MGT502 VU Assignment No 1 Spring 2012 Solution

XLS was a renowned telecom company of Pakistan. XLS was losing its
market share and resultantly profits because of intensive competition in
telecom sector. The overhead cost of this company was higher than its
competitors. To reduce this cost CEO of this company decided to downsize.
He announced that more than 10% of the work force will be laid off. As
many as 500 employees received early retirement. Although CEO’s
ambitious cost-cutting plans were aimed at improving the financial
performance of XLS but layoffs are rarely painless. Those who retain their
jobs often face new obstacles and difficult adjustments. They have to take
over the task of colleagues who are now gone. Survivors may lose trust in
the company and may experience “survivors’ guilt” for being allowed to
remain in organization, while their other colleagues have been forced to
leave. Any rumors of additional layoffs only add to the stress, making employee more fearful and interfering with their ability to focus on their
work. XLS must face the immense challenge of keeping the workforce motivated while creating a firmer foundation for profitable operation in the years ahead.
1. According to expectancy theory of motivation, how XLS’s layoffs affect the
survivors’ motivation? Give logical reasons to support your answer.

According to the Expectancy theory XLS telecom company should make workers are motivated to receive positive outcomes and avoid negative outcomes as the workers are rational, careful processors of information. By applying expectancy theory three factors that determine motivation are valence, instrumentality, and expectancy. The Company should motivate employees make as job security, companionship, trust, fringe benefits, a chance to use talents or skills, or congenial relationships among the employees As currently XLS company is viewing the outcomes as negative—fatigue, boredom, frustration, anxiety, harsh supervision, or threat of dismissal.