Organisational Change & Management Assignment Sample

Analyzing Herzberg's Theory, Maslow's Hierarchy & Strategies for Employee Retention

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Introduction Of Organisational Change & Management Assignment

The term "organizational change management" (OCM) describes a set of procedures for dealing with the extensive effects of organizational transformations such as those brought on by the introduction of novel processes, the introduction of cutting-edge technology, a changing economic climate, or a shift in the company's structure and ideology. Herzberg's theory of "hygiene factors" outlines the basics needed to keep people happy and in their jobs. At the same time, Mr. Simon's efforts should have been acknowledged and recognized in accordance with Maslow's actualization theory illustrated in the essay. The essay describes the issues faced by Mr. Simon in the organization.

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The case study depicts a scenario of Mr. Simon, who has been facing challenges in advancing his career in the organization. Due to a lack of formal qualifications, the individual has been unable to achieve the desired progress.

Mr. Simon faces a lack of employee well-being from the management. There is a lack of recognition for Mr. Simon's efforts at this retail organization. Poor management of the company has a substantial impact on employee morale, productivity in terms of turnover, and the incidence of stress on the job. In the absence of a solid human resource management plan, workers may lose hope in developing their progress in the enterprise. Employee morale in the workplace is weak due to poor HR management. Employee motivation and engagement may be increased via consistent training and development opportunities.

Employee motivation

Figure 1: Employee motivation

(Source:, 2020)

Employees lose interest and become less productive if they perceive that their workplace is not changing or improving. A lack of enthusiasm and dedication to one's work indicates that an employee does not feel valued.

Promotion is a fundamental term in this essay where. Mr. Simon has put in a lot of effort, but he has not been promoted due to the formal interview procedure at this retail company (Terry, 2019). While Mr. Simon had more experience, the selected applicant had higher academic credentials. Three times rejection is brutal for him as he contributed numerous efforts for the company. The importance of hard effort has been reduced in favour of academic credentials in this firm. The formal interview is also a fundamental term in this essay, and the formal interview procedure cannot replace Mr. Simon's hard work. Hence, he was passed over for advancement. There seems to be a problem with the company's hiring and promotion procedures. Finding someone with Mr. Simon's talents and experience to replace him would be an enormous challenge. Lack of advancement is also a fundamental term in this essay. Workers are losing enthusiasm, and they get demotivated due to the company's poor management. Employees desire to see a change in the company, and turnover occurs due to poor leadership (Liebowitz, 2019). Due to the loss of Mr with Simon's expertise, the firm will experience transitional difficulty, creating a talent gap.

The capacity of a company to foster the development of workers' existing and emerging talents and expertise will benefit the company as a whole. Workers that do the same things over and over again never get to develop their abilities or contribute something new to the organization. Doing the same thing repeatedly prevents individuals from learning anything new. Enhancement of one's abilities is a natural by-product of an ever-evolving workplace. Workers will be required to update their skill sets to remain competitive.

A company's capacity to adapt to changing circumstances will be a constant boon in the search for and development of novel prospects (Cimini, 2020). Any company looking to take advantage of the opportunities presented by the new ways of working would do well to use effective transformation strategies. This might be accomplished via collaboration with complementary businesses or by cultivating new relationships that ultimately result in increased revenue.

Organizational change

Figure 2: Organizational change

(Source:, 2021)

Furthermore, the company can also focus on skills and expertise through which it will be able to develop its management. By developing innovative ways, a positive environment for the employees can be created, which will also allow Mr. Simon to be retained in the company.

Behavioural scientist Frederick Herzberg proposed a two-factor theory related to the motivation of employees in 1959. It is known as Herzberg’s Two-factor Theory. These two factors are motivation and hygiene, which are related to job satisfaction and prevention of job dissatisfaction (British Library, 2022). According to him, there is satisfaction opposite to no satisfaction and dissatisfaction opposite to no dissatisfaction.

Herzberg’s Two-factor Theory

Figure 3: Herzberg’s Two-factor Theory

Source:(Alshmemri et al., 2017)

The hygiene factors are not directly related to job satisfaction, but if it is not present in the workplace, then there can be dissatisfaction among the employees (Alshmemri et al., 2017). The key factors of this hygiene factor are salary structure, fringe benefits, work environment, policies related to the company and administration, job security, and interpersonal relation among employees (Acquah et al., 2021). If all these factors are not stable and do not meet the employees' expectation level, then it will lead to employee dissatisfaction.

The motivator factors are directly related to employee satisfaction. If this factor is present in the workplace, it will increase the performance level of the employees (Acquah et al., 2021). Recognition, opportunities regarding promotion and growth, responsibilities, and relevant work are the main factors of this motivator factor. If employees get work that enhances their knowledge and insist they work hard, then they feel more motivated, and it leads to job satisfaction.

In 1943 Abraham Maslow proposed a theory related to the motivational need of humans. It is known as Maslow’s Hierarchy of Needs Theory (Stewart et al., 2018). It discusses five needs that are related to the motivation of humans. These needs are physiological needs, safety needs, social needs, esteem needs, and self-actualization.

  • Physiological needs deal with the basic need of a human, which is related to air, water, food, clothing, and shelter. If these needs are fulfilled, then a human can opt for the next need.
  • The second need is safety needs, where humans search for physical, environmental, and emotional security (Fallatah et al., 2018). These securities can be related to their job, financial status, family, health, and many others.
  • Social needs deal with the need for love, affection, affair, relationship, bonding, presence, and many other needs related to the social acceptance of a person (Hopper, 2020). When all these needs get fulfilled, then that person wants the esteem needs.
  • Their esteem needs are of two types internal esteem needs and another is esteemed external needs. Internal esteem needs to deal with independence, self-respect, achievements, and self-confidence, whereas internal esteem needs to be related to social recognition, status, priority, and social power (Hopper, 2020). After the completion of all these five needs, an individual reaches the top of this hierarchy, which is self-actualization.
  • Self-actualization is the last and the top need of an individual (Fallatah et al., 2018). Very few people can reach this level. At this level, an individual desires to gain multiple knowledge about different things. He or she wants to do social work and become a creative person. Their choices get changed, and they love aesthetic things. This self-actualization has no limit (Stewart et al., 2018). At this level, a person wants to achieve different things continuously. This hierarchy of needs depicts the developmental process of an individual's needs according to time.

Herzberg's hygiene factor states the essential components for retaining employees and workers. If the company followed the hygiene factor appropriately, then Mr. Simon could have achieved growth in his professional career (Alrawahi, 2020). In accordance with the hygiene factor, Mr. Simon can be more productive when the workspace is cheerful, well-lit, and not overcrowded. Mr. Simon may have been more open to taking the initiative and experimenting with new methods of doing his jobs. With a stable employment agreement, Mr. Simon is more likely to feel invested in his job and the company. Employees like Mr. Simon are less likely to be stressed out and more inclined to put in extra effort when they feel secure. Job satisfaction and salary both tend to increase with experience. Employee satisfaction is high when Mr. Simon receives a deserved salary and sees room for growth in their career in terms of both pay and professional opportunities (Chiat, 2019). A welcoming and upbeat atmosphere is helpful for Mr. Simon, and having a positive work environment where individuals get along with one another and have a sense of belonging is crucial. Knowing the wage increase and bonuses that come with each promotion may also be encouraging. Mr. Simon strongly desires to develop and reach his full potential at work. Mr. Simon might feel valued and motivated when he gets positive feedback and prizes for his efforts. It may encourage him to keep up his excellent performance and output.

Using Maslow's hierarchy of needs, Mr. Simon may identify the need to be self-actualized or fully aware of his strengths and limitations to achieve the top of this motivating paradigm in the workplace (Trivedi, 2019). Employees' fundamental needs should be satisfied by accessing essential services and opportunities. Employees, in accordance with Maslow's philosophy, should prioritize their physiological and safety demands first. Mr. Simon may prioritize physiological demands, such as a reliable source of money and a feeling of safety, above other concerns. According to Maslow's actualization, one's efforts in the workplace are recognized and appreciated. However, none of these things happened for Mr. Simon at this company (Cui, 2021). Employee turnover and dissatisfaction with their jobs increase because of the above-mentioned reasons.

Organizations prefer formal degrees because employees give them the perfect tool for a company's financial success (Kianto, 2019). Formal education is required to generate new ideas in a company. Employees with formal degrees can give extra productivity due to their technical knowledge. The company will profit from the extra effort, and the yearly turnover of the revenues will increase. Employees who have extra degrees always care about learning new things. They are committed to the work and have grown as a professional. Employees have information on the economic situation of the business and its principles. They know very well how to increase the financial health of the organizations.

Mr. Simon has several skills, and he is also very hard working towards his work. Due to the lack of his formal degrees, this demotivation moment should not happen. As an effective leader, an individual keeps lines of communication open and should inspire him to do some courses regarding his work. In accordance with their professional duties and responsibilities, Mr. Simon has to do additional courses on different skills and competencies as well as software knowledge. As a leader, individuals must encourage Mr. Simon to attend several workshops. Through the seminars regarding technical knowledge, Mr. Simon can enhance his skills, and this will create a positive effect on the company's productivity (Saputra, 2021). Experience and technical skills help the company to come back to a hard-working and diligent employee like Mr. Simon.

The organization needs to focus on developing an inclusive environment and improving its pay structure which will help Mr. Simon to receive the deserved pay structure as per his roles and responsibilities (Luu, 2019). Furthermore, Mr. Simon has relevant knowledge, expertise and experience, allowing the business to increase its productivity and the quality of its products and services. The relevant skills and expertise of Mr. Simon are one of the reasons which indicate the retention of the individual in the company. However, in retaining Mr. Simon, appropriate achievement and support needs to be offered to the individual. Appropriate offering to the individual will help reduce the issues between Simon and the employer.


It is concluded in this essay that companies value formal education because it provides their employees with the skills necessary to boost the bottom line. Mr. Simon is talented in several areas and works exceptionally diligently. Employees with advanced degrees have an advantage in terms of output owing to the technological expertise they possess. Mr. Simon has the potential to develop his abilities, which will have a beneficial impact on the business' output. Mr. Simon is a hard worker and attentive employee, and his experience and technical abilities help the organization retain him is also concluded in this essay.


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Alrawahi, S., Sellgren, S. F., Altouby, S., Alwahaibi, N., & Brommels, M. (2020). Applying Herzberg's two-factor theory of motivation to job satisfaction in clinical laboratories in Omani hospitals. Heliyon, 6(9), e04829.

Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg’s two-factor theory. Life Science Journal, 14(5), 12-16.

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Chiat, L. C., & Panatik, S. A. (2019). Perceptions of employee turnover intention by Herzberg’s motivation-hygiene theory: A systematic literature review. Journal of Research in Psychology, 1(2), 10-15.

Cimini, C., Boffelli, A., Lagorio, A., Kalchschmidt, M., & Pinto, R. (2020). How do industry 4.0 technologies influence organizational change? An empirical analysis of Italian SMEs. Journal of Manufacturing Technology Management.

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Kianto, A., Shujahat, M., Hussain, S., Nawaz, F., & Ali, M. (2019). The impact of knowledge management on knowledge worker productivity. Baltic Journal of Management, 14(2), 178-197.

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Luu, T. T. (2019). Building employees’ organizational citizenship behaviour for the environment: The role of environmentally-specific servant leadership and a moderated mediation mechanism. International Journal of Contemporary Hospitality Management, 31(1), 406-426.

Saputra, F. (2021). Leadership, Communication, And Work Motivation In Determining The Success Of Professional Organizations. Journal of Law, Politic and Humanities, 1(2), 59-70.

Stewart, C., Nodoushani, O., & Stumpf, J. (2018, July). Cultivating employees using Maslow's hierarchy of needs. In Competition Forum (Vol. 16, No. 2, pp. 67-75). American Society for Competitiveness.

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