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Company: XYZ


In 2008, Company XYZ has experienced 10% decreased workforce due to

Global financial crisis. This situation have cost job insecurity within employees
and even in management role. This proposal is conducted to increase staff
morale by having an entertainment room. The purpose of the project is to ensure
positive impact in future development of employees morale. In addition,
Company XYZ is willing to invest $ 5,000 into this project and continue doing so.


Company XYZ focus on developing website for middle size company. Company
XYZ has 30 employees but recently have decreased to 22. Due to current global
financial crisis, it impacted Company XYZ in:

It does not have enough funding on conducting a large projects

Employees and managers found it distrustful in company policy and they are
experiencing job insecurity.
Lack of proper staff promotion and over workload.

The recent staff redundancy by 10% has caused to reduced staff morale
significantly. Three issues were identified that have sever impact on the
business's going concern.

Increased distrust of management and complains.

Fear of loosing Jobs.
Declined productivity.
Lack of motivation.
Lack of self- esteem.

Strategic Proposal

In order to overcome the impact of these issues that in--turn ensure the
sustainability of the company's future, the management has brought forward
following strategic proposals.

Establish an entertainment room that facilitates the climate for staff interaction
with management.
Promote effective communication channels between management and staff in
order to bridge the communication gap.
Maintain open and smooth flow of information within the organisation that
enables all staff easy access to information.
Organise monthly staff meeting to discuss on going issues more clearly and
openly and reward staff who out perform.
Promotion/ Marketing

There are few component to the successful promotion of the entertainment room;

Provide a T-shirt to the members.

Distributes handouts regarding competitions and new events.
Annual raffle draw to raise funds for futher improvements to entertainment room.


Entertainment room is basically a place where employee can relief their work
stress and also refresh themselves. It will bring positive impact on the
employees. They will also start enjoying their work as well as be happy with the
company. It will assure to increase the moral support of employees.

Appendix 1- Budget

Company XYZ Strategies Budgeted Expenditure

Establish an
entertainment room
Provide T-shirts to
Maintenance of
entertainment $1000
Appendix 1.1- Arte fact