Premium Essay

How Does Change in Management Affects Employee Morale

In:

Submitted By paulabr
Words 1417
Pages 6
How does change in management affects employee morale (confidence, drive, spirit)?
As the world changes, many organization may create changes to their company structure in order to remain successful and look good amongst shareholders. These organizational changes may be beneficial for the company overall. However, it may affect the remaining employee’s morale. Some organizations changes such as layoffs, reduce work hours, a stagnate in benefits increases and rewards may result in management trying to figure out a way to motivate and gain employees trust and loyalty.

Layoffs

When an organization experiences a downturn in the economy, they may be force to perform employee layoffs. Organizations such as the Boeing Company announced in September 2001, that they will be cutting 10,000 jobs which is caused by the U.S. airlines to decrease operational capacity by about 20% due to traffic reductions. Airlines are expected to park older aircraft and defer deliveries of newly built transports as they trim their operational fleets (Smith B. (2001)). The Boeing Company is an American multinational aerospace and defense corporation that was founded in 1916 and is the largest exporter by value in the United States (Smith B. (2001)). This layoffs will created a shortage of aerospace jobs and has created a tough hiring environment for unemployed workers.
Brockner, J. (1992) stated that “if the layoffs are mismanaged, thereby hampering survivors' productivity and morale, then the organization stands to lose a sizeable portion of the savings it hoped to achieve by introducing layoffs.” Even though employee layoffs may allow organizations to cut jobs and safeguard relationships with the existing employee this can be create a challenge to the remaining employees in that, they may experience excessive stress of increase workload, lack of motivation and they may consider

Similar Documents

Premium Essay

Workplace Motivation

... Motivation will not be the same for every organization but by finding out what that thing is, the company can be sure the organization will be successful at whatever they attempt (Fitness Equipment & Health, 2007-2008). Motivation is the inner power or energy that pushes one toward performing a certain action. Motivation is a dynamic process – always changing, always rising and falling – rather than a discrete event or static condition (Reeve, 2001). A person’s motivation can change quickly. Motivation is the force that makes individuals do things which results in an individual need being satisfied and in completing a task. Motivation strengthens the ambition, increases initiative and gives direction, courage, energy and the persistence to follow one's goals. A motivated person takes action and do whatever is needed to achieve his or her goals (Sasson, 2001-2009). Motivation results from actions that satisfy inner needs. Motivation is the intention of achieving a goal, an ability to change behavior, that inner directing drive, leading to goal-directed behavior towards the attaining goal. Motivation is intrinsic (internal); it comes from within based on personal interests, desires, and need for fulfillment. However, extrinsic (external) factors such as rewards, praise, and promotions also influence motivation. In order to explain why people behave in the manner they do, motivational strategies is applied. Motivation can have an effect on the output of any business and...

Words: 2062 - Pages: 9

Premium Essay

Motivation

...engaged in their work and are motivated to improve their performance. Now a day’s organization have looked at Human Resource Management as a denote to contribute to profitability, quality, maximum utilization of resources and other organization goals (Noe, Hollenbeck, Grehart, & Wright, 1994). There are many ways by which employee can be low morale or disengaged with their work like no job security, downsizing in the organization, not satisfied with their work etc. HR Manager should take major steps to increase morale and should always try to motivate employee. Disengaged and demotivated worked directly affect to the goals and success of an organization. This essay aims on motivating performance and engaging worker in his work through job design, recruitment, selection, diversity, etc and the ways by which HR manager can reduces disincentives of an employee from their work. This essay focuses on the morale, motivation and enthusiasm of workers in organisations will be a much bigger challenge in the future so what human resource strategies a company can adopt to meet these challenges. Firstly the essay will identify the reason of low morale and disengagement of worker. Then how they will affect the goals of an organization and reduces the quality of the product. Finally the essay will aim on the different steps that an HR Manager can take to reduce low morale and disengagement of worker. Jobs and goal setting can improve performance of organization by well design jobs. It is...

Words: 2649 - Pages: 11

Premium Essay

Adverse Selection

...1)Adverse Selection is when one person who is in negotiations has valuable information that the other person lacks. An example of adverse selection is an independent contractor job. A landlord hired an independent contractor to perform maintenance for the properties. The landlord decided on the amount to pay for the maintenance work but it is below the current market value. The independent contractor take the job but very little is discussed about what should be perform and what is expected. Based on the low pay, the independent contractor does the minimum because he assumed that is want the landlord wanted because of the pay. Long term objective are goals of an organization that intended to be accomplished over a period of time. Performance jobs are intended to be achieved during five years or more. Investors require a certain percentage on the cost. The percentage would be 35 percent over the four year period. The long term objective would be showing the return of 35 percent over the four years. Tactics is a plan of action and a blue print of a goal that is trying to be accomplished. An example of tactic would be a new hair stylist offering prices at a discounted price to gain customers. Mission is a person that is instructed to conduct negotiations or establish relationships with people from other countries. An example of a mission is President Obama negotiating with Congress on tax cuts. Adverse Selection (2012) http://www.investopedia.com/terms/a/adverseselection.asp#axzz2AdAjzJyj ...

Words: 822 - Pages: 4

Free Essay

Global Communications - Problem Solution

...Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS Problem Solution: Global Communications John Doe University of Phoenix Problem Solution: Global Communications Problem-based learning allows the student to develop his or her problem-solving skills by applying them to an authentic scenario that requires them to identify a problem, apply a problem-solving approach to develop and analyze alternative solutions, and recommend and defend an optimal solution (University of Phoenix, 2010, para. 2). The Global Communications (GC) scenario identifies several issues for the student to analyze and solve using the lessons learned from the course. This paper identifies the major issues that GC is facing. These issues will be analyzed and the perspectives and ethical dilemmas of the stakeholders will be identified. An examination of the problem statement will reveal what improvements GC would like to see in three years. Alternate solutions will be presented and analyzed for validity. An appropriate risk will be assessed on the selected solutions and mitigation techniques explored. From this evaluation an optimal solution will be selected and a plan to implement explored. Finally, a plan to evaluate the results will be presented. Situation Analysis Issue and Opportunity Identification This is a challenging time for GC, the mega-giant telecommunications company headquartered in Centralia, USA. The telecommunications industry is flooded with competition and...

Words: 4413 - Pages: 18

Premium Essay

Absense

...Attendance Policy Change Staff shortages are a problem in all health care organizations. In the organization this paper will be referring to absenteeism has been an ongoing problem for quite some time. There is a noted increase in staff absence on weekends; this directly affects staff morale and patient care. Staff calls out for many reasons to include illness, family emergencies, car trouble, and many others that they do not explain. The current policy does not provide any reward for those who do not call out and does not offer any repercussions for those who do. The normal staff to patient ratio is 15 to 1 for nursing assistants and 10 to 1 for nurses. When staff do not come to work as they are scheduled that ratio can go up exponentially. When these shortages occur the risk for injury to staff as well as residents increases as well as staff burnout. The organization currently has no plan in place to deal with staffing shortages. The company has labor pool staff that staff 41 buildings so they are not always available when one building has a last-minute need. The organization is large with a defined corporate structure that must approve all policy change and with corporate existing in a separate building getting their approval will require getting their understanding of the problem. The staff initially will resist the change because it will mean that if they call out on the weekend they will be required to make up that shift and at first they...

Words: 1361 - Pages: 6

Free Essay

Simmons

...operation. Charlie Eitel, CEO of Simmons made the decision that the company had to make changes to its culture. A major change Charles Eitel contemplated was implementing the Great Game of Life (GGOL) program into the company. Introducing the GGOL program into the company will bring about positive changes to the company that will boost employee morale, employee performance, and subsequently improve the Simmons’ company. Simmons Background The Simmons Bedding Company is one of the biggest mattress and bed related products manufacturer in the United States. Simmons was founded in 1870, when Zalmon G. Simmons opened his first factory in Kenosha, Wisconsin. The company’s ability to mass produce beds since 1875 enabled the company to grow into one of the biggest companies in the United States (Casciaro & Edmonson, 2007). In the year 2001, The Simmons Company was facing hard times. It had lost three major customers, the US economy was suffering, and Simmons had to get rid of foam using for bed cushioning because it was bad inventory. In addition, Charles Eitel the CEO had discovered that there was friction between manufacturing plants and low morale throughout many of the company factories. Charles Eitel wanted to make significant changes to the culture of the Simmons Company. One of changes that has been debated is whether the costly Great Game of Life (GGOL) program should be implemented to change the company’s culture (Casciaro & Edmonson, 2007). The Great Game of Life (GGOL) The...

Words: 1669 - Pages: 7

Free Essay

Gene1

...Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS Problem Solution: Global Communications John Smith University of Phoenix Problem Solution: Global Communications Problem-based learning allows the student to develop his or her problem-solving skills by applying them to an authentic scenario that requires them to identify a problem, apply a problem-solving approach to develop and analyze alternative solutions, and recommend and defend an optimal solution (University of Phoenix, 2010, para. 2). The Global Communications (GC) scenario identifies several issues for the student to analyze and solve using the lessons learned from the course. This paper identifies the major issues that GC is facing. These issues will be analyzed and the perspectives and ethical dilemmas of the stakeholders will be identified. An examination of the problem statement will reveal what improvements GC would like to see in three years. Alternate solutions will be presented and analyzed for validity. An appropriate risk will be assessed on the selected solutions and mitigation techniques explored. From this evaluation an optimal solution will be selected and a plan to implement explored. Finally, a plan to evaluate the results will be presented. Situation Analysis Issue and Opportunity Identification This is a challenging time for GC, the mega-giant telecommunications company headquartered in Centralia, USA. The telecommunications industry is flooded with competition...

Words: 4413 - Pages: 18

Premium Essay

Comparing Co-Workers

...Many large corporations use different databases to help determine salary increases for their employees. In this case study titled, “Comparing Co-Workers Against Each Other: Does this Motivate Employees,” it is mentioned that many corporations are using either a forced or stacked ranking system to evaluate their employees performance based on whether they are performing at an acceptable level. These rankings force management to thoroughly evaluate their employees performance based on whether they are performing at an exceed expectations, meet expectations, or below expectations, some managers may rank at a different level than stated. According to Ivancevich, Konopaske, & Matteson (2012), the case study, it indicates that, “one-third of US corporations evaluate employees based on systems that pit them against their colleagues, and some leading to termination (p. 139). These rankings have placed management and employees in an uncomfortable position because managers have to thoroughly evaluate their employees on their performance. Management is forced to address any issues or problems that an employee has regarding his or her performance thus sometimes the ending results are not on a positive note. This process also brought about lawsuits against companies because employees feel as though they were being discriminated against. A lot of companies do not agree in using the ranking system due to the fact that it is unfair to all employees, it hinders collaboration and risk taking;...

Words: 1493 - Pages: 6

Free Essay

Leadership & Org Behavior Project

...Resolving Morale and Turnover Issues within a Vital Organization Tierzah Lyon 10662 Crystal Lake Rd. Farmersville Station, NY 14060 tierzahjane@yahoo.com Keller Graduate School of Management at DeVry MGMT-591-20618 Leadership & Org Behavior Professor Joseph Neptune February 22, 2015 Abstract The organization discussed in this work of literature is Cuba Memorial Hospital, located in Cuba, NY. Cuba Memorial Hospital is named as a Critical Access Hospital through a federally supported program. This allows the hospital to choose which services best meet the needs of the community with 50+ employees. Cuba Memorial provides mostly long-term care treatment as the main bulk of their income. Like many other hospitals, Cuba Memorial Hospital (Cuba Memorial Hospital) went thru a significant downturn around 2008 due to fraud and theft of education funding and much more. Not only do they lose funding, but also they also almost get shutdown every six months due to not meeting regulations in controlling heat and air-conditioning, as well as having asbestos in the pipes, and a lack of food as they have maxed out their credits with many companies. It has been a roller coaster for many years. The main contributor for many issues among the organization is lack of morale and ethics within the company and this contribute to a very high turnover rate overall. Employees are not very good as well due to the lack of appreciation of everyone’s hard work...

Words: 2756 - Pages: 12

Premium Essay

Home Depot Operational Project

...Inc. Dear Home Depot Inc. Management, As a partner of KNAM LLC, it is my pleasure to present you with the results of our initial review. Included with these results is our assessment of Home Depot Inc.’s performance is our proposition of areas we’d like to review further to determine improvements, efficiency, functionality, and health of your organization. Background Your organization’s core service is in the DIY home improvement market. You sell goods that consumers need for home improvement as well as advice on said projects, contracting services, lawn and garden, and appliances and tools. Your organization was founded in 1978 with the purpose of providing DIY one-stop shopping. Since inception, Home Depot Inc. has grown to become a multinational company with foundations strongly in the United States with roots in the Canadian, Mexican, and Chinese markets. Shortly after inception, Home Depot Inc. enlisted on NASDAQ and the NYSE. Your company has seen considerable growth in its main business as well as developments in subsidiary businesses and services. Home Depot Inc. has become one of the fastest growing retailers in America and as such, you would like to review the operations of your organization to determine areas of further growth and areas that may need to be leaner. Objectives of the Operational Review As a result of our initial review and interviews with your executive management, we believe that the objectives...

Words: 8379 - Pages: 34

Premium Essay

Problem Solution: Riordan Manufacturing

...Research and Development is conducted in San Jose, California, corporate headquarters. Declining sales and profits has forced Riordan to change its sales processes and adopt a customer-relationship management system (CRM). A team approach was implemented with the expectation that sales will improve. Each sales team consists of a sales person, product engineer, and customer service representative (Apollo Group, Inc., 2004). Riordan's managers have noticed that there is a decline in morale and work ethic. An annual employee survey indicated that employees are dissatisfied with the current reward system as well as benefits and overall satisfaction. The company is concerned that dissatisfied employees will find employment elsewhere. Riordan's President does not feel comfortable with changing the compensation system and the company has allocated $50,000 to hire an independent human resource (HR) consultant to analysis the issues in the employee survey. The HR consultant presented a proposal to redesign Riordan Manufacturing’s compensation and reward system which suggested a salary survey of the company's positions be conducted to determine current market positioning and adjust the salaries based on the results of the survey. The proposal also suggested developing an incentive system for sales and research and development based on the company's change to a CRM. Additionally, the proposal recommended a performance appraisal process be developed to ensure clearer alignment between business...

Words: 2667 - Pages: 11

Premium Essay

Unit 1 Individual Project Mgt315

...Traditional Versus Online Management American InterContinental University Abstract This paper will address the internet structure of an organization and the traditional structure of an organization. The Appalachian Lending Corporation is a small finance organization that will be used to show the traditional organization. The online retailer used will be eBay. The management and leadership roles and functions will be explained. Two challenges facing both the types of organizations will be described. The similarities of the challenges will be discussed. Suggestions will be given, about how to transition from a brick and mortar organization, to an online organization. Traditional Versus Online Management The new age of business is moving towards the internet age of business. The internet is attractive compared to the traditional brick and mortar because of the low startup costs. New companies need less capital for their initial startup and this allows more small businesses to be established. The internet also allows new businesses to reach consumer markets, which could not be reached before, by the brick and mortar businesses. With the change in the type of business comes the change in the leadership styles and management styles needed to run these businesses effectively. This paper will look at both, brick and mortar and internet organizations, and discuss the differences in structure, management obstacles and the solutions to these issues. Addressing Management and Leaders The...

Words: 1529 - Pages: 7

Premium Essay

Final Paper for Gm591

...Decline in Employee Morale and Job Satisfaction: UHS Decline in Employee Morale and Job Satisfaction: UHS Established in 1978 United Health Services has deemed itself as a top standing healthcare management corporation. For the past thirty two years the company has expanded operating through affiliate hospitals, behavioral health facilities and ambulatory centers nationwide. The organization has been ranked as one of the top “Fortune 500 “largest corporations for 2011. With all of the accolades and successful growth it would be difficult to point out any discrepancies that the organization could have as it relates to organizational behavior. The company has progressed from several facilities in 1978 to a conglomerate of facilities in the millennium. The organization is the 5th largest for profit hospital managed Health Care Company that is currently competing with increased growth in the Physician owned facilities. The company is the largest publicly known trader of psychiatric and substance abuse facilities. What meaning does these accomplishments mean when they have prospered and flourished to the extent that it exceeds the expectations of the business owner but on many levels fail to meet expectations of the employees and the patients. When evaluating the company success there is no doubt the intangible business decisions have led them to acquire a great deal of recognition as a franchise. Many would argue that a franchise should be more than for profit when it comes to...

Words: 3103 - Pages: 13

Premium Essay

Course Project

...prides itself and is committed to providing service that meets the demands of their customer, and high quality and innovative products. Some products offered at U.S. Bancorp include checking and savings accounts, credit cards, loans, and online banking. According to The Keynote Systems survey U.S. Bancorp is ranked #1 in online overall customer experience; Fortune named U.S. Bancorp #1 most admired superregional bank. For the past six years in January U.S. Bancorp has had an all employee event where employees learn about previous year’s performance, as well as learn about new employee benefits, initiatives, and are celebrated for continued customer service scores. At the employee event U.S. Bancorp introduced MobileMerchant, which allows small business to accept payments quickly, and securely from anywhere, anytime and is due to launch at full production in March 2012. This event also provides employees the opportunity to network with colleagues; share success stories and meets members of senior management. I am currently a teller at U.S. Bancorp located in Lemont, Illinois. I started in April of 2010. My job duties include but not...

Words: 5057 - Pages: 21

Premium Essay

Treadway Tire

...are 50 line foremen at the Lima plant that supervise the hourly personnel and maintain daily operations. Out of these 50 foremen, 23 positions turned over in the current year. This, nearly 50% turnover rate, made it clear that something needed to change in order to retain workers. Line foremen deal with a variety of job duties during each 12 hour shift. They are faced with everything from personal problems to maintenance issues, all while attempting to appease the hourly workers and general managers. The stress and frustration placed on the foremen has taken its toll on employee morale and company production. The company recognizes a need for formal training to combat the problems with the foremen position, but the plant lacks the financial resources to implement this idea. As an alternative, it is recommended that the plant implement an employee mentorship and training program to help aide line foremen in their roles. Losing and replacing employees is time consuming and costly, making it imperative that they give current employees sufficient knowledge and encouragement to be successful in their positions. If the company can recognize dedicated, hard-working employees and encourage improvements, they might be able to improve morale and production while limiting costs. Situation Overview The Treadway Tire Company is a major tire supplier to original equipment manufacturers such as...

Words: 4132 - Pages: 17