133568722 Organisation Behaviour

Organisations:

Behaviour,

Structure, Processes

(BUMGT5921)

Names (Student ID): Ahmed Faisal Kabir (UBS30105841)

Amisha Sukhadiya (UBS30100734)

Dongyi Hou (UBS30108313)

Ganga Devi Gurung (UBS30098812)

Qi Liu (UBS30108650)

Group A

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

Dongyi Hou Ubs 30108313 Ahmed Faisal Kabir Ubs30105841 Amisha Sukhadiya Ubs 30100734 Qi Liu Ubs 30108650 Ganga Devi Gurung Ubs30098812 Page 1

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 account 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.



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



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.

Figure 1 Sales turnover of Yamtoo Holding Ltd (Best Yamatoo Holding ltd of Hong

Kong)

0

100

200

300

400

2006 2007 2008 2009 2010 2011

Sales Turnover

Unit：Billion



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）

Figure 2 Staff Turnover Rate

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

1stmonth

2ndmonth

3rdmonth

4thmonth

5thmonth

6thmonth

7thmonth

8thmonth

9thmonth

10thmonth

11thmonth

12thmonth

Staff Turnover Rate



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

problems are listed below.

- Due to the lack of an effective formal communication channel, grapevines

were mostly depended on.

- The Boss has a dictatorial style of leadership. He is suspicious, emotional and

has a bad temper which affects the work environment.

- Advice and opinion from subordinates are seldom accepted.

- The Boss turns judgments on work to personal attacks. Thus, employees felt

unvalued and even humiliated.

- Overtime working is the common occurrence which is a common complaint of

the employees.

- Unreasonable and unexpected working hours. Employees are regularly

required to stay back to the early morning without any prior knowledge.

- 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.



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)



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



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.



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.



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)



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



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 feedback 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 compassion, 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 compassion always make a difference.



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.). Retrieved from Management Class:

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

Psychology. (2012). Retrieved August 31, 2012, 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.

http://v.youku.com/v_show/id_XMjYwMDk1MDQ0.html

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133568722 Organisation Behaviour