In 2018, 19,552 companies filed for insolvency in Germany. Reasons for this can be found in the lack of objectives in controlling and in the effects of poor management styles during restructuring. This figure can also often be attributed to the alternating relationship between corporate crises and employees. Destructive feelings arising from the crisis, such as anxiety and stress perception of the employees, resulting in a lack of motivation, which further accelerates the crisis process by reducing the productivity of a company. Against this background, it is important to find ways to motivate employees during a restructuring process in order to ensure that it achieves its objective of protecting the company from insolvency.
The objective of the study is therefore to understand the motivation of employees in the context of a company crisis.
The paper aims to give the reader a theoretical insight into the phases of a company crisis and then to show the resulting effects on employees. Building on this, a method for motivating employees is presented, which is then applied in practice in a concrete example of a medium-sized company. The application of the method is only explained and illustrated in the course of the practical context. The aim of the work should not be to demonstrate the effectiveness of the method itself. Rather, the aim is to investigate the significance and implementation of employee motivation method in connection with a successful restructuring method. At the end of this paper, the reader will be shown the practical application of the used method of employee motivation in a company restructuring. This should finally answer the question of how employees can be motived when a mid-size company is facing re-structuring.
Table of Contents
1 Introduction
2 Research questions and reflection
2.1 The aim of the work
2.2 The current state of research
2.3 Structure and methodology
3 Companies and employees in times of difficulties
3.1 Phases of corporate crises
3.2 Effects on employees
3.3 Goal-Setting-Theory after Locke and Gary Latham
4 Implementation in the company
4.1 Project overview
4.2 Goal setting and employee participation
4.3 Evaluation and interpretation
5 Summary and outlook
Research Objective and Core Themes
The primary objective of this work is to investigate effective methods for maintaining and enhancing employee motivation within medium-sized companies undergoing critical restructuring phases, with the goal of mitigating the risk of insolvency.
- Analysis of corporate crisis phases and their psychological impact on the workforce.
- Application of the Goal-Setting-Theory by Locke and Latham in real-world business scenarios.
- The significance of employee participation and transparent communication during restructuring.
- Evaluation of Key Performance Indicators (KPIs) as tools for focus and performance enhancement.
- Practical demonstration of motivational strategies in a mid-size organization.
Excerpt from the Book
3.3 Goal-Setting-Theory after Locke and Gary Latham
In 1968 Edwin A. Locke published his theory of objectives in "Toward a Theory of Task Motivation and Incentive". He showed that employees are motivated by clear, well-defined goals and feedback. Locke found that goals formulated in KPIs are much more effective than vague instructions. He explained that the formulation of almost unattainable goals results in harder work, increased effectiveness, and increased creativity.
In the 1990s, Dr. Gary Latham Locke examined the theory in practice and concluded that the link between goal setting and performance is both existential and essential. Following the research, Locke and Latham jointly published "A Theory of Goal Setting & Task Performance", which is an extension of the 1968 theory of goal setting.
Their theory also emphasizes the relevance of employee involvement to achieve a goal. This has been shown to further motivate. According to Locke, for employees to feel motivated to achieve a goal, they must be involved in the evaluation of objectives and allowed some room to maneuver in order to achieve said goal.
Chapter Summaries
1 Introduction: Provides a statistical overview of insolvencies in Germany and outlines the negative correlation between poor management during restructuring and employee motivation.
2 Research questions and reflection: Defines the aim of the work, reviews the current state of academic research regarding motivation, and details the qualitative methodology used.
3 Companies and employees in times of difficulties: Explores the theoretical framework, specifically Reiner Müller’s crisis model, the psychological impact on staff, and the implementation of Locke and Latham’s Goal-Setting-Theory.
4 Implementation in the company: Details a practical case study of a mid-sized company in Ilsfeld, showing how theory was applied to an order-to-cash process to reach sales targets.
5 Summary and outlook: Synthesizes the findings, confirming that clear goals combined with employee participation significantly boost short-term motivation and productivity during crises.
Keywords
Corporate crisis, Employee motivation, Restructuring, Goal-Setting-Theory, Edwin A. Locke, Gary Latham, Insolvency prevention, Leadership, Employee participation, Performance management, Mid-size company, Organizational change, KPI, Productivity, Crisis management.
Frequently Asked Questions
What is the core focus of this assignment?
The work focuses on how to maintain employee motivation in medium-sized companies that are facing a crisis or undergoing restructuring processes.
What are the primary thematic areas covered?
The assignment covers corporate crisis phases, psychological effects on employees, management strategies, and the specific application of goal-setting theories.
What is the central research question?
The research aims to determine how employees can be effectively motivated to achieve peak performance while a company is in the middle of a restructuring phase.
Which scientific method is utilized in this paper?
The paper employs a qualitative study approach, incorporating a literature review and the analysis of a real-world case study within a medium-sized company.
What topics are discussed in the main body?
The main body examines the phases of corporate crises, the negative impact of traditional management during these times, and the implementation of goal-oriented motivation strategies.
Which keywords best characterize this work?
Key terms include Corporate Crisis, Employee Motivation, Restructuring, Goal-Setting-Theory, and Employee Participation.
Why is Locke and Latham's theory considered central to this work?
The theory is highlighted because it demonstrates that clear, challenging goals—when combined with regular feedback and employee involvement—directly improve performance and creativity.
How does the company in the case study measure success?
The company uses KPIs such as the reduction of "orders yet to be packed" and the achievement of specific monthly sales targets to measure progress.
What role does communication play during the restructuring?
Transparent communication is identified as essential; it ensures that employees understand the financial situation and their role in the restructuring process.
- Citar trabajo
- Felix-Sebastian Ament (Autor), 2020, Companies Under Crisis. How to Motivate Employees Whilst Facing Restructuring?, Múnich, GRIN Verlag, https://www.grin.com/document/916289
