Risk Analysis of De- Motivated Employees in Organisation

 Employees who lack motivation in the work place are a risk factor when it comes to executing day to day operations of the business.

Ø  Operational Risk –

o   Levy  (2006, p.412) provides a comprehensive definition in describing absenteeism as the chronic or continued failure of the employees to attend for duty, especially when the pattern of absenteeism suggest that either the absence is avoidable, or that the employees failed in their duty to the employer in accordance with their contract of  employment or common law duty to attend the place of work regularly and reliably.

o   Poor Quality Work : The employees out put will not be upto expected standard which will cost the organization profitability.

o   Toxic Work Environment: The environment will be negative as the employees are unhappy and the moral will be very low.

Ø  Personnel Risks-  The negative side of leaders can jeopardize the firm’s operations (Hogan and Hogan 2001). When there is high turnover the organization will have to spend  its resources better spent somewhere else in recruitment and training employees.

Ø  Reputational Risks

Leadership is very vital because according to Stankiewicz-Mroz (2015), change in human resources will be expected, as well as well as re-evaluating the paradigms. A managerial skill will be needed to pull people together for the reputation of the company.

In the Bank for example the unhappy employees will have direct contact with the customers. It is easy for the customers to sense and feel the drop in the efficiency and the interest with which they are treated and their issues resolved.  The unsatisfied customers could rapidly spread their dissatisfaction of the bank and ruin the reputation of the bank.

 

Ø  Health Risks

Work stress and other psychosocial factors are recognized wordwide as a major challenge to workers’ health and the health of organisations. All levels in the organization are responsible for the safety of risks in the company and help with avoidance of such risks (Tasmin and Salehudin, 2016).

Demotivated employee and stressed out employee due to being unhappy may cause accidents when using machines willfully or due to negligence or not caring enough. This could affect the whole company with health and safety issues and insurance.

 

Ø  Financial Risks

If employees are unhappy absenteeism will increase and the profitability will reduce. Unhappy employee leaving will increase recruitment cost and training cost, thereby reducing the profitability of the organization.

 

Reference:

 Hogan, R. And Hogan, J. Assesing Leadership. A view from the dark side International Journal of Selection and Assesment, 2004, 9(1-2), 40-51.

 

  Levy, A. An examination and baseline report on some aspects of absenteeism in South Africa. The Vanishing Workforce Pretoria: Juta & co, 2006.

 

Reuben M. Badubi Theories of Motivation and Their Application in Organizations: A Risk Analysis . School of Management, Wuhan University of Technology, Wuhan,

Stankkiewicz, M. A. Approach to the issues of leadership in the processes of companies’ acquisitions 6th International Conference on Applied Human Factors and Ergonomics (AHFE 2015) and the Affiliated Conferences, AHFE 2015.

 

Tasmin R., Salehuddin, M.F. The Linkage of Potential Hazards with Safety Impact: A view from Floating Storage Facility in Malaysia Proceedings of the 13th International Conference on Innovation and Management. (II), 2016, November, 28-30, 1033.