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    DISSERTATION

    Impact of Change management on motivation

    of employees

    Student ID: 37900

    Supervisor: Mr Dinesh Krishnan

    MBA Innovative Management

    Group H

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    ABSTRACT

    The globalisation of businesses and the advancement of informationtechnologies have brought changes that are reshaping the world ofwork.Change is concerned with shifting from one stage to another or breaksdown existing structures and create new one (Chonko 2004) . The causes ofchange might be technology, communication, general instability, mergers,

    reengineering organizational growth or by institutional and market volatility.But it requires quite attention to control the situation because of variety of

    impacts on employees. Literature reveals that, change is a source of feeling of

    threats, uncertainty, frustration, alienation, and anxiety (Ashford, 1998).. Theyalter the way business is done, the way employees behave and the way

    managers manage their employees. Motivating and to retaining employees havebecome an important and complex task for the managers. The key to performin g

    this task well is to find out more about the factors that motivate employees.

    Changes can be either expected or unexpected but nowadays change is a permanent phenomenon. Change management itself should contain thoughtful

    evaluation, planning, sensitive implementation, monitoring and consultation andabove all involvement of the people affected by the changes. Change has to be

    realistic, achievable and somehow measurable. Some indicators for su ccess ofeach step in the change process should be established before commencing. This

    enables evaluation of each step and makes progress visible. People cannot beforced to change. Management has a responsibility to manage change; it is not

    the employees responsibility. Their responsibility is to do their best during the

    change process. The fact is that management heavily influences an

    organisation's culture, and can do so positively and/or negatively. The wayemployees handle change is different for ever y person and depends on a wide

    variety of factors (age, health, personality, motivation, experience of changes).Different people, different changes and different phases of change should be

    managed in different ways. Respect, support and make good use of i ndividualdifferences. The most important thing for management is to be present and

    show that they are also part of the change process. If they understand thedirection, and their part in making the desired outcomes happen, they caneffectively contribute more.

    The study aims to establish the correlation between management and motivation

    of employees. To have a sound human resource man agement strategy thatattracts, retains and motivates the valuable employees, it is important that the

    managers find out what the employees are looking for from their jobs. Thecompany should constantly assess the employees motivation levels a nd also

    what they need, want or expect from their work.This study used a questionnaire comprising motivation questions based on

    Lindner's ten motivational factors and Nelson's ten things to do to motivate

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    today's employees, in order to test the motivational level of the employees at

    Sasol's Poplypropolene Business. After being validated by appropriate statisticalmethods, the results show that there is a correlation between management andemployee motivation. The results are critically discussed in terms of each

    motivational factors. The Key to motivating employees and managing them in

    ways that lead to productivity, innovation and organisational effectiveness is tounderstand how to motivate them.

    CHAPTER 1

    INTRODUCTION

    In this chapter an introduction will be presented on the topic of motivation from

    a managerial perspective focusing on change management. The backgroundlays the foundation for the problem discussion where we will discuss the

    problems we discovered in our research area. This will direct us to our overall

    purpose and research questions including delimitation. Finally, we will presentan overview of the entire thesis.

    1.1RESEARCH BACKGROUNDThe world is going through an enormous change. Globalisation of businesses isIncreasing and information technologies are advancin g (Dckel, 2003:5). These

    major changes are reshaping our world significantly, for better and for worse(Kreitner, 2004:78). They lead to changes in the way business is done, the way

    employees behave and the way managers manage their employees. Forcompanies to remain successful, they are required to adapt to these changes

    (Vercueil, 2001:1). The changes that are reshaping the world have altered theway organisations operate and have also led to changes in employeecharacteristics (Robbins, 2000:21). Although many theorists believe the changesin the world of work have brought advantages, several believe that the changes

    have different and disparate impacts on the employees (Davenport, 1997;Drucker, 1998 in Vercueil, 2001:1). However, in contrast with the traditional

    way of managing, where the structures and the systems were predefined, thenew workplace seeks to balance whatever is important for the company and its

    strategies with whatever is important for the indiv idual employees regardingtheir life strategies (Trompenaars & Woollimas, 2005:378). Management in

    todays world is about management in times of rapid change (Robbins, 2000:3).In todays world, the biggest task of the human-resource manager is to motivateand retain employees. Motivation is a companys life -blood (Sharma, 2006:i). A

    wellmanaged company can motivate and retain its employees and hence has the

    following competitive advantages: reduced turnover; an in crease in productivity; reduced absenteeism; increased revenue; and improved

    performance. However, managers tend to assume that they know what theemployees want from their work. This assumption can lead managers into

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    making mistakes while trying to motivate their employees (Simons & Enz,

    2006). This study is thus an attempt to help managers to understand the factorsthat motivate their employees to perform to the best of their ability. Motivationis the force that makes people choose a particular job, stay with that job, and

    work hard in that job. The early approaches to studying motivation focused on

    the different needs of people. These approaches suggested that people tend to bemotivated to fulfil unsatisfied needs. In other words, people exert efforts hoping

    that their needs will be satisfied. Other approaches to studying motivationtended to focus more on goal setting by employees. More recent approaches are

    concerned more with long-term goals, a sense of fairness, and the employeesvalues, or in other words, what the employees perceive as important. Employees

    are not simply need-based. They interpret work based on their lives, theircultural values, their levels of success, and the levels of satisfactionthat they have already achieved (Simons & Enz, 2006). Since the 1930s, work

    motivation has been of interest to the industrial/organisational psychologists,

    stimulated mainly by the famous Hawthorne studies, and followed by studies byVroom, Herzberg, Bandura, Skinner and many more. However, the study andunderstanding of work motivation is far from complete (Locke & Latham,

    2004:388).The aim of this study is to help organisations to adapt to changes in the world of

    work with the aid of the existing motivation theories.

    1.2Problem discussion:-Organizational or individual achievement is not accomplished when motivation

    is used to manipulate and control individuals. In 1920 research on motivationincreased among researchers and certain motivational factors were of greaterimportance than others. Today other factors are of significance due toenvironmental changes at the workplace. (Wiley, 1997) Although, motivationhas been studied for almost a century it still remains in the heart of modern parenting, teaching and stimulating effort on the job. Over 500 articles are

    published annually in mainline business journals and 400 in mainstreamacademic journals. Employees who knows that they will be rewarded for

    something at work has to question themselves whether it is worth doing andthose who desire the reward will perform as stimulated. This demonstrates that

    the desired behavior organizations want employees to perform is acc omplishedthrough manipulation and everybody knows it. (Marcum, 2000)

    Organizations all have different key qualities which form the personality of theorganization which employees want to belong to and in order to be successfulthe organizations need to maintain the values which brought the employees to

    the organization. A part of the success is to recruit people who are motivated byinner drivers and want to be part of the organization. In order for employees to

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    remain in the organization managers have to communicate, trust and respect,

    and give gratitude to their employees. (Owen, 2005) Today it is important tomaximize the engagement and motivation of employees to the organizationthrough assessment, regular feedback, ongoing support and experience -based

    initiatives. Organizations might perceive motivation as a strategic issue since it

    impact directly on organizational cost, productivity and business performance.There are two major impacts that the information era has had on approaches to

    motivation in companies. Firstly, automation of the routine administrative tasks

    has taken place. Companies are introducing intranet -based personnel record

    systems into which employees enter their own data, which can then be

    processed automatically. Since this reduces the interactions between managers

    and the employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of t he

    information era has been the creation of a new business culture.

    Managers discuss how to motivate their employees in order to increaseproductivity as well as the moral at the workplace . Bhagat & Kashlak, 2005, p.

    418), but it can also be defined as the processes

    that count for an individuals intensity, direction, and persistence of effort

    toward attaining a goal (Robbins, 2005, p. 170.The information era has given

    rise to the establishment of long-term partnerships between manufacturers,

    retailers, distributors and other firms in the supply chain. To keep everyone in

    business, firms are more motivated and committed to teamwork and information

    sharing (Whiteley, 2002) 2.1.3 Role of manager in motivating employees

    According to Bassett-Jones & Lloyd (2005) There are two major impacts that

    the information era has had on approaches to motivation in companies. Firstly,

    automation of the routine administrative tasks has taken place. Companies are

    introducing intranet-based personnel record systems into which employees enter

    their own data, which can then be processed automatically. Since this reduces

    the interactions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things incompanies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharing (Whiteley,

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    2002) 2.1.3 Role of manager in motivating employees According to Bassett-

    Jones & Lloyd (2005).

    There are two major impacts that the information era has had on approaches to

    motivation in companies. Firstly, automation of the routine administrative tasks

    has taken place. Companies are introducing intranet -based personnel recordsystems into which employees enter their own data, which can then be

    processed automatically. Since this reduces the interactions between managers

    and the employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharing (Whiteley, 2002) 2.1.3 Role of manager in

    motivating employees According to Bassett-Jones & Lloyd (2005) There are

    two major impacts that the information era has had on approaches to motivation

    in companies. Firstly, automation of the routine administrative tasks has taken

    place. Companies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then be processed

    automatically. Since this reduces the interactions between managers and the

    employees, it could endanger relationships and have a negative effe ct onemployee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharing (Whiteley, 2002) 2.1.3 R ole of manager in

    motivating employees According to Bassett -Jones & Lloyd (2005)

    There are two major impacts that the information era has had on approaches to

    motivation in companies. Firstly, automation of the routine administrative tasks

    has taken place. Companies are introducing intranet-based personnel record

    systems into which employees enter their own data, which can then be

    processed automatically. Since this reduces the interactions between managers

    and the employees, it could endanger relationships and have a negative effect on

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    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supplychain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharing (Whiteley, 2002) 2.1.3 Role of manager in

    motivating employees According to Bassett -Jones & Lloyd (2005).

    1.3 Purpose & Research questions

    There are two major impacts that the information era has had on approaches to

    motivation in companies. Firstly, automation of the routine administrative tasks

    has taken place. Companies are introducing intranet -based personnel recordsystems into which employees enter their own data, which can then be

    processed automatically. Since this reduces the interactions between managers

    and the employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committedto teamwork and information sharing (Whiteley, 2002) 2.1.3 Role of manager in

    motivating employees According to Bassett -Jones & Lloyd (2005). There are

    two major impacts that the information era has had on approaches to motivation

    in companies. Firstly, automation of the routine administrative tasks has taken

    place. Companies are introducing intranet -based personnel record systems into

    which employees enter their own data, which can then be processed

    automatically.

    RQ 1: What is motivation process and describe three early motivation theories?How can the way managers motivate their employees be described?RQ 2: Why people resist change and how to deal with the resistance to change?

    How can the relationship between age/gender in the workplace be described?RQ3: Identify management practices that are likely to lead to more motivatedemployees.

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    Since this reduces the interactions between managers and the employees, it

    could endanger relationships and have a negative effect on employee

    motivation. However, the automation of administrative tasks does speed up the

    way of doing things in companies. The second impact of the information era has

    been the creation of a new business culture. The information era has given riseto the establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing

    (Whiteley, 2002) 2.1.3 Role of manager in motivating employees According to

    1.3Delimitation:-which employees enter their own data, which can then be processed

    automatically. Since this reduces the interactions between managers and the

    employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation o f administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharing (Whiteley, 2002) 2.1.3 Role of manager in

    motivating employees According to Bassett-Jones & Lloyd (2005).There are

    1.5 Outline of the thesis:-According to Bassett-Jones & Lloyd (2005).There are two major impacts that

    the information era has had on approaches to motivation in companies. Firstly,

    automation of the routine administrative tasks has taken place. Companies are

    introducing intranet-based personnel record systems into which employees enter

    their own data, which can then be processed automatically. Since this reduces

    the interactions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies.

    This is followed by our purpose, research questions and delimitation of the

    study. Chapter two contains a literature review where previous work in the fieldwhich is most relevant is concluded and ends with a theoretical frame of

    references. Chapter three explains the methodology used in investigating the

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    managerial perspective. Following this is chapter four which reveals our

    gathered data on our chosen compa ny. Chapter five contains the analysis ofthese data and finally in chapter six we will show our findings and conclusions.The second impact of the information era has been the creation of a new

    business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharingwhich

    employees enter their own data, which can then be processed automatically.

    Since this reduces the interactions between managers and the employees, it

    could endanger relationships and have a negati ve effect on employee

    motivation. However, the automation of administrative tasks does speed up the

    way of doing things in companies. The second impact of the information era has

    been the creation of a new business culture. The information era has given ri se

    to the establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing

    (Whiteley, 2002) 2.1.3 Role of manager in motivating employees According to

    Bassett-Jones & Lloyd (2005).There are two major impacts that the information

    era has had on approaches to motivation in companies. Firstly, automation of

    the routine administrative tasks has taken place. Companies are introducing

    intranet-based personnel record systems into which employees enter their own

    data, which can then be processed automatically. Since this reduces theinteractions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharing.

    2 LITERATURE REVIEWFirstly, automation of the routine administrative tasks has taken place.

    Companies are introducing intranet-based personnel record systems into which

    employees enter their own data, which can then be processed automatically.

    Since this reduces the interactions between managers and the employees, it

    could endanger relationships and have a negative effect on employee

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    motivation. However, the automation of administrative tasks does speed up the

    way of doing things in companies. The second impact of the informa tion era has

    been the creation of a new business culture. The information era has given rise

    to the establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,firms are more motivated and committed to teamwork and information sharing .

    2.1 Employee motivation in SMEsCompanies are introducing intranet-based personnel record systems into which

    employees enter their own data, which can then be processed automatically .

    Since this reduces the interactions between managers and the employees, it

    could endanger relationships and have a negative effect on employee

    motivation. However, the automation of administrative tasks does speed up the

    way of doing things in companies. The second impact of the information era has

    been the creation of a new business culture. The information era has given rise

    to the establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then be processed

    automatically. Since this reduces the interactions between managers and the

    employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. Since this reduces the interactions between

    managers and the employees, it could endanger relationships and have anegative effect on employee motivation. However, the automation of

    administrative tasks does speed up the way of doing things in companies. T he

    second impact of the information era has been the creation of a new business

    culture. The information era has given rise to the establishment of long -term

    partnerships between manufacturers, retailers, distributors and other firms in the

    supply chain. To keep everyone in business, firms are more motivated and

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    committed to teamwork and information sharingCompanies are introducing

    intranet-based personnel record systems into which employees enter their own

    data, which can then be processed automatically. S ince this reduces the

    interactions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, theautomation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharingCompanies are

    introducing intranet-based personnel record systems into which employees enter

    their own data, which can then be processed automatically. Si nce this reduces

    the interactions between managers and the employees, it could endangerrelationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharing .

    2.1.1 Internal and external motivationTo keep everyone in business, firms are more motivated and committed to

    teamwork and information sharingCompanies are introducing intranet-based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. Since this reduces the interactions between

    managers and the employees, it could endanger relationships and have a

    negative effect on employee motivation. However, the automation of

    administrative tasks does speed up the way of doing things in companies. The

    second impact of the information era has been the creation of a new business

    culture. The information era has given rise to the establishment of long-termpartnerships between manufacturers, retailers, distributors and other firms in the

    supply chain. To keep everyone in business, firms are more motivated and

    committed to teamwork and information sharingCompanies are introducing

    intranet-based personnel record systems into which employees enter their own

    data, which can then be processed automatically. Since this reduces the

    interactions between managers and the employees, it could endanger

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    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and otherfirms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharing . To keep

    everyone in business, firms are more motivated and committed to teamwork and

    information sharingCompanies are introducing intranet -based personnel record

    systems into which employees enter their own data, which can then be

    processed automatically. Since thi s reduces the interactions between managers

    and the employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of theinformation era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. Since this reduces the interactions between

    managers and the employees, it could endanger relationships and have a

    negative effect on employee motivation. However, the automation ofadministrative tasks does speed up the way of doing things in companies. The

    second impact of the information era has been the creation of a new business

    culture. The information era has given rise to the establishment of long -term

    partnerships between manufacturers, retailers, distributors and other firms in the

    supply chain.

    According to Katz (2005) intrinsic factors are the main reason for a persons

    true commitment and motivation. Extrinsic factors like salary and workingconditions are also important, but do not give the commitment and excitementthat the employee needs. How a person views the assignment and how tasks,

    information, rewards and decision-making processes are organized andmanaged determines how motivational a job is. Highly motivating work

    assignments are strongly linked to the personal activities an individual see asfun. If the employee is going to see the work as fun the following high leveled

    intrinsic factors need to be considered (seeTable 2-1).

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    Table 2-1: Framework for work motivation

    Dimension of task

    Characteristics

    Definitions

    Skill Variety The degree to which job requires the use of differentskills, abilities and talents

    Task Identity The degree to which the person feels that he or she ispart of the whole job from beginning to end.

    Task Significance The degree to which the job is considered important byand has impact on the lives of others

    Autonomy The degree to which the job provides freedom,independence and discretion in how the work is carried

    out

    Feedback The degree to which the person is provided with clearand direct information about the effectiveness of his or

    her performance.Source: Katz, 2005, p.21

    keep everyone in business, firms are more motivated and committed to

    teamwork and information sharingCompanies are introducing intranet-based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. Since this reduces the interactions between

    managers and the employees, it could endanger relationships and have a

    negative effect on employee motivation. However, the automation of

    administrative tasks does speed up the way of doing things in companies. The

    second impact of the information era has been the creation of a new businessculture. The information era has given rise to the establishment of long-term

    partnerships between manufacturers, retailers, distributors and other firms in the

    supply chain. To keep everyone in business, firms are more motivated and

    committed to teamwork and information sharingCompanies are introducing

    intranet-based personnel record systems into which employees enter their own

    data, which can then be processed automatically. Since this reduces the

    interactions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things incompanies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharing . To keep

    everyone in business, firms are more motivated and committed to teamwork and

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    information sharingCompanies are introducing intranet -based personnel record

    systems into which employees enter their own data, which can then be

    processed automatically. keep everyone in business, firms are more motivated

    and committed to teamwork and information sharingCompanies are introducing

    intranet-based personnel record systems into which employees enter their owndata, which can then be processed automatically. Since this r educes the

    interactions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharingCompanies areintroducing intranet-based personnel record systems into which employees enter

    their own data, which can then be processed automatically. Since this re duces

    the interactions between managers and the employees, it could endanger

    relationships and have a negative effect on employee motivation. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are moremotivated and committed to teamwork and information sharing . To keep

    everyone in business, firms are more motivated and committed to teamwork and

    information sharingCompanies are introducing intranet -based personnel record

    systems into which employees enter their own data, which can then be

    processed automatically.

    2.1.2 General theories on MotivationSince this reduces the interactions between managers and the employees, it

    could endanger relationships and have a negative eff ect on employeemotivation. However, the automation of administrative tasks does speed up the

    way of doing things in companies. The second impact of the information era has

    been the creation of a new business culture. The information era has given rise

    to the establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing .

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    To keep everyone in business, firms are more motivated and committed to

    teamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. Since this reduces the interactions between

    managers and the employees, it could endanger relationships and have anegative effect on employee motivation. However, the automation of

    administrative tasks does speed up the way of doing things in companies. The

    second impact of the information era has been the creation of a new business

    culture. The information era has given rise to the establishment of long -term

    partnerships between manufacturers, retailers, distributors and other firms in the

    supply chain. To keep everyone in bus iness, firms are more motivated and

    committed to teamwork and information sharing . To keep everyone in business,

    firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet -based personnel record systems intowhich employees enter their own data, which can then be processed

    automatically. Since this reduces the interactions between managers and the

    employees, it could endanger relationships and have a negative effect on

    employee motivation. However, the automation of administrative tasks does

    speed up the way of doing things in companies. The second impact of the

    information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committedto teamwork and information sharing. To keep everyone in business, firms are

    more motivated and committed to teamwork and information sharingCompanies

    are introducing intranet-based personnel record systems into which employees

    enter their own data, which can then be processed automatically. Since this

    reduces the interactions between managers and the employe es, it could

    endanger relationships and have a negative effect on employee motivation.

    However, the automation of administrative tasks does speed up the way of

    doing things in companies. The second impact of the information era has been

    the creation of a new business culture. The information era has given rise to the

    establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing.

    To keep everyone in business, firms are more motivated and committed to

    teamwork and information sharingCompanies are introducing intranet -based

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    personnel record systems into which employees enter their own data, which can

    then be processed automatically. Since this reduces the interactions between

    managers and the employees, it could endanger relationships and have a

    negative effect on employee motivation. However, the automation of

    administrative tasks does speed up the way of doing things in companies. Thesecond impact of the information era has been the creation of a new business

    culture. The information era has given rise to the establishment of long -term

    partnerships between manufacturers, retailers, distributors a nd other firms in the

    supply chain. To keep everyone in business, firms are more motivated and

    committed to teamwork and information sharing . To keep everyone in business,

    firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then be processed

    automatically.

    Maslows hierarchy of needs theory

    According to Robbins (2003) Maslows hierarchy of needs theory consists offive needs ( see Figure 2-1); physiological, safety, social, esteem and self -

    actualization.According to Maslowa need is not motivating when satisfied and therefore the

    next need becomes dominant. Physiological and safety needs are considered

    lower-order needs, because they are satisfied externally. The remaining three

    are satisfied internally and therefore higher -order needs.

    Vrooms expectancy theory

    However, the automation of administrative tasks does speed up the way of

    doing things in companies. The second impact of the information era has been

    the creation of a new business culture. The information era has given rise to the

    establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing .

    To keep everyone in business, firms are more motivated and committed toteamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. However, the automation of administrative

    tasks does speed up the way of doing things in companies. The second impact

    of the information era has been the creation of a new business culture. The

    information era has given rise to the establishment of long-term partnerships

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    between manufacturers, retailers, distributors and other firms in the supply

    chain. To keep everyone in business, firms are more motivated and committed

    to teamwork and information sharing. To keep everyone in business, firms are

    more motivated and committed to teamwork and information sharingCompanies

    are introducing intranet-based personnel record systems into which employeesenter their own data, which can then be processed automatically. However, the

    automation of administrative tasks does speed up the way of doing things in

    companies. The second impact of the information era has been the creation of a

    new business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sha ring. To keep

    everyone in business, firms are more motivated and committed to teamwork and

    information sharingCompanies are introducing intranet -based personnel recordsystems into which employees enter their own data, which can then be

    processed automatically.

    Alderfers ERG theory

    The information era has given rise to the establishment of long -term

    partnerships between manufacturers, retailers, distributors and other firms in the

    supply chain. To keep everyone in business, firms are more motivated and

    committed to teamwork and information sharing . To keep everyone in business,

    firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own da ta, which can then be processed

    automatically. However, the automation of administrative tasks does speed up

    the way of doing things in companies. The second impact of the information era

    has been the creation of a new business culture. The information era has given

    rise to the establishment of long-term partnerships between manufacturers,

    retailers, distributors and other firms in the supply chain. To keep everyone in

    business, firms are more motivated and committed to teamwork and information

    sharing. To keep everyone in business, firms are more motivated and committedto teamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically.

    McClellands theory of needs

    The second impact of the information era has been the creation of a new

    business culture. The information era has given rise to the establishment of

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    long-term partnerships between manufacturers, retailers, distributors and othe r

    firms in the supply chain. To keep everyone in business, firms are more

    motivated and committed to teamwork and information sharing . To keep

    everyone in business, firms are more motivated and committed to teamwork and

    information sharingCompanies are introducing intranet-based personnel recordsystems into which employees enter their own data, which can then be

    processed automatically.

    Goal-setting theory

    The second impact of the information era has been the creation of a new

    business culture. The information era has given rise to the establishment of

    long-term partnerships between manufacturers, retailers, distributors and other

    firms in the supply chain. To keep everyone in business, firms are moremotivated and committed to teamwork and information sha ring. To keep

    everyone in business, firms are more motivated and committed to teamwork and

    information sharingCompanies are introducing intranet -based personnel record

    systems into which employees enter their own data, which can then be

    processed automatically.The second impact of the information era has been the

    creation of a new business culture. The information era has given rise to the

    establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing .To keep everyone in business, firms are more motivated and committed to

    teamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically. The second impact of the information era has

    been the creation of a new business culture. The information era has given rise

    to the establishment of long-term partnerships between manufacturers, retailers,

    distributors and other firms in the supply chain. To keep everyone in business,

    firms are more motivated and committed to teamwork and information sharing .

    To keep everyone in business, firms are more motivated and committed to

    teamwork and information sharingCompanies are introducing intranet -based

    personnel record systems into which employees enter their own data, which can

    then be processed automatically.

    2.1.3 Role of manager in motivating employees

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    The information era has given rise to the establishment of long -term

    partnerships between manufacturers, retailers, distributors and other firms in the

    supply chain. To keep everyone in business, firms are more motivated and

    committed to teamwork and information sharing. To keep everyone in business,

    firms are more motivated and committed to teamwork and informationsharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then b e processed

    automatically. The information era has given rise to the establishment of long -

    term partnerships between manufacturers, retailers, distributors and other firms

    in the supply chain. To keep everyone in business, firms are more motivated

    and committed to teamwork and information sharing. To keep everyone in

    business, firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then be processedautomatically. The information era has given rise to the establishment of long -

    term partnerships between manufacturers, retailers, distributors and other firms

    in the supply chain. To keep everyone in business, firms are more mo tivated

    and committed to teamwork and information sharing . To keep everyone in

    business, firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then be processed

    automatically. The information era has given rise to the establishment of long -

    term partnerships between manufacturers, retailers, distributors and other firmsin the supply chain. To keep everyone in business, f irms are more motivated

    and committed to teamwork and information sharing . To keep everyone in

    business, firms are more motivated and committed to teamwork and information

    sharingCompanies are introducing intranet-based personnel record systems into

    which employees enter their own data, which can then be processed

    automatically.

    2.2 Goal moderators

    Multiculturalism Multiculturalism is another issue that is reshaping theworkforce. Globalisation has encouraged immigration (Robbins, 2000).

    Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences and

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    the different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain compe titiveness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,

    2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. D iversity seems to begrowing in the business world, although it has always been there (Hopkins,

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    1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

    affect one another.

    2.2.1 Feedback

    Multiculturalism Multiculturalism is another issue that is reshaping the

    workforce. Globalisation has encouraged immigration (Robbins, 2000).Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a com pany by

    laying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategica lly reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

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    affect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always b een there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company by

    laying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,

    2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

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    as it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,

    2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company by

    laying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,

    2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of mana ging diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not al ways obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

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    fast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked andaffect one another.

    2.2.2 Commitment

    Multiculturalism Multiculturalism is another issue that is reshaping theworkforce. Globalisation has encouraged immigration (Robbins, 2000).

    Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differen ces andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

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    technological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

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    Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all lin ked and

    affect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main ben efits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company by

    laying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for t his is not always obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in t he

    fast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multicu lturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

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    market understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company by

    laying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are s trategically reducingoperations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service deliver y,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked andaffect one another. Multiculturalism Multiculturalism is another issue that is

    reshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company by

    laying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

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    become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can als o be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Some

    critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in the

    fast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

    because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

    affect one another.

    2.2.3 Ability

    Multiculturalism Multiculturalism is another issue that is reshaping theworkforce. Globalisation has encouraged immigration (Robbins, 2000).

    Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company by

    laying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management st rategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that addvalue (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,

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    because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors a re all linked andaffect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,

    2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is amanagement practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motiva tion for this is not always obvious. Somecritics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiv eness in thefast-changing global marketplace. Companies are strategically reducing

    operations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Divers ity seems to begrowing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language differences and

    the different ways of communicating, but can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduc e the size of a company bylaying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategyargue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducing

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    operations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomesas it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,

    2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,

    2000). Workforce diversity is changing companies today and the workforce will become even more diverse in the next twenty years. Diversity seems to be

    growing in the business world, although it has always been there (Hopkins,1998). Having a variety of different talents to use and being able to improve

    market understanding are some of the main benefits of managing diversity.Cross- cultural teams can create problems in terms of language di fferences andthe different ways of communicating, but can also be more creative. 2.3.6

    Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, ortechnological costs (Cameron, 1998). This management strategy has becoming

    popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

    stockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas that add

    value (Robbins, 2000). Downsizing is likely to have some undesirable outcomes

    as it affects employees' morale, motivation and productivity; service delivery,because of the loss of skilled employees; and departmental planning (Coleman,2000). Managers must bear in mind that motivational factors are all linked and

    affect one another. Multiculturalism Multiculturalism is another issue that isreshaping the workforce. Globalisation has encouraged immigration (Robbins,2000). Workforce diversity is changing companies today and the workforce will

    become even more diverse in the next twenty years. Diversity seems to begrowing in the business world, although it has always been there (Hopkins,

    1998). Having a variety of different talents to use and being able to improvemarket understanding are some of the main benefits of managing diversity.

    Cross- cultural teams can create problems in terms of language differences andthe different ways of communicating, b ut can also be more creative. 2.3.6Downsizing Another issue to be addressed is downsizing. Downsizing is a

    management practice in which companies reduce the size of a company bylaying off employees. The focus may be monetary costs, time costs, or

    technological costs (Cameron, 1998). This management strategy has becoming popular, but management's motivation for this is not always obvious. Somecritics believe that downsizing is a way for management to show the

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    stockholders that there is a need to keep costs down. Supporters of this strategy

    argue that employee reductions are needed to maintain competitiveness in thefast-changing global marketplace. Companies are strategically reducingoperations that are over employed while increasing employees in areas th