Case Study: Corporate Losses and Employee Motivation at Deutsche Bank

This case study investigates the impact of corporate losses on employee motivation, using Deutsche Bank in Karachi, Pakistan, as a focal point. The study aims to assess how employees are demotivated by global financial losses and to explore Deutsche Bank's ability to retain skilled employees. The research employs a mixed-methods approach, incorporating both primary data collected through interviews with bank employees and secondary data from various sources such as books, journals, and online articles. The literature review covers motivation theories like Herzberg's and Maslow's, and their relevance to financial factors and corporate losses. The findings suggest that financial crises significantly impact employee morale, leading to feelings of insecurity and demotivation. The study concludes with recommendations for management to utilize motivation strategies, including non-financial rewards, to mitigate the adverse effects of financial crises and retain a skilled workforce.

Corporate losses and the effect on employees’ motivation.
Case study: Deutsche Bank (in Karachi)
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Declaration of Honesty
I hereby declare that this coursework handed in is original and I had not submitted same
material previously. I acknowledge that I am aware of University policy and regulations on
honesty for preparing an academic work, and in this assigned I followed guidelines and
procedures to prepare an ethical work.
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Ethical Considerations
The present business report is prepared while considering all the ethical criteria of a
research investigation. The secondary data for the present investigation are gathered for the
present investigations are gathered from authentic and reliable sources. The authentic online sites
are used to gather secondary data for the research. Furthermore, the issue of plagiarism is
avoided and entire information is cited with authentic references. Throughout the primary
investigation, ethical conduct is carried in which respondents are given equal chance to be take
part who wish to be a part of study, prior to collect the data authorized persons (managers and
employees of Dutch bank Karachi are) are asked for their permission. Including this, the
potential participants are sent a general invitation. The purpose of carrying out the investigation
is made clear to the participants.
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Need for Confidentiality
The investigation includes the collection of s primary data from the employees of Dutch
Bank Karachi hence confidentiality in data provided by them is to be maintained throughout the
study. The participants are ensured that the personal information provided by them will be kept
confidential and other information is only used for study purpose. Data-security issues have been
addressed in the present investigation. Throughout the investigation deception is avoided and
participants are ensured for having trust.
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ABSTRACT
Employee motivation is vital to any business as it helps in attaining business goals,
hence, motivation is essential to the success of an organization. The research herewith aims at
explaining the corporate losses and its effect on employees’ motivation; therefore, Deutsche
Bank in Karachi, Pakistan is taken into consideration. The investigation herewith has two main
objectives i.e. to assess in what manner employees in Deutsche banks are demotivated by global
financial losses and to investigate the ability of Deutsche Bank in Pakistan to attract and retain
skilled employees. To assess the impact of corporate losses in Deutsche Bank (in Karachi) and
the corporate losses faced by company along with its impact on bank, therefore, inductive
approach is used for the present investigation. Descriptive research design is used for the current
investigation and data are collected from primary as well as secondary sources. The primary data
are collected via interviews from employees of bank. Secondary data are collected from range of
secondary sources' including books, journals and online sources. From the study, it can be
concluded that during the period of financial crisis employees feel insecure and as a consequence
they get demoralized and demotivated. The finding inferred that management of bank cam make
use of motivation strategies in the period of financial crisis, and by considering their corporate
losses they can make use of non-financial reward strategies in order to save cost and to motivate
employees during crisis situation.
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Table of Contents
INTRODUCTION................................................................................................................................9
Aim..............................................................................................................................................9
Objectives....................................................................................................................................9
Research question........................................................................................................................9
Literature Review...............................................................................................................................10
Introduction................................................................................................................................10
Explain Deutsch bank recent corporate loss..............................................................................10
Link to effect on employees: motivation theories.....................................................................11
Link motivation theories of financial factors to financial lossin bank......................................12
Competition of skilled employees in Pakistan...........................................................................13
Effects of financial crisis on employees of Bank......................................................................14
RESEARCH METHODOLOGY.......................................................................................................15
Research philosophy..................................................................................................................15
Research approach.....................................................................................................................15
Research design.........................................................................................................................16
Data collection....................................................................................................................................16
Evaluate and formulate consensus......................................................................................................17
Conclusion..........................................................................................................................................20
Recommendations......................................................................................................................21
REFERENCE LIST............................................................................................................................23
Appendix 1– Interview Questionnaire................................................................................................26
Appendix 2Maslow Motivation Theory.............................................................................................26
Appendix 3 Comparison among Motivational theories......................................................................27
Appendix 3 Hertzberg: two factor theory...........................................................................................27
Appendix 4 McGregor theory............................................................................................................28
Appendix 4 Vroom Expectancy Theory.............................................................................................29
Appendix 5 Transcript........................................................................................................................29
Respondent 1......................................................................................................................................29
Respondent 2......................................................................................................................................30
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Respondent 3......................................................................................................................................31
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SUMMARY OF ABBREVIATIONS
Ministry of Labour, Manpower & Overseas Pakistanis (MMLO)
ILO’s Decent Work Country Program (DWCP)
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INTRODUCTION
Motivation is more than the physiological or secure needs for employee and the theories
of motivation are focused on financial factors include higher pay scales, bonus and some
monetary rewards. The recent crisis held in world economy has knowingly affected the existing
economic situation of all the countries. In respect to the present context, financial crisis are
significantly affecting the motivation level of employees, because employee motivation changes
in situation of crisis. The workers of financial institutions are significantly affected by financial
crisis that has led to them losing their jobs. Deutsche Bank recently has faced financial losses of
2.1 billion euros (Rebecca, 2016). Instead of providing superior service to its corporate,
multinational and financial institutional clients, this bank has faced huge losses, therefore, the
investigation is going to find out the impact of corporate losses and its effect on employees’
motivation in Deutsche Bank, Karachi Pakistan
Aim
To assess the impact of corporate losses on employees’ motivation therefore, Deutsche Bank (in
Karachi) is taken into consideration
Objectives
 To assess in what manner employees in Deutsche banks are demotivated by global
financial losses
 To investigate the ability of Deutsche Bank in Pakistan to attract and retain skilled
employees.
Research question
 Are employees in Deutsche banks demotivated by global financial losses?
 How will this impact on the ability of Deutsche Bank in Pakistan to attract and retain
skilled employees?
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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 losses in Deutsche bank, competition
of skilled employees in Pakistan and the effects of financial crisis on employees of Bank.
Explain Deutsch bank recent corporate loss
According to 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
conducted 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. Over the past 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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theory separates the effort, performance, and outcomes. According to the mentioned theory,
performance of individuals is based various factors including personality, skills, knowledge,
experience and abilities. However, the investigation carried by Herzberg Mausner and
Snyderman (2011) stated that effort, performance and motivation are linked in the process of
achieving employee motivation. Three variables of the theory are Expectancy, Instrumentality
and Valence. McGregor's Theory X and Y is based on the fact that motivation theory adopted by
organizations significantly influences the employee motivation. Theory X assumes that
employees are naturally demotivated and dislike their work. Hence, authoritarian style of
management is needed. On the flip side of a coin, theory Y assumes that management should
adopt participative style of management as employees are self-motivated and creative. According
to Taylor´s motivational theory, individuals and workers purely do job for money. Motivation of
employees depends on pay scale provided to them in accordance to their roles and
responsibilities. This theory states that non-financial factors can motivate employees to improve
their output.
Link motivation theories of financial factors to financial lossin bank
In respect to the present context, motivational theories focus on financial factors include
higher pay scales, bonus and some monetary rewards. In the similar manner, many of authors
(Mehri, 2011; Lall and Weiss, 2004; Aftab 2012) have argued that Herzberg’s Two-Factor
Theory can be implied at the workplace where financial factors are important for employees
motivation. According to the theory, motivation of individuals is divided into two groups such as
motivation factors and hygiene factors. To the view point of Iqbal and Mehri (2011) it can be
said that financial factors such as pay scales, higher salaries, hike in salaries, bonus etc. affect the
motivation of employee in the banks. Many of the leading banks also make use of non- financial
factors for the purpose of motivating people. Employees working in the banks always demand
for good pay scales that may put impact on the financial performance of banks in the situation of
crisis. Hence, it can be said that in the situation of financial crisis, most of the banks lose their
ability to motivate employees via providing them financial benefits. The financial and economic
crisis are the situations in which Banks fail to maintain good about of profits and savings that
impact the financial rewards provided by banks to their employees. In such situation, if Banks
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