The main problem highlighted is the effect of the economic downturn on the real estate business ( specifically discussing the case of a minor, privately owned property management company)and its impact on the level of motivation of employees working in that organization. Since the profits are declining, the company has undergone reorganization and laid off one-fifth of its employees. The existing employees are overworked but are bound to stay with the company as it is challenging to find a job in the current economic situation. The company is also planning to cut down on payroll expenses to gain profits. This has resulted in a highly de-motivated workforce that will harm the business in the long run. To counter the problems, the company has hired an OD specialist. Now he will help the organization build a better and highly motivated workforce.
Recommendations to OD Specialist
The OD specialist should work to improve the overall culture of the organization and increase the motivation of employees to remove obstacles and make change easier. He should use the following steps to introduce change and motivate employees;
Diagnosis Stage (Identification of Problems)
This can be done by collecting information through interviews, questionnaires, reports, etc. In addition, the OD specialist should interact with the employees to find out their problems. In cases where he cannot be physically present, he can use video conferencing and other such interactive sessions to get to know about the issues of employees. This will also help in building inter personnel trust and confidence.
Intervention (Implementation of Change)
Change in an organization can be implemented in a lot of ways. Since this company focuses on cost-efficiency, it needs to implement change in the least costly manner possible. Some of the possible options are;
- Team Building can help in this case as the employees are overworked as there will be a pool of expertise, leading to time-saving and ultimately cost efficiency for the company.
- Jayashree Pakhare(2008) mentioned in his article “Organizational Development” that skill development can also help improve employees’ performance in conflict resolution and problem-solving.
- Employees’ motivation is the critical factor that needs to be considered while implementing change in this organization. Employees can be motivated using monetary and non-monetary motivators. Since the company is planning cost-cutting, it should focus on the non-monetary benefits it can give to its employees.
- There should be an interaction between the top management and the lower-level employees. This can only be done if the entire organization works together as a unit and inter personnel trust and cooperation.
- To develop trust, the company should communicate with the employees. This will help employees align their goals with the objectives of the organization. For example, if the company plans to cut down its payroll expenses, all employees should be informed about it way before it is implemented.
- Also, the employees should be encouraged to take part in the planning process and should be encouraged to solve problems collectively.
- The key to motivating employees is finding out what motivates them and trying to provide it cost-efficiently. Considering the current economic recession, some people are motivated by monetary benefits, but companies should go for non-monetary benefits like job rotation, appreciation, and recognition.
Once the change has been implemented, the most crucial stage is evaluating change, i.e., whether the change is positive or negative for the organization. Positive changes are characterized by improved labor productivity and a highly motivated workforce.
In the company’s current financial state, there is an urgent need to improve the morale of the employees instead of focusing on raising profits because a highly motivated workforce is an asset to the organization. Suppose a poor relationship between the management and employees is poorly motivated. In that case, an organization cannot survive, so firms should focus on their employees, and the profits will automatically increase.
Pakhare, J. (2008). Organizational Development. Web.
Toolpack Consulting, What is organizational development? Web.