Employee Retention at Bantam Soft Drinks - Assignment Example

Task 2 In the era of globalization, it is touted that organizations have to implement methodical strategy to manage employee turnover. In recent years, the reduction of employee turnover has been of great interest for employers and researchers. The rapid expansion of global economy has increased the importance of employee retention to remain competitive and keep pace with the technological advancement. The historical report of Bantam Soft Drinks states that staff turnover of the organization has been low. The staff turnover is pivotal for the development of firm. Furthermore, this can lead to disruption in production, loss of job skills and dramatic incur on cost of hiring new staffs. The four factors which states why employees leaves any specific firm like Bantam Soft Drinks are organizational commitment, work climate, employee motivation and communication. Organizational commitment It is described as comparative strength of involvement and identification of an individual in a specific firm. Studies concluded that employees with high level of commitment are less likely to leave their organizations. According to Steers, the more level of commitment can lessen desire of termination for organization. Furthermore, it is believed that these exceedingly committed and dedicated employees are supposed to have strong desire at work, high intent to stay with the company and optimistic attitude towards employment. Moreover, Steers determined that employee turnover is inversely and expressively proportional to employee commitment. On the other hand, employees with less commitment level can perceive current job as opportunity to find better prospect in other organizations. In this present scenario on Bantam Soft Drinks, it can be proposed that this traditional soft drinks company is on low staff turnover. The continual rise of prices has increased the sign of lack of motivation and anxiety towards the work. This resulted rapid shift of employee turnover from low to high. Some of the employees fear that rapid upsurge of soft drinks prices may lead to employee reduction. Moreover, the indication of less enthusiasm and rise of anxiety has increased staff turnover of the soft drinks company by 5 percentages. The underlying credence of the study is that commitment can have positive impact on workforce retention and job performance. Work climate The working condition of an organization is vital for reduction of staff turnover. It appears that organization must introduce supportive working climate and learning environment where employees can work and learn. Research shows that appreciative working climate can create positive influence on retention of employees. Therefore, it is vital for Bantam Soft Drinks to establish appreciative approach to enhance the workplace environment. Increasingly, employees enthuse can be heavily affected by provided information on competitive performance, strategies, mission and values. Maintaining and building effective workplace climate involves motivation of team members, open communications, work-life balance, strong team spirit and recognition for hard work. Employee motivation Traditionally, extrinsic motivators have been effectively focused by management theory. Over the period of time, these powerful motivators have changed in to intrinsic rewards. In today’s environment, intrinsic motivators are critical for motivation of employees. Now-a-days, employees enjoying high level of wealth and opportunity make motivational subjects more multifaceted. Employees need intrinsic motivators to perform at their best and maintain consistency. In case of Bantam Soft Drinks, the company needs to focus on extrinsic rewards to lessen staff turnover. Over the long haul, employees have to take responsibility for completion of project and take more accountability on careers. Furthermore, the implementation of intrinsic rewards would benefit employees to develop their skills and guarantee employability. Now-a-days, talented employees have more options to select job profile. If employees are not satisfied, then they can look for better options. Bantam Soft Drinks is facing same kind of situation where employees are looking for better opportunities. It is considered that systematic improvement on reward process can benefit organization withbigger gains. The motivation of employees and understanding of new job is determined by the purpose in work. The meaningfulness of job helps to organization to retain and attract workers. The drastic change in external environment have increased employee turnover of Bantam Soft DrinksCompany. This rapid upsurge of turnover can be nullified by implementation of intrinsic motivation rewards. Communication An implementation of effective employee development program cannot be possible by support of subordinated and senior management. The continuation of rise of prices has made difficult for Bantam Soft Drinks Company to stay in business. Moreover, the number of closures increased and purchase of Bantam Soft Drinks reduced. This created fear among skilled workforce that they can lose their job. Studies prove that effective communication can benefit employees to trust culture and build openness environment. The employees enthuse can be affected by information provided by organization on competitive performance, changes, strategies, mission and vision. It can be notified that Bantam Soft Drinks Company failed to provide information and solution on rapid decline of business growth. Task 3 Maslow’s hierarchy of needs, Alderfer’s ERG model and McClelland achievement motivation theory are three motivation concepts implemented in the paper to explain impact of employee motivation on Bantam Soft Drinks Company. Maslow’s hierarchy of needs According to Maslow, the five layers of pyramid are required to be fulfilled to motive employees. This motivational concept is popular framework in management training and sociology research. The five main needs are physiological needs, safety needs, social needs, esteem needs and self-actualization. Physiological needs According to Maslow, the core physiological needs are sleep, food, water and air. Employees need water to keep them hydrated, air to breathe, time to rest and sustenance to fuel bodies. This need of employees is heavily affected by lack of motivation and fear of losing job. Employees who are sacked due to loss of revenue are not receiving basic physiological needs. Therefore, it is believed that Bantam Soft Drinks Company failed to fulfill basic needs of staffs to reduce absenteeism and improve level of motivation. Safety needs Every employee wants to have secure and safe working environment. They believe that safety practices and good health are required to be monitored by management. Furthermore, the level of risk and threat of physical injury has to be minimized. Bantam Soft Drinks Company have secure and safe workplace environment. The changes in external environment have heavily influenced the morale and productivity. Despite the existence of company to several generations, it failed to cope up with government taxes. The social needs of employees is severely affected by unseals situation of the Bantam Soft Drinks Company. Social needs A social need is to make employees feel they are pivotal part of organization. But recent crisis of Bantam Soft Drinks Company have heavily affected the mindset of employees. According to Maslow, social needs are receiving love, peer support and friendships. The soft drinks company provides opportunity to employees to share their skills experiences and knowledge. Recent downfall of the company has demotivated employees. Esteem needs Esteem needs include internal and external motivators. Internal motivators are inner goals set by worker to beat sales figure. External motivators for employees are awards, prizes and bonuses. It is believed that Bantam Soft Drinks Company failed to fulfill esteem needs. The inner private goal of staffs has turned in to fear of losing job. Self-actualization The self-actualization needs are personal fulfillment, growth and development. This need is not related to the motivation issues. As it is utmost level of employment. Alderfer’s ERG model Alderfer re-categorize the Maslow model in to growth needs, existence needs and relatedness needs. Growth needs- this category of Alderfer model include advancement, personal growth and self-development. The situation of the company has negatively impacted on employees to be productive or creative. Existence needs- this level include combination of physiological and safety needs of Maslow. This level of Alderfer is fulfilled by Bantam Soft Drinks Company. The existence needs are prime requirement that is severely influenced by current situation of the company.The fear of losing job can affect basic physiological needs such as food, home and air. Relatedness needs- this is the combination of third and fourth level of Maslow. This category means that employee wants to be treated as a part of a company. The collapse of the Bantam Soft Drinks Company has negatively influenced relationship with employers, co-workers, friends and family. The enthusedand motivated employees can enhance the productivity of a company. When primary needs of an employee is not satisfied then it leads to the loss of staff motivation. McClelland achievement motivation theory David McClelland stated that achievement motivation need, power motivation need, affiliation motivation need are three types of needs that can influence effectiveness and motivation of employee.This theory is based on situation of Bantam Soft Drinks Company. Achievement motivation- employees with achievement motivated are advanced and challenging for achievement of goals. Employees of Bantam Company are on a low need for achievement. The situation high achievers tend to work on project that has 50 percentage of chance to be success. This probability of maintaining high achieving employees in Bantam Soft Drinks Company is lessened by current economic downfall. Power motivation- this type of person creates a need to make impact and be influential. The personal prestige and status of employees is increased by need and motivation. The employees are currently demotivated and have less authority power. Affiliation motivation- this type of person is motivated by interaction and friendly relationships. The current situation of Bantam Soft Drinks Company revels that employees are bound to accept any situation and ready to put huge efforts. It is critical for the company to exhibit effective motivational theory than can help to motivate employees. Task 6 Five dimensions of Peter Senge are believed to provide vital measurements and proportions in building organizations. These dimensions are systems thinking, personal mastery, mental models, building shared vision and team learning. Systems thinking This dimension is viewed as cornerstone of knowledge organization. Personal mastery Mental models Building shared vision Team learning Task 7 Read More