People & Organisations - Essay Example

To this date, the company continues to feel the effects of such actions. This report analyses the role that employee motivation plays in the profitability of commercial organizations. Using Peacocks as a case, the report shows the importance of employee motivations and the ways in which the human resource management can motivate its workforce. Based in Cardiff city, Wales, Peacocks is a large fashion retail chain that has over 400 outlets throughout the United Kingdom and more than two hundred other stores in numerous countries throughout Europe.

Prior to 2012, the company had 9,600 employees. Currently, the company has slightly over 6,000 employees in all its outlets throughout the world. Peacocks began experiencing low profitability in 2011. The management could not establish the cause of the problem, as they were engrossed with marketing. The employees were slowing losing their morale and interest with their roles at the company. The growing tension regarding the future of the company affected the morale of the employees further thereby leading to immense demoralization at the place of work.

Employees became increasingly clumsy. The fashions and apparel industry is part of the hospitality industry. An employee attitude towards their work is therefore an important feature that influences the profitability of such businesses. The human resource management lacked functional mechanisms of measuring the levels of motivation in their employees. In January 2012, the company laid off nearly half its employees. The spontaneous downsizing and the poor way in which the company treated the employees it laid off was yet another major source of concern to the remaining employees.

The company retained with an unmotivated workforce. The employees earned less than their counterparts in competing companies did. Additionally, they worked in fear owing to