Management failure to motivate staff therefore decreased effectiveness, high absenteeism, turnover, low productivity. In order to understand employee motivation and satisfaction, Herzberg 2 factor theory could be applied, which is categorized as classical approach. In this case, dissatisfaction with work can come from company policy and administration in which staff is not involved, as well a job insecurity. Demotivates: lack of recognition (Kipsy) and job is not challenging. It could be recommended, that job rotation/enrichment could be applied. As well as Herzberg concluded, that employees will be motivated if there will be challenging and interesting job. Communication formal/informal
Communication within organization is poor. Management did not communicate with staff, as not informing where they are as organization and what they have to do in order to achieve goals. It’s a type of bureaucratic department. According to the Robbins, downward communication is a type of communication which goes from one level of group to the lower level. Communication should be in both directions from top to bottom and bottom to the top. Communication must be improved. Chain network will help with the flow of information through the manager, supervisors, clerks and salesman’s. Also communicate effectively with Kipsy towards organizational goals could be considered. Lack of recognition
Lack of recognition of informal group and informal leader. Informal groups appear due to social need. In Maslow hierarchy of needs theory, recognition is in the self-esteem need, whereas Maslow argues, that need cannot be achieved until one is incomplete. Organization can benefit from informal group, by working together and if properly managed. Psychological contract
Is an unwritten contract which exists between the manager and workers and requires mutual expectations, satisfaction. There are signs of broken psychological contract, such as disrespect of authority, opportunity...
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