HR problem

All employees are continually performance managed and this is looked at when going or promotion so the employees are always putting a lot of effort to get good assessments and appraisals. When many of the employees joined the company they were told that promotion would be available within two years, however this has not been the case. The general management seem not to worry about this lack of motivation and seem to think as long as the employees are making money they will be happy.

Part b Problem Analysis To analyses the problems in this organization we need to look the issue of motivation at work and also the psychological contract between the company and the employee. Arnold et al (1995 cited in Preston 2006 P. 7) suggests that motivation is made up of three components: 1 . Direction: what a person is trying to do 2. Effort: how hard a person is trying 3. Persistence: how long a person continues trying Looking at this suggestion you can see that In the case of the employees they have a key direction In looking for promotion and are putting In a lot of effort to receive good assessments and appraisals.

However, they are starting to lack in persistence as they A highly motivated employee will be: o More committed to the business o A more productive worker Happier in their Job A useful theory we can use to look at motivational issues is Mascots hierarchy of needs. Self-actualization Esteem Social (belonging) Safety Physiological Preston (2006 p. 12) states ‘Mason believed that all people are motivated by the same things, but there are different levels of need.

When one set of needs in the hierarchy has been met, we work harder to fulfill the next level. ‘ In relation to the problem stated earlier a majority of the employees work hard to achieve the different stages of need, however now they are lacking motivation because they are striving for more ND working harder to achieve more but it is not being made available to them. We can also look at Victor Broom’s expectancy theory he uses the equation x I x V) which looks at the process of motivation.

In this case even though the effort being but in by the employees is huge, the outcome they are hoping for (promotion) is not great or non-existent. As promotion is a high priority for these employees they therefore have a lack of motivation. Another motivation theory we can link to this problem is Douglas McGregor (1960) Theory X and Theory Y. In this case the management are obviously Theory X managers only believing employees are motivated by money. The employees will become very disheartened by this as they are trying extremely hard and not being recognized for it.

The psychological contract forms part of the unwritten contract and as Preston (2006 pop) states ‘differs from a written contract in that it is concerned with implicit expectations, obligations and promises that both parties believe have been made with regard to what each owes and expects to receive from each other. ‘ The psychological contract covers a lot of areas and has become more important in cent times where the employee expects a lot more from their employer. When joining the company the employees understood that promotion would be available within two years. This was not in the official written contract but was a known promise.

Many employees now feel dishonored. They have put in a lot of hard work which they expected would put them well on the road to promotion. These few points are all examples of the psychological contract. In this case it is very weak; this is also a good reason as to why the employees are not motivated. I think this problem could be solved and have produced a few ideas which could help both short term and long term. ; Condiment opportunities The company could offer its employees short term condiment opportunities in a higher position when the man power is stretched and in need of a temporary boost.

Even though it is not permanent it may help increase motivation in the short term. In the case on Broom’s theory the promotion they have been working towards will have been made available (if only temporarily) which will increase motivation ; Working in there departments – increase company knowledge There may be a chance to look at letting employees work in different departments short term especially during low season when man power levels needed are not as high. This will benefit both the company and the employee.

The business will benefit from the extra knowledge and skills the employee will learn which they will be able to bring back to their original role. The employee will enjoy doing something new and being more challenged therefore increasing motivation. ; Opportunities to work up On certain shifts the manager on duty could delegate his duties to a more Junior employee. This gives the employee the opportunity to learn on the Job whilst being supervised by the manager. This could provide a challenge and more stimulating day at work. Better the relationship between managers and employees Reduce the barriers between general management and the workforce, I. E. Improving and encouraging more fluid communication between each party. This will enable the management to see how dedicated and committed their staff actually are and allow them to have a more personal idea of who their employees are. This would be a start n changing the managers from Theory X to Theory Y managers when looking at Douglas McGregor theory.