Managing Employee Motivation During an Economic Downturn

Introduction

Morgan Moe's Drug Stores is facing serious challenges, and immediate action is necessary. The company is presently experiencing several problems that, if left unaddressed, could lead to bankruptcy. Of the five programs presented, the most effective management method is Program V, as it provides the highest profit-to-cost ratio and the second-best average turnover rate. The least effective method is Program IV: despite having the lowest average employee turnover rate at 17%, its monthly staff time cost was the highest among the five programs at $3,420. Recommendations for management include monitoring employee satisfaction levels, motivating personnel to set goals, utilizing suitable organizational change techniques, and maintaining open and transparent communication with staff.

Morgan Moe's Drug Stores is experiencing a difficult period owing to changes in the economy. Business results have deteriorated, and as a result, numerous outlets have had to be shut down. A key issue for the Vice President of Human Relations has been how to address problems related to personnel. The closure of various store locations has lowered employee confidence due to heightened job insecurity. In addition, media coverage has emphasized the adverse aspects of the economic situation. Consequently, the organization is concerned that if these issues are not resolved immediately, it may be forced to file for bankruptcy. This report outlines the efficacy of five different programs developed by the Human Relations team for the management system.

Independent Variables and Their Relationship

In a study, an independent variable is a factor whose value can change and be manipulated in order to assess correlation. By contrast, the dependent variable is fixed and therefore measured. In this analysis, the independent variables are the five individual management program styles — Program I through Program V. The dependent variables are average employee turnover, average weekly profit per month, and monthly staff time cost.

A correlation between these variables can be measured. As the various programs are implemented, along with their respective methods, the average weekly profit per month and the monthly staff time cost increase, while average turnover decreases. For example, Program I, which employs traditional management methods, produces an average turnover rate of 30%, an average weekly profit per month of $5,700, and incurs no monthly staff time cost. By contrast, Program V, which incorporates brainstorming without information sharing, reduces average turnover to 21%, raises average weekly profit per month to $14,000, and incurs a monthly staff time cost of $2,750.

Additional Measures

An additional variable worth measuring is job satisfaction. Examining the impact each program has on employees would provide a more comprehensive understanding of the effects of the interventions — focusing not only on organizational outcomes but also on the personnel themselves.

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