HR week 4 Disc1

Motivation

96 Incident: Motivating and Maintaining Morale during Downsizing

The Rutledge Company is an organization involved in the retail industry, operating more than 100 retail stores. The company’s headquarters is going through what is termed “modernization.” A new information system, which will completely alter the way the firm does business, is being implemented. In addition, the new system will affect the staffing required by the company. The company began implementing the new software last year, and it is projected that at least another year is required before the rollout will be complete. All personnel within the corporate office, including the large clerical staff, attended a four-day, comprehensive computer training program and were told to immediately incorporate the new software into daily use.

The completion of the rollout will primarily affect the clerical staff. It is the company’s objective to eliminate the majority of these individuals. The technology of the new software will enable all management-level personnel to perform their jobs efficiently without the need for clerical support. The Rutledge Company has informed its large clerical staff that most, but not all, of their jobs will disappear once the rollout is complete. The prospect of future unemployment, along with the uncertainty regarding when their jobs will be terminated, has greatly affected the staff morale. Complacency, lack of initiative, and complaints all have accompanied the loss of morale.

The firm has another problem: some of the clerical staff are long-term employees who are accustomed to how the company operated ten years ago. These employees have not adapted to the new software or to the other new programs that have been implemented. Thus, these employees do not provide the full clerical support needed by management. Rather, they perform only those aspects of their jobs that existed prior to the introduction of the new software plus other menial jobs sufficient to keep them busy.

Individual managers must determine how to motivate all of the clerical support staff for the remaining time that they will be employed and must also determine how to motivate some employees to use the new software. It must also be determined which clerical help should be retained once modernization is complete. The firm would like to retain all of its clerical staff until that time.

Questions

1. What actions should be taken in order to increase the morale and motivation level of the clerical staff at the Rutledge Company?

2. What actions can be taken to motivate those employees who are not using the new technology required of their job?

3. What criteria should be used to determine which clerical employees should be retained?

4. Should the firm attempt to solve its motivational problems by conducting further training?