Section A Motivating and Maintaining Morale During Downsizing

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

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

The firm has another problem; some of the clerical staff are long term employees who are accustomed to how the company operated 10 years ago. These employees have not adopted to the new software or the other new programs that have been implemented.

Thus, these employees do not provide the full clerical support needed by management. Rather, they only perform those aspects of their job that existed prior to the introduction of the new software plus other mental jobs sufficient to keep them busy.

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

Questions:

1. What actions should be taken in order to increase morale and motivation level of clerical staff? You may use a theory to explain your answer. (5 marks)
2. What actions can be taken to motivate those employees who are not using the new technology required of their job? Outline 5 actions with detailed explanations. (5 marks)
3. What criteria should be used to determine which clerical employees should be retained? Identify and discuss 5 criterions with proper justifications. (5 marks)
4. Critically discuss if the firm should use training to solve its motivational problem? Provide 5 reasons for your choice and explain in detail. (5 marks)