133568722 Organisation Behaviour 2o253h

Organisations: Behaviour, Structure, Processes (BUMGT5921) Group A

Names (Student ID): Ahmed Faisal Kabir (UBS30105841) Amisha Sukhadiya (UBS30100734) Dongyi Hou (UBS30108313) Ganga Devi Gurung (UBS30098812) Qi Liu (UBS30108650)

Organisations: Behavior, Structure, Processes (BUMGT5921)

Group A

Executive Summary SUBJECT MATTER: This report provides the problems of Hong Kong Yamatoo Holding Ltd. This report highly focuses on major problem of the company, which is recognized as high-staff turnover, and also discusses two theories (Motivation and Leadership) which can be applied to problem. Moreover, it also provides the recommendation to problem situation.

METHOD OF ANALYSIS:

For the analysis we had taken in to the

percentage of high staff turnover during one year and the personal experience of our group member, who worked in this company for one year.

FINDINGS:

It has been established that there is a lack of motivation,

dissatisfaction with job and work schedule, lack of moral and needs which are not satisfied. As a result of these, it has caused high staff turnover.

CONCLUSION:

Positive attitude of manager is very essential; moreover, job

satisfaction is also needed to reduce the high staff turnover.

RECOMMENDATION: Top down communication is necessary in this company, employees should be rewarded and valued for their work, and employer should focus on needs of employees.

Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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Organisations: Behavior, Structure, Processes (BUMGT5921)

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Contents Introduction .................................................................................. 3 Company Background ................................................................. 3 Recognition of Problem Situation ............................................. 4 MOTIVATION ............................................................................. 6 HIERARCHY OF NEEDS: ...................................................... 6 Application of Motivation – Hierarchy of needs ...................... 7 Leadership .................................................................................... 9 Application of Leadership- Leadership Grid ............................ 9 Recommendations ...................................................................... 11 Conclusion ................................................................................. 12 Bibliography .............................................................................. 13

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Organisations: Behavior, Structure, Processes (BUMGT5921)

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Introduction In today‟s organization, there are many problem situations that exist within them. Some of these are increased customer complaints, specific quality concerns, high staff turnover, contracts lost, workers strike, decreased market share and loss of profit.

In this report one company, Hong Kong Yamatoo Holding Ltd. will be chosen to analyse one major problem, high staff turnover. Two theories are also discussed which can be applied to these problems, those are leadership grid which falls in behavioral approach in Leadership

and Hierarchy of needs which out of content perspective on

motivation. This report also suggests some recommendation to solve this problem.

Company Background Hong Kong Yamatoo Holdings Ltd. is a health care products company which manufactures and sells four brands of health care products in Hong Kong namely „Choice‟, „The Capital No.1‟, „Bansheng‟ and „Yamatoo‟. More than 80 products are sold mainly in Watson and Mannings (two leading health and beauty retailers) targeting customers of different age, income level and gender. According to the owner, the company takes 30% share of Hong Kong health care product market. The turnovers of past six years are showed in figure 1.

Sales Turnover 400 300 200

Unit：Billion

100 0 2006 2007 2008 2009 2010 2011

Figure 1 Sales turnover of Yamtoo Holding Ltd (Best Yamatoo Holding ltd of Hong Kong) Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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Its strength lies in the aggressive marketing and sales strategy. Billions of dollars are spent to invite renowned celebrities with a great reputation among Hong Kong citizens. Furthermore, more than 250 promoters assigned to the retail stores to perform direct sales to customers. The salaries of these promoters are commissioned based therefore they are motivated to sell more. This leads to greater volume of sales turnover. Recognition of Problem Situation Though the company is performing well in the market, it has many internal problems. The major concern is high staff turnover which mainly happened in the headquarter located in mainland China. We describe the problem by analyzing the turnover rate of the recruit in 2011. In that year, around 35 undergraduates were recruited in May. At the end of October, 71.43% left. Surprisingly, all new staffs but one from sales department chose to leave in that month. By the end of 2011, only 3 staffs were left which means that the staff turnover rate is 91.40%. （By communication with previous colleagues）

Staff Turnover Rate 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th month month month month month month month month month month month month

Figure 2 Staff Turnover Rate Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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There are many internal problems which contributed to the high staff turnover. These problems are listed below.

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Due to the lack of an effective formal communication channel, grapevines were mostly depended on.

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The Boss has a dictatorial style of leadership. He is suspicious, emotional and has a bad temper which affects the work environment.

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Advice and opinion from subordinates are seldom accepted.

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The Boss turns judgments on work to personal attacks. Thus, employees felt unvalued and even humiliated.

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Overtime working is the common occurrence which is a common complaint of the employees.

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Unreasonable and unexpected working hours. Employees are regularly required to stay back to the early morning without any prior knowledge.

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Ethic standard is not well established among management and subordinates.

To know more about the problem of high staff turnover, the Leadership Theory and Motivation Theory will be applied for further analysis of some of these problems.

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Organisations: Behavior, Structure, Processes (BUMGT5921)

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MOTIVATION The Motivation Theory is that Motivation is the “desire” or drive to do something which makes person to perform actions in order to achieve a desired result. That is to say we do something because we have a reason, a motive, something which moves us and stimulate ourselves to act, to do it, and a goal to achieve (Andrea, 2012).

As we have mentioned earlier there are many reasons for high staff turnover in this company. Researchers have developed many theories of motivation, from those theories one theory has been chosen which can be apply to the problem situation. This theory is out of content perspectives on motivation called “Hierarchy of needs” developed by Abraham Maslow. HIERARCHY OF NEEDS: This theory suggests that Human-being are motivated by unsatisfied needs and these needs exist in a hierarchical order. This means people must satisfy lower level basic needs before moving on to other, advanced needs. This hierarchy is mostly shown as a pyramid. The lowest level of pyramid comprises of basic needs which include the need of food, water, sleep and warmth. Once these needs have been satisfied, people can progress to the needs of safety and security. As people move on to the pyramid, needs for love, friendship and intimacy become important, and then respect, and self –esteem takes priority. Once these needs have been satisfied reasonably, person may be able to reach the highest level of pyramid called “Self –Actualization” which can be defined as the need for self-fulfilment, personal growth and realising personal potential (Psychology, 2012)

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Organisations: Behavior, Structure, Processes (BUMGT5921)

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Figure 3 Hierarchy of needs Pyramid (The Entrepreneurs Hierarchy of Needs?, 2009) Application of Motivation – Hierarchy of needs In this company, even lower level needs (foods and sleep) of employees are not satisfied as employees are forced to stay beyond their regular working hours till mid night. Furthermore to limit the budget, the company does not provide healthy food during dinner. Management does not provide any fringe benefit to employees; Moreover, they have the power to fired employees at any time. They have less job security, which affects their needs of safety and security. As far as belongingness concern, in this company employees work for six days and lives in the accommodation provided by company which is far from the city, So, employees get only one day in a week to meet their family and friends, and thus they feel less socialized and can‟t balance their personal and professional life. The management of this company totally ignore the recognition of employees‟ work, they are not rewarded for their extra effort or for their any achievement in work place, moreover sometimes manager also use abusive language to their employee which Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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directly affect to their needs of self-esteem and respect. Employees of this organization are used to do the same allocated work, and feel monotonies; they cannot share their ideas, views and interest with management which can restrain them from being creative.

So, if management of this company focus on the needs of employees and try to satisfy them in sequence because once basic needs will be satisfied then employees want job security and enough quality time for their family, and then they will emphasised on their personal growth, in such way, management can reduce the staff turnover.

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Organisations: Behavior, Structure, Processes (BUMGT5921)

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Leadership Leadership can be defined as the ability to select, train and influence followers to focus on the organisation‟s goals out of their own enthusiasm and willingness to achieve these goals (Winston & Patterson, 2006). In other words, understanding the leadership theory is an important aspect of any organisations as employees will set out to achieve organisational goals out of their own free will. An organisation with employees who does this will have a better environment in comparison to an organisation where employees are obliged to achieve organisational goals. This in turn will give rise to many problems within an organisation.

As mentioned earlier in this report, high staff turnover has been selected as the problem situation within Hong Kong Yamatoo Holdings Ltd. With the different types of Leadership theories that exists an organisation leader will be able to adopt one that is suitable to the organisation. “The Leadership Grid” which falls under the behavioural approach will be selected to demonstrate the application of the problem situation. Application of Leadership- Leadership Grid The Leadership Grid that will be used to apply the problem situation is a work that is based on the Ohio State and Michigan studies, Blake and Mouton of the University of Texas (Daft, 2012). The grid, shown below in figure 1, explains the five management styles that are shown in it. These include the Country club management, Team Management, Middle-of-the Road Management, Impoverished Management and Authority-Compliance. On the horizontal axis there is the concern for production and on the vertical axis there is the concern for people. The first number refers to a leader's concern for production and the second to employee (Bolden, Gosling, Marturano, & Dennison, 2003). A short summary of these management are given in the grid as seen in Figure 4 below. Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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Organisations: Behavior, Structure, Processes (BUMGT5921)

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It can be observed that the leadership of Hong Kong Yamatoo Holdings Ltd relates mostly to the Authority-Compliance Management style (getting the highest of 9 in the concern for production and getting the lowest score of 1 in the concern for people). There is strictly a top-down management communication which does not regard the input of the employees. The leader will also disregard the employees‟ lives outside of their workspace by creating work schedules outside of their routine hours. The employees will have to stay back in work till the very early morning of the next day and still be required to come in to work on time on that very day. This causes the high staff turnover as they are expected to work under unreasonable time without any form of rewards. Furthermore, the work environment is very volatile as it depends greatly on the leader‟s mood. Pushing his personal feelings and dictating work creates an unstable environment as employees will not know what to expect.

Figure 4 The Leadership Grid (Leadership Development) Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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Recommendations Good leadership in an organization must manage change consistently and effectively. An organization suffers from a lack of appropriate leadership if management does not quickly adapt to different situations and direct the company accordingly.

In the case of this organization, it is understood that team management leadership approach is ideal but not realistic according to the leadership grid. Firstly, the Boss should improve top-down communication by communicating any changes in the company's direction immediately and at all levels of the company. Additionally, a rewards system that links employee bonuses to individual, team, division and company performances should be set up. An organizational hierarchy chart that assigns authority to people based on their current role in the organization should also be created. In doing so, leadership can be developed by allowing people to take on more responsibility and change roles as they mature in their positions.

Likewise, the boss should build trust in the workplace and also set up a group to discover the barriers that exist to build trust after which a strategy can be devised to break down these barriers. The Boss can also establish standards of behavior for himself and everyone in the organization.

The boss can also boost motivation by sending an open letter to each member of the team. In the letter, he can praise the team member‟s work. Moreover, the boss can help improve the motivation of struggling, stressed or new employees by arranging mentors for them (Daft, 2012). He should encourage employees to submit ideas to management about the business which can further help to improve top down communication thus making every employee motivated and valued. To decrease turnover job satisfaction is important and for that the workplace needs to be a place Dongyi Hou Ubs 30108313 Amisha Sukhadiya Ubs 30100734 Ganga Devi Gurung Ubs30098812

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where employees can have fun and work at the same time.

The employees should be given enough time to rest so they can wake up in the morning feeling fresh. Also regular training and from the employee‟s means there is greater job satisfaction (Daft, 2012). This allows employees changes to express themselves which will boost self-confidence and thus greater job satisfaction.

Conclusion In conclusion, to improve leadership and motivation in the organization the leader should have a clear vision of himself and the others, know how and when to utilize strengths and gifts, live in accordance with morals and values, lead others with inclusiveness and comion, set definite goals and concrete plans, improve communication skills, maintain a positive attitude and willing to learn and also continue to improve using innovative techniques. No one respects a grumpy or negative person. With a positive attitude it is like looking at the bright side of life. People are naturally attracted to someone who has a positive attitude. Positive attitude and comion always make a difference.

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Bibliography Andrea, H. (2012). What is Motivation: The Motivation Theory and How to Really Motivate Yourself and Others. Retrieved August 26, 2012, from The Hypnotism

Weekly:

http://www.ipnostudio.com/motivation-motivation-theory.html Best Yamatoo Holding Ltd of Hong Kong, Retrieved August 24, 2012, from http://v.youku.com/v_show/id_XMjYwMDk1MDQ0.html Bolden, R., Gosling, J., Marturano, A., & Dennison, P. (2003). A Review of Leadership Theory and Competency Frameworks. University of Exeter. Daft, R. L. (2012). Management (10th ed.). Ohio, USA: South-Western (Cengage Learning). Leadership

Development.

(n.d.).

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from

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http://finntrack.co.uk/leadership/competence/lead5.html Psychology.

(2012).

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from

http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm The Entrepreneurs Hierarchy of Needs? (2009, August 4). Retrieved August 31, 2012, from

Adam

McFarland:

http://www.adam-mcfarland.net/2009/08/04/the-entrepreneurs-hierarchy-of-ne eds/ Winston, B. E., & Patterson, K. (2006). International Journal Of Leadership Studies, 1(2), 6-66.

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