Risk Analysis

Risk Analysis of Demotivated Employees

Demotivated employees in the workplaces can bring a significant risk when it comes to executing day to day operations of the business. Some employees are engaged in most sensitive equipment, tools (tangible assets) and non-tangible assets such as databases, information regularly, some of which need supreme attention and safety when using. Thus, it is the ultimate responsibility of the organization to have a well-balanced workforce of employees and their sentiments as far as employment matters are concerned.

 

Operational Risks

Absenteeism: Levy (2006) defines absenteeism as the chronic or continued failure of employees reporting for duty, especially when the pattern of absenteeism suggests 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. Van der Merwe and Miller (1998) defines absenteeism as the failure of workers to report on the job when they are scheduled to work.

 

Toxic Work environment: Since employee morale is down, attitudes and behaviour are affected badly. Therefore, friendly, and mutual relationship among employees will be disrupted.

Poor quality work: Dissatisfied employees will not perform at their full potential hence yield substandard products or services that will not be competitive in the market.

 

Personnel Risks

Every organization’s ultimate desire is to retain their employees for longer periods of time. Organisations spend a significant amount of time and money in training and developing their employees. Higher labour turnover will cost organizations of all the spent resources. Result in more disruptions to organization’s operations as re-hire, replacement of employees, as well as further costs on extra training for new employees. Strategic leadership is the critical point in achieving organizational objectives. The negative side of leaders can jeopardize the firm’s operations (Hogan and Hogan 2001).

 

Reputational Risks

One employee’s dissatisfaction can be brought down the morale of the entire office. Employees who are dissatisfied with their job might resort to quitting; this is a situation management should be avoided. It is observed that satisfied employees perform to the best of their abilities and lead

to satisfy & retain customers all the time. It is very easy for customers to spread word of mouth about a company when they are not satisfied with its performance, and such information can be spread at a very rapid pace causing to destruct a company’s reputation in no time. Leadership needs to play a vital role here because according to Stankiewicz-Mroz (2015), change in human resources will be expected, as well as re-evaluating the paradigms. A managerial skill will be needed to pull people together for the reputation of the company.

Environmental Risks 

Unhappy employees are most likely to manifest their dissatisfaction to the outside world. Customers are bound to experience unwelcoming acts of unfriendliness and unpleasantness originating from unhappy employees. Poor customer service will be the order of the day among employees which will end up ruining the name of the business. A company is bound to even follow international regulations not only it domestic laws (Darroux and Xixiang, 2013), even those that impact on the environment.

Health Risks

Employees who are not entirely happy at work can have health problems including stress. Stress related illnesses will jeopardize wellness efforts in the workplace of keeping healthy employees. Stressed and de-motivated employees may cause accidents at work when using machineries and other dangerous tools. Work stress and other psychosocial factors are recognized worldwide as a major challenge to workers’ health and the health of organizations. 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).

Financial Risks

Highly motivated employees will always put their best efforts in their work and boost company productivity and enhance competitiveness. Such efficiencies will endure more quality outputs in which it enables generating much higher revenues. When employees are happy absenteeism’s will be reduced thereby reduces operational costs. Taylor (2012) agree that financial crisis can be because of economic circumstances, making it extremely difficult for business to operate. This then will extend to difficulties in acquisitions.

 

 

References:

Darroux, C. and Xixiang Sun. Factors Impacting International Marketing: Configuring Strategies and Incorporating Co-Opetition. Proceedings of the 10th International Conference on Innovation and Management, 2013, December 2-4,1056. 

Hogan, R. And Hogan, J. Assessing Leadership. A view from the dark side International Journal of Selection and Assessment, 2001, 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 and co, 2006. P.412 

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. 

Taylor, J. First Principles: Five Keys to Restoring America’s Prosperity. New York: W. W. Norton and Company Inc., 2012.

Van der Merwe, R., and Miller, S. Measuring absence and labor turnover: A practical guide to recording and control. JHB: Lexicon Publishers, 1998.