The recent change of management at Wingo's incorporating the new quest claims has seen a great deal of changes with employees both managers and non-managers. This article will analyse the current issues at Wingo's (Reading Store), what as absent wrong, why it has gone wrong and steps to make it better.
The acquisition of Wingo's by Melrose Plc has taken about a radical change which includes seen a big change in the management style.
Staffs have embraced this change with resentment and level of resistance which is discussed in the report. Some staffs have become disillusioned and left while some had made a decision to stay and resist the changes and this as seen a great climb in lateness and absenteeism as well as low efficiency.
The important areas addresses will be the psychological contract, motivation and the management problems. This record has been structured in the next way. The first part resolved the issues by using relevant ideas and research. The next part draw up conclusions on the conclusions and analysis and lastly, the third area of the report advised some attainable tips.
One significant problem determined with Wingo's is the mental health contract. The psychological contract has been shattered on both management and the employee's part. Relating to Robinson, Kraatz, & Rosseaus(1994) ' the emotional contract is an unwritten agreement which exist between employers and their employees, indicating what employers desires from it employees and the actual employees expect of their employers (Mullins, 2005). As well as the managers expectation of the staffs such as exhibiting a positive attitude, be attentive to leadership influence and working diligently, the employees also needs the management to be reasonable, trusted and create opportunities for development (Boddy, 2008). Prior to the new management started out, the staffs dwell on the old mental health contact which is "I will work hard for and action with devotion towards my employer. In exchange I be prepared to be retained as an employee provided I really do not act contrary to the pursuits of the company. I also expect to get opportunities for development and campaign should circumstances get this to possible. " (Torrington et al, 2008). The brand new Wingo's management have cracked this psychological contract. Staffs who possessed joined right from college and getting the impression for a 'job for life', expecting to remain until retirement living and get promoted according with their amount of service has seen all of this recinded from them. This has resulted to insufficient dedication from staffs as well has lack of motivation. Some of the staffs believe that the new management has broken the psychological contract and this can be backed by Parks &Kidder (1994) who claim that when the emotional contract is broken, staff reduce their dedication to the company and some of these are less eager than ever to give their all for the nice of their organisation. (Cited in www. internationalmta. org). Some staff playing by the old subconscious deal became disillusioned and left the company whilst some staff made a decision to stay and withstand the changes. This action can be backed by Herriot and Pemberton (1995) where they describe a typical a reaction to breach of the internal deal as 'to leave to remain or keep your mind below parapet, or to stay and take your revenge'. Some of the staffs that made a decision to stay and withstand the change can be seen as taking revenge up against the management and using this method, it might lead to de-motivation and can cause low productivity and high absenteeism.
B. MOTIVATIONAL PROBLEMS
Motivation is one of the major problems Wingo's is facing presently. De-motivation has been made clear by the frame of mind and behaviours of the staff following the change in general management. Motivation is vital to Wingo's because there are a great number of potential gain from it such as high productivity, low labour turnover and low absenteeism.
It is obvious from the staffs they are de-motivated seeing using their company performance as well as the store's performance. There exists evidence that personnel experienced low morale and according to Herzberg 2 factor theory (1959) the staffs would like to have a sense of achievements, and chance of improvement (Mullins, 2005). Staffs come in every time they want, the shop floor appears generally untidy which reduces production and staff aren't in arrangement.
1. Low Output: Less enthusiastic staffs tend to have low productivity. It is evident that the original Wingo's and the new Wingo's have efficiency issues. With the original Wingo's profit had fallen dramatically which lead to the new system but despite productivity did not improve. The lack of motivation has led to some staff providing reduced degree of productivity. Low productivity could be because of this of varied factors. Such factors includes competency (www. team buildinginc. com) this is the staffs from the traditional Wingo's had quite routine work rather than particularly challenging, which means they were not necessarily interested in the root of how to handle their work. And in the new Wingo's, conversations with various staffs have made it clear that staffs find it difficult to do their job properly because of general lack of training. Taylor (1911) drive theory describes how the application of medical solutions to the management of employees could improve output. (www. netmba. com). He also travelled ahead to dispute that staff need close guidance and control to enjoy there work plus they should be given the necessary training in other to allow them to work efficiently. McGregor's (1960) Theory X helps this reaction that employees are seen as lazy and desire to avoid responsibility (www. tutor2. net). Another factor which can cause low output is the output standard (www. teambuildinginc. com). It is evident at Wingo's that there has been insufficient communication between your personnel and their collection professionals and the lines managers' using their district manager. You will find no set specifications or clear explanation of the typical performance which could lead to de-motivation amongst staff. Locke (1975) helps this a reaction to identify this drive behaviour. Corresponding to Locke's goal- establishing theory Wingo's staffs have been de-motivated because there is no clear goals on what they need to achieve to increase output and there is no appropriate opinions on why there has been reduction in their output (Mullins, 2005).
2. Lateness and Absenteeism: Following the acquisition by Melrose Plc and the benefits of new ways of doing things and also the rest in the mental contract, there's been a marked increase in lateness and absenteeism. This lateness and absenteeism increase could be as a result of various factors such as stress. Mitch McCrimmon in his article on how best to Manage Absenteeism says that 'Motivated employees defeat obstacles to get to work. The key to reducing staff absenteeism is to make a culture where employees want to come quickly to work. ' (www. suite101. com). He also mentioned that factors such as stress keep staffs from work because they are not encouraged enough to be at work to begin with. Signs and Symptoms of stress within Wingo's staffs includes low morale, absenteeism, performance (levels of produce wastage were high), marriage at the job (tension and conflict between co-workers) etc. Matching to Vroom (1964) desire theory, he is convinced that three core idea of his expectancy theory must be found for staffs to be determined. Currently, staffs at Wingo's aren't getting the intrinsic rewards they expect such as caring managers. All of this could lead to stress and consequently lateness and absenteeism is common.
3. Lack of Team Nature: Another problem identified was having less team spirit. Personnel aren't seen to be beneficial because they are seen working on their own and there was less utilized of team working. Having less team soul as seen, as resulted to staff feeling de-motivated and missing direction. One staff cannot execute a team's work if the team is not working together, individual will become stress that could lead to de-motivation and the task will not be achieved. This is reinforced by Adairs style of leadership function a task must be achieved by not one person but a team, the team needs should be achieved because if not fulfilled, an individual will be dissatisfied which could lead to de-motivation and the performance of the duty will be impaired (www. teambuilding. co. uk). This therefore shows that, management has create teams and has not directed correctly and therefore leaving the staffs de-motivated.
4. Personality Issues: Huczynski and Buchana(2007) defines personality has 'The internal qualities that impact an individual's characteristic behaviour patterns in a well balanced and distinctive manner. ' (cited in Armstrong, 2009) The differences in an specific can know what motivates them. Every person is different out of every other person in some respects but similar in other respects. As possible seen with the staffs, some staffs left the company because the mental health contract of promotion was broken although some staff remained behind to withstand the change.
C. MANAGEMENT PROBLEMS
1. Leadership Style/Management Structure: One major issue recognized is the command and management style. About. com 18/11/09 defines command as the art work of motivating a group of people to do something towards achieving a typical goal (www. about. com). The current situation in Wingo's shows that there is a problem with the management because, as opposed to the employees getting determined, they are de-motivated. Corresponding to Carnall (2007) when problems such as low drive and low morale of employees, turmoil between departments as seen among full-time and the weekenders and insufficient capacity to adjust to changing circumstances as seen with the staffs generally occurs then there's a reason to conclude that the framework of the company is poor (Carnall, 2007). It is becoming obvious that most of the personnel in no matter their working time or days and nights have found the top-down management style oppressive.
According to Kotter (1990) 'Management is more to do with planning, controlling and placing appropriate buildings and systems in place while leadership is more to do with anticipating change, dealing with change and adopting a visionary position. ' (McKenna, E 2001).
Before February 2008, the management style that prevails was the Laissez- Faire style. Professionals provided little or no direction and provides staffs as much freedom as is feasible. After March 2008, the management used the autocratic command style. Manages keep as much power and decision making and didn't seek advice from staffs or allowed them to give any type. Herzberg's (1966) two factor theory helps this behavior that before the change, staffs were determined by the motivators (satisfier) such as potential for promotion, sense of accomplishment, interest in the job etc. While after the change, with the cleanliness factors such as pay, company coverage, the kind of supervision etc do not lead to higher levels of desire but without them you can find dissatisfaction (www. accel-team. com). Scholl (1981) claims that pay only will not stimulate a person (Mullins, 2005).
2. Performance Management System (PMS): The critical factor of delivering this change directly into place is to have the right number well trained personnel and motivated. Because of this change, the contrary of desire to was evident. Staffs were easily de-motivated and lost their morale that can be seen because of this of the manager's behaviours. The professionals assume relating to McGregor Theory X (1960) "that employees must be threatened with abuse to get them to put in adequate effort at work" (Thomson, 2002). The staffs felt the machine is unfair which is because of this of incorrect use by the professionals. That is an evidence of the autocratic management style. The professionals can be seen not talking to the staffs or allowing them to give any inputs. The machine that is put in spot to benefits the business, the managers and the staffs by seeing to the needs and development of staffs has been used improperly. Some studies over the past years demonstrates this type of management could see company having high turnover and absenteeism and this is noticeable at Wingo's. (www. essortment. com)
3. Insufficient communication: Wingo's has introduced a major change pursuing being part of Melrose Plc. The management style got change. There is no evident to suggest that staff were totally enlightened about the new changes created. One main grievance identified was that there is lack of communication between employees and the management and even within the professionals and another level up.
4. Insufficient training: Staffs had not been properly trained on the new changes and this has reduced their productivity and not able to do their careers properly.
The examination and studies concludes that staffs have grown to be de-motivated consequently of the severe change in the management and leadership style. The change has caused insecurity among the staffs such as staffs leaving and some keeping back to avoid the change.
Psychological contract as been shattered and which includes seen some staff left the company and there has been low productivity. That is backed by Parks & Kidder (1994).
Managers possessed used tools such as Performance Management System which is supposed to motivate staff to de-motivate them.
There has been insufficient communication which includes resulted to staffs being resentful and resisting change.
All this issues must be addressed for the company to reach your goals. If not fixed, there may be a further reduction in productivity, upsurge in absenteeism and personnel loss to rivals.
In other for all this to be settled, there are fundamental areas that need to be addressed, such as the psychological contract, determination of staffs and the management style.
Due to the fact that, the psychological contract is perceived to have been broken, a fresh agreement should therefore be established.
Rousseau and Greller (1994) identify the psychological deal as a deal that 'includes the actions employees believe are anticipated of these and what response they expect in return from the company. '(Cited in www. gowerpublishing. com). The only way for staffs to understand the actions expected of these by the management and what response they expect in return from the management is by starting a staff study, to be completed by both staffs and managers. This will help identify the expectation from both staff and may help understand the new agreement.
For an organisation to be successful when carrying out changes, there are three necessary conditions to be satisfied which includes understanding, capability and inclusion (Carnall, C). It's important for staff to understand the changes that are going to take place in any organisation because regarding to Mayo (1949), he figured workers are best determined when there is better communication between them and their professionals. (www. tutor2u. net). Aswell as connecting with staffs, if they are included in the decision making, they are more likely to acknowledge change. Staffs also have to be capable and be certain they know very well what is required of these and this can only just be effective if staffs receive sufficient training.
Therefore, it is recommended that staffs should be well informed with regular meetings with the line professionals (this may bridge the distance between your full-time staffs and the weekenders and also create good team soul), staffs should be well been trained in other for them to do their jobs accurately and really should be engaged with decision making by creating suggestion boxes and employing a few of the suggestions. In case a suggestion can be used, the personnel should be rewarded.
It is preferred that, the management re-visit the PMS which is to see to employee appraisal rather than abuse. Staffs must understand why the PMS has been placed into place and what benefits are for sale to them in it. Staffs have different personality and are diverse in their own way and managers must understand the individual needs of the staffs. Following a staff appraisal, knowing that the managers are aware of their personal needs and goals, they will tend to be more motivated, and in exchange there will be high productivity, high labour turnover and staff retention.
The managers should develop a pastime in their staffs by getting to know them, their way of life and their families.
According to a CIPD review, a good romance between employees and collection manager is the main factor for motivating personnel and establishing a positive psychological deal (Thomson, 2002).
The staff appraisal can also build the relation between the staff and their managers. One of the benefits associated with appraisals is the fact, staffs experience advanced relationship using their managers and vice versa (Thompson, 2002).
This advice can help build the distance between the workforce by building a good team spirit.
Staff's sickness lack should be supervised. It is recommended that line managers should interview staffs when they get back in to work to recognize the reason for their sickness. In case the sickness is work related, managers should ensure that the problem is dealt with appropriately.
The type of leadership style advised at Wingo's is the Democratic style. Before Feb 2008, the sort of leadership utilized was the Lassie Faize style which noticed the company heading down. After March 2008, the new management introduce the autocratic style which noticed staff de-motivated and some staff left the company. Presenting the democratic management style, will increase motivation amongst personnel and staffs will support the eyesight of the business and the company generally will dsicover growth.
Therefore, all managers should learn on how to encourage their staffs and find out the procedure of the democratic or participative command style. Although this is an excellent recommendation as it'll see upsurge in personnel inputs towards Wingo's, however cost of training should be considered.
Retention of employees should be attended to by interviewing staffs before they leave to identify why they can be leaving. If the explanation for giving is given, it ought to be handled in a positive way and it ought to be treated discreetly. Although some staffs may choose not to disclose their real reason of departing, it is strongly suggested that supervisor doing the leave interview should not be popular to the staff leaving. It is because staffs tend to open up more when they are in a neutral environment.