MGT503 Principles of Management GDB Solution Spring 2013

Sorwest pvt ltd is a local manufacturer of high performance motorcycles. Company is facing serious economic problems from last few years. Regardless of many efforts, company is unable to come out of the financial losses. Right now, Sorwest is facing severe financial crisis. The employees of the organization are demotivated because they are not promoted according to the policies of the company for a long time. Company CEO wants to uplift the morale of their employees but due to current financial crisis he is not in the position to promote them. Obvious result of employee’s promotion is an increase in their salaries (including fringe benefits) which is not acceptable for a company in the existing financial position.


Point to ponder:

In view of the existing situation of Sorwest, suggest a job design technique (job rotation, enrichment or enlargement) which can boost the employees’ morale without bearing much expenditure. Give logical reasoning to support your answer.

Solution: Job enrichment is an attempt to motivate employees by giving them the opportunity to use the range of their abilities.

Job enrichment, as a managerial activity includes a following technique:

1. Turn employees’ effort into performance:

  • Ensuring that objectives are well-defined and understood by everyone. The overall corporate mission statement should be communicated to all. Individual’s goals should also be clear. Each employee should know exactly how he/she fits into the overall process and be aware of how important their contributions are to the organization and its customers.
  • Providing adequate resources for each employee to perform well. This includes support functions like information technology, communication technology, and personnel training and development.
  • Creating a supportive corporate culture. This includes peer support networks, supportive management, and removing elements that foster mistrust and politicking.
  • Free flow of information. Eliminate secrecy.
  • Provide enough freedom to facilitate job excellence. Encourage and reward employee initiative. Flextime or compressed hours could be offered.
  • Provide adequate recognition, appreciation, and other motivators.
  • Provide skill improvement opportunities. This could include paid education at universities or on the job training.
  • Provide job variety. This can be done by job sharing or job rotation programmes.
  • It may be necessary to re-engineer the job process. This could involve redesigning the physical facility, redesign processes, change technologies, simplification of procedures, elimination of repetitiveness, redesigning authority structures.