Question

subject is covered under organisational behaviour

Case Study Bron founded Bronzz Enterprises about 10 years ago, and directed its operations for the first 5 years. At that stage, she became a bit bored and passed the daily running to a new management team. This team, consisting of three Executive Directors, has been in charge ever since. Under the control of the management team, the organisation has developed a people-oriented approach. Management has an open and honest approach and communicates well with staff members. The work environment is supportive and there are good opportunities for development and promotion. In fact, Bronzz Enterprises has become known as a good employer. Despite leaving the day-to-day management of Bronzz Enterprises, Bron has retained her interest in and ownership of the business, while immersed in growing a new business in a different area – Stodgy Stuff Ltd. However, in the last year, Bron has become bored with Stodgy Stuff – it is doing very well and doesn’t really need her entrepreneurial skills any more. About a month ago an interesting opportunity was presented to Bron. This involves Bronzz Enterprises being sold to a much bigger organisation. The payoff for Bron is likely to be considerable, but there would be redundancies among current staff members. Bronzz Enterprises has a staff of 50, but the new configuration would only need 30 of these. Also, there would no longer be any need for the management team. Bron wants to present this opportunity as positive, as the management team would also get a good payout, and perhaps some other opportunities within the new, larger organisation. Bron really needs the money from Bronzz so that she can start another business and is keen to proceed with the opportunity. More concerned with her own outcomes, she is only marginally aware of the possible effect of 20 redundancies and the loss of the whole management team. Her perception is that the sale will be good for her so it is likely to be good for everyone. Things have come to a head just after the staff members have been informed of the proposed sale. To begin with, only limited information is immediately available and consultation documents have not been provided. Rumours are spreading among staff members that these are not denied by management. Most of the staff members have questions, but there does not seem to be a forum where these can be answered. With her eyes fixed on the money she needs for her new business, Bron has lost track of where Bronzz is going and the proposed sale appears jeopardized by falling performance. Members of the management team are now fighting for their own survival and there is considerable uncertainty about the future. Most staff members feel that the management team is no longer on their side – one of them has made statements in support of the sale, and the others are now judged to be in favour of the whole process. There is a sense of anger and frustration in what used to be a productive and happy workplace. If people come to work at all, they are fearful of the next rumour or unsubstantiated piece of information, and their overall performance is suffering.

Discuss the motivational environment at Bronzz by: (a) Describing the overall environment before the proposed sale and introducing one motivation theory that you consider applicable to this.

Answer 1

The overall environment at Bronzz have become very negative due to the proposed sale, the employees working at the organization are not provided with the complete information, they are only told that the company is now being sold to some more bigger organization who will obviously replace the people managing the business till now because after every acquisition the new owners bring new ideas for doing business and thus they require new people with different perspective at management level.

At Bronzz Enterprises, the employees were performing better and the organization has peoples approach in managing its employees, this has provided the employees with satisfaction that they are safe and secure in tgis organization and they were giving everything they had for the growth of this business.

The announcement of sale of Bronzz Enterprises may have shocked the employees who did not see it coming, employees were motivated because they thought the owner takes care of them and anything such as firing will not occur at their work place.

Announcement of sale, misinformation, rumours, no communication from owner filled the employees with fear and all of a sudden the overall environment at Bronzz became negative, the employees started saving their jobs and looking for other opportunities and they became completely demotivated.

The company which was performing much better just before the announcement of its sale is now performing much below the standard.

Employees trust over the management and owner is a key factor for motivation and the same was missing from Bronzz.

In my opinion Maslow's Need Hierarchy theory is applicable in this case, where employees safety and security needs are not met and they are not motivated.

If security of employment or job security is not provided to employees than their performance will certainly go down as they will only try to save their job first.

Even if the sale of this business was so necessary, Bron should have communicated this information properly so that the chances of misinformation and rumours could have been reduced.