“Organizational Behavior – It’s all about people!” That is how the organizational behavior class is called at the Copenhagen Business School, where I spent the fifth semester of my studies in European Business Administration and which influenced the choice of topic for my Bachelor’s Thesis.
Organizing people’s daily cooperation is very important in order to ensure efficient and effective business operations. But coordination alone does not suffice: employee motivation is indispensable since a motivated staff with a high degree of commitment to the company is crucial for success. Especially the front-line people, who represent the company in the direct contact to the customer, should not only be well organized but also highly motivated in order to deliver an outstanding service, to put across the right image and to leave a good mark, so that the satisfied customer decides to return and to recommend the company to others.
In order to understand people’s needs, expectations and driving forces, the complex studies of motivation have established various theories over the past decades. However, drawing the right conclusions from theories which seem to be suitable in particular work situations, and effectively applying the results is very challenging for the manager in charge. This job becomes even harder in times of organizational change, when uncertainties exist among employees, which might easily result in low employee motivation. Employees’ fear of and resistance to change is one of the major problems when it comes to organizational change and motivation. Still, this difficult situation of organizational change can become even more challenging, namely in times of severe crisis when a company’s survival is heavily threatened.
Table of Contents
1 Introduction
1.1 Problem Description
1.2 Objectives
1.3 Methodology
2 Aspects of Change and Crisis Management
2.1 Organizational Change
2.1.1 Types of Organizational Change
2.1.2 Change Management
2.2 Organizational Crisis – Aggravated Conditions for Change
2.2.1 Crisis Management
2.3 Critical Behavioral Factors: Resistance and Conflict
2.3.1 Resistance
2.3.1.1 Organizational Resistance
2.3.1.2 Individual Resistance
2.3.2 Conflicts
3 Aspects of Motivation
3.1 Introduction to Motivation Concepts
3.1.1 Basic Terminology
3.1.2 Intrinsic and Extrinsic Motivation
3.2 Content and Process Theories
3.2.1 Content Theories
3.2.1.1 Common Key Findings
3.2.1.2 Models of Content Theories
a) Maslow’s Need Hierarchy
b) Alderfer’s ERG Theory
c) Herzberg’s Two-Factor Theory
3.2.2 Process Theories
3.2.2.1 Common Characteristics
3.2.2.2 Models of Process Theories
a) Vroom’s Expectancy Theory
b) Locke’s Goal-Setting Theory
3.3 Critical Reflection and Synthesis
4 Motivation Theories against the Background of Change and Crisis - The Conceptual Framework
4.1 The Necessity for Sustaining Motivation during Times of Organizational Change due to Crisis
4.2 Key Issues for Motivation during Times of Change due to Crisis
4.2.1 Focusing on Higher-Order Needs and Intrinsic Motivation
4.2.2 Solving Motivation Problems Resulting from Lack of Confidence, Trust, and Direction
4.2.3 Establishing Adequate Working Conditions
4.3 Implementing the Key Issues through Communication – Concrete Measures for Management
4.3.1 Communication
4.3.1.1 Making Mission Statements
4.3.1.2 Providing Constructive Feedback
4.3.1.3 Using the Power of Emotions
4.3.1.4 Providing Proper Information
4.3.1.5 Overcoming Dysfunctional Conflicts
4.3.1.6 Supporting Team Building
5 Applying the Conceptual Framework to a Real Business Case: Scandinavian Airlines System
5.1 Company Presentation
5.1.1 The SAS Group
5.1.2 Scandinavian Airlines
5.1.3 Changes and Crisis around and within Scandinavian Airlines
5.2 History of Change in SAS under Jan Carlzon
5.3 The Cabin Crew as Frontline Employees
5.3.1 Cabin Crew Structure
5.3.2 Working as a SAS Cabin Crew Member - Reasons, Values and Motivation
5.4 Experiencing the Crisis – Perceptions, Attitudes, and Needs
5.4.1 Management’s Perspective and its Evaluation
5.4.2 Frontline People’s Perspective and its Evaluation
5.5 Summary of Impressions and Opinions
5.6 Solutions for Management to Sustain Motivation
5.6.1 Making Mission Statements
5.6.2 Providing Constructive Feedback
5.6.3 Using the Power of Emotions
5.6.4 Providing Proper Information
5.6.5 Overcoming Dysfunctional Conflicts
5.6.6 Supporting Team Building
6 Conclusion
Research Objectives and Themes
This thesis analyzes the dilemma of maintaining employee motivation during periods of severe organizational crisis when management often perceives expenditure on motivation as non-essential. The research aims to establish how management can effectively sustain staff motivation and performance during turnaround situations without relying on significant additional financial resources.
- Theoretical analysis of organizational change and crisis management.
- Examination of motivation theories (content and process models) relevant to workforce management.
- Development of a conceptual framework to address motivation during crisis through communication.
- Case study of Scandinavian Airlines System (SAS) involving interviews with management and frontline staff.
- Practical recommendations for management to sustain motivation through non-financial measures.
Excerpt from the Book
1.1 Problem Description
“Organizational Behavior – It’s all about people!” That is how the organizational behavior class is called at the Copenhagen Business School, where I spent the fifth semester of my studies in European Business Administration and which influenced the choice of topic for my Bachelor’s Thesis.
Organizing people’s daily cooperation is very important in order to ensure efficient and effective business operations. But coordination alone does not suffice: employee motivation is indispensable since a motivated staff with a high degree of commitment to the company is crucial for success. Especially the front-line people, who represent the company in the direct contact to the customer, should not only be well organized but also highly motivated in order to deliver an outstanding service, to put across the right image and to leave a good mark, so that the satisfied customer decides to return and to recommend the company to others.
In order to understand people’s needs, expectations and driving forces, the complex studies of motivation have established various theories over the past decades. However, drawing the right conclusions from theories which seem to be suitable in particular work situations, and effectively applying the results is very challenging for the manager in charge. This job becomes even harder in times of organizational change, when uncertainties exist among employees, which might easily result in low employee motivation. Employees’ fear of and resistance to change is one of the major problems when it comes to organizational change and motivation. Still, this difficult situation of organizational change can become even more challenging, namely in times of severe crisis when a company’s survival is heavily threatened.
Summary of Chapters
1 Introduction: Introduces the significance of employee motivation in organizational success and defines the thesis's core objective of analyzing motivation strategies during financial crisis.
2 Aspects of Change and Crisis Management: Examines theoretical foundations of organizational change, crisis dynamics, and critical behavioral factors like resistance and conflict.
3 Aspects of Motivation: Provides a comprehensive overview of fundamental motivation concepts, including content theories (Maslow, Alderfer, Herzberg) and process theories (Vroom, Locke).
4 Motivation Theories against the Background of Change and Crisis - The Conceptual Framework: Integrates theoretical findings to propose a conceptual model for sustaining motivation and performance through management communication during crises.
5 Applying the Conceptual Framework to a Real Business Case: Scandinavian Airlines System: Evaluates the proposed framework by analyzing the crisis at Scandinavian Airlines through interviews with management and cabin crew union representatives.
6 Conclusion: Synthesizes the case study findings to confirm that maintaining motivation is critical to business survival and that communication is an effective, low-cost management tool.
Keywords
Employee Motivation, Organizational Crisis, Change Management, Scandinavian Airlines, SAS, Frontline Staff, Crisis Communication, Intrinsic Motivation, Extrinsic Motivation, Organizational Resistance, Conflict Management, Turnaround Strategy, Leadership, Workforce Commitment, Business Administration.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on how companies can maintain employee motivation during periods of severe organizational crisis and financial hardship, challenging the management perception that motivation efforts are a financial luxury.
What are the primary themes discussed?
Central themes include the impact of organizational change on staff, the behavioral consequences of crisis (such as resistance and conflict), the application of classical motivation theories, and the crucial role of internal communication.
What is the central research question?
The study seeks to answer how managers can effectively sustain employee motivation in turnaround situations, identifying which aspects are most critical and how this knowledge can be implemented in practice without significant cost.
Which methodology is applied?
The study uses a combined approach: it establishes a theoretical framework based on academic literature on change and motivation, and subsequently applies this framework to a case study of Scandinavian Airlines (SAS) using qualitative interview data.
What does the main body address?
The main body bridges theory and practice by detailing motivation strategies, analyzing the specific crisis situation at SAS, and providing concrete recommendations for management, such as improved mission statements and team building.
What are the characterizing keywords?
The key themes are summarized by terms like Employee Motivation, Organizational Crisis, Change Management, Crisis Communication, and Frontline Staff Management.
How does the author characterize the role of cabin crew?
The author identifies the cabin crew as essential frontline ambassadors whose daily performance is a direct touchpoint for customer satisfaction, making their engagement a key determinant of the airline's success.
What is the 'Doom Loop' referred to in the text?
The 'Doom Loop' describes a self-reinforcing negative cycle where poor management communication leads to demotivated staff, which results in lower service performance, customer dissatisfaction, and ultimately an aggravated company crisis.
- Quote paper
- Ellen Meyer (Author), 2004, Sustaining Motivation in Times of Change due to Crisis, Munich, GRIN Verlag, https://www.grin.com/document/44617
