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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provide addition benefits in terms of monetary rewards to employees then it can be a financial
loss to company. The employees of Deutsch bank in Karachi can be motivated by provided
financial rewards for their performance, but, it is not required in the situation of financial crisis
as it may lead to huge financial losses. On the other hand, in the crisis situation, banks fail at
providing salaries on time that can be the biggest de-motivation for the people working in the
bank. The above cited theory stated that workers are motivated by financial incentives but the
bank can’t afford these due to the loss hence loss of motivation. The data reveled from the study
of Surane, (2016) quoted an example by revealing that Wall Street Bankers bonuses and profits
fell in 2015, which affected financial markets, in the similar line Bank of America Corp., has cut
down more than 10,000 jobs and has dismissed around 150 trading and investment-banking
employee due to financial crises. Hence, companies usually decline in bonus payouts, and
salaries not paid on time which is the most significant impact of financial crisis.
Competition of skilled employees in Pakistan
According to the study conducted by The Express Tribunal (2012), it has been witnessed
it is quite difficult for Pakistanis to compete with international market of skilled labourers. This
all is due to lack of skills in the labour force of Pakistan. The report further explained that
Pakistani workers are failed to match the standards of skilled workers all around the world. The
same thing has been witnessed by the Standing Committee on Professional and Technical
Training institute. The Pakistani workers are lacking behind in holding technical certificates that
lead to low level of country’s skilled professionals. However, author has defined that vocational
training institutes in rural areas are helpful in providing effective services to the people. The
government has now recognised the importance of education for the future of Pakistan that can
be said an only way to defeat terrorism and becoming a leading area for labour force. The
investigation conducted by Ministry of Labour, Manpower & Overseas Pakistanis (2016)
Pakistan started ILO’s Decent Work Country Program (DWCP) in which the strategies and plans
are designed for promoting and creation of decent work. In addition, Pakistan has recently
designed DWCP, a National Tripartite Forum on Employment and Skills which has been jointly
organised by the Labour and Manpower Division of the Ministry of Labour, Manpower and
Overseas Pakistanis (MLMOP) and the ILO. This organization aimed at providing a platform to
analyse the employment and labour market challenges that are faced by Pakistan. However,
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terrorism in the country is the major reason for which the labour market is not competitive and
less demanded in other countries. Through the study, it was identified that the programme is
designed to support Government, Employers’ and Workers’ representatives for the formulation
and implementation of real decent work policies and programs. According to Lall and Weiss
(2004) there is a huge competition in Pakistan in respect to labour force, however, it is an
important to focus on the skills of individuals and labour force. In case, Pakistan wants to survive
and prosper under the competitive conditions of global labour force market, than it is important
for company to move into more technology and knowledge. From the analysis, it can be said that
labour force of Pakistan is not in demand, hence, the Labour market is less competitive.
According to the investigation, it can be said in case of financial crisis and job cutting in the
banking sectors in Pakistan this will impact to unemployment in the country. The labour industry
of Pakistan is less competitive than other markets which can be overcome by making proper use
of technology and skilled based programmes.
Effects of financial crisis on employees of Bank
The investigation carried out by Aftab (2012) represented that financial crisis affects the
motivation level of employees at the workplace, as 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. The crisis in the country has provoked major job losses in the
financial sector. On the other hand, this has led to put a break on the long-term increase in
employment within v banking sector. The effects of crisis on earnings have seen relatively
limited. Many of the studies have represented that the banking sector employees are going to
have a huge impact on their jobs that may led to de motivation. For example, a recent net loss
earned by Deutsche bank of Karachi is going to have a huge impact on earnings of bank
employees that will significantly lead to de- motivation among employees. However, tight
measures to regulate the sector is the only way to reduce the gap between remunerations and lead
employee motivation in Banks as well as in the wider economy. The author has further said that
financial crisis in banks are not going to affect only existing workforce who are employed in the
sector but also new graduates or future labour. There is a threat among employees of banks of
having low wages in crisis situation of Bank. To the view point of Jasra (2011) in the crisis
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situation many of banks cut down their jobs that can put an impact on employment of the
country. Due to the threat of work in a loss making bank lead to individuals to leave their jobs.
In addition, they are also in the threat of earning low wage from banks, in case financial crisis.
From the investigation, it is known that the threat of low bonuses is also there to the employees
of banks, therefore, they might search for a new job. All the factors lead to de-motivation that
increases high turnover. The voluntary staff turnover rate of Deutsche bank in 2015 is 7.3%
which is increased as compared to year 2014 i.e. 6.6%. The higher staff turnover rate is found in
Asian pacific region which 18.1% as compared to other region in which company operates
(Deutsche Bank Group’s key staff figures, 2016)
RESEARCH METHODOLOGY
The section is going to deal with the research tools that are going to be used for reaching
the objectives of present investigation. Here, the section represents research philosophy, research
approach as well as research design along with data collection sources and analysis.
Research philosophy
Research philosophies are used for the purpose of designing a clear path for the
investigation, however, it is responsible to change the mindset of researcher. The present
investigation herewith aimed at explaining the corporate losses and its effect on employees’
motivation. The study is based on specific organization named as Deutsche Bank (in Karachi).
For this present investigation, positivism research philosophy is going to be used to draw
findings based on findings that are specific. The cited research philosophy is selected due to
application of various theories that were essential to be used in this study. It can also be said that
the use of theories affects the perceptions and personal judgements so that information can be
easily judged.
Research approach
The research approach is a crucial tool that helps in analyzing the nature of investigation.
There are two major kinds of approaches in the research world such as deductive and inductive
approach. From a general phenomenon, inductive approach is used by researchers to direct the
study from general findings to specialized one. On the other hand, deductive approach is used to
carry the investigation from specific to generalized reasoning (Thannaet.al, 2015). In respect to
the present investigation, inductive approach is used while considering the specific nature of the
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study. The investigation herewith is focused towards Deutsche Bank (in Karachi) and the
corporate losses faced by company along with its impact on business. The results will be specific
and will be based on the cited bank, therefore, inductive approach is used for the present
investigation.
Research design
The research design is also termed as a blue print of investigation that explains the way in
which the present study will be carried out. Within the research world, there are various kinds of
research design such as descriptive, exploratory, causal and explanatory (Robson and McCartan,
2016). For this present investigation, descriptive research design was chosen as it is going to help
the researcher in conducing in-depth investigation into the research topic. The use of descriptive
research design is suitable for the current investigation as it helps to conduct a successful study.
Data collection
Data collection is the foremost process of the investigation that helps in gathering the
data that is suitable for the investigation. There are two major methods of data collection such as
primary and secondary. Primary data collection is one in which the information is collected for
the first time, on the other hand secondary data collection is one already collected data is to be
used. In respect to the current investigation, primary as well as secondary data have been
collected from the range of sources. The primary data are collected via interviews (Taylor,
Bogdan and DeVault, 2015). The employees of Deutsche Bank in Karachi branch are
approached for the purpose of gathering data from the range of sources. For the collection of
primary data from employees, interview will be taken, in which employees will be interwoven
using telephonic method or video conferencing.T hrough interview more detailed understanding
of employee views on motivation during crisis will be taken through a phone call or a Skype call
where there is more of a face to face interaction. It helps in gaining potentially more scope for a
deeper understanding of the sensitivities of employees and their motivations. To encourage, they
will be provided information in regard to purpose of the study and its relevance. In addition to
that, secondary data are collected from range of secondary sources' including books, journals and
online sources. The respondents of Deutsche Bank in Karachi are personally interviewed by the
researcher for the collection of data.
Sampling
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Sampling method is used for the purpose of selecting the respondents from the range of
population. The population for the present investigation consists of employees and managers of
the cited banks, however, employees are the suitable respondents from where data can be
collected for the present investigation to as to reach the outcomes of business. For the present
study, purposive sampling methods is used for the present investigation. This sampling method is
also said as judgemental, selective or subjective sampling, which comes under non-probability
sampling technique. The major aim of purposive sampling is to focus on particular
characteristics of a population that are of interest, as here the population are employees who can
provide the accurate data in respect with the business. The major purpose of present investigation
is to assess the impact of corporate losses and its effect on employees’ motivations for that
employees of Deutsche Bank (in Karachi) are going to be interviewed. The sample size of
present investigation is 10 employees of that bank. The sample size is justifiable as the study is
conducted for a single bank in Deutsche Bank (in Karachi, Pakistan).
Data analysis
After collecting the range of data the most important task of the researcher is to analyse
the data on the basis of nature of investigation. There are various sources of data collection
including primary and secondary. For the analysis of information gathered from primary and
secondary sources, range of data collection methods have been used. The major data collection
tactic is of thematic analysis, this is going to be used in respect with the present study. With the
help of thematic analysis tactic, the information gathered from the employees are going to be
analysed while designing different themes and so on. The use of thematic analysis is based on
the specific use of information and the specific nature of the study. In this tool, different themes
are prepared by considering aims and objectives of the study.
Evaluate and formulate consensus
This section is going to represent the outcomes of the information that have been
gathered from the employees of Deutsche Bank (in Karachi). The information gathered from the
respondents is going to be presented in the form of different themes that are designed while
observing the discussion with employees during interview
Theme 1: During financial crisis employees tend to be demoralized and demotivated
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In the interview section, the respondents are asked if the people working Deutsche Bank
in Karachi tend to be demoralized and demotivated during the financial crisis. The respondents
who are the employees of bank have said that they tend to be demoralized and demotivated at the
time of corporate losses. According to them, they feel insecure at the time when company gets
corporate losses. The employees have further said that they will not get good salaries during the
crisis scenario.
Theme 2: Motivation put a greater impact on your performance during financial crisis
According to the employees of the cited banks their performance is affected during the
financial crisis. Most of the employees have provided a positive opinion on this statement at the
time of interview. After a long discussion with employees, it was found that they feel insecure
during the financial crisis hence, their productivity affects. According to them the Bank need to
provide them a support so that they can feel motivated and can focus on their performance. It can
be in the forms of non-financial rewards.
Theme: 3 Demotivation among employees
From the results of interview, it was found that the employees are demotivated in the
bank. The employees said that they feel demotivated as the bank is not capable to satisfy their
needs. The banks have to satisfy their needs so that a positive energy can be passed to the
employees and they can be provided with a support during the corporate losses.
Theme 4: Employees are in a fear of losing their job due to corporate losses.
Within the interview section, the employees have said that they are in fear that they will
lose the job as the Bank can choose the retrenchment strategies. They are in fear of losing the
jobs that will force them to be unemployed and being financially insecure. It can be said that
their fear of losing their jobs is also a major reason for de-motivation. The employees were seen
much tensed about their job security just due to the financial insecurity and fear of losing jobs.
Theme 5: Corporate losses or financial crisis increase the pressure and stress
The employees of the banks were asked if corporate losses or financial crisis increase the
pressure and stress lead to burned-out employees. Most of the employees have said that the
crisis satiation affects the work status of people working in the banks as they feed a condition of
mental pressure where they're afraid of losing job. The employees feel more pressured at the job
and the working condition may not be favourable that forced them to feel demotivated.
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According to most of the employees working in the cited banks have positively replied that
corporate losses or financial crisis increase the pressure and stress that lead to burned-out them.
Theme 6: Possible effects of financial crisis you experienced on employees of Bank
During the interview section the respondents have asked about the effects of financial
crisis that have been experienced on employees. The respondents have replied with range of
affects in which most of them have said that their motivation changes in situation of crisis.
They gave said that the financial crisis affects them to lose their jobs. Hence, there have been
seen major job losses in the financial sector. Earnings have seen relatively affected by the
financial crisis as Bank has cut down the bonus and additional financial benefits. According to
the words of employees recent net loss earned by Deutsch bank of Karachi has put huge impact
on earnings of bank that lead to de- motivation among them. The employees said that the bank
has announced for cutting down their jobs that can put an impact on employment. The employees
are in threat of earning low wage from banks, in case financial crisis.
Theme 7: De-motivation among Bank employee during corporate/ financial losses impacts
on reputation of Deutsche bank
The reputation of Bank is going to be affected by the corporate losses which is said by all
the employees who have been interviewed. The employees have said that the financial losses
effects on reputation of Deutsche bank as the people will less trust on the banks. According to
the employees of cited bank, new employees will not prefer to work in a bank who is facing
losses. The employees will be demotivated that will put a negative image of bank in the
marketplace
Theme 8: Financial crisis and its impact employee retention and on potential employees
The employees of the banks have been interviewed that has affected the employee
retention in the banks, from the point of view of employees, during the financial crisis the bank
become \ unable to pay good wages to the employees even salaries are not paid at time. The
recent cut down of bonus in the cited banks has affected the employees and forced them to leave
the jobs, in this manner the employee retention in decreased in the bank and the turnover has
been reduced. From, the data it has been revealed that employees have not received their salaries
as managerial persons of the business are not in position to pay even regular remunerations of the
employees due to financials losses. As per some respondents they have not received there
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incentives from last few months. The potential employee do not prefer to work in the bank
which faces a crisis situation. Due to bad reputation of the bank in the market, it can be said that
the bank is going to face loses.
Theme 9: Bank is taking sufficient steps to keep the employees motivated during financial
crisis or corporate losses
The employees are asked if they feel that company is Bank is taking sufficient steps to
keep the employees motivated during financial crisis or corporate losses or not. During the
interviews, the employees have said that the bank is trying to so a lot for motivating employees.
It is using both financial and non-financial motivation factors to keep the employees motivated.
Theme 10: Different ways to keep employees motivated during the crisis
According to the views of respondents, it can be said that financial losses impacts on the
motivation, hence, Bank has to use range of sources. The banks can make use of non-financial
motivation to motivate the employees during the crisis situation. They have further said that
corporate communication can be influential for them to be motivated at the workplace. The
employees of cited banks can go for having effective communication with the people so that they
can be motivated for higher performance
Conclusion
In accordance with the present study, conclusion can be drawn that corporation loss has
huge impact on the performance and motivation level of employees. It is because, during the
period of financial crisis employees feel insecure and as a consequence they get demoralized and
demotivated. Present study shows that corporation loss lead to the situation of redundancy of
human resources, due to which workers of the organization are worried about their employment
status. Due to this factor, their performance get adversely affected. This factor also result in
overall reduction in the productivity of business. Performance of the employees is directly
connected with the motivation factors provided by the management of the company. However, in
situation of financial crisis, organization is not able to support them because they are not able to
provide financial awards. In addition to this, in various situation managerial persons of the
business is not in position to pay even regular remunerations of the employees. Employees have
not received their salaries as managerial persons of bank are not in position to pay even regular
20

remunerations due to financials losses. The respondents said that they have not received there
incentives from last few months. This aspect is clearly noticed in the responses provided by the
employees of Deutsche Bank in Karachi branch. It is because; responses of respondents show
clear indication that they are not motivated because bank is not capable to satisfy their financial
needs. Furthermore, they had also stated that they are in fear that they will lose the job because
management of bank is proposed to make selection of retrenchment strategies. As a consequence
of this strategy, they will be forced to get voluntary retirement without the payment of
satisfactory compensation.
According to the study, another factor that leads to the reduction in motivation level of
employees is increasing pressure and stress. It is because, this pressure enhance their burden and
consequently they are demoralized towards their work. Collected information from employees
shows that most of the workers feel more pressured at the job and the working condition may not
be favourable. Due to this aspect, they are not able to meet up even their own standards. In
addition to this, increasing corporate losses have severe adverse impact on the reputation of the
bank due which people are reducing their trust in the bank. In addition to this, new workers will
never be influenced to work in such banking institution. Due to this factor, employees of the
bank will lose their morale as of increasing negative image of bank in the marketplace. Bank
authorities had make reduction in bonuses and financial rewards of employees due to which they
are forced to leave their jobs. In this manner the employee retention in decreased in the bank and
the turnover has been reduced.
Recommendations
o In order to resolve these issues management of bank is suggested to use motivation
strategies in the period of financial crisis. By considering their corporate losses they can
make use of non-financial reward strategies in order to save cost. The non-financial
reward strategies may be public appreciation in team meetings, recognitions, promotions,
job appraisals, prise, vouchers, family holidays, attention from leaders, stock or stock
options, Opportunity, Work Flexibility etc
o The management is recommended to provide assurance to the human resources that
strategy retrenchment will not be applied in the business organization in situation
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where they will provide effective financial performance. For this aspect, they can
make reduction in the expenses by making use of tool of cost benefit analysis. In this
manner, they will be able to use their financial resources in an optimum to recover
from the losses.
o Management of the bank suggested to discuss their future strategies with their
employees to assure them that they have good plans for the ventures by which they
will be able to get recovered from the impact of corporate losses. In this aspect,
benchmarks can also be created for employees. For example company can increase
new customers by 10%, however, it has to be careful while setting benchmarks for
staff that they are not too difficult given the stress they feel anyway.
o In addition to this, recognition should be provided to the individual who had made
efforts for the attainment of cited benchmarks. By the implementation of above
described factors, management of the bank will be able to take support from the
workers. It is because; they will be motivated to make improvement in their
performances in the best possible way to help management in their strategies.
o Along with this, their objectives need be aligned with the success of entity thus they
will compromise their needs till the period in which organization can recover from the
situation of corporate losses.
22

REFERENCE LIST
Books and journals
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employee‟ s Motivation in the non-profit organizations of Pakistan. Business Intelligence
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Herzberg, F., Mausner, B. and Snyderman, B.B., 2011. The motivation to work (Vol. 1).
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experimental ophthalmology.
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Online
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The importance of effective management. 2016. [Online]. Accessed from <
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25

Appendix 1– Interview Questionnaire
1. Do you think that during financial crisis employees tend to be demoralized and demotivated?
2. Do you think motivation put a greater impact on your performance during financial crisis?
3. Are you demotivated?
4. Are you in fear of losing your job due to corporate losses?
5. Do you think corporate losses financial crisis increase the pressure and stress?
6. According to you, what are the possible effects of financial crisis you experienced on
employees of Bank?
7. How de-motivation among Bank employee during corporate/ financial losses impacts on
reputation of Deutsche bank?
8. Do you think that it is going to have an impact on your retention and on potential employees?
9. Your organization is taking sufficient steps to keep the employees motivated during financial
crisis or corporate losses?
10. According to you, what are the ways to keep employees motivated during the crisis?
Appendix 2Maslow Motivation Theory
(Source: Maslow Motivation Theory. 2016)
26

Appendix 3 Comparison among Motivational theories
(Source:Theories of Motivation, 2016)
Appendix 3 Hertzberg: two factor theory
27

(Source:Herzberg’s Two-Factor Theory, 2016)
Appendix 4 McGregor theory
(Source:The importance of effective management, 2016)
28

Appendix 4 Vroom Expectancy Theory
(Source:Vroom Expectancy Theory, 2016)
Appendix 5 Transcript
Respondent 1
Ans. 1 According to me, it is true as I felt demotivation among employees during crisis as they
are in fear of losing their jobs. I personally fear about monetary security as I work in bank, I
know the financial crisis affects the most to a financial institution like my bank.
Ans. 2 Yes, if I get motivation from seniors I experience that my performance during financial
crisis affects a lot. I perform well and with enthusiasm if I’m motivated. This is not meant I
want monetary benefits but the job security will be a motivation for me.
Ans. 3:Yes
Ans. 4: Yes, I am in fear of losing my job due to corporate losses as I feel my banks cam make
use of retrenchment strategies to reduce costs and many of employees including me are in threat
of losing jobs.
29

Ans5: Due to corporate losses, pressure and stress increases that lead to burned-out. It affects my
work status as a condition of mental pressure is there where I am afraid of losing job. The
working conditions become unfavourable that forced me to feel demotivated.
Ans. 6: According to me possible financial crisis may lead to job losses in the financial sector
and cutting down in bonus and additional financial benefits.
Ans.7.Yes, it is going to affect the reputation of Deutsche bank as employees and people will
less trust on the banks. Including this, I feel new employees will not prefer to work in our bank.
Ans. 8. During the financial crisis bank becomes unable to pay good wages to the employees
even salaries are not paid at time which might lead to bad reputation of the bank, hence
employees retention affects and they leave jobs
Ans9. I am not sure, that my bank is taking sufficient steps to keep the employees motivated
during financial crisis or corporate losses.
Ans. 10. Non-financial motivation, job security, shared responsibility
Respondent 2
Ans. 1 Respondent said “demotivated employees are there as the fear of losing job and not
receiving salaries on time during crisis. The insufficiency of money lead to cut down jobs in
financial institution.
Ans. 2 Yes, the support and speeches given by serious and their praise for me motivates me as I
experienced that my performance during financial crisis positively affects due to talk with senior
members. I perform well if I’m motivated and non-monetary benefits motives me.
Ans. 3: Yes
Ans. 4: Yes, during crisis I feel fear of losing my job as I know my company is going to have
financial losses and these losses affect my job security. Before this, I seen many banks to use
retrenchment strategies to reduce costs and my bank can also do this hence, I might lose job.
Ans. 5: I feel pressurised and stressed due to financial crises held in my bank which significant
affects my performance due to changing work status and negative environment. Sometime I feel
mental pressure as I afraid of losing job. Unfavourable condition demotivates me.
Ans. 6: Possible financial crisis threats me to loss my jobs in the financial sector and banking
organization usually cut down jobs and financial benefits.
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Ans.7.Reputation of Deutsche bank is affected due to financial crisis as employees and people
will not trust on the bank due to monetary losses. If company cut down jobs then it has to bear
protest of employees and other society players.
Ans. 8. Financial crisis affect loose to bank and it became unable to pay wages and cut bonus
and other monetary benefits which lead to a employees turnover hence people leave there jobs.
The voluntary turnover on bank increase during financial crisis
Ans9. According to me, my bank is trying to motivate employees but is not using effective
strategies to motivate employees during financial crisis or corporate losses.
Ans. 10. Recognitions, job appraisals, prise, attention from leaders,
Respondent 3
Ans 1: I feel insecure at the time when banks feel corporate losses as they fear of not getting
good salaries during the crisis scenario. Further, I experienced, insecurity during the financial
crisis negatively affects my productivity.
Ans 2: Yes, senior managers must motivate staff as I personnel feel praised. Bank managers
need to provide them a support so that they can feel motivated and can focus on their
performance.
Ans 3 According to me, I and many employees are demotivated as bank has not satisfied needs,
it must provide support during the corporate losses.
Ans 4 I am in fear of losing job which is a major reason for de-motivation. I am tensed about job
security just due to the financial insecurity. I have not received their salaries and regular
incentives due to financials losses from last few months.
Ans 5 The crisis satiation affects the working conditions in the banks and I feel mental pressure
of losing job. I positively say that corporate losses or financial crisis in my bank has increased
the pressure and stress.
Ans. 6: My motivation changed in situation of crisis as recent net loss earned by Deutsch bank
has put huge impact on earnings and I am de- motivated among due to threat of earning low
wage from banks.
Ans.7.Yes, reputation of Deutsche bank is going to be declined in the market as people loss trust
on the bank and existing and new employees will not prefer to work here.
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Ans. 8. My banks will remain unable to pay wages, incentives and salaries even salaries are not
paid at time. I have not received their salaries and regular incentives due to financials losses from
last few months which creates bad reputation hence, I might leave if the situation is not changed
or company does not provide non-financial benefits.
Ans9. Bank is not taking sufficient steps to keep the employees motivated
Ans.10. Job security, recognitions, prise, stock or stock options, Opportunity, Work Flexibility
etc.
32