Management Changes Affects Employee Morale

Morale: With employees, more engaged in their work and more pleased with the corporate culture, their morale will naturally be higher. This leads to less time and productivity lost to illness, tardiness, or extended breaks and lunches.

The recession has cost many businesses more than just profits. With unemployment at an all time high and the threat of layoffs looming daily, employee morale is declining at an alarming rate. Threats to increase performance or be fired and the clichéd phrase of, “You should be happy you have a job,” do little more than undermine intrinsic employee motivation. But, is there an alternative organizations

Most non profit organization that is affected by the economy would experience a layoff of staff. Porter Leath would have to lose their staff by down sizing, in order to be able to provide the services, that the reduced budget would accommodate.Other staff members would have to take on additional work which may cause a burn out for the remaining staff. Other non profit organizations staff , will also experience this ramification. The budget is sometimes dispersed in the same way, causing them to also downsize their agency. For example , Youth village may encounter the same effects as Porter Leath as it is in the non profit industry as well.

With many companies downsizing in today’s weak economy, we loyal workers are usually the first to go when the layoff slips are handed out. We also, at times, are the last called when that new job opens up. Part of this is due to the higher pay scale that our expertise and experience has earned for us throughout the years. Most companies only see the bottom line, which cutting the jobs of higher paid individuals means more savings. Also, society believes that

I understand the reason behind pay cuts, layoffs, and forelows. However, do the employeers understand the consequese of these actions. many citizens struggle to make a living; a pay cut would would make the struggle even harder on these people. Pay cuts would cause people to partake in illegal acts in order to feed thier families; therefore pay cuts wpuld increase crime rates.

Since the country's recent recession, individual workers throughout the nation have struggled to get their bearings. Decreased paychecks, increased cuts to labor forces, reduced or eliminated benefits, and the overall gloomy state of the nation's economy has kept finding or keeping a job a dismal prospect. As such, certain companies have been left to face work environments with all-time high turnover rates coupled with all-time low levels of employee morale. In viewing the current status of Company X, in which environment exists, it becomes imperative that company executives discover a way to re-organize and restructure jobs and responsibilities throughout the company that can be implemented in spite of the continuing turnover. In viewing the details of Company X's current situation, and in developing strategies for success that can be implemented despite employee turnover, one can see that the prospect of success still remains for Company X, as long as everyone left can work together in this time of need.

The effect of large-scale change on morale and employee engagement was and is still a major concern and potential risk for operational leaders. A decrease in engagement and workforce morale may impact customer service, which is a significant risk. Also, a workforce that is not engaged will resist change. Managing and mitigating these risks are a priority for leaders today as the most industries are moving through an era of extensive change. Insurance being one of the oldest and visible industries post GFC, we will be discussing change at one of the largest Life Insurers in the country - AIA Australia.

Regardless of whether the company manages to succeed in implementing the changes or not, staff should strive to maintain high morale. Senior management should put into practice work different motivational tools such as good working conditions, merit-based system of incentives and rewards, paid vacation, benefits and payment for medical services, the provision of loans to employees and others.

Management wants a quick cut that protects he company's assets, yet it wants to be gentle and compassionate to those who are let go. These two objectives are self-canceling, and to accomplish the first requires considerable compromise on the second. Many companies wait until the day of the lay-off to inform its employees. They are concerned about sabotage and productivity. They seem to think that if they retain the bad news until the last moment that the employees will leave and the rest will get back to business. However, this method of a lay-off is the least favorable for the employees. If the company gives the employees notice of the cutback in the workforce, they will have time to plan for the financial problems, look for other work, and make other necessary arrangements to prepare them for the loss.

Companies that faced a decrease in sales, market share, or profits in the 1980s and early 1990s began to realize that their human resources were expensive and underutilized. To become more competitive, companies made strategic decision to gradually lower their payroll numbers. (Anthony, Kacmar & Perrewe al, 2002:434) Downsizing has become a critical issue around the world. Downsizing and mass lay-offs are happening not only on US companies but also organizations in the entire industrial world. The number of organizations and jobs affected by downsizing has been staggering. In 1993, in an unending quest for lower costs, higher productivity, and fatter profits, American firms announced 615,000 jobs cut, and all-time

Employees of the acquired company often feel stress, because of the new and unknown organisational structure and culture, which can lead to variable behaviors. The feeling of uncertainty of the new working environment and the lack of faith in the new formed company, can destruct the employees, decrease their morale motivation to perform and be productive. In parallel, employee turnover is expected, for reasons employees not been able to adjust to the organization’s practices and policies or lack of faith in the success of the new company. Except of being costly, through turnovers tacit knowledge is lost when important employees decide to leave and endangers the prosperity of the company. Solution to this matter, is to develop a two-way honest communication. Keeping continuously informed the employees for the prospective changes, flourish a feeling of participation which can erase the stress, uncertainty and restore faith in the enterprise. Forming a communication channel between the management and the employees, using a brief cultural fit survey

Secondly, Workers will have more time with their family. They will have time to spend with their

Any business with unhappy employees will lead to high rate of staff turnover and generally create a negative work environment. This has been an ongoing and serious issue, it is definitely something that requires addressing and to be improved so JW Manufacturing can become an environment where workers are happy working, this will in turn also reduce the staff turnover figures. Currently there are 40% of the workers that are not happy working particularly in the afternoon and night shifts, of the amount of staff that have left the company and even express interest in leaving the company, 90% have been from the workers who are rostered on the afternoon and night shifts. So unhappy employees lead to workers leaving, money and

Downsizing occurs when a company permanently reduces its workforce. Corporate downsizing is often the result of poor economic conditions or the company’s need to cut jobs in order to lower costs or maintain profitability. Downsizing may occur when one company merges with another, a product or service is cut, or the economy falters. Downsizing also occurs when employers want to “streamline” a company – this refers to corporate restructuring in order to increase profit and maximize efficiency.

The whole world has to do with this problem. It mainly occurs when it isn’t going well with the economy or when there is a financial crisis. There doesn’t have to be an economic disaster for a company to fire loads of employees. If a business hardly makes any profit or they are in debt, they need to sack a lot of their labourers in order to reduce their costs.