Case Study $15$

Employee lay off in MNC semiconductor company: How organizational support overcoming employees$$ dissatisfaction and assist in increasing worker motivation.

Identification of key issues

$-$ MNC semiconductor company ABC facing unreasonable decline in PC processor demands. Since many employees are practiced working from home since the pandemic, the demand for computer supplies decreases.

$-$ Market share loss. The company has been facing a loss in their market share and there is an increase in competition between their rivalries.

$-$ Facing overstaff issue. With a less demand of their product in the market, their number of staffs look higher. There are many departments and many staffs, but the sales are decreasing gradually. This causes a loss to the company as they had to pay their staffs even when there is less sales and no visible profit gained.

$-$ Decides to layoff employees. Laying off is a loss for the company and also for the employees. The company loses their talents, and the employees loses their income.

Analyze behavior & motivation

$-$ Laying off employees causes a dissatisfaction and low performance among the employees. The employees feel demotivated to work as they are very worried about losing their job. They have to wait for months to land into another job if they are laid off suddenly. They also tend to underperform during this period as they perceive that their performance is not important as the company is somehow ready to lay off their employees. There was a stressful working environment in the company. They were all talking about the lay off issue and their focus on work was slowly reducing.

Addressing challenges $/$ improving the situation

$-$ MNC semiconductor company ABC proposed a lay off plan for the employees. The plan was well panned with many crucial aspects which will benefit the employees. The recognized the affected employee and had one to one meeting with them. They gave their moral support towards them. The company has also decided to give a compensation package based on their performance before they lay off them. The compensation package will be very useful for the employees in the future. A $60$ days$$ notice was also propo

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$$ TOXIC WORKING CULTURE

$$ Toxic work environments are characterized by a range of negative behaviours that can have a significant impact on the well$-$being and productivity of employees.

Objective

I. To apply organizational behaviour theories to real$-$work scenarios.

II$.$ To enhance critical thinking and problem$-$solving skills.

$1\mathrm{.}0$ Identification & Explanation of key issues.

$2\mathrm{.}0$ Application of Theories Explanation

$3\mathrm{.}0$ Addressing challenges and Improving the situation explanation

Identification & Explanation of Key Issues:

$1.$ Biased Leadership

The presence of biased leadership in the form of favouritism and preferential treatment creates an unfair and toxic work environment. The manager's clear bias toward a specific person affects team dynamics, demotivates other employees, and erodes trust in the team.

$2.$ Authoritarian Management, Style

The manager's authoritarian approach, characterized by shouting, public humiliation, and lack of personal communication, contributes to a hostile work culture. This style of management fosters fear, demoralization, and a sense of insecurity among employees.

$3.$ Zero Tolerance for Mistakes

The lack of tolerance for even minor mistakes creates an atmosphere of constant pressure and anxiety. Employees fear disciplinary action for any error, hindering creativity, innovation, and productivity. This perfectionist approach contributes to a toxic work culture.

$4.$ Lack of Recognition and Appreciation

The absence of acknowledgment and appreciation for employees' achievements and efforts further worsens the work environment. Employees feel undervalued and unappreciated, leading to a decline in motivation and job satisfaction.

$5.$ High Turnover Rate

The toxic work culture has resulted in a high turnover rate, which is costly for the business. Employees, feeling undervalued and demotivated, seek opportunities elsewhere, impacting the company's stability and reputation.

Application of Theories: Explanation

$1.$ Maslow's Hierarchy of Needs

The toxic work culture is effecting the employees' sense of belongingness, esteem, and self$-$actualization needs. Maslow's theory emphasizes that these needs must be met for people to thrive in their workplace.

$2.$ Leadership Theories $($e$.$g$.,$ Transformational Leadership$)$

The manager's biased and authoritarian leadership style contrasts with the principles of effective leadership. Transformational leaders inspire and motivate their teams, fostering a positive work culture.

$3.$ Equity Theory

The biased treatment of the manager towards a particular individual creates a perception of inequity among other team members. This inequity negatively impacts motivation, job satisfaction, and overall performance.

Addressing Challenges and Improving the Situation: Explanation

$1.$ Fulfil Fairness and Inclusion Policies

Establish clear policies promoting fairness, diversity, and inclusion within the organization. Training programs can help managers understand the importance of treating all employees equally.

$2.$ Leadership Training

Provide leadership training for managers to develop effective and positive leadership skills. This fact includes dialogue, conflict resolution, and motivational techniques that contribute to a healthy work environment.

$3.$ Employee Recognition Programs

Introduce programs that recognize and appreciate employees' achievements. Regular feedback, compliments, and rewards can boost morale and job satisfaction.

$4.$ Encourage Open Communication

Foster an environment where open communication is encouraged. Employees should feel comfortable sharing concerns or reporting issues without fear of reprisal.

$5.$ Promote Work$-$Life Balance

Address the pressure for perfection by promoting a healthy work$-$life balance. Encourage breaks, provide stress$-$relief activities, and ensure that employees are not overburdened.