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Managing Motivation in a Difficult Economy
Department of Business & Finance, Monroe College, King Graduate School.
23FL-MG630-144
Running Head: Managing Motivation
2
Managing Motivation
Dr. Michael Altamirano
Abstract Page
The outlook of the employees during difficult times can ultimately affect the result of the business once these difficult times have concluded. When employees witness plant closures, mass employee lay-offs, and reduction of hours in their own places of employment, this stressful environment can cause employees to lose faith in the management of the firm and their job security. Morgan-Moe’s drugstore implemented a five-program management system which ranges the participation of employees in management decisions, and the overall operations and knowledge of the company. The program ranged from one (1), being no involvement by employees, to five (5), allowing employees to have brainstorming sessions on management decisions. The purpose of these programs is to allow employees to feel motivated as they are a part of the business decisions, and ultimately, its success or failure.
Main Body
The vice president for human relations, Mr. Jim Claussen after reading a book from Victor Frankl titled Man’s Search for Meaning decided to implement a five (5) program system to encourage the involvement of employees and management with the deliberations of the company. The five (5) management systems are broken into five (5) programs with the first being for the company to completely forego the new idea. Instead, the company would operate as they usually would which means providing the employees with little or no information on the vulnerability of the company, and the employees do not have any opportunity for involvement or participation in decisions, or meetings. Program II on the other hand tracks employee absences and sick leave information and then shares it with the respective employee. By doing this, management is giving each employee feedback on the things they do have control of which is their sick leave and absenteeism, and they then take no further action. Program III like program II, shares the data with employees but instead does not provide employees with feedback about absenteeism or sick leave. However, Program III goes on further to track the sales inventory replacement rates across the various employee shifts. Program IV being the most comprehensive of all the programs captures the same data as Program II and Program III. To be more comprehensive, however, management will then communicate with employees in weekly brainstorming sessions where employees will then add their input and suggestions to aid in the improvement of the company's performance. The final program, Program V, like Program IV, captures the brainstorming ideas from employees; however, it does not provide feedback with the employees as Program IV does. “The independent variable is the cause, and its value is independent of other variables in the study. On the other hand, the independent variable is the effect, and its value depends on changes in the independent variable (Bhandari, P., 2022). Using
these definitions, the independent variables of the programs would be the programs or methods chosen by management. The dependent variables in this text include profit, staff costs, and turnover. The independent variables and dependent variables share a relation to each other because each method’s success is dependent on each other.
In addition to the independent and dependent variables mentioned in the text, there are several other things that I would use to measure the outcome of the programs. These measures include feedback from both the employees and management that chose the program. This feedback would include their thought process on the success of the program, as well as any ideas they may have to improve its efficacy. This also includes employee satisfaction, engagement, and the overall evaluation of the workings of the program. Another measure of the outcome of the program is the overall improvement that the store may or may not have gathered from the program. From these outcomes, I would be able to advance employee efficiency, and the individual result can ultimately increase overall performance and monitor the results of the program.
When evaluating the strength of each program I through V, there are numerous aspects to gauge its strength. The characteristics used to compare are the amount of stores that choose the program, turnover of the employees, profit, and staff costs. Using these measures, Program V would be the most effective. The monthly staff cost is at a reasonable level, and the weekly profit of the company is the highest. The average turnover of the company is satisfactory as it is the second lowest when compared to the other turnover percentages, and it is the program of choice for a large percentage of the stores. On the contrary, Program I appear to be the least productive of all. Having the next highest number of stores, the profit is the lowest of the five (5) programs.
Furthermore, the program does not have a monthly staff cost but the turnover is the second highest. “When your employee turnover rate is high, you will feel its effect with reduced productivity and increased time spent recruiting, training, and onboarding new employees. High employee turnover can also lead to a decrease in employee morale, which negatively impacts your company’s reputation” (Lancaster, L., 2023).
The area that I find to be most concerning is the turnover rates of each program. The corresponding area is the monthly staff costs. In the programs where there are larger staff compliments, it is understandable to have a more considerable turnover rate; however, the staff costs of the program must be balanced with a higher monthly profit. For companies that have a larger turnover rate, with low profits as well, this would be a long-term issue for the company. The higher turnover rate also affects the productivity and morale of the employees if not monitored. Therefore, all these factors must be balanced and were used in my determination.
However, this factor is not the main factor in decision-making. My reason for this is that Program V has the highest number of stores, with a moderate turnover and monthly staff count, but the highest weekly profit per month (mean). On the other hand, Program I with the second- highest number of stores, has no monthly staff count, but the lowest weekly profit per month (mean), and the second-highest average turnover. I do feel that with the manager choosing their own program, they would feel inclined to make the program be successful. A manager would select the method that is within their comfort zone and may seldom choose to sell the other programs. This is my belief as to why Program I and Program V have the greatest number of stores. Program I is to forego the program altogether, whereas Program V takes the consideration of the various employees without sharing the feedback with them. The overall ability of the
leader is pivotal for the success of the program. If the leader does not have the trust and admiration of the employees, then the employees will not be inclined to adhere to the program. “Top executives can also make their own efforts more effective at meetings of staff and operating groups where change is being discussed” (Lawrence, P., 2023).
In addition to manager selection, another aspect that I think would be successful is the random selection of the program for the company. “By using a random sample, you can be reasonably confident that your results are applicable across the whole company. Random assignment enhances the internal validity of the study because it ensures that there are no systematic differences between the participants in each group” (Bhandari, P., 2023). Implementing a random selection process would force managers to identify benefits or errors within their organization that their program of choice may not have identified. For instance, a lazy manager may have opted for Program I; however, if his store was randomly assigned Program IV, the board of directors would have been able to identify that the slow growth within the company may be a result of management, and not the other factors. Another reason for the implementation of random selection is to remove biases. This means that an autocratic manager who is assigned a program that allows liaising with employees may learn that his employees are a key asset within the organization, and the employees will understand management and have a better appreciation for the company. Having the programs assigned, eliminates management selecting what they are most comfortable with and places the company in a position to make their selection work. This also allows the company to identify and address these areas of concern to improve upon.
Employees within the retail sector are a great asset to any organization and are guided by societal standards. For example, after the COVID-19 pandemic, a vast majority of workforces shifted to a work-from-home model and employees are now comfortable with this setting and perhaps would rather it. This model may work for an Amazon Call Center, but not a coffee shop or restaurant where customer service is essential. Retail workers similarly to the technology that aids in both the physical and ecommerce businesses, must be open to evolution to adapt. This is also pivotal to the success and customer satisfaction. In addition to the evolution of technology, employers are going to require competent employees to operate this technology. Not only is adaptivity essential for the success of the new programs, but experienced employees are too. Experience offers both wisdom and a solid foundation that can be used to lead the way and offer a transition. “Not everybody at the workplace can cope with the change. Therefore, the better an employee can anticipate change and adapt to it, the happier and more at these they’ll be” (Parks, L., 2021).
According to my research, I do think that Claussen’s ideas of these programs were a solid foundation that can be implemented effectively. The programs should be applied based on various factors. The personality of the manager, employees, and store demographic. Measures such as average turnover and weekly profit are essential in company strategies. The hindrance to the program’s success is contingent on how receptive employees are to it. Employees do not want to feel that their choice does not exist and for some systems they are not open to, they would outright rebel. However, if employees reluctantly agree to the system, then the success of the system can allow them to be more open to it. Lacking proof of the system working tends to reduce the likelihood of both management, and employees accepting the system or its benefits. Therefore, I would suggest working keenly with employees and acquiring the right form of
management to implement the system. Do not avoid conversation and listen to their opinions. However, equal opportunity for employees is necessary for the overall development of the program. The organizational justice mentioned in this case is a principle necessary for a positive environment among employees. This positive environment must be created through the actions of the management team. Without the enthusiasm of the manager, the employees would likewise feel discouraged by the programs.
References
Bhandari, P. (2022, February 3). Independent vs. dependent variables: Definition & examples.
Scribbr. https:// www.scribbr.com/methodology/independent-and-dependent-variables/
Bhandari, P. (2023, June 22). Random assignment in Experiments: Introduction & examples.
Scribbr. https:// www.scribbr.com/methodology/random- assignment/#:~:text=By%20using%20a%20random%20sample,the%20participants%20in
%20each%20group.
Lancaster, L. (2023, April 7). Effects of high employee turnover. Stratus HR. https://stratus.hr/resources/effects-of-high-employee- turnover#:~:text=When%20your%20employee%20turnover%20rate,negatively%20impact s%20your%20company’s%20reputation.
Lawrence, P. R. (2023, August 10). How to deal with resistance to change. Harvard Business Review. https://hbr.org/1969/01/how-to-deal-with-resistance-to- change?utm_medium=paidsearch&utm_source=google&utm_campaign=subscribetohbr_g bb_dom&utm_term=Non- Brand&tpcc=paidsearch.google.dsacontent&gad=1&gclid=CjwKCAjw69moBhBgEiwAU FCx2NlUOw7p5hw0QaknmUa9pfhcqrybLYO2dizwDFQxVqsE8QbzZmfFXRoCV1UQA vD_BwE
Parks, L. (2021, November 24). The benefits of adaptability in the Workplace. Fairplay. https:// www.fairplaycommunications.com/blog/the-benefits-of-adaptability-in-the- workplace
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