Examination Practice - Page 47.

(a) Identify TWO decisions by Sainsbury that are likely to de-motivate staff. Explain why each could de-motivate.





- One thing that will definatly de-motivate staff would be the fact that they aren't getting their christmas bonus. This will de-motivate them because obviously they aren't getting their christmas bonus which has been given out for 25 years and this will make the outraged and feel less important and therefore will not work as hard as they would if they were getting paid bonus for their work. Another reason would be that instead of the bonusthey get a 5% extension on their store discount which is not exactly as good as a bonus so this might make the employees feel like they aren't being appreciated for their efforts during the year.





(b) Explain likely effects that these decisions might have on general staff at the business in terms of:

i) Production - With the staffs bonuses being taken away they will most probably feel less imporant to their employers and will feel de-motivated and therefore won't be working as hard as usual which will result in poorer quailty or quantity of products.

ii) The working environment - The working envrironment at Sainsburys would be no where near as good as it would usally be because the staff have had their christmas bonus taken away, people working there would feel degraded and wouldn't be as motivated to keep their environment joyful and perhaps even clean.

iii) Absenteeism - As result of the bonus being cut from employees people may begin to feel less important and feel as if they are not being valued as a member of staff and because of this they may not attend work as regulary because they might feel that if the company can't be bothered with them then they can't be bothered with the company

(c) Whether or not the decisions mad would cost the company more than it saves all comes down to how de-motivated the staff are. If they became offendended by the decision then production among other vital things could decrease and this could cost the company money as they aren't up to their usual level of production etc... However if the staff were not to bothered by the decision then the company would save money.