UNIVERSITI TEKNOLOGI MARA

ASM453
ADMINISTRATIVE MANAGEMENT

BACHELOR IN OFFICE SYSTEMS MANAGEMENT (HONS.)

SUBMISSION DATE :
26.05.2019
CASE STUDY

PREPARED BY:
NURAIN FASLINDA BINTI MOHD SEPIAN
2018423522

NOR AZLINDA BINTI MOHD RAZIP

2018816096

PREPERED FOR:

MADAM HANITAH BIN ARIFFIN

 CASE STUDY

You’re a supervisor in Fashion Sdn Bhd, a clothing manufacturer that is located in

Johor Bahru, with over 350 employees. During a recent staff meeting, employee
motivation was a major topic of discussion. A number of supervisor indicate that their
subordinates don’t seem to be as highly motivated as they were a few years ago. As
a result, work is not produced as quickly or with as much quality as much as was the
case the case earlier. Some at the meeting indicated that this is a sign of the times
that it is not the fault of Fashion Sdn Bhd. Others indicated that they believed the
problem start from the fact that salary increases have been lower the last several
years than ever before, primarily because the company is not as profitable as it was
earlier. Others said that they believed the problem of employee motivation can be
attributed to a lack of fringe benefit in Fashion, especially since an increasing
number of companies in the Johor Bahru area are being more generous with the
benefit they offer.

To correct the problem, several supervisors recommended that a consultant be

brought in. Another recommendation was to have the personnel department do an
in-house study to determine the source of the problem. A questionnaire could be
developed that employees would respond to anonymously.

While no decision were made at the meeting, the executive Vice President who was
conducting the meeting asked for the input who was conducting the meeting asked
for the input of each person who attended. He wants input regarding your ideas
about (1) the reasons why the employees are not as highly motivated as they were
in the past and (2) whether the study should be conducted by a consultant or by the
Human Resource Department.

Question
1. Do you believe that small salary increases and a lack of fringe benefits
may be the cause of the motivation? Why?
 From my perspectives, I believe and could say yes to that small salary increases
and a lack of fringe benefits are the reason why the staff unmotivated to become
more productive and Salary is important in the most basic sense -- the vast
efficient.
majority of people wouldn't do their jobs if they weren't paid for it. Fair salary for the
particular work required is also important. As we can see on the article above inform
that salary increases have been lower the last several years than ever before.
The employees think that the company not appreciates them as part in the
company.
 With the rising cost of living, the employee feel burden with small salary
increases especially with the current economic culture increase each year. In
most exit interviews, high turnover is rarely due to dissatisfaction in pay. For
example, employee at Fashion Sdn Bhd will be de-motivated because they
know the other companies are being more generous with the benefit they offer
compare than this company, so for sure they will think to move to another
company that may pay high salary.
 Not all employees are motivated by money to increase performance. Most of
employee love to work in a fun environment and can give some benefit to
them, so if the company unable to increase high salary to the employee, they
should change to other alternative so that the employee feels appreciated. For
example, flexi working hours, 1 day off for free, or allowing a worker to tend to
a sick child without ramifications can go a lot further in creating a loyal and
productive employee than a pay increase.
 Furthermore, lack of fringe benefit from the company itself may cause of the
motivation. Employee feels that they are not valuable to the company. For
example, the company did not provide health benefit, the employee need to
take personal insurance and indirectly it will increase their living cost. As a
manager or leader, still, there are many things that they can do to create a
suitable environment for employees to be accountable, provide their own
motivation for doing what is expected of them and have a sense of belonging
and ownership.
 A great number people are motivated by money even though a rise in salary
of
most ly only has a short term effect, and the feeling of being underpaid is
even
demotivating yet, money is not all and definitely not the best and easiest way
 to make
employees happy, motivated and satisfied.

2. What other possible explanations for the motivation problem might exist?

Keeping employees motivated can help boost morale, reduce turnover and
create a more dynamic and profitable operation. While different things motivate
different people, there are several demotivating practices that can negatively
impact on the business itself.

Lack of Employee Rewards or Pay

Employees like to see performance that exceeds organizational standards

rewarded. For example, the management from Fashion Sdn Bhd should reward
an employee who can be the best employee of the month. A lack of a reward
system, including a sales bonus or special monthly recognition, can create a
motivational issue in the workplace as employees believe management or
ownership takes high worker productivity for granted. This also can occur when
employees believe pay scale is below the industry average or not in line with the
level of work and performance the employer expects. Discouraged workers have
diminished motivation and lower productivity to compensate for a perceived lack
in competitive pay.

Lack of Challenging Work

Employees who are bored are typically unmotivated. They may not take an
interest in tasks they consider normal or may perform poorly at the work they do
attempt. Some reasons for this motivational problem include:
 Inappropriate hires.
 Not taking advantage of an employee's skill set.
 Lack of professional development opportunities.  Failure to promote from
within.

This issue can be addressed on several fronts, including the interviewing stage,
when you should strive to ensure the person you hire is a good match for the
job. Once someone is in their position, provide proper training and the tools the
 individual needs to do their job effectively. If they appear to master tasks quickly
or don't show an interest, consider cross-training, mentoring, job-shadowing or
even a different position that better utilizes their talents.

Poor Leadership Structure

When no one appears to be in charge, or worse, everyone thinks they're in

charge, it can be hard to perform at peak levels. A lack of hierarchy or direct
reporting structure leads to confusion, resentment and an overall lack of
direction. Employees are demotivated because their objectives are unclear, and
therefore, difficult to work toward.
Here are some issues that contribute to this employee motivation problem:
 Unclear or non-existent job descriptions.
 No clear chain of command.  Disorganized
directives.

Not Being Heard

Communication is key to employee satisfaction, but employees say management

doesn't listen to them. Few feel they have any opportunity to speak their mind,
and those that do say the company never takes employees' ideas seriously
anyway. Tell employees often what you appreciate their involvement. They're the
ones in the place or situation in which people do very difficult work and they may
truly have good ideas for improvements. Employees don't always need a raise to
feel fulfilled. Knowing that management values their input, and shows it by
implementing some of their ideas, can be just as fulfilling as a higher salary.

Unrealistic workload

It’s important to keep a check on the expectations and demands that are being
placed upon your employees. If someone feels overburdened by a large,
impossible workload – they can soon become frustrated, stressed and lose
motivation. Equally, if an employee has a workload that’s too light or not varied
enough, they might quickly lose interest.
3. Do you believe that a consultant should be hired, or do you believe the
Human Resource Department should conduct the study? Why?

 I believe the Human Resource Deparment should conduct the study

because they more know about the background of the employee and
their rate salary.

 In that case Human Resources Department can recognize and define

the problem with easily because they have all the data to analyze the
relevant information.

 It is because Human Resources are the backbone of the company and

should have professionalism to face this problem. If Human Resouces
Department conduct the study they can improve their problem solving
skill and give they opportunity to gain their experience.

 Human Resources Department can develop alternate solutions to the

problem- solving process with immediately and they also can choose
the best sololution because they are a part of the company. They know
which department should do rearrangement or not.

 When Human Resources Department conduct the study, it also cut cost
to hired the consultants as we know the company is not as profitable as
it was earlier.
4. Briefly explain, how motivational theory by David McClelland are related
on employee’s motivation behavior?
Theory, David McClelland identified three types of motivational need:
• Need for achievement
• Need for power
• Need for affiliation

Need for achievement

Generally speaking, people want to accomplish something in life. This could
mean starting a large family for some and a well-paid job and an illustrious
career for others. David McClelland studied what drives people to achieve
something. What motivates them and how can they make a contribution to
society? Upon completing his study, he distinguished four characteristics that
are consistent with the need for achievement: striving for an average task
complexity, responsibility for own performance, the need for feedback and the
use of innovation/creativity.

From the case study we know that their salary increase lower the last several
years than ever before. From that we know the employee’s achievement cant
be accomplish. Their morale be down because after several years their salary
still at the same level compare to another new company. They become lazy
and unmotivated to work hard because they think that the company not
appreciate their work.

Need for power

People with a need for power, attach great value to status, reputation and
recognition. They have a need to be perceived as important and they have a
need to direct and influence others. According to David McClelland, this type
of person enjoys competition and winning. When this need is great, they will
not be open to feedback. This need may consist of personal power and of
institutional power. Those who focus on personal power have the desire to
have control over others. Those who are focused on institutional power, like to
organize the efforts of more people to further the company’s goals.

In the case study I think the supervisor should explain to their subordinates
carefully and clearly about the financial of the company. May be the
supervisor can discuss with their subordinates how to improve their company
and profit. The employee maybe will understand and that will courage them to
workhard and be productive.

Need for affiliation

People are a gregarious bunch and they want to belong to the group. When
the need for affiliation is high, they want to be liked and they will conform to
the group’s behaviour and wishes. In this case, they will favour cooperation
over competition.
Therefore, the need for affiliation does not go well with the need for power.

From the case study the supervisor and the subordinates should have ao god
communication and try to discuss how to make the company’s profit increase.
May be the company also should plan a team building and a program to
motivated their employee.