“Does the Morale of the Employees Affect their Performance?”
GM 591: Leadership and Organizational Behavior
Professor Patricia Anderson
June 16, 2012

Introduction:
The organization that will be the topic of discussion in my final project paper is Devcon Security. Devcon Security was founded in 2004 by a Management Team having more than 100 years of security experience. We are one of the fastest growing security companies in the country by building a strong, satisfied, and safe customer base while earning a rock-solid reputation.
With the most modern technology available, we provide specialized security based on the specific needs of each individual customer. While other security companies try to increase profits by reducing costs, at Devcon we are increasing our business and maintaining customer loyalty through state-of-the-art equipment, the worlds highest rated monitoring centers, and superior customer service.
At Devcon Security, our philosophy is simple; provide each and every customer with a superior quality, easy-to-use security system solution that is backed by an exceptional level of customer services and support. Beginning with the first day you contact us, through your security system installation and beyond - we will be here to assist you in any way we can. Help is a quick phone call away. From residential home security systems and small business security solutions to large, comprehensive commercial alarms and video surveillance systems, our experienced team of professionals will help you choose the custom solution that meets your individual security needs. Regardless of which package you select, you can always count on Devcon to deliver the highest level of protection. We are also proud to be among only a few security companies to have a 5-Diamond certification from the Central Station Alarm Association. (devconsecurity.com) As an employee since the company existed in Texas and a Human Resources Representative I have witness the transitioning phase of the company to where it is now. I have witness the highs and the lows of the company and the company going from 60 employees to over 175 employees to 90 employees all over a course of a year. The company transition has taken a toll on the company and their focus is no longer quality, but quantity. With this being a center point of the company the performance of the employees has dwindle down. The company has always focus on their employees and showed the employees how much of an asset it is to the company, but with the issues that’s arriving that has been one of their least focus. I feel that as an HR representative that we are responsible for boosting the morale in the company, but our resources has also been limited. It is now time for the CEO to realize that without their employees then a company can’t function. Yes, they may be able to cut down on certain positions, but why cut down on the bottom when you have over 35 managers, 12 vice presidents over different areas and not to mention directors. When organizing this company I feel that the organizational chart of the employees was not very well thought out. I feel that the company is too top heavy which also means more money. The company should try to sort through the top level executives and see which one is more valuable to the company.
Problem Statement:
With the security industry doing great the company has started to lay off more than 60 people throughout the company without a severance package while other employees are wondering are they next. This has cause a problem in the company which leads to my question “Why is the employees job satisfaction so low?” Many people stated that the company tried to expand too soon and was unable to keep up with the competition such as ADT or Protection One. While the investors and VP, CEOs and other affiliated officials are stating that the company is taking a different approach which will allow the company to grow and do great. The company has also put a freeze on performance raises as well as cut back on hours from each department. Yes, this may be beneficial to the company for the company, but what about the employees that are still with the company and doesn’t know the outcome of their job. Based on www.stress.org job stress is the number one leader in health. When someone stress and not sure if today will be there last day or today their last day, but no severance pay cause the morale to decline in the workers. I spoke with several of the employees at the job just recently and over half of the employees are looking for another job. I understand that my job is to assure the employees of job security and increase the morale in the workplace, but I feel that it is only so much Human Resources can do. The employees stated that they want to hear it from the CEO of the company that frequently visits the campus. When the company first started you was able to work unlimited number of hours for overtime, but now it’s no longer an option. They have also cut out the 401k benefits as well and the cost of health insurance has quickly increased. They stated that the company chose to go with another healthcare group which is why the increase. I feel that when the company was making that decision they didn’t realize that they have cut back on hours of the employees which mean their checks are not what they use to be. I have employees that is using all of their pto and vacation time looking for work and going on interviews. They also just requested that the employees will now start to work weekends which is something I’m not understanding quite well. The weekend shift will not be a overtime hours but regular hours. With the changes brought about in this company the moral has tremendously dropped. The key employees that we did have let the company woes interfere with their work performance. Many of our employees were ADT employees before over half of ADT employees went with Devcon. ADT is one of the largest companies in the security industry that has acquired many other small name companies such as Brinks Security. They have been around for decades and still growing (adt.com). Many of the employees are questioning if they did they right thing by going with this new company versus staying with a company that has been around for years. I also have question my move to a new company as well. I can stand to say that ADT is balance when it came to top level executives and employees. The company organizational chart is well organized and well thought out.

Literature Review: Based on the website (www.performance-appraisal.org) there are two main causes of performance problems. The first has to do with employees characteristics and the second has to do with system in which work is done. Also, another website (www.itmangersinbox.com) goes into detail on how to deal with low morale in the workplace. It stated that you should not boost the morale of the company just for one day, but does something where it will boost the morale everyday by making the employees feel they are valuable and worthy member of the team. Based on the information provided by (www.humanresources.about.com) it gives valuable information on how to motivate employees who remains after a layoff. Based on my company and their problem and the employees and their work performance, I agree with this. I think that with the company being unstable has left the doors open for uncertainty of our employees. The company should use more tactics when dealing with the employees during this crucial time than what they are already using. This site (www.evancarmichael.com) is great because it gives seven steps to downsizing. This information will be useful to Devcon because the process we are using is not very efficient. The information from these websites are very helpful when addressing the issues with the employees. The morale of the employees can make or break your company and the way you handle things when dealing with sensitive issues can sometimes either soothe the person or make the person even more nervous and on the edge. Time magazine's June 6, 1983 cover story called stress "The Epidemic of the Eighties" and referred to it as our leading health problem; there can be little doubt that the situation has progressively worsened since then. Numerous surveys confirm that adult Americans perceive they are under much more stress than a decade or two ago. A 1996 Prevention magazine survey found that almost 75% feel they have "great stress" one day a week with one out of three indicating they feel this way more than twice a week. In the same 1983 survey only 55% said they felt under great stress on a weekly basis. It has been estimated that 75 - 90 percent of all visits to primary care physicians are for stress related problems. Job stress is far and away the leading source of stress for adults but stress levels have also escalated in children, teenagers, college students and the elderly for other reasons, including: increased crime, violence and other threats to personal safety; pernicious peer pressures that lead to substance abuse and other unhealthy life style habits; social isolation and loneliness; the erosion of family and religious values and ties; the loss of other strong sources of social support that are powerful stress busters www.stress.org.

Analysis: The issues are the job performance of the employees which is reflecting back on the company. The reasons for the lack of performance and the low morale coming from the some of the employees is lack of job security and the fear of the unknown and not feeling appreciated. These issues can be rectified, but what does this say about the company. The mood of the company is noticeable when you walk in and the attitude of the employees is becoming horrible. I feel that your employees should be your number one priority aside from your customers. I feel that your employees are your customers just internal and should be treated like a customer you want to attain. A job shouldn’t be stressful or you shouldn’t have to worry about if you will be let go next. Your employees are a reflection of your company and when your employees are not answering the phone with an upbeat attitude, your technicians are not showing up for the schedule jobs on time or the managers are not following through with their duties then it comes back to you. The questions the VP should be asking the employees at this trying time is how can I ease your mind or what can I do for you. With asking these questions you will be able to get to the root of the problem and try to rectify the situation before it becomes bigger. I always try to get my VP that if every employee stayed home for one day what do they think will happen to the company and the customers. The answer is always I don’t want to think that way which tells me that he doesn’t want to face reality. I feel that a person should enjoy their job and come to work stress free and willing to go above and beyond for their job, but I also think that a company should go above and beyond for their employees as well. I think showing the employees that you have their best interest at heart is a great way of boosting the morale. Having a one on one with the employees, cater luncheons and dinners, giftcards, games things that were done in the beginning when the company was first starting off should continue and it doesn’t have to be at the same magnitude. Also, allowing the employees to pick up hours in other areas that are lacking or cross training the employees in other areas will also boost the morale. It will give the employee the sense of importance and the adrenaline of learning something new. Your employees are like your customers but external. You should treat them just as good as you treat the internal because they are the voice and face of the company. The company should follow the steps of how to handle a layoff because it has very important and great information that will allow the company to handle the layoff in a more positive way.

Solutions: The way you handle sensitive issues can sometimes determine the effect of your outcome. The issue was the employees having low performance and the reason being was due to the company issues and transitions that they are going through. The company should have first had a meeting with every employee in the company instead of having their immediate manager or team leader advise them of the layoffs and the company issues. I feel that if that was handled better then it could have soothe the employees anxiety a little more. The company should have also crossed train a lot of the employees or offer other positions that they will be hiring for once the company has laid off the areas. The company decided to have the employees to reapply and go through the interview process with the new potentials that are applying. Another solution that the company can do is make the employees that are still with the company feel as though they are part of the team. Make them feel important and keeping them in the loop is a great way to let the employees know that you have their best interest at heart. Based on Management must constantly strive to provide feedback to employees. Feedback is not an annual performance review event. It is imperative that daily communication exists for good information and improvement. Coaching, counseling and mentoring are components of organizational morale. Many people attend church and hear the words, “It is right to give thanks and praise.” Many watch professional sports and witness coaches cheering on their athletes. We can learn something here: Simple words of thanks and praise can improve employee morale and relationships.

Leveraging Productivity through Management and Employee Training
The first item terminated during economic volatility is often training. Research finds that employees are assets and require that treatment. Never stop training; this improves productivity and employee morale at all times. Issues of low employee morale and productivity are onerous, volatile and difficult to control. There is a need for management, the organization and the individual to assist with success factors. Much is dependent on the desire to change; methods chosen and consistent follow through. However, if you do nothing you still have an employee morale issue. Take the time, seek remedies and keep morale high. Doing so lowers attrition, improves productivity, increases profitability and most importantly—reduces stress.
Reflection:
As I reflect back on this project a lot of things come to mind that could have been done differently. A company can only go so far with employees who are not very enthused with their situation. Jobs are one of the leading causes for stress which affects a person’s life. A company should have the best interest of the company and their employees at heart. Yes, you can hire new employees and fire the old employees if the performance doesn’t get better, but this is a never ending cycle if the root of the problem is not addressed. The employees’ of every company are important and should always feel as though they are valuable. This information has influenced me to approach my VP with ideas and reasoning for doing an appreciation luncheon for the employees and giving out certificate for their hard work during our trying time.

Sources: www.adt.com www.devconsecurity.com www.performance-appraisal.org www.humanresources.about.com www.itmangersinbox.com www.evancarmichael.com
www.stress.org