Corporate Losses and the Effect on Employees’ Motivation: A Case Study of Deutsche Bank in Karachi

Corporate losses and the effect on employees’ motivation.
Case study: Deutsche Bank (in Karachi)
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Table of Contents
Literature Review.............................................................................................................................3
Introduction .................................................................................................................................3
Explain Deutsch bank recent corporate loss................................................................................3
Link to effect on employees: motivation theories.......................................................................4
Link motivation theories of financial factors to financial loss in bank ......................................5
Competition of skilled employees in Pakistan.............................................................................6
Affects of financial crisis on employees of Bank .......................................................................7
RESEARCH METHODOLOGY ....................................................................................................8
Research philosophy....................................................................................................................8
Research approach.......................................................................................................................8
Research design...........................................................................................................................8
Time Plan.........................................................................................................................................9
Data collection ................................................................................................................................9
Evaluate and formulate consensus ................................................................................................11
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................16
Appendix -Interview questionnaire................................................................................................18
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Literature Review
Introduction
Literature review section is crucial for the investigation as it helps in collecting sufficient
secondary data for the study. This section of present investigation is going to gather the
information about corporate losses and effect on employee motivation. However, some specific
points have been quoted in respect to Deutsche Bank in Karachi, Pakistan as the study is focused
towards the same. Information is collected from online as well as physical library. Therefore,
range of information is gathered from journals and online articles. The section here also deals
with the information such as motivation theories and its impact on effect on employees, how
motivation theories of financial factors related to financial loss in bank, competition of skilled
employees in Pakistan and the affects of financial crisis on employees of Bank.
Explain Deutsch bank recent corporate loss
According the information provided in the report of Deutsche Bank (2013), this bank was
established in Pakistan in 1961 at three places i.e. Karachi, Lahore and Islamabad. The bank has
its presence in Pakistan with the ability to offer range of corporate and investment banking
products and services. The bank has now become a leader in helping Pakistan clients to raise
capital in offshore markets. It has also become Pakistan’s first ever global bond and the first
private sector equity dealer from Pakistan that is listed in London. The present investigation
carried out by (Cutmore, Cosgrave and Matthews (2016) represents that Deutsche Bank reported
for a net loss 2.1 billion euros in the fourth-quarter. In addition, fourth-year net loss was of 6.8
billion euros. Instead of providing superior service to its corporate, multinational and financial
institutional clients, this bank has faced huge losses that resulted to corporate losses and financial
crisis. However, investment bank suffered a loss of 1.2 billion euro along with a high regulatory
and litigation costs that also contribute to the loss. In addition, cited bank has also scrapped its
2015 and 2016 dividend. From the investigation carried out by Cryan (2016), it was found that
Deutsche Bank has increased staff pay and numbers, instead of having multibillion-euro loss and
canceling bonuses for higher level executives.
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Link to effect on employees: motivation theories
The investigation of Plimmer (2015) stated that economic crisis has brought significant
changes in the organization. In the similar manner, it has also affected the thinking and
perception of employees. Nowadays, motivation is more than the physiological or secure needs
for employees. Hence, their motivation is affected by range of situations in the workplace. The
recent crisis held in economy has significantly affected the existing economic situation. For most
of the people working in the banks, motivation means recognition and professional development.
On the other hand, for others, it means to have good pay scales, monetary rewards and job
security. From a long decade, role of motivational theories has been argued as an important
factor for motivating employees in the workplace. Herzberg, Mausner and Snyderman (2011)
stated that motivation influences or drives the actions and behaviours of individual towards a
goal and a reward that satisfies needs. It has been further argued that employee motivation is all
about influencing individuals for moving in the direction which is set by the organisation or
managers, or it is all about creating a condition where workers are influenced for putting their
efforts to achieve organisational goals.
From the range of employee motivation theories, Herzberg's Motivation-Hygiene Theory
which is a two factor theory is used for better understanding of employee attitudes and
motivation. According to Plimmer (2015) The application of Herzberg theory helps in
determining the factors which cause satisfaction or dissatisfaction at the workplace so that
organization can focus to provide employee satisfaction. Nonetheless, cited theory has
undergone criticisms for oversimplification of the factors that lead to job satisfaction. In this
respect Chiew and Braver (2011) said that job factors can be satisfaction elements for some
individuals where it can be dissatisfaction for others. On the other hand, Maslow need of
hierarchy theory aims at assessing individual needs and satiating them in a hierarchical manner.
According to the cited theory, employees can be motivated by satisfying their needs. Maslow’s
Theory of Motivation has identified five levels of human motivation including Physiological,
Safety, Social, Esteem, Self-Actualization etc. and these all needs are to be fulfilled for achieving
employee motivation.
From the above analysis, it can be said that Maslow and Herzberg look at the relationship
between internal needs and efforts of management to fulfil them. However, Vroom's expectancy
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