Organizational Challenges at Procter & Gamble - Essay Example

Table of Contents Introduction……………………………………………………………………………….3 2. Managerial Challenge at P&G…………………………………………………………….3 3. Ways of Detecting Decline in Employee Motivation at GBS…………………………….4 4. Ways of Restoring GBS Employee Motivation…………………………………………...4 5. Measures for Preventing Future Decline in Employee Motivation at P&G………………6 6. Conclusion………………………………………………………………………………...6 Word length: 1651 Organizational Challenges at Procter & Gamble 1. Introduction The aim of this assignment is to examine ways through which Procter & Gamble (P&G) can detect decreased motivation among Global Business Services (GBS) unit workers and measures that the company can take to restore levels of motivation back to their original high level. GBS employees considerably lost motivation for their usually exemplary duty performance following revelation that, the management at P&G was considering strategic options that would make GBS market efficient in an increasingly competitive business environment. Employees at GBS were immediately concerned about the future of their jobs if the management outsourced GBS services to another company. This issue caused them considerable uncertainty and stress, consequently, decreasing their motivation and leading to reduced quality of work. This assignment is applying the motivation organizational behavior topic motivation and suggests that employee motivation is vital in order to achieve high productivity. The assignment is structured in three parts. The first part is looking at ways in which the management can detect a fall in motivation, especially when it does not result in an overall reduction in productivity as is the case at P&G. The second is exploring measures which the management at P&G can take to motivate employees at GBS. The third is exploring the means through the management can prevent a fall in employee motivation in the future when similar circumstances emerge again. This assignment identifies that application of the motivation topic is crucial, since it enables us understand the importance of maintaining high employee motivation in order to sustain high levels of productivity. 2. Managerial Challenge at P&G The management of P&G decided to reveal to GBS employees that they were carrying out investigations into outsourcing GBS. They took this action despite recognizing the obvious uncertainty and stress it would create among them. The management considered this action vital due to three reasons. Firstly, they recognized the importance to communicate openly and freely about such a major process. Secondly, they wanted to obtain valuable feedback from GBS employees concerning the proposed changes. Thirdly, they wanted to avoid a scenario whereby the employees would find out the impending changes through rumors which would have a devastating effect on their motivation. On revealing this information to employees, the exact situation they were attempting to avoid resulted. Employees became worried about the future of their jobs and felt that the company was betraying them after years of devoted service. The uncertainties significantly demotivated employees and this translated to a decline in productivity. However, core work continued as usual, and employees only put off the nonessential tasks so that the management did not notice the decline in productivity (Ramlall, 2004, 50 – 64). 3. Ways of Detecting Decline in Employee Motivation at GBS It is important for the management of P&G to detect and rectify the fall in motivation among GBS employees as fast as possible, since it will eventually compromise the overall productivity of the company. The easiest way to achieve this task is by delegating it to the Governance Team as one of its crucial functions in the process of investigating options for outsourcing GBS services. Since the Governance Team also contains some GBS managers who have no conflict of interest, these managers will be able to detect reduced productivity with regard to nonessential GBS services and inform the rest of the Governance Team about it. The Governance Team will them inform the company’s top executives of the reduction in motivation and productivity, who will then take action to restore motivation to desirable levels (Pritchard & Ashwood, 2008, 342). Alternatively, the top executives should have planned for this scenario beforehand since it was apparent that news of possible outsourcing would have caused GBS employees considerable uncertainty about their future in the company. Such uncertainty would result in reduction in employee motivation. Therefore, the management should set up a task force for dealing with such a situation when it rises. This task force will constantly monitor GBS productivity at all levels of the unit during the period when the Governance Team performs its tasks. It will be able to detect any drop in productivity, including that connected to nonessential tasks and undertake the necessary measures to restore motivation (D’Ausilio, 2008, p.124). 4. Ways of Restoring GBS Employee Motivation After detecting a fall in productivity the management should then evaluate the various theories of motivating employees, and select one or more that are most appropriate to the current situation. One theory of motivation that the management can apply is the drive-reduction theory. This theory exploits certain biological drives that workers are prone to in the performance of the duties. The strength of this drive increases with time if the leadership does not take action to satisfy it. The strength of the drive reduces upon satisfaction. In the case of P&G, the drive being experienced by employees in the GBS unit is the need to be assured that their jobs are secure. Losing their jobs will lead to loss of their source of income. They will no longer be able to pay their bills, finance the needs of their children, pay for their college education, or enjoy luxuries. The management should be able to identify this drive and work towards satisfying it in order to restore employee motivation. The top executives of P&G can satisfy this drive by informing the concerned employees that they are only considering outsourcing partners, who will retain the current 5,700 GBS employees. This action will reduce the strength of the employees’ drive to know that their jobs are secure, and they will once again be motivated to perform their duties and tasks diligently (Thomas, 2004, p. 156–192). Alternatively, the management can apply the need hierarchy theory to restore employee motivation. This theory incorporates the hierarchy of needs established by Abraham Maslow, which classifies human needs according to importance. The needs at the low end of the hierarchy will have to be satisfied before those at the high end can be satisfied. In order of increasing complexity, these needs include 1) Physiological needs 2) Safety/security/health/shelter 3) Belongingness/love/friendship 4) Self-esteem/recognition/achievement and 5) Self actualization. The management should satisfy the low-end needs by assuring GBS employees that their source of income, will not be disrupted by any outsourcing process that may take place. Therefore, they will not lose their ability to satisfy their physiological, security, health, and shelter needs. Afterwards, the management should then take action to satisfy the next level of needs which include the need for belongingness within the company. The GBS employees no longer feel as if they are part of the company because the news that the company may send them to work in another company, left them with the feeling that P&G no longer values them. GBS employees had come to value P&G’s culture of valuing and taking care of all its employees, a development which had given a strong sense of belongingness in the company. They potentially feared working in another company which has no similar culture and, therefore, would not value their contribution. In order to restore this sense of belongingness among GBS employees, the management should inform the employees why they are considering the new changes and that it is for the best of the company. They should also assure them that they will take care of their needs wherever they end up, as P&G will still have influence over their welfare. Finally, the management should take care of the most complex employee needs of recognition and self-actualization. Since some high ranking GBS officials have already used their influence to secure transfers to other branches of P&G in the wake uncertainty about their jobs, the management should promote high performing junior GBS employees into the vacant positions. This action will portray to employees of GBS that the company recognizes their devotion and is ready to reward them for it. The ultimate result will be an increase in employee self-esteem and self-actualization, leading to improved employee morale and motivation (Lauby, 2005, p.67–78). 5. Measures for Preventing Future Decline in Employee Motivation at P&G The final part of this assignment will explore means through which the management can prevent a similar fall in employee motivation from occurring in the future. This will involve a two-part strategy the first part of which will analyze the reasons behind the fall in motivation. The second part will look at the measures the management failed to take which would have prevented such an occurrence considering that it was foreseeable. The reasons behind the reduction in employee motivation at GBS are evident, but it will be necessary for the management to authorize formal investigations to confirm them. This is crucial because it promotes evidence-based decision-making. Thereafter, the management should review the actions it took during the whole process of the outsourcing issue, and try to identify those that potentially resulted in erosion of employee morale. In this case, the management should review its method of disseminating information to employees, and take measures to avoid providing incomplete information that could prove disastrous to employee motivation (Fargus, 2000, p.35). 6. Conclusion Evidently, employee motivation is crucial because it translates to increased productivity. Application of the drive-reduction and need hierarchy theories of motivation will enable P&G to restore employee motivation at its GBS unit. Effective strategizing and anticipation of challenges will enable the company to detect loss of motivation by employees, even when it does not result in overall fall of GBS productivity. Similar strategizing using information obtained from reviewing past mistakes will prevent a similar loss in employee motivation in other units of P&G in future. However, top executives of P&G should recognize that these theories could prove unsuccessful if it becomes imminent that the services of GBS will have to be outsourced to another company. Restoring employee motivation may be futile and; therefore, the management may have to let events run their course. References D’Ausilio R 2008 What Motivates Your Employees? Intrinsic vs Extrinsic Rewards. Retrieved 26 Jan 2013 from http://www.tmcnet.com/channels/performance-management/articles/39417-what-motivates-employees-intrinsic-vs-extrinsic-rewards.htm Fargus P 2000 Measuring and Improving Employee Motivation. New York: Financial Times Prentice Hall. Lauby S J 2005 Motivating Employees. New York: ASTD. Pritchard R & Ashwood E 2008 Managing Motivation. New York: Taylor & Francis Group. Ramlall S 2004 “A Review of Employee Motivation Theory and Their Implications for Employees Retention” Journal of American Academy of Business. 5 (2), 50-64. Thomas J 2004 Guide to Managerial Persuasion and Influence. Upper Saddle River: Pearson Prentice Hall, 2004. Read More