Module 6 Critical Thinking: Importance Of A Reward And Recognition Program

Your Name
MGT4505
MANAGEMENT
CRITICAL THINKING ASSIGNMENT
Professor
University
Date of Submission
1.0 Problem Description
Subsequent to the recent merger between company A and B leading to the formation of company X, the ensuing personnel reorganization has led to a drastic decline in staff morale. The reorganization has necessitated creation of new departments and a change in the organizational reporting structure. Besides, the amalgamation of diverse cultures and leadership styles has elicited tension, suspicion and insecurity among staff members. As a result, employees are feeling stressed up as they try to adjust to the new changes and working environment. It has been noted that communication was ineffective prior, during after the merger process. Thus employee morale has been adversely affected due to a feeling of job insecurity. Consequently, the average level of productivity has significantly dropped. If this situation is not urgently remedied, it might lead to a significant loss in revenue and subsequently, shareholder value. Moreover, insecurity has sparked unfriendly competition amongst employees as each tries to secure his or her job. This unhealthy competition has elicited unwarranted tension and frequent inter-departmental conflicts that are detrimental to the attainment of the overall organization objective. In addition, the clash of cultures emanating from the merger has elicited increased competitiveness due to perceived fear of retrenchment. This has sparked an increase in workplace stress levels occasioned by a sudden change in the reporting structure and organizational hierarchy. If not checked, the current situation is likely to cause employees to seek for new job opportunities given the feeling of uncertainty and unpredictability surrounding their current jobs. This follows the recent downsizing which has already affected over 200 employees from three corporate divisions aimed at eliminating duplication of duties that resulted from the merger.
2.0 Recommended Solution
As the operations manager, I hereby wish to recommend the adoption and implementation of a reward and recognition programme to help remedy the current situation of low morale among staff members.
2.1 The Importance of a reward and recognition program
A reward and recognition programme will play a critical role in enhancing employee morale, motivation and commitment to the organizational mission and vision. First and foremost, it will help increase individual employee productivity given that employees will be more engaged, effective and efficient under a reward and recognition programme. The staff will be highly motivated as they will work harder so as to be either recognized or rewarded. As a result, the company revenue and profit will increase. Secondly, it will lead to increased job satisfaction since recognizing employee efforts illustrates that they are valuable to the company. Besides, rewards signify that employees are an important asset to the company thus making them feel appreciated.
Thirdly, it makes employees feel fulfilled and highly motivated. Subsequently, fulfilled employees will work harder as they will have a positive feeling towards the company. Additionally, it will lead to improved staff retention as employee turnover will be significantly reduced. As a result, the company will save on personnel recruitment and training costs as fewer employees will want to exit from a company that rewards and recognizes their efforts. It will also lead to increased staff loyalty given that fulfilled and happy employees will most definitely promote the company brand as opposed to demoralized employees. It will create and cement an emotional bond between employees and the company. Lastly, it will lead to a positive team cult...