BUS1007: Investigating Staff Demotivation Causes at ABC Company

This report, prepared for ABC Company, an advertising firm experiencing significant staff demotivation, investigates the underlying causes of the issue and proposes effective strategies for improvement. The report identifies several key factors contributing to employee dissatisfaction, including poor leadership, feelings of favoritism, conflicts of interest, lack of flexibility, and inadequate remuneration. It then suggests actionable strategies to address these problems, such as reviewing the current compensation plan, fostering a positive work environment, implementing rewards and recognition programs, enhancing employee skills, and regularly evaluating job satisfaction. The report concludes by emphasizing the need for ABC Company to adopt a proactive approach to improve leadership and management styles, thereby enhancing employee morale, reducing turnover, and boosting overall organizational performance.

Running head: BUSINESS INFORMATION SYSTEM
BUSINESS INFORMATION SYSTEM
Student’s Name
University Name
Author note

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Executive summary
The purpose of this assignment is to analyze the situations of ABC Company and understand the
possible causes of staff demotivation in the organization. The report identifies the five possible
causes that might impact the motivation of the employees which has led to poor performance,
negative impact of mental health, increased rate of employee turnover and high level of
absenteeism. Further, the report suggests five strategies and ways to improve the level of staff
motivation in the organization. Lastly, the report summarized the main points and concludes the
report.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Causes of employee dissatisfaction in the organization..............................................................3
Poor leadership:.......................................................................................................................3
Feelings of favoritism and under valued.................................................................................4
Conflict of interest...................................................................................................................4
Lack of flexibility....................................................................................................................4
Lack of proper remuneration and feelings of underpaid.........................................................5
Strategies to improve employee morale and staff motivation.....................................................6
Review of the current compensation plan for the employees..................................................6
Ensure a positive work environment.......................................................................................6
Rewards and recognition.........................................................................................................7
Enhance the potential and skills of the employees..................................................................7
Evaluate and measure job satisfaction.....................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
There are various components that must be taken into consideration for addressing job
satisfaction of an employee in the business organization. The components of job satisfaction
include payment, promotion facilities, additional benefits and payments, safety, recognition and
affiliation. These job characteristics impact the level of satisfaction of the employees. There are
other subtle influences level of satisfaction of the employees; it includes the types of
personalities and the elements of workplace culture (Aguenza and Som 2018). Employee
satisfaction is considered to be one of the most crucial factors in the organization as it is directly
related to the organizational performance and productivity. Therefore it is essential to manage
employee dissatisfaction at the right time. The purpose of this report is to identify the cause of
employee dissatisfaction and demotivation in the ABC Company. It also describes strategies and
recommends ways that can be implemented by the company to improve the motivation level of
the organization.
Discussion
Causes of employee dissatisfaction in the organization
Poor leadership:
An effective leadership approach is an essential factor for influencing the level of
motivation among the employees. Lack of strong leadership presence in the business
organization can negatively impact the performance and productivity. It also affects the outlook
of the team in the business organization. There are certain employees in the organization who
feel demoralized and demotivated due to ineffective leadership styles and approaches (Bin

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2015). The leaders and the managers might lack a good management. They are unable to
communicate clearly to the employees and there is a lack of employee engagement.
Feelings of favoritism and under valued
There might be certain situations where the employees feel that they are neglected in the
organization. The employees of the organization might feel that their efforts go unnoticed or are
not appreciated at the right time. Continuous feeling of neglects and favoritism might drain out
the energy of the employees and they might evade work (Davis 2015). Further, there might be
instances that the workplace have become stagnant, uninspiring and stagnant. This increases the
level of dissatisfaction among the employees. Moreover, lack of respect in the business
organization might also be the cause of dissatisfaction among the employees in the organization.
Therefore, it is important to appreciate the work performance and efforts of the employees in the
organization (Davis 2013). This might improve the morale of the employees and increase job
satisfaction.
Conflict of interest
There might be situation in which the workplace has become highly detrimental. Increase
in conflicts among the team members in the organization and unresolved conflicts in the
organization can increase the level of employee disaffection. Further, other negative workplace
scenarios such as bullying, workplace intimidations and unresolved conflicts might lead to such
situations (Davis 2013).
Lack of flexibility
Employee dissatisfaction may arise due to inflexible working environments. The working
environment might not be suitable for the employee. The shift timings of the employees might

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not be suited for the work performed. Inadequate working facilities and ineffective working
equipments, poor machinery, outdated technology and improper workplace might lead to
employee dissatisfaction (Inuwa 2016). The employees of the business organization contribute
majorly to the success of the organization. Therefore, the business organization and its
management must ensure that the employees are given the adequate opportunity for growth,
flexible working environment and fair access to equipments and facilities might influence the
performance of the employees and work productivity. Lack of flexibility in the organization
might also lead to job stress. This might negatively affect the performance of the employees and
lead to dissatisfaction in the job (Islam 2014). Job stress is harmful for the employee’s health and
it impacts the productivity and performance of the business organization.
Lack of proper remuneration and feelings of underpaid
One of the main reasons for employee satisfaction is underpaid workers or feelings of
being underpaid by the employees. Further, there might be stagnant wages in the organization
which arise dissatisfaction among the employees (Lee, Back and Chan 2015). Limited income
might make the employee feel dissatisfied with their jobs. Monetary motivation in terms of
wages and salary is considered to be one of the most important factors of employee satisfaction.
The employees in the organization might feel dissatisfied with their jobs if they are offered with
low wages and salaries. The employee in the organization might feel that their work performance
is not in correspondence with the wages and salaries received by them (Islam 2014). Low
employee morale and satisfaction level might be a cause for increase in absenteeism and
employee turnover.

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Strategies to improve employee morale and staff motivation
As mentioned above, employees are a crucial part of any business organization.
Therefore, employee morale and staff motivation must be given special priority to improve the
performance of the business organization and ensure success in the organization. Employee
dissatisfaction in the organization can lead to employee turnover and absenteeism which impacts
the smooth functioning of the organization, reduce the productivity and negatively impact the
performance of the organization (Lee, Back and Chan 2015). Therefore, it is the responsibility of
the leaders and the managers of the organization to motivate the employees in various ways.
Some of them are discussed below.
Review of the current compensation plan for the employees
The managers and the senior executives of the business organization need to review the
existing compensation system in the organization (Linhartová and Urbancová 2013). This is
highly essential as wages, salary and other monetary benefits are considered to be the biggest
performance drivers. Therefore, it is essential to ensure that there are right incentives and
compensations along with other benefits are provided to the employees. Providing adequate
salary along with other monetary benefits such as incentives can improve the level of employee
satisfaction (Morrison 2014). The employee must be provided with balanced, fair and equal
opportunity for promotion and growth. This strategy might influence the employee satisfaction
and enhance their performance.
Ensure a positive work environment
It is highly essential to provide a fair, equitable and positive work environment. The
needs and the requirements of the employee must be addressed without delays. The leaders of the

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organization must ensure that there is a positive culture in the work place. The employee
grievance must be handled effectively (Nwobia and Aljohani 2017). They must be provided with
updated software’s, advanced technology and other essential requirements so that the employees
are able to carry out their performance and productivity in an effective manner. This will help the
organization to keep the employees of the organization motivated and reduce the rate of turnover
and absenteeism in the organization.
Rewards and recognition
The business organization can use rewards and recognition as strategy to motivate the
employees of the organization. This will make the employees feel that they are being appreciated
and their efforts are being recognized in the organization. The rewards can be in the form of
monetary and non monetary benefits (Terera and Ngirande 2014). The company can provide
extra compensation and additional financial benefits to carry out their activities in an effective
and efficient manner. The rewards systems and recognitions in the organization can be given in
team based accomplishments or it might be project based targets (Morrison 2014). This will help
the company to shape the behavior of the employees and provide them an opportunity to share
the benefits of their work. Furthermore, it is highly essential to make the employee feel that they
are an integral part of the business organization (Morrison 2014). This might improve the level
of employee satisfaction.
Enhance the potential and skills of the employees
The business organization must take responsibility to provide them an opportunity to
grow personally and professionally (Van Scheers and Botha 2014). They must be provided with
training and development facilities which will help the employees to improve and enhance their
skills and potential. This might motivate the employees and also improve their productivity and

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enhance their performance (Morrison 2014). The employees, who are better able to perform the
work, might be more satisfied.
Evaluate and measure job satisfaction
The business organization must continuous evaluate and take steps to measure the staff
satisfaction. Taking feedback from the employees and conducting job satisfaction survey can
help the organization to measure and evaluate the level of satisfaction of the employees.
Consulting, training and development programs can improve the performance of the employees
and reduce the level of stress among the employees (Linhartová and Urbancová 2013).
Conclusion
Therefore, from the above analysis it can be concluded that the ABC organization needs
to review their leadership approach and management style to improve the level of employee
satisfaction in the organization. The report has identified the causes of employee dissatisfaction
in the organization which might have led to increase in the employee turnover rate, increased rate
of absenteeism, poor employee health and poor performance. It has been suggested to revise the
compensation plan of the organization. The employees of the organization must be provided with
monetary and non monetary benefits. This can improve the level of satisfaction among the
employees as financial incentives are considered to the most effective drivers for employee
satisfaction. Further it has been suggested to reduce the work pressure, improve the working
environment, provide rewards and recognitions and provide training facilities to improve their
performance.

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References
Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention and
engagement in organizations. IJAME.
Bin, A.S., 2015. The relationship between job satisfaction, job performance and employee
engagement: An explorative study. Issues in Business Management and Economics, 4(1), pp.1-8.
Davis, P.J., 2015. Implementing an employee career-development strategy: How to build
commitment and retain employees. Human Resource Management International Digest, 23(4),
pp.28-32.
Davis, T.L., 2013. A Qualitative Study of the Effects of Employee Retention on the
Organization. Insights to a Changing World Journal, 2013(2).
Inuwa, M., 2016. Job satisfaction and employee performance: An empirical approach. The
Millennium University Journal, 1(1), p.90.
Islam, A.N., 2014. Sources of satisfaction and dissatisfaction with a learning management
system in post-adoption stage: A critical incident technique approach. Computers in Human
Behavior, 30, pp.249-261.
Lee, J.S., Back, K.J. and Chan, E.S., 2015. Quality of work life and job satisfaction among
frontline hotel employees: A self-determination and need satisfaction theory
approach. International Journal of Contemporary Hospitality Management, 27(5), pp.768-789.
Linhartová, L. and Urbancová, H., 2013. Results of analysis of employee mobility: factors
affecting knowledge continuity. Acta Universitatis Agriculturae et Silviculturae Mendelianae
Brunensis, 60(4), pp.235-244.

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Morrison, E.W., 2014. Employee voice and silence. Annu. Rev. Organ. Psychol. Organ.
Behav., 1(1), pp.173-197.
Nwobia, I.E. and Aljohani, M.S., 2017. The effect of job dissatisfaction and workplace bullying
on turnover intention: Organization climate and group cohesion as moderators. International
Journal of Marketing Studies, 9(3), pp.136-143.
Terera, S.R. and Ngirande, H., 2014. The impact of rewards on job satisfaction and employee
retention. Mediterranean Journal of Social Sciences, 5(1), p.481.
Van Scheers, L. and Botha, J., 2014. Analysing relationship between employee job satisfaction
and motivation. Journal of Business and Retail Management Research, 9(1).