MGMT5007 - Employee Motivation and Turnover at FAB Sweets Limited

This report examines the issue of increasing employee turnover at FAB Sweets Limited, attributing it primarily to a lack of employee motivation. The analysis identifies negative organizational culture, inadequate payment structures, and insufficient employee involvement in decision-making processes as key contributors to this problem, based on the Expectancy theory. The report delves into the application of Expectancy theory to understand the motivational factors influencing employee behavior. It highlights the importance of involving employees in decision-making, implementing effective training and development programs, and improving the wage structure to enhance employee engagement. The recommendations include actionable steps such as introducing training programs, improving intercommunication, and fostering workplace gatherings to reduce internal conflicts. Finally, the report outlines a detailed implementation plan with stages for introducing a new wages structure, gathering employee feedback, and evaluating the effectiveness of the implemented strategies. This report aims to provide FAB Sweets with practical strategies to improve employee retention and enhance overall organizational performance.

Running head: MANAGEMENT
ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
In this study it has been identified that due to increasing amount of employee turnover in the
FAB sweets limited, the business performance of the company has got affected. Lack of
employee motivation has been identified as the major cause behind the increasing employee
turnover. Based on the Expectancy theory, different motivational elements such as negative
organizational culture, improper payment structure, lack of involvement in decision making
process have been considered as the important factors for increasing employee turnover.

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Table of contents
1.0 Problem identification...............................................................................................................3
2.0 Expectancy theory analysis........................................................................................................4
3.0 Recommendations......................................................................................................................5
3.1 Implementation..........................................................................................................................7
Conclusion.......................................................................................................................................8
Reference list and bibliography.......................................................................................................9

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1.0 Problem identification
Employee motivation is being considered as the significant process that helps to increase
the productivity as well as increase the employee engagement towards achieving organizational
goals and objectives. Due to lack of employee motivational initiatives in the workplace,
dissatisfaction among the employees increases. Increasing numbers of employee turnover in the
FAB sweets limited has become the major concern for the management. Analyzing the complex
working process in HB, it has been identified that due complex organizational culture as well as
improper distribution of work, turnover rate in the management level increases. By continuing
this, it has been identified that depending on the negative behavioral characteristics of
individuals, the organizational culture has got affected, which indirectly influence the rate of
employee turnover rate. Due to lack of motivation in the workplace, the unhealthy organizational
culture among the employees drive them towards leaving the jobs. Analyzing the internal
situation ion this organization, it has been identified that improper leadership practices in the
organization has also driven the negative job satisfaction in the company.
In most of the cases, the employees are not being involved in the decision making
process, which increases the loyalty concern of the employees towards the company. On the
other hand, it cannot be denied that with the increasing competitive business environment, work
pressure on the employees has been increased. In this situation, motivating individuals towards
achieving the organizational goals and objectives have become necessary. However, the biggest
problem in this organization is managers do not play an active role for increasing employee
engagement towards the organizational development. In this situation, the internal climate of the
organization gets affected. Money is being considered as one of the important motivational
factors in the workplace, however, in this organization, it has been identified that not only the

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interpersonal skills but also improper payment practices in the workplace increases the concern
for its employee turnover. With the increasing amount of employee turnover not only affecting
on the business growth, but also it is influencing the performance standard in the workplace
(Mone, Edward and Manuel London 2018). Based on the entire analysis, inactive participation of
management towards introducing the motivational initiatives in the workplace are the important
reason behind increasing numbers of employee turnover in the company. By continuing this, it
can also be said that if the management of the FAB sweets limited would have focused on
understanding the psychological needs of individuals, in that case, it would have been better for
the management to motivate the employees towards the organizational development and rate of
employee turnover could have been reduced.
2.0 Expectancy theory analysis
In the year 1964, Victor H. room introduced the Expectancy theory for highlighting the
importance of motivational components behind the decision making process of individuals
(Kuvaas et al. 2016). In the words of Mone, Edward and Manuel London (2018), the expectancy
theory of motivation defines the process of developing the behavioral characteristics of
individuals in a certain way so that desirability of individuals can be determined. In the
expectancy theory the process of metal health development is being discussed. Based on
individuals’ process of development, the motivational elements are being developed (Mone,
Edward and Manuel London 2018). By emphasizing the needs of the organization, the theory
helps to ensure the rewards to the deserve ones. In case of analyzing the departmental problem it
can be identified that lack of understanding regarding the needs and demands of individuals is
the major problem in the FAB sweets limited. In this theory, different elements of motivation
have been discussed as an alternative so that the negative situational impact can be reduced.

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Analyzing the situation in the FAB sweets limited, it has been identified that the motivational
elements such as, involving employees in decision making process, employee payment, healthy
organizational culture and employee retention initiatives have not been properly maintained by
the management. As a result, dissatisfaction among the employees has driven the increasing
employee turnover rate.
In the expectancy theory, motivation is being considered as the product. It is mentioned
in the theory that based on the intended performance of individuals, the motivational efforts may
differ. Based on the theory, it can be clearly said that it can be considered as the process in which
individuals can be motivated towards achieving the goals. By supporting this Lloyd, Robert and
Daniel Mertens (2018) stated that developing positive correlation between the performance and
effort, favorable outcome can be introduced in the workplace. However, based on the case study,
it is clearly understood that due to improper supervision from the management the conflicts
packaging and production supervisors increased the pressure on production process. According
to Albrecht et al. in this case the positive correlation between the performance and effort has got
affected. Due to lack of understanding regarding the expectation of individuals, the poor
relationship maintenance between two departments, demotivating organizational environment
created the negative impact on employee retention process (Kuvaas et al. 2016). Therefore, by
highlighting the expectancy theory, it can be said that the conflict situation in FAB sweets
limited has been aroused due to lack of understanding regarding the preference as well as
requirements of the employees. By not involving employees in the decision making process, the
management not only demotivated them towards contributing in the organizational development,
but also the management has reduced their expectations from the organization, which indirectly
affected the growth process.

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3.0 Recommendations
Involving in the decision making process
Analyzing the conflict situation in FAB sweets limited, it can be recommended that the
management needs to focus on introducing the motivating initiatives so that the employee
engagement can be assured in the workplace. Proper appreciation by involving in the important
decisions can be beneficial for the company to gaining the employee trust.
Training and development
In order to motivate the individuals towards achieving the organizational goals, training
and development plan can be implemented so that the issue regarding the improper
intercommunication skill can be reduced (De Vito et al. 2018). It can be assumed that based on
the training and development initiatives, not only the situation can be improved but also it will be
beneficial in terms of bringing the development in the professional graph of the employees.
Development in wages structure
The financial department needs to play an active role in terms of improving the wages
structure. In order to increase the engagement of employees towards achieving the organizational
goals, it is important for introducing different compensation and reward policies to the
individuals (Mone, Edward and Manuel London 2018). It can be assumed that based on the
developing such initiatives, job satisfaction can also be increased.
Workplace gathering

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In order to avoid the internal conflict, workplace gathering can be beneficial. By
arranging different office gathering or by involving all the departments in a particular task, it can
be beneficial to improve the interaction process between the employees.
3.1 Implementation
Action plan
Stage 1:
In order to introduce an effective wages structure, proper budgeting needs to be done by
the financial department. After the approval from the directors, the implementation plan will be
started.
Stage 2:
The developed wedges structure and new reward policy will be disclosed to the
employees in a formal meeting.
Stage 3:
In the meeting the feedback from individuals will be gathered regarding their opinion on
the particular initiatives.
Stage 4:
In this stage, training program will be clarified regarding the aim and objectives of the
organization. In this stage, both the positive and negative situation of the organization will be
discussed with the employees.
Stage 5:

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In this stage, individuals will be asked for providing their on the particular situation faced
by the company. By analyzing the individuals’ opinion, the management will discuss both the
positive and negative impacts of the plan with the individuals. Based on group discussion,
individuals will be able to interact with each other’s properly. It can help to improve the positive
organizational culture in FAB sweets limited.
Stage 6:
In this stage, individuals will be asked for involving themselves in a particular task in
which performance abilities will be judged. Based on the performance abilities of individuals,
the reward offers will be introduced so that they can be motivated properly.
Stage 7:
This is the final stage, in this stage proper monitoring will be done so that the
performance of individuals, can be evaluated. In this process, the employee turnover rate will be
compared from last 3 years. On the other hand, comparing the production report from the last 3
years, the difference will be identified. Based on the evaluation process, it will be beneficial for
FAB sweets limited to understand if the strategies, which have been implemented for dealing
with the emerging situation, have brought any kind of improvement or not.
Conclusion
In this study, it can be concluded that lack of motivation has become the major concern in
the FAB Sweets limited, which has also an important cause behind increasing employee turnover
rate. In order to improve the situation, training and development, reward and recognition and
involvement of employees in the decision making process can be beneficial for motivating them
towards achieving the organizational goal.

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Reference list and bibliography
Albrecht, Simon L., Arnold B. Bakker, Jamie A. Gruman, William H. Macey, and Alan M. Saks.
"Employee engagement, human resource management practices and competitive advantage: An
integrated approach." Journal of Organizational Effectiveness: People and Performance 2, no. 1
(2015): 7-35.
Barron, Kenneth E., and Chris S. Hulleman. "Expectancy-value-cost model of
motivation." Psychology 84 (2015): 261-271.
Cloutier, Omer, Laura Felusiak, Calvin Hill, and Enda Jean Pemberton-Jones. "The Importance
of Developing Strategies for Employee Retention." Journal of Leadership, Accountability &
Ethics 12, no. 2 (2015).
De Vito, Lynn, Antonio Brown, Brenton Bannister, Marc Cianci, and Bahaudin G. Mujtaba.
"Employee motivation based on the hierarchy of needs, expectancy and the two-factor theories
applied with higher education employees." IJAMEE(2018).
Kuvaas, Bård, Robert Buch, Marylène Gagné, Anders Dysvik, and Jacques Forest. "Do you get
what you pay for? Sales incentives and implications for motivation and changes in turnover
intention and work effort." Motivation and Emotion 40, no. 5 (2016): 667-680.
Lloyd, Robert, and Daniel Mertens. "Expecting More Out of Expectancy Theory: History Urges
Inclusion of the Social Context." International Management Review 14, no. 1 (2018): 24-66.
Mone, Edward M., and Manuel London. Employee engagement through effective performance
management: A practical guide for managers. Routledge, 2018.

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Welch, Mary. "Dimensions of internal communication and implications for employee
engagement." (2015): 25-36.