MANAGEMENT

Management

Table of Contents

Introduction3

Task 1 (a)3

Theory of Motivation3

Task 1 (b)4

Task 2 (a)6

Task 2 (b)8

Recommendations10

Task 310

Conclusion13

References14

Management

Introduction

A&B, a strong ethical chain of department stores, selling clothes, food and hardware, faces insurmountable obstacles to its survival as many of the structural factors that have provided the basis for the company's success are under threat. Radical changes in the retail market make the company to loose ground in market share and, consequently, to have to reconsider all elements of its activities. Hence, as an attempt to recover, A&B's managing director proposed to remodel staff attitudes and set customer care as the primary focus of activity, in other worlds to adopt a more flexible firm model.

The flexible firm model will enable A&B to remove hierarchical levels and to introduce a flatter organizational structure, which may lead to reduced costs. This structure may increase the quality of working life, as it draws on many people's skills and expertise necessary for rapid decision-making. Moreover, with the flexible structure, decentralized management and control will be increased. Some decisions will be made by individual smaller centres, whilst centres still report to the central control. This situation will give divisional managers some freedom to experiment with new ways of working and make decisions as best fits the circumstances at the time as they 'know best' how to act in their own local sphere of responsibility. But, it is worth noting that "because flat organizations have fewer levels of management, with fewer supervisors and middle managers, vertical communication between the workforce and senior management may be hindered". (Leicester 2001, 3.7-3.8)

In general, employees resist a change as they fear will take away something of value. A proposed change in job design, structure may lead to a real or perceived loss of power, prestige, pay, or company benefits. The fear of personal loss is perhaps the biggest obstacle to organizational change (Donnelly, Gibson & Ivancevich 1987, 449). Undoubtedly, according to propose that all the employees' full-time contracts will become part-time will cause job insecurity. This arises from the fact they will loose all the privileges and benefits previously had and moreover will feel treat of loosing their jobs, as their contracts may not be renewed.

Task 1 (a)

Theory of Motivation

Job insecurity among employees leads to job dissatisfaction. There may be more of a dominant assumption that inputs are offered with the expectation of a like response. Therefore, according to the 'Expectancy Theory', if the outcomes, such as pay, recognition, benefits and other rewards that are available from high effort and good performance, are not valued by employees, motivation will be lower. (Daft 2003, 556&557)

As stated by Abraham Maslow in his 'Hierarchy of Needs Theory', employees are motivated by multiple needs. The first need in the hierarchical order is the Physiological need that in the organizational workplace is reflected in the need for a base salary to make certain survival. The next one has to do with the need for job security; therefore, security needs could be aroused at work when there is uncertainty about continued employment ...