Case study 3 - Motivation

 



City Bank (CB), a reputed commercial bank based in London, has maintained comparable sales revenue and profit margins to other institutions in the industry. However, a worrisome pattern has surfaced: a significant decline in employee motivation, which is exerting a negative impact on the bank's overall performance. Despite competitive pay, and benefits, employees seemed disengaged and lacked enthusiasm in their roles. There were instances where employees were asked to leave without sufficient notice.

During the exit interview, it became evident that a top-down approach to decision-making left employees feeling unheard and excluded from important discussions. This lack of involvement eroded their sense of ownership and commitment to the bank's success.

Moreover, the bank's rigid hierarchy hindered opportunities for skill development and growth. Employees felt trapped in their positions with limited chances for advancement, leading to feelings of stagnation and diminished motivation

Questions to answer

a)     Identify four warning signs of poor motivation at the workplace [ 2 marks]

b)    Explain two benefits to businesses like City Bank ( CB) in having a highly motivated workforce. [ 4 marks]

c)     Using appropriate motivational theory (Taylor, Maslow or Herzberg) recommend a motivational plan for the management of CB to address the current issue [ 10 marks]

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Suggested answers

Identify four warning signs of poor motivation at the workplace [ 2 marks]

*     Decreased productivity

*     Increased absenteeism and tardiness

*     Low employee engagement

*     Increased labour turnover rate

Explain two benefits to businesses like City Bank ( CB) in having a highly motivated workforce. [ 4 marks]

Two benefits to businesses like City Bank (CB) in having a highly motivated workforce are:

Lower employee turnover: Motivated employees are more likely to be satisfied with their jobs, reducing the likelihood of them leaving the organization. This decreases turnover rates, which can help City Bank save on recruitment and training costs. Additionally, retaining experienced employees ensures continuity and stability within the workforce, further enhancing the bank's performance and customer satisfaction.

Increased productivity: A highly motivated workforce tends to be more productive, as employees are more likely to put in extra effort, complete tasks efficiently, and strive for high-quality outcomes. This can lead to improved operational efficiency and enhanced overall performance, contributing to higher sales and profitability for CB

 

Using appropriate motivational theory (Taylor, Maslow or Herzberg) recommend a motivational plan for the management of CB to address the current issue [ 10 marks]

To address the decline in employee motivation at City Bank (CB), we can design a motivational plan using Maslow's Hierarchy of Needs. This theory suggests that employees are motivated by fulfilling their needs in a specific order, starting from  physiological needs to higher-level needs. Here’s a plan based on each level of Maslow’s hierarchy:

Physiological Needs:  Ensure competitive salaries are not only maintained but also reviewed regularly to keep pace with  banking industry standards. Conduct regular market salary surveys to ensure CB’s compensation is aligned with or exceeds that of competitors, reinforcing financial security for employees. However,   market surveys and the collection of data may be time-consuming and expensive.

Safety(security) Needs: Enhance job security and create a more stable work environment. Establish transparent communication regarding organizational changes and ensure fair policies for layoffs and terminations, including sufficient notice periods. As per the stimulus, there were instances where employees were asked to leave without sufficient notice.  Introduce wellness programs and provide mental health support to create a safer, more supportive workplace.

Social Needs:  Foster a sense of belonging and teamwork within the organization. Organize regular team-building activities, social events, and cross-departmental projects to strengthen relationships among the bank employees. Encourage open communication and collaboration across all levels to build a cohesive work environment.

Esteem Needs: At City Bank, recognizing and rewarding employee achievements can significantly boost self-esteem and enhance motivation. To achieve this, City Bank should implement a comprehensive recognition program that celebrates both individual and team accomplishments through awards, bonuses, and public acknowledgment. Additionally, managers at City Bank should provide constructive feedback regularly, ensuring that employees feel valued and recognized for their efforts. Opportunities for employees to showcase their skills and expertise, such as leading special projects or presenting at team meetings, should also be created to further enhance their sense of accomplishment and contribution to the bank's success.

Self-Actualization Needs: City Bank should focus on providing opportunities for personal and professional growth to enhance employee motivation. To achieve this, City Bank could offer comprehensive career development programs, training sessions, and skill-building workshops to encourage continuous learning and advancement. The bank should establish a clear pathway for career progression, allowing employees to take on challenging projects, lead initiatives, and actively pursue promotions. By fostering an environment that supports growth and development, City Bank can help employees realize their full potential and align their career goals with the bank’s success.

By addressing each level of Maslow’s hierarchy, City Bank (CB) can create a comprehensive motivational plan that caters to the diverse needs of its workforce, ultimately boosting morale, engagement, and overall performance.

However, implementing comprehensive career development programs, training workshops, and recognition programs may require significant investment in terms of time, money, and human resources. City Bank may face budgetary constraints or lack the necessary expertise and infrastructure to execute these programs effectively. Additionally, balancing day-to-day operations with the time needed for training and development activities could pose logistical challenges.

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