.

Xu, Y., Tan, T. F., & Netessine, S. (2021). The impact of workload on operational risk: Evidence from a commercial bank. Management Science.