Management failure to motivate staff therefore decreased effectiveness, high absenteeism, turnover, low productivity.

In order to understand employee motivation and satisfaction, Herzberg 2 factor theory could be applied, which is categorized as classical approach. In this case, dissatisfaction with work can come from company policy and administration in which staff is not involved, as well a job insecurity. Demotivates: lack of recognition (Kipsy) and job is not challenging. It could be recommended, that job rotation/enrichment could be applied. As well as Herzberg concluded, that employees will be motivated if there will be challenging and interesting job.Communication formal/informalCommunication within organization is poor.

Management did not communicate with staff, as not informing where they are as organization and what they have to do in order to achieve goals. It’s a type of bureaucratic department. According to the Robbins, downward communication is a type of communication which goes from one level of group to the lower level. Communication should be in both directions from top to bottom and bottom to the top. Communication must be improved. Chain network will help with the flow of information through the manager, supervisors, clerks and salesman’s.

Also communicate effectively with Kipsy towards organizational goals could be considered.Lack of recognitionLack of recognition of informal group and informal leader. Informal groups appear due to social need. In Maslow hierarchy of needs theory, recognition is in the self-esteem need, whereas Maslow argues, that need cannot be achieved until one is incomplete. Organization can benefit from informal group, by working together and if properly managed.

Psychological contractIs an unwritten contract which exists between the manager and workers and requires mutual expectations, satisfaction. There are signs of broken psychological contract, such as disrespect of authority, opportunity for team development, staff participation and not challenging job. Whereas, contingency theory assumes, that people’s central need is competence, which can be achieved if there is a fit between organization and work. Deviant workplace behaviour shown in “busy out”.Undoubtedly, that people have different values and beliefs. Considering my own personality its worth to say, that family values and beliefs affected on its development.

For instance, morality, respect to the older people and strict granddad behaviour impact on me. My decision in pitting Kipsy forward was in personal respect of leader. Education and personal development are emphasized in my country, without it you “nothing”, so it could impact on my decision on ethical training and other training. Being keen to listen to the people rather than talk myself, I emphasise on communication a lot. Also interest of what people say/think, as I came from independent country, reflects in producing of questionnaire in the action plan.

Also the effect of my cultural assumption could ne of high uncertainty avoidance category, which reflect in procedure/ procedure could affect Eric only in the way of conflict avoidance.