133568722 organisation behaviour
DESCRIPTION
OrganisationTRANSCRIPT
Organisations:
Behaviour,
Structure, Processes
(BUMGT5921)
Names (Student ID): Ahmed Faisal Kabir (UBS30105841)
Amisha Sukhadiya (UBS30100734)
Dongyi Hou (UBS30108313)
Ganga Devi Gurung (UBS30098812)
Qi Liu (UBS30108650)
Group A
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 1
Executive Summary
SUBJECT MATTER: This report provides the problems of Hong Kong Yamatoo
Holding Ltd. This report highly focuses on major problem of the company, which is
recognized as high-staff turnover, and also discusses two theories (Motivation and
Leadership) which can be applied to problem. Moreover, it also provides the
recommendation to problem situation.
METHOD OF ANALYSIS: For the analysis we had taken in to account the
percentage of high staff turnover during one year and the personal experience of our
group member, who worked in this company for one year.
FINDINGS: It has been established that there is a lack of motivation,
dissatisfaction with job and work schedule, lack of moral and needs which are not
satisfied. As a result of these, it has caused high staff turnover.
CONCLUSION: Positive attitude of manager is very essential; moreover, job
satisfaction is also needed to reduce the high staff turnover.
RECOMMENDATION: Top down communication is necessary in this company,
employees should be rewarded and valued for their work, and employer should focus
on needs of employees.
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 2
Contents Introduction .................................................................................. 3
Company Background ................................................................. 3
Recognition of Problem Situation ............................................. 4
MOTIVATION ............................................................................. 6
HIERARCHY OF NEEDS: ...................................................... 6
Application of Motivation – Hierarchy of needs ...................... 7
Leadership .................................................................................... 9
Application of Leadership- Leadership Grid ............................ 9
Recommendations ...................................................................... 11
Conclusion ................................................................................. 12
Bibliography .............................................................................. 13
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 3
Introduction
In today‟s organization, there are many problem situations that exist within them.
Some of these are increased customer complaints, specific quality concerns, high staff
turnover, contracts lost, workers strike, decreased market share and loss of profit.
In this report one company, Hong Kong Yamatoo Holding Ltd. will be chosen to
analyse one major problem, high staff turnover. Two theories are also discussed which
can be applied to these problems, those are leadership grid which falls in behavioral
approach in Leadership and Hierarchy of needs which out of content perspective on
motivation. This report also suggests some recommendation to solve this problem.
Company Background
Hong Kong Yamatoo Holdings Ltd. is a health care products company which
manufactures and sells four brands of health care products in Hong Kong namely
„Choice‟, „The Capital No.1‟, „Bansheng‟ and „Yamatoo‟. More than 80 products are
sold mainly in Watson and Mannings (two leading health and beauty retailers)
targeting customers of different age, income level and gender. According to the owner,
the company takes 30% share of Hong Kong health care product market. The
turnovers of past six years are showed in figure 1.
Figure 1 Sales turnover of Yamtoo Holding Ltd (Best Yamatoo Holding ltd of Hong
Kong)
0
100
200
300
400
2006 2007 2008 2009 2010 2011
Sales Turnover
Unit:Billion
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 4
Its strength lies in the aggressive marketing and sales strategy. Billions of dollars are
spent to invite renowned celebrities with a great reputation among Hong Kong
citizens. Furthermore, more than 250 promoters assigned to the retail stores to
perform direct sales to customers. The salaries of these promoters are commissioned
based therefore they are motivated to sell more. This leads to greater volume of sales
turnover.
Recognition of Problem Situation
Though the company is performing well in the market, it has many internal problems.
The major concern is high staff turnover which mainly happened in the headquarter
located in mainland China. We describe the problem by analyzing the turnover rate of
the recruit in 2011. In that year, around 35 undergraduates were recruited in May. At
the end of October, 71.43% left. Surprisingly, all new staffs but one from sales
department chose to leave in that month. By the end of 2011, only 3 staffs were left
which means that the staff turnover rate is 91.40%. (By communication with previous
colleagues)
Figure 2 Staff Turnover Rate
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
1stmonth
2ndmonth
3rdmonth
4thmonth
5thmonth
6thmonth
7thmonth
8thmonth
9thmonth
10thmonth
11thmonth
12thmonth
Staff Turnover Rate
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 5
There are many internal problems which contributed to the high staff turnover. These
problems are listed below.
- Due to the lack of an effective formal communication channel, grapevines
were mostly depended on.
- The Boss has a dictatorial style of leadership. He is suspicious, emotional and
has a bad temper which affects the work environment.
- Advice and opinion from subordinates are seldom accepted.
- The Boss turns judgments on work to personal attacks. Thus, employees felt
unvalued and even humiliated.
- Overtime working is the common occurrence which is a common complaint of
the employees.
- Unreasonable and unexpected working hours. Employees are regularly
required to stay back to the early morning without any prior knowledge.
- Ethic standard is not well established among management and subordinates.
To know more about the problem of high staff turnover, the Leadership Theory and
Motivation Theory will be applied for further analysis of some of these problems.
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 6
MOTIVATION
The Motivation Theory is that Motivation is the “desire” or drive to do something
which makes person to perform actions in order to achieve a desired result. That is to
say we do something because we have a reason, a motive, something which moves us
and stimulate ourselves to act, to do it, and a goal to achieve (Andrea, 2012).
As we have mentioned earlier there are many reasons for high staff turnover in this
company. Researchers have developed many theories of motivation, from those
theories one theory has been chosen which can be apply to the problem situation. This
theory is out of content perspectives on motivation called “Hierarchy of needs”
developed by Abraham Maslow.
HIERARCHY OF NEEDS:
This theory suggests that Human-being are motivated by unsatisfied needs and these
needs exist in a hierarchical order. This means people must satisfy lower level basic
needs before moving on to other, advanced needs. This hierarchy is mostly shown as a
pyramid. The lowest level of pyramid comprises of basic needs which include the
need of food, water, sleep and warmth. Once these needs have been satisfied, people
can progress to the needs of safety and security. As people move on to the pyramid,
needs for love, friendship and intimacy become important, and then respect, and self
–esteem takes priority. Once these needs have been satisfied reasonably, person may be
able to reach the highest level of pyramid called “Self –Actualization” which can be
defined as the need for self-fulfilment, personal growth and realising personal potential
(Psychology, 2012)
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 7
Figure 3 Hierarchy of needs Pyramid (The Entrepreneurs Hierarchy of Needs?, 2009)
Application of Motivation – Hierarchy of needs
In this company, even lower level needs (foods and sleep) of employees are not
satisfied as employees are forced to stay beyond their regular working hours till mid
night. Furthermore to limit the budget, the company does not provide healthy food
during dinner. Management does not provide any fringe benefit to employees;
Moreover, they have the power to fired employees at any time. They have less job
security, which affects their needs of safety and security. As far as belongingness
concern, in this company employees work for six days and lives in the accommodation
provided by company which is far from the city, So, employees get only one day in a
week to meet their family and friends, and thus they feel less socialized and can‟t
balance their personal and professional life.
The management of this company totally ignore the recognition of employees‟ work,
they are not rewarded for their extra effort or for their any achievement in work place,
moreover sometimes manager also use abusive language to their employee which
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 8
directly affect to their needs of self-esteem and respect. Employees of this organization
are used to do the same allocated work, and feel monotonies; they cannot share their
ideas, views and interest with management which can restrain them from being
creative.
So, if management of this company focus on the needs of employees and try to satisfy
them in sequence because once basic needs will be satisfied then employees want job
security and enough quality time for their family, and then they will emphasised on
their personal growth, in such way, management can reduce the staff turnover.
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 9
Leadership
Leadership can be defined as the ability to select, train and influence followers to
focus on the organisation‟s goals out of their own enthusiasm and willingness to
achieve these goals (Winston & Patterson, 2006). In other words, understanding the
leadership theory is an important aspect of any organisations as employees will set out
to achieve organisational goals out of their own free will. An organisation with
employees who does this will have a better environment in comparison to an
organisation where employees are obliged to achieve organisational goals. This in turn
will give rise to many problems within an organisation.
As mentioned earlier in this report, high staff turnover has been selected as the
problem situation within Hong Kong Yamatoo Holdings Ltd. With the different types
of Leadership theories that exists an organisation leader will be able to adopt one that
is suitable to the organisation. “The Leadership Grid” which falls under the
behavioural approach will be selected to demonstrate the application of the problem
situation.
Application of Leadership- Leadership Grid
The Leadership Grid that will be used to apply the problem situation is a work that is
based on the Ohio State and Michigan studies, Blake and Mouton of the University of
Texas (Daft, 2012). The grid, shown below in figure 1, explains the five management
styles that are shown in it. These include the Country club management, Team
Management, Middle-of-the Road Management, Impoverished Management and
Authority-Compliance. On the horizontal axis there is the concern for production and
on the vertical axis there is the concern for people. The first number refers to a
leader's concern for production and the second to employee (Bolden, Gosling,
Marturano, & Dennison, 2003). A short summary of these management are given in
the grid as seen in Figure 4 below.
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 10
It can be observed that the leadership of Hong Kong Yamatoo Holdings Ltd relates
mostly to the Authority-Compliance Management style (getting the highest of 9 in the
concern for production and getting the lowest score of 1 in the concern for people).
There is strictly a top-down management communication which does not regard the
input of the employees. The leader will also disregard the employees‟ lives outside of
their workspace by creating work schedules outside of their routine hours. The
employees will have to stay back in work till the very early morning of the next day
and still be required to come in to work on time on that very day. This causes the high
staff turnover as they are expected to work under unreasonable time without any form
of rewards.
Furthermore, the work environment is very volatile as it depends greatly on the
leader‟s mood. Pushing his personal feelings and dictating work creates an unstable
environment as employees will not know what to expect.
Figure 4 The Leadership Grid (Leadership Development)
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 11
Recommendations
Good leadership in an organization must manage change consistently and effectively.
An organization suffers from a lack of appropriate leadership if management does not
quickly adapt to different situations and direct the company accordingly.
In the case of this organization, it is understood that team management leadership
approach is ideal but not realistic according to the leadership grid. Firstly, the Boss
should improve top-down communication by communicating any changes in the
company's direction immediately and at all levels of the company. Additionally, a
rewards system that links employee bonuses to individual, team, division and
company performances should be set up. An organizational hierarchy chart that
assigns authority to people based on their current role in the organization should also
be created. In doing so, leadership can be developed by allowing people to take on
more responsibility and change roles as they mature in their positions.
Likewise, the boss should build trust in the workplace and also set up a group to
discover the barriers that exist to build trust after which a strategy can be devised to
break down these barriers. The Boss can also establish standards of behavior for
himself and everyone in the organization.
The boss can also boost motivation by sending an open letter to each member of the
team. In the letter, he can praise the team member‟s work. Moreover, the boss can
help improve the motivation of struggling, stressed or new employees by arranging
mentors for them (Daft, 2012). He should encourage employees to submit ideas to
management about the business which can further help to improve top down
communication thus making every employee motivated and valued. To decrease
turnover job satisfaction is important and for that the workplace needs to be a place
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 12
where employees can have fun and work at the same time.
The employees should be given enough time to rest so they can wake up in the
morning feeling fresh. Also regular training and feedback from the employee‟s means
there is greater job satisfaction (Daft, 2012). This allows employees changes to
express themselves which will boost self-confidence and thus greater job satisfaction.
Conclusion
In conclusion, to improve leadership and motivation in the organization the leader
should have a clear vision of himself and the others, know how and when to utilize
strengths and gifts, live in accordance with morals and values, lead others with
inclusiveness and compassion, set definite goals and concrete plans, improve
communication skills, maintain a positive attitude and willing to learn and also
continue to improve using innovative techniques. No one respects a grumpy or
negative person. With a positive attitude it is like looking at the bright side of life.
People are naturally attracted to someone who has a positive attitude. Positive attitude
and compassion always make a difference.
Organisations: Behavior, Structure, Processes (BUMGT5921) Group A
Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 13
Bibliography
Andrea, H. (2012). What is Motivation: The Motivation Theory and How to Really
Motivate Yourself and Others. Retrieved August 26, 2012, from The
Hypnotism Weekly:
http://www.ipnostudio.com/motivation-motivation-theory.html
Best Yamatoo Holding Ltd of Hong Kong, Retrieved August 24, 2012, from
http://v.youku.com/v_show/id_XMjYwMDk1MDQ0.html
Bolden, R., Gosling, J., Marturano, A., & Dennison, P. (2003). A Review of
Leadership Theory and Competency Frameworks. University of Exeter.
Daft, R. L. (2012). Management (10th ed.). Ohio, USA: South-Western (Cengage
Learning).
Leadership Development. (n.d.). Retrieved from Management Class:
http://finntrack.co.uk/leadership/competence/lead5.html
Psychology. (2012). Retrieved August 31, 2012, from
http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm
The Entrepreneurs Hierarchy of Needs? (2009, August 4). Retrieved August 31, 2012,
from Adam McFarland:
http://www.adam-mcfarland.net/2009/08/04/the-entrepreneurs-hierarchy-of-ne
eds/
Winston, B. E., & Patterson, K. (2006). International Journal Of Leadership Studies,
1(2), 6-66.