The Identified Organizational Issues

Leadership is the integral part of an organisation that leads the employees towards acquiring the goals. The case study is also focusing on developing the understanding regarding the leadership and performance management. The study reflects the ineffective interpersonal relationship with Tom with Frank that was visible in their conversation. The study would thus reflect on the specific issues drawn from the case study and apply the suitable theories to mitigate the challenges accordingly. The identification of the underlying issues and applied theories are described below:

The case study highlights some of the specific issues that have the considerable impacts on the organisational performance. These identified issues are discussed further.

1. Lack of Motivation

The case scenario clearly portrays the motivational issues portrayed through the behaviour of Tom. The ineffective leadership style of Tom had failed to address the suitable work atmosphere for the employees that affected the profitability parameter of the company.

1. Lack of Employee Empowerment

The scenario in the discussion board clearly highlights that the employees are not allowed to take participations in a decision making process. They do not receive the opportunity to present their concerns as Frank was too strict to be interrupted by others. The lack of employee empowerment affects the morale in a considerable way.

1. Leadership ineffectiveness

The ineffective leadership is quite recognizable in this case scenario. It is noticed that Frank was quite authoritative in nature and was reluctant to concentrate on Tom’s idea. This behaviour is quite insignificant in motivating the employees. and increasing the performance level.

1. Ineffective corporate communication

The case study shows that Frank does not communicate with the employees prior to the decision-making process. The lack of communication transparency can create the considerable challenges and uncomfortable situations for the existing employees. Hence, the lack of appropriate corporate communication is quite insignificant in this context.

1. High level of employee turnover

The internal conflicts, ineffective leadership, lack of communication, and improper behavior led to high turnover rate within the company. This employee turnover is quite challenging for securing the organisational reputation for a long run (Lazaroiu 2015). Moreover, it affects the performance criteria and lead to decreasing profitability rate.

The above issues are observed in the case study. It is necessary to develop the suitable theoretical background to mitigate the challenges and increase the credibility more specifically. The further section of the study would discuss such applied theories that can help Tom to improve the organisational scenario.

The identified issues have the clear impacts on the organisational scenario. It has been observed that these emerging issues are directly affecting the motivational aspects of the employees as well as the overall performance level. As a result, the poor productivity level of the organisation is quite recognizable. The following impacts are quite challenging for the organisation in terms of maintaining long term sustainability.

• During the discussion, it was clearly highlighted that the relationship between Frank and Tom is not good. They did not share the effective interpersonal relationship that hampered overall productivity. The insignificant behavior of Frank was quite de-motivating for Tom as he required motivation to ensure the productive outcome. The conflict emerged in the senior management has the considerable impacts on the internal stakeholders as well (Braun et al.2013). The argument between Tom and Frank created the negative impression on the other associates who were the parts of the discussion. It was shown that Frank did not consider the opinions delivered by Tom. It could make them feel that their opinions would also not be valued as well. This perception can affect their morale in increasing their performance parameter.
• On the other hand, the improper gesture and ineffective leadership style also have the negative impact on organisational performance along with the productivity (Sinha et al.2014). The autocratic behaviour was quite insignificant for the associated members since he did not value anyone’s opinion except the one he made.
• The lack of motivation is also one of the most considerable reasons for the low performance level. The improper interpersonal relationship and lack of proper leadership style hampers the motivational level due to which the employees cannot perform well (Hancock et al.2013).
• The high employee turnover rate affects the organisational profitability in a considerable way. The sense of insecurity among the employees might lead them towards high turnover rate that directly affects the profitability parameter.  

Theoretical Background for Mitigating Organizational Challenges

The situation explained in the case study clearly depicts that the employees lack the proper motivation within the organisation. As referred to McGregor’s Theory X and Theory Y, the organisational situations are judged by two different leadership styles, such as authoritarian and democratic. The Theory X is observed when the employees work under the authoritarian leadership style in which they cannot take the participation in decision-making process (Lazaroiu 2015). The employees do not receive the proper motivation as they are instructed to do according to the leaders’ wish. On the contrary, Theory Y explains that the employees work in a participative nature in which their opinions would be considered in a decision-making process (Katz and Flynn 2013). This theory is quite helpful in motivating the employees in which they would generate the feelings of their fruitful existence within a company. Frank requires concentrating on such aspects and consult with the employees prior to make any organisational decisions.

Similarly, Maslow’s Law of Needs is another motivation theory that comprises five-tier model based on human needs. As per the theoretical context, it is essential for the business leaders to fulfill the basic needs of the employees to keep them committed and engaged towards the organisational functions (Sinha et al. 2014). The highly motivated organisational scenario, effective behaviour, and appropriate communication are some of these basic needs that the employees seek from their business leaders. Frank lacks such traits that affect the motivational aspects of the existing employees including Tom. It was essential for Frank to observe the capability of Tom instead of underestimating his opinions for a better management functions. It was quite de-motivating for an emerging leader.

Another most appropriate motivational theory is Herzberg’s Two-Factor Theory, which depicts the two main factors for motivating the employees. The first factor is hygiene factor that include basic needs, such as salary, insurance, leaves, and so on. Another factor is motivational factors that include rewards and recognition, growth and promotional opportunities, responsibility, and meaningfulness of the work (Jungert et al. 2017). Tom is an aspiring leader who tries to grab opportunities for the betterment of the organisation and associated employees. However, the statements and ineffective behaviour received from Frank was quite a threat to his job security. Therefore, it affected his motivational state of mind that could reflect on his performance level. It is thus essential for Frank to understand the consequence and adopt the better leadership approach.

The above motivational theories can bring improvement in the organisational scenario and ensure better outcome for the secured future of the organisation. Frank needs to realize the importance of motivational aspects to develop high performance parameter.

Motivation Theories: McGregor’s Theory X and Theory Y, Maslow’s Law of Needs, and Herzberg’s Two-Factor Theory

The scenario defines that Tom faced difficulties in receiving proper motivation from his senior Frank. The development of the appropriate human resource management theories would have considered a better condition for the organisation in terms of developing a motivating environment for the employees. One of the effective human resource theories is Recruitment and Selection theory, which concentrates on improving the efficiency level of the employees’ performance. As per the theory, it is essential for the managers to select and recruit the most suitable candidates for the organisation that can perform the functionalities and help in maximizing business profits. The efficiency level of these employees would be fruitful enough in performing the organisational activities in a significant way (Albrecht et al. 2015). It would even lead the organisation towards acquiring business goals most efficiently and ensure the productive outcomes as well. The selection and recruitment of the suitable candidates would put the right people in right places.

Another suitable human resource theory is Performance Management Theory. The theory conceptualizes the improvement of the overall performance parameter of the organisation in a significant manner. The development of the effective performance management through guiding and monitoring the employees would be beneficial in increasing the performance level (Barreto, Vasconcelos and dos Santos 2017). The holistic impact of the effective performance management would ensure betterment of the organisational performance.

Frank and Tom both need to be cautious about such performance management parameter to increase the profitability level. Recruiting and selecting the right candidate and monitoring their performance level would generate the productive approach for a longer term.

The case scenario reflects on the authoritarian leadership behaviour of Frank. He was quite reluctant to take the opinions of others and tended to impose his instructions on the employees. When the statement or opinions of the employees were undervalued, it generates the sense of insecurity among the employees. In such cases, the development of transformational leadership style would be much beneficial to motivate the employees. The transformational leaders supervise the employees closely and provide them the opportunity to develop their professional and personal skills (Barrick et al. 2015). The innovations brought by them gradually make difference and increase the productive performance. However, the leaders need to guide them properly and appreciate their efforts. Frank needs to adopt this transformational leadership style to improve the team motivation and performance.

Another most suitable leadership theory is situational leadership in which the leaders adopt the leadership behaviour considering the situation. McCleskey (2014) defined that a situational leader maintains the flexibility in developing the motivational atmosphere for the employees that turn out to be much productive as a result. Similarly, Frank also requires adopting such situational trait that could bring more harness among the employees and improve their performance level for organisational betterment.

Conclusion

The above scenario explained the emerging issues faced Tom as an employee while working under Frank. The authoritarian leadership style was quite de-motivating for Tom as well as others. The development of the motivational factors would be much beneficial for mitigating the challenges with low performance level and high turnover rate. Moreover, adopting the flexible approaches in leading the employees would also create the positive impact on the performance level of the employees.

References

Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35.

Barreto, M.A.M., Vasconcelos, S.S. and dos Santos, E.F., 2017, July. Motivation and Work: A Survey of the Motivational Aspects in Industries. In International Conference on Applied Human Factors and Ergonomics (pp. 319-328). Springer, Cham.

Barrick, M.R., Thurgood, G.R., Smith, T.A. and Courtright, S.H., 2015. Collective organizational engagement: Linking motivational antecedents, strategic implementation, and firm performance. Academy of Management journal, 58(1), pp.111-135.

Braun, S., Peus, C., Weisweiler, S. and Frey, D., 2013. Transformational leadership, job satisfaction, and team performance: A multilevel mediation model of trust. The Leadership Quarterly, 24(1), pp.270-283

Hancock, J.I., Allen, D.G., Bosco, F.A., McDaniel, K.R. and Pierce, C.A., 2013. Meta-analytic review of employee turnover as a predictor of firm performance. Journal of Management, 39(3), pp.573-603.

Jungert, T., Van den Broeck, A., Schreurs, B. and Osterman, U., 2017. How Colleagues Can Support Each Other’s Needs and Motivation: An Intervention on Employee Work Motivation. Applied Psychology, 67(1), pp.3-29.

Katz, N.H. and Flynn, L.T., 2013. Understanding conflict management systems and strategies in the workplace: A pilot study. Conflict Resolution Quarterly, 30(4), pp.393-410.

Lazaroiu, G., 2015. Employee motivation and job performance. Linguistic and Philosophical Investigations, 14, p.97.

McCleskey, J.A., 2014. Situational, transformational, and transactional leadership and leadership development. Journal of Business Studies Quarterly, 5(4), p.117.

Sinha, V., Abraham, A., Bhaskarna, B., Xavier, K. and Kariat, K., 2014. Role efficacy: Studying the impact on employee engagement, employee motivation and attrition. International Journal of Human Capital and Information Technology Professionals (IJHCITP), 5(4), pp.35-54.