Organizational Theories to Enhance the Performance of Individuals and Groups - Essay Example

Organizational Theories to Enhance the Performance of Individuals and Groups Abstract The organizational theories are broad and address certain areas, which highlight their similarities or differences in management and organization structures. Managers faced with challenging problems related to performance have to selectively apply certain principles from the organisational theories, if the performance is to be enhanced in production quality, quantity, or financially in the organization. Increased performance results from various integrations of organisations aspects dealing with leadership and employee management. This document discusses some organisational theories and ways in which the managers can boost the performance of individual and group employees. From the classical theories, performance could be realised after division of labour, to develop specialization and departments of different tasks to be carried out by different groups of people. This enhances quality output according to the expected standards. Motivation through monetary means and management functions in enhancing performance are also elaborated. The modern organisational theories put across ways of changing the organisation structure, and developing the human potential as effective ways to spur performance. Keywords: Performance, Organisation, Employees, Managers, Specialization, Division of Labour, Money, Functional Areas, Management Functions, Social Welfare, Technology, Innovation, Human Resource Introduction Performance is one critical area that managers should be sensitive towards, so as to benefit the organisation. It is a domain that challenges managerial functions and its success or failure extends to be felt in other linked sections of the organisation. Hence, the management has to come up with logical and focused initiatives to enhance performance and overcome the challenges in implementation and performance management. Organisations have their authority, culture, information and the acquired knowledge, as well as the motivational coordinated mechanisms to achieve their objectives. Often, the organisation structure could vary from one another with some working with the formal line of management, while others are less formal; as a result, they differ in hierarchical structures and strictness in compliance to objectives. However, with the current trends of globalisation, managers have to be keen and tactical to address the organisations problems in performance and decision making. This is because the markets, productions, sales and distribution in dealing with goods and services have become very competitive. Due to these factors, management has been categorized in different levels to lead in specific sections, such that the coordinated efforts of different managers and their teams can be integrated to enhance the general performance. Different managers use distinguished strategies involving their experiences, to make the individuals, groups, and themselves more insistent on performance. According to McCauley, Duberley and Johnson, the managers then apply the specific organisational theories relevant to their practice, to provide them with theoretical frameworks, which they would deploy to achieve best competitive advantage, and influence the behaviour of subordinates to enhance performance (2007). There are numerous ways brought forward through the classical, neoclassical and modern organisational theories to influence organisation’s workforce, affect leadership, motivation, specialization and social welfare domains. Classical Theories Specialization. Until now, there are those competing firms that use less formal organisational structures in the line of management and productivity. Such organisations thrive in the competitive nature of business, but experience hardship in performance, since the workforce was not specialized to its best performing sections. Although some thrive even with a single manager handling the different issues, the general performance could be increased with division of work to achieve specialization, which generally shapes the efficiency of the skilled worker. According to the Weber’s bureaucratic organisation theory, the organisation work is divided into different jobs which can done by different people, making efficient use of labour and increasing expertise from repetition of tasks (Griffin and Moorhead, 2010). In this case, the HRM would take measures in the selection criteria, to ensure correct people are recruited for specific tasks. The specialization strategy gives an organisation its shape, setting groupings and departments from the distinguished tasks, which generally increases performance and quality output when the efficiency and expertise is brought together. The bigger the organisation, the greater the need for labour division and departments to manage the workforce and performance, in terms of quality production to meet the expected standard. Sometimes the line of communication among employees is hindered by the lack of coordination among them, but with departmentalization, this would be eliminate as employees producing a particular product or service could enhance in interaction and communication. Today, many political and economical organisations apply the bureaucratic organisation theory principles, because it contributes heavily to performance through clear specifications of responsibility and authority within the organisations. Money as motivation. The employees need to be motivated in performance, least they become bored or seek alternative means to satisfy their needs. Businesses need to identify a particular period or opportunity, which they can boost their employees financial status to spur them in work. Taylor in the scientific management theory proposes the use of monetary rewards to motivate employees for high yields in the organisation, using the most hardworking individual to set the pace for others in production (Needham et al, 1999). Although most organisations would not risk choosing the strategy for the sake of keeping the profit, certain departments like sales and marketing really do well with the method. The sales and marketing agents could be entitled to commissions and bonuses after a specified period by the organisation (normally annually), setting the mood of good performance all through so as to get worthy bonuses and commissions. However, managers need to take measures and combine other reputable programs to avoid the perspective created that the employees are being used only for the gains of the organisation. Management functions. The managers and supervisors are the lead targets here, who have to calculatedly use their specific functions according to the power vested by the organisation, to keep check of the performance in specific functional areas. The classical administrative theory as propounded by Fayol defined a clear chain of command, using the top down approach of communication, assigning a specific number of employees to a manager, so that each employee receives commands from one direct boss (Needham et al, 1999). Managers can draw on this principle to eradicate conflicts in lines of communications from the different functional areas. Fayol’s design to enhance productivity brought in the processes of planning, organizing, leading, coordinating, and controlling, which is well embraced in most modern organisations, but very critical for the managers especially those in high level (Karim, 2010). The managers are held accountable of resources and people, of which there should be parity between the authority and responsibilities in the role. He/she becomes open to challenges from the employees, who are encouraged through the freedom to come up with initiatives, plan, and execute them. The principles instil discipline among leaders in organisations and once employed, the performance in production could improve as proper monitoring methods and control and rectifying mechanisms could be implemented, after the top officials (managers) have taken time to plan and organize, coordinate properly, issue commands, and lead as examples. Modern Organisational Theories Developing human potential. Opposed to the classical money motivational method, other measures could be used by the management to spur individuals and teams, without necessarily being financially attached. Since both the organisation and the employees need each other, it would be of benefit if the humans found satisfying work, while the organisation acquired the human ability and energy it needs to avoid exploitation of each other. Human resources are as important as the organization itself, and everyone as an individual or group have their welfare and social life that has to be catered for; hence management and organizations should allow employees to grow and develop, to facilitate flexibility, creativity, and prosperity felt in the organization ( “Summary of organizational,” n.d). Managers could use ideas from the human resource theory, on other alternative ways to handle and motivate the organization’s workforce. For example, an employee could be experiencing certain emotional disturbance arising from social affairs; it is logical for such issues to affect his performance in work, and could be resolved through counseling or comforting by other employees, or active involvement of the managers/ supervisors in social welfares. The management should be willing to listen to employees issues and provide feedback, and to make the correct progress and room for negotiations in case of conflicts. Sometimes employees need rest, motivation outside the work domain (for example sports or socializing), promotions, and perhaps more training opportunities to boost their knowledge and expertise. Most managers fail to identify some of these factors, which make room for growth, and as a result, the employees just lead a boring life and their general performance drops. They all need to satisfy their needs, feel appreciated, loved, and cared for; all these detailed variables impact in their motivation and eventually in productivity. Organizational changes. The challenges experienced in organizations take different forms, some being similar and can be solved using a particular method, but others exist in their own form in different situations. As a result, the contingency approach in modern organization theories states that there exists no managerial action, or organizational design in place that fits in all situations to solve the problems, instead the organizational design should be tailored to fit a particular unit or enterprise, after considerations of the needs, desires, requirements of the situation, and internal and external factors, which influence the organization structure (Murugan, 2004). Therefore, managers should be flexible to facilitate change in organizations and their employees. The modern organization theories push the managers to be forward thinkers and adaptive to thrive in any environment. Managers could steer organizational change depending on the varying environments, so as to have less rigidity, flexible for employees to work in, due to the dynamic conditions they experience in their jobs. The organization may need to have an informal element within the formal organization structure, to reach out to situations that cannot be achieved through the use of formal organization rules and policies; such a principle can be used by managers and their teams in marketing departments, although this should be carefully handled not to overrule the organization’s principles. The management needs to make continuous improvement and new inventions in organizations to support employees’ functions, and increase quality in performance. Technology should be the center piece of such organization changes, through re-engineering activities and innovations. People also need to be reshuffled to foster better performance and their changes in environment, with respect to the operating organization size. The technology has come up with improved hardware and software to be used in organizations, and run with the support of the staff. This is quite costly in the beginning, but reduces cost in the long run for many organizations. This means that the performance increases in terms of profits made, after investment in technology. According to Gaines et al, the radical change in technology, globalization, and hyper competition, especially the knowledge and service industries, whose employees’ innovation and creative ideas are essential in organization knowledge, which provide sustainable competitive advantage (n.d.). Managers need to boost their department and functional areas by use of information systems or automated equipments. Conclusion There are numerous organizational theories, but each has its benefits and weaknesses in application. The mangers have a responsibility to know the best practices to apply in their situations, and according to the organization and its employees’ needs. Therefore, the performance experienced through quantities, qualities, and profitably among others has to be an integrated effort of leadership, employees’ flexibility, commitment, and will to perform. Individual and group employees’ behavior, skills, and ability should be effectively controlled, to channel the positive energy in enhancing performance. Reference List Gaines, C., Hoover, D., Foxx, W., Matuszek. T., & Morrison, R. (n.d.). Information systems as a strategic partner in organizational performance. Journal of Management and Marketing Research 1-17 Retrieved from http://www.aabri.com/manuscripts/11997.pdf Griffin, R. W., & Moorhead, G. (2010). Organizational Behavior: Managing People and Organizations. 9th edition. Manson, OH: South Western Cengage Learning. Karim, T. (2010, March 31). Administrative theory of management/Principles of management: B-COM Part-2 Management notes. Retrieved from http://www.friendsmania.net/forum/b-com-part-2-management-notes/28385.htm McCauley, Duberley, J., & Johnson, P. (2007). Organisational Theory: Challenges and Perspective. Retrieved from http://www.nimarket.ir/pdf/modiran90/Organization%20Theory.pdf Murugan, M.S. (2004). Management Principles and Practices. New Delhi: New Age International publishers. Needham, D., Dransfield, R., Hariss, R., Coles, M., & Rawlinson, M. (1999). Business for Higher Awards. 2nd edition. Oxford: Heinemann Educational Publishers. Summary of Organizational Theory (n.d.). Retrieved from http://www.doreburry.com/papers/Analysis_of_Org_Theories_Read_Disclaimer.pdf Read More