Sports Direct Case Study

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In this assignment, both control in the workplace and work satisfaction dimensions will be analysed at length. Relating them both to the case study of the Sports Direct Company and other relevant organisational theories; such as scientific management. Sports Direct was founded in 1982 by Michael Ashley in Maidenhead. In 18 years, ‘Mike’ Ashley expanded internationally opening stores in Belgium, and just seven years later listed his company on the London stock exchange. It was that listing that really kick-started Sports Directs’ exponential growth. 2 years later in 2009, Sports Direct established market leadership after their sales exceeded £1.0bn (Sports Direct, no date given). This information presents Mike Ashley as an entrepreneurial genius, …show more content…

This means the other way in which Sports direct can extrinsically motivate their workers is through either extrinsic rewards; “valued outcomes or benefits provided by others, such as promotion, pay increases…” (Huczynski & Buchanan, 2013, 306) or punishment for lack of work. This was shown in the “pick rates” scheme mentioned, if workers did not meet set targets a series of times in a row they would lose their job. The more commonly used method of motivation is the opposite of this; extrinsic rewards. This maintains both worker satisfaction as well as motivating workers to increase output and efficiency. However, whilst this method of motivation maintains both, it is more costly for the business; due to paying extra bonuses, and is not as effective as punishment. This is because not all workers will want to work harder to earn bonuses. Some may be content with their current output and wage, whereas all workers will be forcefully motivated if their employer threatens to fire them for low …show more content…

The employment agency even has offices in the Shirebrook Headquarters; they manage the workers from day to day, including hiring and firing. As workers are employed under zero hour contracts, they are seen under law as a worker, not a temporary employee and so is assumed that the worker receives regular work and income. This means that they do not receive the same privileges, most importantly, they are not protected from unfair dismissal and don’t have to be given any notice. In the case of Sports Direct, more than 14,500 of their workers (over three quarters of their workforce) have no option but to live on zero hour contracts. One of these workers said “You work under the impression that you could lose your job from day to day” (Dispatches, 2015: 49:24mins). This is a problem because it leaves many employees working under a constant lack of job security and can be highly demotivating; why put maximum effort into working for a firm that could fire you

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