“1 Major HRM Challenge That Nearly Broke Team Morale—and the Strategy That Saved It”

In the fast-changing landscape of Human Resource Management (HRM), organizations often encounter intricate challenges that really put their leadership, resilience, and adaptability to the test. One particularly memorable case involved a mid-sized tech company grappling with high employee turnover and low team morale—issues that are all too common and can be quite costly. Having worked closely with this organization as a consultant, I saw firsthand how these challenges disrupted operations, drained resources, and ultimately hurt overall productivity.

The Real-Life HRM Challenge: Toxic Leadership and Team Turnover

At the heart of the problem was a toxic management style adopted by a newly promoted team leader. While this leader had the technical skills, they were lacking in emotional intelligence and conflict resolution abilities. Team members expressed feelings of being undervalued, micromanaged, and unsupported. Over a span of six months, five out of ten employees decided to leave, citing mental burnout and poor leadership as their main reasons. This not only drove up recruitment costs but also disrupted client deliverables and tarnished the company’s internal reputation.

Applying the Path-Goal Theory of Leadership

To tackle this urgent HRM issue, we turned to the Path-Goal Theory, developed by Robert House. This theory suggests that a leader’s primary role is to pave the way for their team to reach their goals by selecting the most suitable leadership style based on the situation and the team’s needs.

The theory outlines four leadership styles:

Directive – providing clear guidance

Supportive – being approachable and empathetic

Participative – involving team members in decision-making

Achievement-oriented – setting challenging goals and expecting high performance

In the case of the tech firm, adopting a supportive leadership style was the best way to rebuild trust and boost employee engagement. By equipping the team leader with skills in emotional intelligence, feedback reception, and stress management, along with implementing employee recognition programs, the organization experienced a significant morale boost within just three months. Employees felt acknowledged and appreciated, leading to a steady rise in productivity.

How the Model Solved the Problem

The Path-Goal Theory played a crucial role in pinpointing a leadership approach that catered to both employee needs and the company’s objectives. It offered a clear framework for transitioning from an autocratic style to one that prioritizes people. Additionally, the HR department rolled out quarterly feedback sessions and leadership coaching to maintain these positive shifts. As a result, the company not only slashed turnover by 70% but also enhanced internal communication and employee satisfaction scores.

This real-world example highlights the vital importance of effective HRM strategies in navigating workplace challenges. Students and HR professionals eager to gain practical insights can find expert guidance at StudyCreek.com and DissertationHive.com. Both platforms provide valuable resources, academic support, and tailored HRM project assistance for those tackling complex management issues.

The takeaway is simple: HRM isn’t just about rules and regulations—it’s fundamentally about people. With the right approach and a readiness to change, even the most challenging workplace can evolve into a space filled with collaboration, engagement, and success.

If you need detailed help with HRM assignments or dissertations, feel free to check out the premium writing and tutoring services offered by StudyCreek and DissertationHive.

Below is a sample question:

1. Describe a specific real-life HRM challenge (from your own personal experience OR secondary sources)
2. Identify and explain a concept, model or theory from the textbook that can be applied to the management challenge
3. Discuss how this model or theory applies to the real-life management challenge

Below is the answer to the sample question:

1. Hygiene Factors: These are the external aspects tied to the work environment, such as salary, company policies, the quality of supervision, working conditions, job security, and relationships with colleagues. If these factors are lacking or insufficient, they can lead to dissatisfaction. However, just having them in place doesn’t automatically create satisfaction.

2. Motivators: These are the internal elements connected to the work itself, like achievement, recognition, the nature of the work, responsibility, opportunities for advancement, and personal growth. When motivators are present, they foster job satisfaction and boost motivation.

Herzberg posited that eliminating dissatisfaction (by improving hygiene factors) is not enough to motivate employees. Employers must also invest in motivators to create a fulfilling work experience.

Application of Herzberg’s Theory to the HRM Challenge

Hygiene Factors Identified as Lacking:

• Employees were feeling the pinch with low pay, as many believed their wages didn’t match the workload they were handling or the going rates in the market.
• Working conditions were another sore spot, with long hours, shifts that were often understaffed, and not enough breaks leading to a lot of grumbling.
• Job security was a big concern too, with temporary contracts and the threat of being let go based on performance creating a cloud of uncertainty.
• Supervision left much to be desired, as many felt that managers were not only unsupportive but also hard to approach.
• When it came to motivators, they were mostly missing in action:
• Career advancement opportunities were scarce, with few chances for promotions or skill development.
• Recognition for hard work was also lacking, as many employees felt their achievements went unnoticed.
• And job enrichment? It was minimal, with tasks often being repetitive and offering little chance for creativity or independence.

With all this in mind, the HR department decided to roll out a two-tiered strategy:

Improving Hygiene Factors:

Let’s take a look at the revised compensation structure: We reviewed salaries and compared them to industry standards, resulting in a modest increase in base pay.

Now, onto better working conditions: We brought in additional staff to lighten the workload, and we made sure to enforce break schedules more strictly.

When it comes to job security improvements, the organization has moved towards longer-term contracts and introduced a probation-to-permanent policy for those who consistently perform well.

As for management training, our supervisors have gone through training focused on emotional intelligence, conflict resolution, and supportive leadership.

Enhancing motivators is key:

We kicked off recognition programs with a monthly “Employee Star” initiative to celebrate outstanding performance.

For career development plans, we encouraged employees to take part in internal training programs, providing a clear path for promotions.

We also introduced job enrichment through rotational assignments, allowing employees to explore different roles and pick up new skills.

Outcomes and reflections:

Six months after implementing these changes, our internal HR data revealed some impressive improvements. Turnover rates fell from 45% to 28%, absenteeism went down, and employee engagement scores jumped by 35% according to an internal survey. Plus, customer complaints about service quality decreased, showing a positive ripple effect on our operational performance.

Employees shared that they felt more valued, supported, and motivated to stick with the company. While we still face some challenges, like external market competition and poaching from rival chains, our HR strategy, inspired by Herzberg’s Two-Factor Theory, has laid a solid foundation for sustainable retention practices.

Conclusion

This case highlights how using Herzberg’s Two-Factor Theory can be a solid and effective way to tackle the issue of high employee turnover. For those studying HR or working in the field, this model provides a useful perspective to differentiate between the elements that keep employees from feeling dissatisfied and those that genuinely inspire motivation. In the current competitive job market, it’s essential to strike a balance between improving hygiene factors and fostering intrinsic motivators to create a strong and dedicated workforce. Future HR strategies should take both aspects into account to nurture meaningful, long-lasting employee engagement.

References

Herzberg, F., Mausner, B., & Snyderman, B. (1959). The Motivation to Work. John Wiley & Sons.

Armstrong, M. (2020). Armstrong’s Handbook of Human Resource Management Practice (15th ed.). Kogan Page.

CIPD. (2023). Employee Turnover and Retention. https://www.cipd.co.ukRetail Workers in Nairobi Demand Better Conditions.” The Daily Nation.

Kenya Institute of HRM (KIHRM). (2023). State of the HR Profession Report.