JJB SPORTS PLC:
Motivation within an Organisation
Shafayeth Wahid (P11275283)
Tutor: Bev Disney
Summary of Management Issue3
Analysis of Issues and Outcomes3
JJB was a sports retailer, a business which was worth over £500 million, which has had major injections of cash from investors and suppliers. The retailer has now faced administration resulting in job losses. How has JJB Sports, one of the largest sports retailers in the UK, end up in the gutter? This report is an analysis of the following management decisions that were within JJB Sports administration and its affect on the employees. These issues have been analysed considering theories such as, McGregor’s view on leadership and its relation with Theory X. The analysis also shows that there was a combination of factors that lead to poor management, therefore, this lowers employee morale due to lack of motivation.
Summary of Key Management Issue
JJB sports had gone into adminstration on 24th September 2004, creating 4000 job losses as it was had to close down 180 stores, from being one of largest retailer of sportswears to falling into administration with high losses of sales and level of debt (BBC News, 2012). Even if there were any customers within the time of the administration, they simply would not be spending enough. Due to JJB’s financial instability and poor marketing, this has become a key management issue within the organisation. The retailer has had trouble in the past, being fined £8.3 million for price fixing on replica football kits, from the year 2000 to 2001 (The Guardian, 2005). Due to the outcome of the price fixing on England and Manchester United t-shirts, this would have resulted in a decrease of sales as the loyalty of customers and consumers of the retailer were exploited. This shows that the marketing team within the retailer were not motivated due to Whelan’s (owner of retailer, soon chairman) poor leadership skills.
Analysis of the Issue and Outcomes
Leadeship plays a key role when motivating employees. Drucker had stated that a leader influences activities of followers towards high levels of goal setting & achievement (Drucker, 1999). Whelan may have been an influencing leader at the beginning of the business, however, as the business expanded it is clear that Whelan was concerned with order. This would lead to a de-motivated staff as there is no opportunity for staff to improve their abilities. The structure of leadership within the retailer would be seen as transactional. Burns had stated that transactional leadership ‘is an exchange between the superiors and sub-ordinates’ (Kuhnert, Burns, 1987). In other words, employees receive a reward as tasks are met. This can be applied towards JJB’s management strategy of its employees; meeting a sales target or just working for a certain amount of hours just to receive a salary. This can be interlinked with the ‘Carrot and Stick’ approach of motivation and Mcgregor’s Theory X.
Taylor had stated that workers were not motivated by work but by pay. As Taylorism was introduced within organisations, sub-ordinates would be rewarded for targets met (the ‘carrot’) otherwise be punished if effiency within the organisation had decreased (the ‘stick’) (Mullins, 2004). McGregor had described the human nature within a workforce straightfoward; sub-ordinates disliked work, only wanting to receive the reward, therefore, showing no ambition (McGregor, 1957). Theory X mainly focuses on the negative aspects of a workforce and concludes that it should be closely supervised and control systems must be comprehensive. This strict control system and close supervision can be seen as a hygiene factor (King, Herzberg, 1970). This lowers morale within employees as they feel they are not trusted or that their abilities not being utilise at its fullest. Both of these motivational and...