Impact of Job Insecurity and Layoffs on Employee Motivation in Retail Sector

This research study aims to evaluate the impact of job insecurity and layoffs on employee motivation in the retail sector. It explores the concept, causes, and demotivation among employees. The study also discusses methods to enhance employee motivation. The case study focuses on Savola Group, a leading organization in the retail sector.

To understand the impact on the level of
employee motivation due to the increasing trend
of job insecurity and layoffs in the retail sector.
Study
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Contents
ABSTRACT.....................................................................................................................................3
TITLE – “To understand the impact on the level of employee motivation due to the increasing
trend of job insecurity and lay-offs in the retail sector.”.................................................................3
INTRODUCTION...........................................................................................................................3
Background of study...............................................................................................................3
Aim of research......................................................................................................................5
Objectives of research............................................................................................................5
Research questions.................................................................................................................5
Rationale of research..............................................................................................................5
LITERATURE REVIEW................................................................................................................6
Methods by which Savola group will raise its employee's motivation................................10
RESEARCH METHODOLOGY...................................................................................................12
Research philosophy.............................................................................................................13
Research approach................................................................................................................13
Research design....................................................................................................................13
Research strategy..................................................................................................................14
Data collection method.........................................................................................................14
Research type........................................................................................................................15
Data analysis.........................................................................................................................15
Sampling...............................................................................................................................15
Ethical considerations...........................................................................................................16
Research limitation...............................................................................................................16
Validity and reliability of study............................................................................................16
ANALYIS AND FINDINGS.........................................................................................................16
Data analysis.........................................................................................................................16
Discussion and Findings.......................................................................................................18
Responses from interview with Human Resource Manager of Savola Group.............18
Responses from interview with employees of Savola Group..........................................21
Discussion of secondary data...............................................................................................23
CONCLUSION AND RECOMMENDATIONS..........................................................................26
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Conclusion............................................................................................................................26
Recommendations................................................................................................................26
REFERENCES..............................................................................................................................29
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ABSTRACT
This is a research report which is based on the title “To understand the impact on the level of
employee motivation due to the increasing trend of job insecurity and lay-offs in the retail
sector.” Job insecurity and lay off are the major concerns in today’s competitive market
environment. Employers are more focused towards bringing new talent in the organisation which
may results into layoff of existing employees form the employment. The main objective of this
study is to understand the concept of job insecurity and layoffs and its main causes along with
the reason of demotivation among employees. However, there are different methods by which an
organisation can motivate its employees. By providing employees with reward and recognition,
proper training and development programmes etc. employee motivation can be enhancing.
Moreover, different research methods assist in performing the study systematically and
accomplish the main aim of study.
TITLE – “To understand the impact on the level of employee motivation due to
the increasing trend of job insecurity and lay-offs in the retail sector.”
INTRODUCTION
Background of study
Job insecurity is defined as the threat to stability and continuity of employment as it is
currently experienced. It is a growing phenomenon, in an employment context characterized
through high unemployment and temporary work rates. On the other hand, lay off is referred as a
temporary or permanent discharge of employees from the employment. An organisation may
suspend one employee or group of employees at similar time (Ikeler, 2019). The main reasons of
lay off includes cost reduction, relocation, staffing redundancies and merger or buyout. Job
insecurity and lay off are the common issue facing by organisations. Job insecurity has been
emphasis by the scholars as well as popular attention in light of political, economic and social
changes over last few decades which have left many insecure regarding their job's future. Lay off
is the action initiated through employer which make the former employee no longer able to
perform the services related to work or get wages. In some cases, lay off is a temporary
suspension of job and sometimes, it is permanent suspension of employment (Nica, Manole, and
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Briscariu, 2016). These are usually the outcome of economic downturn where the employer may
choose to decline the size of its staff members in order to reduce cost until the situation gets
improved. It is very important for an organisation to control job insecurity and layoffs and
emphasize on motivating employees and keep them satisfied in order to improve the
performance of organisation and accomplish business objectives.
Savola Group is a public organisation which was established in year 1979 and its
headquarters is located in Jeddah, Saudi Arabia. The major holdings of the group supply Saudi
Arabia, middle North and East Africa and Turkey with fresh dairy products, edible oils,
restaurants serving fast foods and sugar. It also owns grocery retailing chain in middle East. As
of year 2016, the group has around 32000 employees and its revenue as per year 2018 was
21.815 billion (Otterbach, and Sousa-Poza, 2016). By revenue, Savola is the biggest food
organisation of the kingdom. Among the top hundred organisations in Saudi Arabian market,
Savola group is ranked number 9 and among industrial sector, it is ranked number 2. Initially, the
business of the company was importing as well as refining the edible oil. As the organisation
perform its operations at large scale, it is very important for it to keep its employees motivated
and satisfied and ensure that they are not facing issues associated with job insecurity and layoffs.
This research report intent to evaluate the impact on the level of employee's motivation due to
the increasing trend of job insecurity and lay-offs in the retail sector (Barrech, Seubert, Glaser,
and Gündel, 2018).
This report covers an introduction part in which a brief background of study d is provided
along with some information about the company, the aim, objectives and questions of research as
well as the rationale of performing this study. Apart from this, it includes literature review part in
which different literatures are reviewed and viewpoint of different authors are compared in
context of the study topic or the different themes included in this part. In addition to this,
research methodology part is included which involves various methods of research that help the
investigator in performing the investigation systematically and accomplish the aim of study.
After that, findings of study are provided based on the literature review and the primary data
collected. Moreover, discussion is provided based on the overall primary and secondary findings
so that valid outcomes of study can be drawn. At last, conclusion is provided in which summary
based on the overall research project is included in the study.
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Aim of research
The aim in relation to this study is “To evaluate the impact on the level of employee's
motivation due to the increasing trend of job insecurity and lay-offs in the retail sector: A case
study on Savola group.”
Objectives of research
The key objectives associated with this particular study are provided below:
1. To understand the concept of job insecurity and layoffs and its main causes.
2. To evaluate the reasons of demotivation among employees in retailing sector.
3. To discuss the methods by which Savola group will raise its employee's motivation.
Research questions
The key questions in relation to this specific study are as follows:
 What is the concept of job insecurity and layoffs and why it causes within the
organisation?
 What are the reasons of demotivation among employees?
 What are the methods to motivate employees?
Rationale of research
This is a research study which is based on the aim “to evaluate the impact on the level of
employee's motivation due to the increasing trend of job insecurity and lay-offs in the retail
sector”. The main reason of performing this study by the researcher is to acquire knowledge
about the research topic as well as its related areas also. Apart from this, from the help of the
study, researcher gets able to understand the job insecurity and layoffs concept along with their
main causes. The researcher can also able to evaluate the reasons of demotivation among
workforce in retailing sector by the assistance of this study. In addition to this, the investigator
will also be able to get to know about different methods through which the organisation can
increased motivation of its employees and keep them satisfied within the company (Nätti,
Happonen, Kinnunen, and Mauno, 2017). This study will be beneficial from various
perspectives. It enables organisation to assess the impact of employee motivation level because
of increasing trend of job insecurity and lay off and also help it by determining various ways to
increase the motivation of employees. On the other hand, this study is advantageous for
researchers as well as other scholars to carry out further study on this topic.
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LITERATURE REVIEW
Literature review refers to scholarly articles that are available to provide information and
data on specific subject area or particular selected topic. While conducting this research it is
essential to conduct literature review so that researcher get reliable and authentic knowledge on
research aim that helps in fulfilling research objectives wisely and appropriately. In this,
different viewpoints of authors are reviewed and compared based on the different themes
associated with study (Isaksson, Hellgren, and Pettersson, 2017). In relation to this particular
study, it aims to evaluate the impact on the level of employee's motivation due to the increasing
trend of job insecurity and lay-offs in the retail sector. In order to gather information associated
with the topic, literature review is performed. The different themes associated with this study and
their review is provided below:
To understand the concept of job insecurity and layoffs and its main causes
As per the viewpoint of “De Cuyper and et. al., (2020)” Job insecurity refers to a
subjectively perceived and undesired possibilities to lose the current job in future time period. It
represents as a social phenomenon that reflected as a subjective perception related to
employment and unemployment. It is regarded as overall concern which is based on constant
existence of job within future. There are several causes of job insecurity within an organisation
among employees that are mainly stress, depression, and paranoia among employees. Job
insecurity is also causes the worker safety. In present scenario workers are working in the
business firm to work hard and focus on getting full job security by getting participation in
taking decisions etc. But due to high competition in market place companies is focus on hiring
new talent that represents the unique and innovative ideas to solve the issues that was occurred
within the organisation. This will create job insecurity in the mind of employees and this causes
stress, dissatisfaction at workplace etc. it will majorly affects the profitability and revenues of
business enterprise. Another major that is caused by job insecurity is poor employee health.
Workers are facing poor health if they cannot get the proper recognition for their good work.
Due to not getting an effective recognition in terms if transfer and promotion employees feel
insecure as it creates irritation in worker behaviour due to this overall organisation profitability
and revenues are to be affected (Rajesh, 2016). Job insecurity is also occurred when company
selects employees by preferring males on priority basis. This will creates insecurity among
employees. It creates stress, depression among workers.
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According to the “Anna Windermere, (2021)” viewpoint, A layoff is a type of
termination that is faced by employees within the particular job position within an organisation.
This action is mainly initiated by employer where particular employees cannot collect salary or
perform their work related services in business. It is a type of temporary suspension of
employment and sometimes it is permanent. The term Layoff is done due to economic downturns
when business organisation focus on reducing the size of workforce until situation improves.
Layoffs is highly differentiate from outright firing that result from inefficient on job performance
or the basic reason that is unacceptable workplace behaviour. In this situation an employee have
eligible to rehire within same organisation and got positive work experience during the time of
performing job role (Garruccio, 2019). There are several causes of lay off within an organisation
that are presented below:
1. Cost reduction- It is one of the major cause of lay-offs within an organisation. Due to
cost reduction company decides to cut back its cost in same manner. This situation occurs
within an organisation when they cannot make enough profits to overcome with the
expenses. It is so because it requires more substantial cash to pay the debts. In terms of
Savola, if manager conduct the employee layoff than manager ensures that it should be
conducted on right manner otherwise it creates a more financial problem that are arise
from lawsuits cost.
2. Relocation- It is a type of layoff it represents that relocating the organisation whole
facility causes a layoff of workers of company. Closing of the original location creates a
huge impact on surrounding community’s morale and economy. If within the
organisation, layoff is to be done due to relocation that company must show their concern
towards the employees who lost their job by offering resources to helps them and
overcome the risk that they faced in the society (PUTTICK, 2020). It cannot affects the
company reputation.
3. Merger or Buyout- This is the main cause of layoff within an organisation. Mergers
continue to rise within organisation at this time various roles are being redundant. At the
time of merger if acquiring organisation can find the role for every employees then layoff
is eliminated and this situation occur in rare time. Therefore, because of mergers
companies find new goals and plans that needs to create a situation of employee layoffs.
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4. Staffing redundancies or Outsourcing- It is one of the major causes of employee lay-
offs. It is occur when business enterprise decides to exploit independent contractors to
tackle assignments of businesses that are taken care by employees, reflected the end
results of employee layoff. It is done because outsourcing of employees are being cheaper
than hiring employees because the contractors under outsourcing are independently
responsible for their own expenses like taxes that are highly beneficial for maintaining
company financial resources (Diaz-Valdes Iriarte, 2019).
To evaluate the reasons of demotivation among employees in retailing sector
As per the viewpoint of “Budur and Poturak, (2021)” It is very essential to recognise the
true involvement of employees that means different things to different people to recognise what
really drives a motivation of individual person. It is very significant to listen and respond
employee’s needs to ensure the high level of employee involvement within an organisation.
There are several reasons of demotivating among employees within retailing sector:
1. Lack of flexibility- It is the foremost reason of demotivation among employees within an
organisation. It is very essential that all employees have legal rights to flexible working
whether it is a place of work, type of contract and work from home. In present scenario,
lack of flexibility is the major issue of employee demotivation that is mainly linked to the
working hours and times. This will affects the employees control at this time it is
essential to identify and work with staff to reach compromise in working home
arrangements (Mäki-Fränti, and Vanhala, 2020).
2. Miscommunication- It is another factor of employee demotivation within retail sector. It
is very essential in retail sector to free flow of information between employees and
employers so that dissatisfaction among employees is to be eliminated. It is a major
demotivating factor that represents boss or manager does not properly trust their
employees to share all information on projects. This also affects the company
profitability and success in the marketplace.
3. Lack of security- This is another factor of employee demotivation if the employees are
not satisfied at their workplace so that they cannot perform current role. This will highly
create job insecurity and layoff within an organisation. It is very essential for business
manager to set regular coaching in order to boost the sense of security so that it attracts
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the employees towards work and also motivated them to attain targets (Waschik,
Friedman, Taylor, and Boatner, 2021).
4. Appreciated or Feeling under-valued- It is another cause that was faced by an
organisation in relation to employee demotivation. In a retail organisation it is very
essential to attracts and motivates employees for their long survival. Therefore, of
employees feel under values and does not appreciate for their good work then they are
highly demotivated towards completing the assignments. Due to employee demotivation
they cannot attracts customers towards the company products and it overall affects the
profitability of business that creates job layoffs ad insecurity in employees.
5. Short term objectives with no clear vision- It is another major cause of employee
demotivation. Therefore, due to no clear vision employees of business enterprise does not
have any idea where the career of individual employees is going to drift. That business
organisation that has long term goals to reach short term targets helps in focus on
employee career (Kouzis, 2018).
6. Lack of development opportunities- It is very significant to boost the morale of
employees that proves to workers’ motivation in positive manner. Within an organisation
if the worker feels stagnant they cannot inspire workers to work with motivation. It is
very essential to provide regular opportunities for improving professional and certainly.
To overcome with the issue of employee face demotivation it is very essential to engage
customers for development opportunities and offering training so that they feel values
and satisfied. Therefore, in retail sector if manager cannot offer development
opportunities to their workers than they are highly demotivated towards it.
7. Conflicts stress- This is one of the major issue of demotivation among employee. Within
an organisation if there is a high conflict occurs due to which bullying and ragging is to
be occurred within the firm. It is very essential for business enterprise to focus on
managing conflicts so that issues like demotivation among employees are to be resolved.
8. Poor leadership- It is a type of one factor that creates a demotivation in employees
within retailing sector. The major cause of demotivation in company is
micromanagement where being zealous is to be considered that affects employee morale
to work effectively for the success of business enterprise (Logan, 2020). Due to
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ineffective style leadership employees cannot understand what they perform to attain the
task that affects the businesses and their survival.
9. Lack of performance appraisal- It is one of the major cause of employee demotivation.
Lack of performance appraisals and positive recognition of employees by companies
affects the working of workers and also creates demotivation among them. It is essential
because each and every employee need to come in good books of company for securing
long term survival within an enterprise. This will appreciate workers so that they further
take initiatives to enhances the profits of business enterprise.
Methods by which Savola group will raise its employee's motivation
As per the opinions present by Susan M. Heathfield, (2021), employee motivation is a very
crucial aspect of organisation which human resource manager needs to consider in order to
ensure growth and success of company. It is a powerful energy which excites and derive
employees, that outcomes in their increased contribution towards the organisation. Clear
expectations, setting and accomplishing goals, feedback, recognition and encouraging
management, all these contribute to enhance the motivation at workplace (9 Ways to Inspire
Motivation in the Workplace, 2021). It flourishes in some optimistic work surroundings which is
the main reason of why managers want to learn the ways to keep their employees motivated.
Different strategies to motivate employees are provided below:
1. Provide employee recognition - it is very important for an organisation to recognise its
employees for their work. It can enhance their motivation level, if it is offered and
executed effectively. It assists in satisfying the employees by developing trust among
them towards their supervisor as well as the workplace. Rewarding behaviour that a
manager wants to see in employees reinforces the goals of organisation and increase
engagement (Hakola, and Uusitalo, 2017). Workforce proud to see the way their
individual efforts influence the company and this strengthen a notion that they are valued
in the organisation. Thus, providing recognition to employees for the work they have
done in the organisation would be very helpful in keep them motivated and increase their
satisfaction level. This in turn also assist in improving the performance of Savola Group
in an effective way.
2. Training and development opportunity - for performing roles and responsibilities in an
effective way in the workplace, different skills and competencies are needed. If the
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employees are skilled and competent, then this in turn improves their productivity as well
as organisational productivity. Providing training and development opportunities to
employees highly contribute in improving their motivation. The variety and quality of
training options that an organisation offer to its employees is the key for motivation.
Savola Group can provide training associated with management development, new
employee on boarding, team building, new concepts for work group and the way to
operate new technology etc. Training and development programs help in enhancing
competency level of employees which in turn make them able to perform their duties and
responsibilities in more effective manner (Rosin, 2020). Apart from this, it also helps in
personal development of employees which ultimately contribute in their future career
growth. Thus, administer training and development opportunities to employees will help
in improving their motivation level.
3. Communicate effectively - good communication is very crucial in order to maintain
healthy workplace environment and keeping the employees motivated. Its sets managers
apart. It is important for the management to talk employees face to face and let them
know that they see employees as a person. Managers also need to encourage employees
to share their impressions and thoughts. Effective communication helps employees in
express their views effectively and it also assist in communicating all the information
clearly and effectively in the organisation. Apart from this, if employee is able to
communicate effectively then it will develop a sense of satisfaction among them feel
valued in the organisation. This in turn increase their motivation level and performance.
Thus, it is very necessary for manager of Savola Group to use effective communication
channels so that good communication can be encouraged in the organisation and all the
employees are able to communicate effectively. This will result in to improved
motivation of employees (Miežienė, and Gruževskis, 2018).
4. Prioritize employee wellbeing - it is very important for an organisation to prioritize
wellbeing of employees as healthy and happy employees are more motivated. It is very
crucial that employees are provided with adequate flexibility, ensure that plenty of water,
food, bonus perks and healthy snacks are available for employees so that they stay
healthy. Apart from this, it is significant to provide employees with regular breaks and
ensure work life balance so that they stay stress free, happy and healthy. This will in turn
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improve their motivation level and they work more productively towards accomplishment
of organisational goals.
5. Encourage teamwork - one of the greatest motivator in the workplace is teamwork. It
improves engagement of employees in the organisation and also provides employees with
the opportunity to grow and develop their skills. Teamwork also develops creativity and
innovation ability of employees and make them able to perform their responsibilities in
an effective way. With effective team working, an employee can learn many things from
one another which also assist in their personal development (Auer, and Cazes, 2017).
Thus, encouraging team working is critical to organisation as it encourage employees to
go an extra mile and accomplish personal and organisational objectives. So, it is very
important for Savola Group to encourage team work as this will support in keeping the
employees stay motivated.
6. Provide clarity - to motivate employees about the work, it is important to provide them
with clarity. Providing clarity about the goals and objectives of the organisation help in
motivating employees. Proper understanding of goals and objectives of the organisation
among the employees will bring transparency. Without clarity, transparency initiates to
lose its motivational power and effectiveness. Thus, it is important for Savola Group to
provide each individual employee with concise and clear vision so that they get
motivated. Clarity about the objectives and mission of company will leads it towards
growth and success as it encourages employees to stay motivated and perform well
towards accomplishment of organisational objectives and goals (O'Donnell, 2016).
Above mentioned are all the strategies which will assist manager of Savola Group in
improving motivation level of its employees. By the help of these strategies, organisation enable
to effectively motivate the employees and encourage them to perform well towards
accomplishment of organisational goals. Improved employee motivation not only improve their
productivity, but also improve the organisational productivity. Thus, all these strategies will be
beneficial to implement by the organisation in order to motivate its employees successfully and
stay them in the organisation for long term.
RESEARCH METHODOLOGY
Research methodology defines as a systematic application that is used to resolve the
research questions by focusing on gathering data using appropriate methods, techniques,
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approaches etc. so that reliable and authentic outcomes is to be attained effectively that helps in
drawing authentic conclusion at the end of dissertation (Karatepe, Rezapouraghdam and
Hassannia, 2020). It presents authentic procedures to collect and analyse data that assist in
designing research in appropriate and authentic manner.
Research philosophy
This aspect of research methodology reflects the ways of collecting, evaluating and
analysing data and information so that particular research is completed on time. This research
philosophy is basically of two types that is interpretivism and positivism research philosophy. In
this positivism research philosophy helps in analysing the knowledge by including everything as
object that helps in representing hypothesis by removing personal interpretation. On the other
hand interpretivism philosophy represents the performance of particular study that reflects
crucial role of researcher. This philosophy considered a necessary role at the time of interpreting
problems and concepts (Chirumbolo, Callea and Urbini, 2020). In this researcher incudes every
factor of research that helps in drawing interpretation. To conduct this research, researcher
selects the interpretivism research philosophy because it reflects authentic judgement based on
qualitative research. In this researcher effectively deals with human resource of company so that
better analysis of research is done.
Research approach
It refers to a strategies and plan that is used to start for making assumptions for determining
various methods of collecting and processing data. It considered two approaches that are
inductive approach and deductive approach. Inductive approach refers to a complex approach
that is used to developed theory and start with observation to process outcome of particular
observation, whereas deductive approach refers to that which is used to test the existing theory
(Buonocore and et. al., 2020). To conduct this research, researcher selects inductive approach
because ot provides outcomes in qualitative basis that develops in-depth knowledge on specified
concept by taking supports of theories. This reason for selecting this approach is that it not only
useful for qualitative research is also used in representing better justification.
Research design
Research design refers to a plan that is considered to answer questions of particular aim so
that valid conclusion is to be drawn. This research design is used to execute the plan that is
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linked to particular study. A good research is used to obtained data for addressing research
problem in efficient manner (Pandey and Patel, 2020). This contributes in presenting reliable
results in particular study. There are several types of research such as descriptive, exploratory,
experimental research design. To conduct this particular research descriptive research design is
to be used because it helps investigator to properly analyse facts that draws a right judgement. It
is also used to examine characteristics of populations that are being studied with the particular
research. By adopting this research design investigator easily identify data to make conclusion
that assist in developing authentic investigation.
Research strategy
There are several types of research strategy that are case study, qualitative interviews,
quantitative interview etc. that are used to collect data. In terms of case study, researcher conduct
detailed study that is based on particular subject area, place, group etc. In terms of quantitative
survey questions, objective form of questions is to be considered that helps in providing detail
insights of respondents on particular research topic on which this specific is rely upon (Kapp,
Valtchanov and Pastore, 2020). Qualitative interviews refer to a research strategy that is used to
collecting and gathering information by using two-way communication that is done between
researcher and respondents. To conduct this research in authentic manner qualitative interviews
are to be adopted that helps researcher in providing in depth analysis in theoretical manner so
that valid and authentic conclusion is to be drawn.
Data collection method
It involves collecting data to conduct particular research so that entire process is completed
in effective manner. There are two types of data collection method that is primary source of data
collection and secondary source of data collection. In terms of primary data collection method
information is being collected and gathered for first time by investigator (Sanusi and et. al.,
2020). On the other hand, secondary method is that in which data is being collected from already
published sources, articles etc. both these methods are effective for collecting the data and helps
in presenting reliable conclusion at the end of this research. To conduct this particular research,
researcher used both method of data collection so that authentic results are attained on time that
helps in fulfilling research aim properly.
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Research type
Research defines to researching particular topic for collecting, analysing, interpreting data
on the basis of which particular research conclusion is drawn. Research is conducting on the
basis of two methods such as qualitative and quantitative research. Qualitative research refers to
that type of research in which data is collected in a non-measurable manner. Thus it is used to
develop in-depth analysis of the particular research. It presents advantage in form of examine the
behaviour of employees within changing trends and environment. Whereas quantitative research
refers to that type of research that represents the data in a numerical manner that highly includes
facts and figures with use of statistical analysis. To conduct this particular research researcher
adopts qualitative research method that helps in understanding the topic in detailed manner by
solving the issues that are present within research. The main reason for selecting this topic is to
predict or find various patterns.
Data analysis
It means inspecting, monitoring and gathering data with the purpose of getting useful and
essential information to complete the research on time and in successful manner. Data analysis is
highly essential to draw the conclusion so that effective decision is to be developed. It includes
several factors to conduct the research in smooth manner. These are data collection procession,
communication, analysing (Mani and Mishra, 2020). There are mainly two types of data
collection that are thematic perception, test technique and statistical package for social science.
To conduct this research, investigator adopts the use of thematic perception test technique
because it provides the information as per the theme that are drawn on the basis of fulfilling
research objectives so that valid and authentic research conclusion is to be drawn at the end of
particular dissertation.
Sampling
Sampling refers to that aspect in which researcher selects the group of respondent from the
large number of population. There are two types of research method such as probability and non-
probability basis. In terms of probability sampling method researcher selected respondents on
random basis that does not creates biasness in respondents and helps in completing research in
authentic manner. While non-probability research sampling method, researcher choose
respondents according to their own convenience that creates biasness in the manager and
employees of an organisation. To conduct this research, researcher selects probability sampling
16

method with a use of interview techniques so that biasness is to be removed. In this researcher
selects 3 HR managers and 5 employees of Savola organisation.
Ethical considerations
It is very essential to focus on ethical factor and due to this researcher ensures that consent
forms are to be filled by respondents that are selected for particular purpose of survey. It
portrays that respondents usually participate as per their mutual consent and they are not forced
by researcher to take participate in survey. In this list of reference is attached that represents the
work is useful and original and cannot be copied from anywhere else in context of collecting
information from primary source. In this all ethical regulation are considered that reflects this
particular research is valid. In this all participants are selected on priority basis. To show positive
ethics researcher cannot share participant’s information to other that reflects confidentiality in
conducting particular research.
Research limitation
The limitation of conducting this research is lack of money, time and resources due to which
researcher face issue in conducting research on specified time period. At the time of taken
interviews researcher face the issue of lack of resources and time due to which investigator takes
more time to take interviews of human resource and employees of Savola. This particular issue is
solved by using ethical principles using scholarly articles that are carefully selected.
Validity and reliability of study
To conduct particular research, investigator highly ensures about reliability and validity of
study. In terms of validity factor researcher used several articles, books and sources that are
published after 2016 so that authenticity is to be maintained and issue of collecting old
information is to be avoided (Linh, 2020). It is crucial because old data creates misunderstanding
related to research due to which validity of particular research is to be affected. In this no reliable
data is to be adopted that have no relation to study. Therefore, the data that are used under this
research is taken from copyright sources while conducting secondary research.
ANALYIS AND FINDINGS
Data analysis
In context of research, data analysis can be stated as a process of cleaning and transforming
data to discover useful information so that valid outcomes of the study can be drawn. The main
17

purpose of analysis of data is to extract the information which is useful and the researcher takes
decisions based upon that. By using appropriate analysis tool, it becomes easy for the researcher
to process data and analyse it so that valid comes can be drawn. In this study, thematic analysis
method is utilised for analysing qualitative data gathered by interview. It emphasizes on
examining the themes and explores the implicit and explicit meanings of data. The questionnaire
for interview in context of this study is provided below:
Interview Questionnaire
For Human Resource Managers -
Q 1) According to you, what is the main cause of job insecurity and layoffs in the organisation?
Q 2) How many employees were laid off simultaneously in your organisation?
Q 3) Have Savola Group laid off its workforce due to the covid-19 pandemic situation? If so,
how did you as a HR manager assist them transition to new jobs?
Q 4) What kind of safety procedures or actions have you put into place during this pandemic
situation?
Q 5) Which alternative way would you consider to put in place instead of laying off employees
because of lack of finances in company?
Q 6) As per your opinion, which is the key reason of demotivation among employees in the
organisation?
Q 7) What strategies do you execute to motivate the workforce who see their co-workers being
laid off?
For Employees -
Q 1) Do you have any awareness and understanding about the primary cause of job insecurity
and layoffs in the organisation?
Q 2) What fear you are facing associated with your job during the Covid 19 pandemic situation?
Q 3) Which is the main factor that leads you towards demotivation in the organisation?
Q 4) How job layoff impacts on your motivation level and how it affects your future career?
Q 5) What is the impact of your demotivation on your performance and how it affects the
18

organisational performance?
Q 6) According to you, which is the key factor that help in improving motivation of all the
employees in the organisation?
Q 7) How would you cope up with the situation when you get to know that you are being laid off
by Human Resource Manager of by organisation?
Q 8) Suggest an appropriate way through which job insecurity and layoffs can be reduced from
the organisation and keep the employees stay motivated - - - - - - - - - - - - - - - - - - - - - - - - - - -
-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-
Discussion and Findings
Responses from interview with Human Resource Manager of Savola Group
Theme 1: Main cause of job insecurity and layoffs in the organisation
Q 1) According to you, what is the main cause of job insecurity and layoffs in the
organisation?
Solution:
By taking the interview of human resource managers, it has been found that 1 human resource
manager, the main cause of job insecurity and layoffs in the organisation is employment
downsizing, the another respondent said that financial crisis is the main cause of job insecurity
and layoff and the remaining one respondents at that looking for transferable employees is the
key cause of job insecurity as well as layoff in the organisation.
Theme 2: Employees that were laid off simultaneously in your organisation
Q 2) How many employees were laid off simultaneously in your organisation?
Solution:
As per the responses gain from the 2 out of 3 respondents, around 20 employees were laid off
simultaneously in the organisation and according to the opinion of remaining one respondent,
around 10 to 15 employees were laid off simultaneously in the organisation.
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Theme 3: Laid off workforce by company due to the covid-19 pandemic situation and the way
HR manager assist them transition to new jobs
Q 3) Have Savola Group laid off its workforce due to the covid-19 pandemic situation? If
so, how did you as a HR manager assist them transition to new jobs?
Solution:
By performing telephonic interview of human resource managers of Savola Group, it has been
found that all the three respondents agreed that organisation laid off its workforce because of
covid-19 pandemic situation. However, two respondents said that they assist employees in their
transition to new jobs by providing outplacement services and the remaining one respondent said
that as a HR manager I assist employees in their transition by showing concern towards them and
assist them to search their new jobs.
Theme 4: Safety procedures or actions that have put into place during this pandemic situation
Q 4) What kind of safety procedures or actions have you put into place during this
pandemic situation?
Solution:
It has been found from the interview that according to one out of three respondents, the safety
procedures which have put into place during this pandemic situation is aware employees about
the disease and ask them to take all the safety measures like wear mask, follow social distancing,
use hand sanitizer on continuous basis etc. and according to remaining two respondents, the
safety actions or procedures which have into place by them during the pandemic situation
includes following all the government guidelines and sanitize the workplace regularly so that a
healthy and safe environment can be maintained.
Theme 5: Alternative way that is consider to put in place instead of laying off employees
because of lack of finances in company
Q 5) Which alternative way would you consider to put in place instead of laying off
employees because of lack of finances in company?
Solution:
As per the responses acquired from the respondents through telephonic interview, it has been
found that according to one respondent, cutting extra cost is the alternative way that will be
20

considered to put into place instead of laying off employees due to lack of finance is an
organisation. According to the opinion of another one respondent, it has been found that
exchange of employees is the alternative way that can be put into place instead of laying off due
to lack of finances in company and the remaining one respondent said that reducing part time
staff as well as contractors is the alternative way which will be considered to put into place
instead of laying off workforce because of lack of finances in the organisation.
Theme 6: Key reason of demotivation among employees in the organisation
Q 6) As per your opinion, which is the key reason of demotivation among employees in the
organisation?
Solution:
According to the responses gain through interview, it has been found that as per the opinion of
one respondent, the main reason of demotivation among employees in company is lack of
development opportunities, another one respondent said that feeling undervalued is one of the
main reason of demotivated employees in the organisation and remaining one respondent said
that unrealistic workload is the main reason of demotivation among employees due to which they
gets demotivated in the organisation.
Theme 7: Strategies execute to motivate the workforce who see their co-workers being laid off
Q 7) What strategies do you execute to motivate the workforce who see their co-workers
being laid off?
Solution:
There are various strategies that an organisation can execute in order to motivate its workforce.
According to responses from the interview, it has been found that according to one out of three
respondents, by developing a friendly work environment a human resource manager can
motivate the workforce who see their co-workers being laid off. One respondent said that by
executing positive communication, the workforce who see their co-workers being laid off can be
motivated and according to the opinion of remaining one respondent, acknowledging the
achievements of employees and reward and recognise them is the strategy that can be execute to
motivate the workforce who see their colleagues being laid off.
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Responses from interview with employees of Savola Group
Theme 1: Awareness and understanding about the primary cause of job insecurity and layoffs
in the organisation
Q 1) Do you have any awareness and understanding about the primary cause of job
insecurity and layoffs in the organisation?
Solution:
Job insecurity and lay off is one of the critical issue of the organisation which needs to be
considered by human resource manager. As per the interview taken, it has been found that
according 3 respondents out of 5, they have proper understanding and awareness of the main
cause of job insecurity and layoff in company and the remaining two respondents said that they
have not proper awareness and understanding regarding primary cause of job insecurity as well
as layoff in the organisation.
Theme 2: Facing fear associated with job during the Covid 19 pandemic situation
Q 2) What fear you are facing associated with your job during the Covid 19 pandemic
situation?
Solution:
During the covid-19 pandemic situation, many employees are facing fear associated with health,
job etc. As per the responses gain from telephonic interview performed with five employees of
Savola Group, it has been found that according to the opinion of two respondents out of 5, they
are facing the fear related to losing their job during the covid-19 pandemic situation, two
respondents said that they are facing fear related to infection during the situation of covid-19
pandemic and the remaining one respondent said that he is facing fear associated with reduction
in pay during the covid-19 pandemic situation.
Theme 3: Main factor that leads towards demotivation in the organisation
Q 3) Which is the main factor that leads you towards demotivation in the organisation?
Solution:
According to the interview performed, it has been found that according to the responses of two
out of five respondents, lack of flexibility is the main reason of employee demotivation in the
organisation, another two respondents said that poor leadership is one of the main reason due to
22

which employees get demotivated in the organisation and as per the opinion of remaining one
respondent, not providing development opportunities for further growth is the main reason that
leads employees towards demotivation in the organisation.
Theme 4: The way job layoff impacts on motivation level and how it affects your future career
Q 4) How job layoff impacts on your motivation level and how it affects your future
career?
Solution:
Employee layoff impacts adversely on the organisation as it decreases the motivation level of
employees. As per the responses acquire from the interview, it has been found that according to 3
out of 5 respondents, job layoff impacts negatively on motivation level of employees and it also
affects adversely on future career growth. One respondent said that it impacts positively on the
motivation level and future career of employees and according to remaining one respondent,
there is no impact of job layout on the motivation level of employees along with their future
career.
Theme 5: The impact of demotivation on employee performance and the way it affects the
organisational performance
Q 5) What is the impact of your demotivation on your performance and how it affects the
organisational performance?
Solution:
According to the responses acquire from 4 out of 5 respondents, the impact of demotivation on
performance is adverse and it negatively influence the performance of organisation also as if the
employees are not motivated, they are not able to perform their duties well and exercise on their
work in an effective way which in turn impacts negatively on performance. On the other hand,
the remaining one respondents at that there is no impact of demotivation on performance of
employees as well as the performance of organisation.
Theme 6: Key factor that help in improving motivation of all the employees in the organisation
Q 6) According to you, which is the key factor that help in improving motivation of all the
employees in the organisation?
23

Solution:
There are many factors which enhance the motivation of employees. Improved motivation will
assist in keeping employees satisfied in the organisation. As per the responses gain from 2
respondents out of 2, they said that providing recognition and appreciation to employees for the
work they have done will help in improving their motivation level. Another two respondents said
that providing training and development opportunities is the main factor which will help in
enhancing motivation level of employees and as per the opinion of remaining one respondent,
administering healthy workplace environment is the factor that will enhance motivation of all the
employees in organisation.
Theme 7: The way to cope up with the situation when you get to know that you are being laid
off by Human Resource Manager of by organisation
Q 7) How would you cope up with the situation when you get to know that you are being
laid off by Human Resource Manager of by organisation?
Solution:
As per the responses gain from interview, it has been found that according to 3 out of 5
respondents they said that by searching for new job, we can cope up with the situation after
knowing that their being lay off by human resource manager of organisation and according to the
response is gain from remaining two respondents, they said that after knowing about laid off
from the organisation by human resource manager, they will cope up by stay positive and keep
searching for the new job and thinking of relocation for the job.
Discussion of secondary data
As per provided analysis, review and findings, it has been found that job in security is a
threat for employees to continuity and stability of employment. It is a growing issue in context of
employment. A firm may suspend its employees due to various reasons. The key reasons of
layoff include staffing redundancies, financial crisis, merger or buyout etc. It is usually a result
of economic downturn in which organisation choose to reduce size of its employees so that cost
can be reduced in the situation. According to the analysis and review provided above, it is found
that there are many causes of job insecurity including depression, stress etc. Because of high
competition in market, organisations emphasize on bringing new talent into the workplace which
24

this develops job insecurity in the minds of employees and ultimately results into dissatisfaction.
It also influences productivity and performance of organisation. It has been found that layoff is a
kind of termination that employees faced in job. There are various causes of layoff in the
organisation including cost reduction, the redundancies or outsourcing, relocation etc. One of the
major cause of layoff that have been found from the above review is cost reduction. Due to this
organisation decide to cut its caused by employee layoff. The situation happens when a company
cannot able to earn enough profits to overcome its expenses. Apart from this, relocation of
organisation is also the cause of layoff. At the time of relocations, it is very necessary for
manager of the organisation to show their concern towards employees and help them to search
for new job. In addition to this, if merger or buyout takes place, then lay off occurs as the merger
company find new goals which develops a situation of lay off. Job insecurity and lay off is the
main cause of demotivation among employees. Manager of the organisation needs to ensure that
employees stay motivated in the organisation. Employee engagement in the organisation needs to
recognise in order to ensure that employees are motivated. There are various reasons due to
which demotivation takes place in the organisation among employees. These reasons include
lack of flexibility, lack of security, lack of development opportunities, miscommunication,
conflicts, lack of performance appraisal, poor leadership, short term objectives, clear vision,
employees feeling undervalued etc. If the organisation not provide adequate flexibility to
employees at workplace, then employees feel that they are bonded and this will decrease their
motivation level which is one of the major issue in organisation. Apart from this, effective
communication in the organisation is very necessary in order to communicate all the information
properly. However, if miscommunication takes place in the organisation, then this ultimately
contributes in increasing the motivation of employees as information is not flow properly among
the employer and employee. This also majorly influence on the productivity and performance of
company. It has also been found that if the vision of the organisation is not clear and there is no
transparency in the objectives then employees are not able to accomplish them. Due to this, the
expectations of the employer will not fulfil and this ultimately impacts on the motivation of
employees. It is also necessary to provide employees with adequate training and development
programs so that they get opportunity to develop their competencies, knowledge and skills. If
they are not getting opportunities in the organisation to develop themselves then it will create
demotivation among them, which in turn influence their performance in the organisation.
25

Miscommunication in the organisation also results into conflicts which adversely influence on
the environment of workplace. This will develop an unhealthy environment in the organisation
which resulted into lack of productivity of employees as well as organisation. Increased conflicts
in the workplace also develops stress which negatively influence on the health of employees and
leads them towards demotivation. It not only hampers the performance of employees, but also
influence on the productivity of organisation. It has also been found that poor leadership is also
one of the reason due to which employees get demotivated in the organisation. If the leadership
style adopted by the leader is not effective, then it creates dissatisfaction among the employees
and results into high demotivation level.
In order to increase motivation level of employees, it is very much needed for the manager
of Savola Group to adopt effective methods that will help in enhancing motivation. It has been
found that recognise employees for their performance is one of the effective way to enhance
motivation level of employees. By recognising them for their performance, employees get
satisfied and work with more enthusiasm towards accomplishment of organisational goals. The
rewarding behaviour of manager reinforce of organisation as well as increase engagement of
employees in the workplace. Increased engagement of workforce is also beneficial for
organisation in terms of improving its productivity and performance and leads it towards success.
Apart from this, this will also develop a sense of satisfaction and belongingness among
employees and they feel valued in the organisation. This highly contribute in improving their
motivation level and strengthen the notion of being valued in company. In addition to this, an
another way to enhance motivation of employees is providing them with appropriate
development opportunities by organising training sessions on regular basis.
It has been found from the review and analysis that training and development contributes in
improving skills and knowledge base of employees which enable them to perform effectively
and handle complex situations in more better manner. Thus, providing consistent training and
development opportunities is beneficial for the organisation in terms of improving its
performance as accomplishing organisational goals within the specified period of time. In
addition to this, training and development also help in developing employees at personal level
which will further contribute in their career growth and development. If Savola Group will
provide training to its employees, then employee get opportunity to develop themselves which
26

intern improve their motivation level and creates a sense of satisfaction. Therefore, ultimately
help organisation in attaining success and achieving competitive advantage in the market.
CONCLUSION AND RECOMMENDATIONS
Conclusion
As per the above mentioned report it has been concluded that, there are many people which
are facing the threat of job in security and lay off in this competitive market. Lay off is the
temporary or permanent discharge of individual from employment. There are many causes of
layoff including financial crisis, cost cutting etc. This demotivates the employees and reduced
their satisfaction level. It is very important for the organisation to determine true involvement of
workforce so that they can understand what really drives motivation of employees. Employees in
the organisation demotivate from various purposes including lack of flexibility, lack of security,
lack of development opportunities, conflicts in the organisation, lack of performance appraisal,
not having clear vision etc. Ineffective communication is also one of these reason of employee
motivation as if the communication is not effective among the employer and employee, then it
will create misunderstandings which results into declined productivity. Thus, understanding the
main reasons of employee demotivation is very necessary as by this only, a manager can take
appropriate steps to improve motivation level of employees.
It has also been concluded that there are various ways or approaches by which employee
can motivate its employees. One of the way includes improved communication which will help
in enhancing the interaction among employees and the all the information can be clearly
communicated to all within the workplace. This will decrease the chances of happening
misunderstandings and results in to improved motivation level of employees. Another way of
improving motivation is administering training and development opportunities and appropriate
rewards and recognition to employees so that they can get motivated and the sense of satisfaction
and belongingness developed among them. All these will a help in improving the motivation of
employees and leading organisation towards success.
Recommendations
According to the above provided review, analysis and interpretation of data, it has been
found that job in security and lay off is a critical issue facing by employees in current
competitive market. It has been found that there are many reasons due to which job insecurity
27

and layoffs takes place. This makes it necessary for the management of organisation to
emphasize on improving motivation level of employees and ensure that day stay happy and feel
safe in the organisation. It is also very much necessary to emphasize on consistently adopting
effective strategies or implementing theories or models which will help in enhancing the
motivation level of employees. Thus, in order to improve the motivation, there are some
strategies which are recommended to adopt to Savola Group as these strategies will be effective
in satisfying employees and enhance their motivation level. Some of the strategies that must be
adopted by Savola Group are provided below:
1. The manager of Savola Group is recommended to provide training and development to
employees on regular basis so that they get opportunity to develop their skills and
competencies and perform their responsibilities well in the organisation. By the help of
training and development, employee motivation will improve and the get more satisfied
by the organisations which ensure their long term stay in the company. Apart from this,
development program also contributes in personal development of the employees which
in turn provide opportunity for future career growth to the employee and thus, improve
the motivation levels.
2. The another recommendation provided to manager of Savola Group is that it should
provide employees with healthy and positive environment so that they can stay away
from worries and work effectively and productively towards accomplishment of
organisational goals. If the workplace environment is negative, then it creates uncertainty
and puts heavy toll on physical and mental health of the employees. So, it is very
necessary for the manager of organisation to make sure that employees get positive
workplace environment so that they feel happy and satisfied. In addition to this, the
manager should administer realistic and unbiased advice to the employees and encourage
them to perform their responsibilities well so as to enhance their motivation level.
3. It is also recommended to the manager of Savola Group that he must implement
motivational theories like Maslow hierarchy of needs theory in the workplace in order to
enhance motivation level of employees. According to this theory, there are five basic
needs which an employer required to satisfy. These needs include physiological needs,
safety and security needs, social needs, esteem needs and self-actualization needs.
Fulfilment of all these needs by the organisation will enhance motivation of employees
28

and they will be able to perform well in the organisation. This also support in improving
their productivity which in turn and enhance the productivity and performance of
organisation also.
4. The manager of Savola Group should reward and recognise the employees for their
performance in the organisation. Providing rewards will enhance their motivation level
and encourage them to perform their roles and responsibilities in more effective way and
work towards accomplishment of organisational goals. Rewards and recognition also
creates a sense of belongingness and satisfaction among the employees which in turn
helps in enhancing organisational productivity. This also improved their engagement in
the workplace and they get opportunity to learn many more things which will help in
growing their professional career. Thus, this help in improving their motivation level and
enable employees to stay with the organisation for long term.
29

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