Behavioural Factors and Performance Management Effectiveness - Essay Example

BEHAVIOURAL FACTORS AND PERFORMANCE MANAGEMENENT EFFECTIVENESS IN MANUFACTURING FIRMS Introduction and Background of the study Performance management constitutes all the activities in the organisation that ensure that the goals of the organisation are consistently being met in a manner that is efficient and effective. Fundamentally, as Aguinis (2009) puts, performance management is the process through which a company aligns its systems, resources, and human resources (employees) to its strategic priorities and objectives. By definition, performance management is very important process in any organisation, since its overall impact has a direct effect on a company’s bottom line. The attainment of performance management effectiveness is, therefore, a huge step towards the alignment of a company’s systems, resources, and employees to its strategic priorities and objectives. According to Aguinis (2009), performance management effectiveness can be achieved through optimising the performance management systems within the organisation, and since the fundamental role of performance management systems (PMSs) is to assist in the management of employee performance, clarify objectives, and plan different developmental programmes, its importance towards the achievement of performance management effectiveness cannot be overemphasized. According to Armstrong & Armstrong (2009), the determination of performance management effectiveness can be measured using the various outcomes of the performance management process, in other words, to establish how performance management is effective, variables such as organisational congruence and coordination could be used. In the event that an organisation has better organisational congruence and coordination is perfect among other factors, then it can be concluded that such an organisation has achieved performance management effectiveness. Behavioural factors in an organisation can be defined as the study of individual and group performance, as well as activity within the organisation. It is generally the way people behave in the organisational environment in the face of work and interaction with other organisational members (Champoux, 2010). Behavioural factors in the organisation are some of the key contributors to a coherent work flow and efficiency in an organisation, taking into account the fact that human resource are the core of any organisation’s ability to sustainably meet its goals and objectives. Some of the important behavioural factors include effective communication, accountability, the relationship between the management and the junior employees, and leadership style among others. This study would seek to establish how the behavioural factors in a manufacturing organisation affect performance management effectiveness. Performance management constitutes variables such as performance measurement, goal setting, and monitoring, and what this study would seek to achieve is to determine how the aforementioned behavioural factors affect the different performance management processes, and thus, its effectiveness. Demartini (2013) emphasizes the important, yet under researched or underexposed impact that behavioural factors have had on the effective use of PMSs (performance management systems). Aim and objectives This study would aim at establishing how different behavioural factors in the organisation can influence or affect performance management effectiveness. The following are the specific objectives that this study would seek to achieve: i) To determine how accountability in the organisation influences performance management processes ii) To ascertain the role of effective communication in coordination and strategic focus among the management iii) To establish the role of the management style in facilitating the motivation of employees towards the achievement of strategic goals iv) To determine how employee attitudes and perceptions influence their commitment towards the achievement of organisational goals. v) To ascertain the impact of supervisor-employee relations on work commitment and strategic implementation effectiveness. vi) To ascertain the role of supervisor-employee relations in motivating of employees towards the achievement of strategic goals Research questions 1. How does accountability influence performance management processes in the organisation? 2. What is the role of effective communication in coordination and strategic focus among the management? 3. What is the role of the management style in facilitating the motivation of employees towards the achievement of strategic goals? 4. How do employee attitudes and perceptions influence their commitment towards the achievement of organisational goals? 5. What is the impact of supervisor-employee relations on work commitment and strategic implementation effectiveness? 6. What is the role of supervisor-employee relations in motivating of employees towards the achievement of strategic goals? Problem statement Studies such as Tuffley (2013) and Champoux (2010) have suggested that behavioural factors in an organisation are crucial, as far as the effectiveness of the performance management process is concerned. This is because these factors have a direct effect on the effectiveness of the performance management process. Nevertheless, there has generally been limited literature in this respect, and studies have hardly covered this area conclusively (Demartini, 2014). The importance of performance management systems in the organisation, as implied herein, cannot be overemphasized, and if there are any organisational factors that affect PMS in any way, then it is imperative that the management is aware of these factors, and has devised interventions of how to control their effect. A large proportion of the studies such as Aguinis (2009) and Champoux (2010) that have covered these two fundamental variables; behavioural factors and performance management effectiveness, have had inconsistent results. The inconsistency and the lack of conclusiveness results from the fact that different studies use different behavioural factors, in that in one study, the variables considered to be important in influencing performance management effectiveness are not considered so in another study. Elzinga & Kluijtmans (2010) reiterate that one important finding as far as these variables are concerned is the fact that “the number of important behavioral factors varied between studies”. This study would seek to fill this significant gap in literature and empirical evidence about how behavioural factors such as accountability and communication among others affect performance management effectiveness. Significance of the study This study would take both empirical and theoretical approaches in an attempt to establish the type of relationship that exist between organisational behavioural factors such as effective communication, accountability, the relationship between the management and the junior employees, and leadership style among others, and performance management effectiveness. (Nielsen, Hunter & American Evaluation Association, 2013). in his study emphasises that behavioural factors have a significant impact on an organisation’s performance management systems and their effectiveness. There are a few other studies such as Tuffley (2013) and Champoux (2010) that have attempted to establish the relationship between these two variables using empirical evidence, but as reiterated herein, most of the results or findings in these studies have been inconclusive and generally inconsistent. This study would seek to shed light on the relationship between these variables, since they are, clearly, crucial not only for manufacturing companies to achieve their objectives, but also companies from different industries. The establishment of this relationship would make an immense contribution to the body of knowledge, and thus, this research is very important as far as the contemporary organisation is concerned. LITERATURE REVIEW Introduction The effectiveness of performance management, according to Saad, Rosenthal-Sabroux & Gargouri (2014), is directly proportional to the ability of the company to achieve its objectives within the constraints of time and resources. Behavioural factors are hypothesised to have a significant influence on the effectiveness of performance management, and this section would review the literature in that respect. A critical analysis of extant literature would, hopefully, give insight on the various ways the different behavioural factors in an organisation affect the effectiveness of performance management systems. In order to establish this relationship, this study focuses on the various behavioural outcomes such as job satisfaction, role clarity, improved strategic focus among executives, the citizenship behaviours of the employees, cooperation and coordination among the organisational members, learning, self-monitoring, and decision-making. The aforementioned factors or outcomes constitute performance management effectiveness, and by focusing on the intrinsic influences of these factors, this study would be able to ascertain the type of relationship that exists between performance management effectiveness (behavioural outcomes as pointed out herein) and behavioural factors in the organisation, and some of the behavioural factors in this study would be communication, managerial/leadership styles, and accountability among others. Some of the intrinsic influences of, for example, the leadership style in the organisation, could include a motivated workforce, which could in turn affect any of the behavioural outcomes referred to herein. Concisely, this chapter would investigate the seemingly complex relationship that exists between these variables with the help of theories and other extant literatures. There has been a wide array of suggestions from different researchers such Franco-Santos et al. (2012) on how the effectiveness of performance management systems can be measured, and part of how includes the various ways PMS affects people’s behaviour, and organizational capabilities, and performance. However, this study elects to critically analyse only such extant literature in this section that helps to determine how exactly behavioural factors affect performance management effectiveness Conceptualisation The focus in this study would be to find out how variously the different behavioural factors can affect performance management effectiveness. In that respect, the independent variables in the study would be behavioural factors, while the dependent variable (s) would be performance management effectiveness. In order to answer the fundamental research questions in this study, as well as test and conclude hypotheses, it is vital that the specific behavioural factors are identified, and that the various performance management effectiveness-associated variables determined, and these would mainly constitute the outcomes of performance management effectiveness. In a bid to fathom how the independent variables affect the dependent variable, this study would focus on a few intermediate variables, that is, variables that affect the dependent variable in some way, or the intermediate form of a dependent variable. As far as performance management effectiveness is concerned, performance management information or data, performance management systems (PMSs), and other performance management processes in general are all constituents of the intermediate variables that contribute to or influence performance management effectiveness. In other words, the proper and effective use of performance management systems (PMSs), the strategic utilisation and availability of performance management information or data, and general effective use and management of the performance management process positively contributes to the achievement of PM effectiveness. The following is the representation of the conceptual framework that would be used in this study: Based on the above conceptual framework, it is important to highlight the specific dependent and independent variables, and in this case, the behavioural factors, being the independent variables constitute accountability, communication, the managerial style or the leadership commitment, employee perceptions, and the supervisor-employee relationships. The dependent variable, performance management effectiveness, would be explained in terms of the behavioural outcomes, and this would constitute the impact on strategic focus among executives, the impacts on coordination, employee motivation, role clarity, the learning process, effectiveness in decision-making, and self-mentoring among others. The intermediate variables such as performance management processes would constitute goal setting, performance monitoring appraisal, performance measurement quality, performance standards, performance based compensation, and decision making among others. These variables would facilitate the establishment of a relationship that exists between behavioural factors and performance management effectiveness in a manufacturing organisation. The above diagram represents the detailed conceptual framework: Conceptualisation of behavioural factors affecting PM Organisational behaviour is basically how people in the organisation behave as they carry out their various duties, and how this can affect the ability of the organisation to achieve its objectives. How people behave and their attitudes towards organisational goals is fundamental to coherence and effective performance, and some of the activities that constitute organisational behaviour include, among others, the leadership style, communication, and accountability. Accountability According to Hutchinson (2013), employee accountability can be defined as the responsibility that employees take to complete the tasks that they are assigned by carrying out the duties that are required by their respective jobs, and to always be present to fulfil or further the organisational goals. Accountability in the organisation, according to Demartini (2013), facilitates performance monitoring, as well as self-monitoring. These two processes, which are constituents of performance management effectiveness, involve ensuring that the organisational goals are met consistently and in an efficient and effective manner. Communication Communication is yet another behavioural factor in the organisation, and this could be communication amongst employees, or communication with the senior members of the organisation. The inability of the employees to communicate effectively with each other, or the communication amongst departments, or even from managers to employees, could lead to major mistakes and low work efficiency. This will also, therefore, affect the performance measurement, goal setting, and the decision-making process, all of which are constituents of PM. Communication basically exchange of ideas. Constructive information that is formal and regular is very crucial in performance management since goals and objectives have to be communicated to the employees. It is an on-going process between the employee and the supervisors that involves establishing clear expectations (Tuffley, 2013). This means that without communication or effective communication for that matter; then there can hardly be anything effective in the organization. Aguinis (2009) points out that without effective communication in an organisation, there would be no coordination and cooperation among the organisational members, and there would certainly be no effective decision-making process taking into account the fact that information is key to any decision-making process. Poor communication within the organisation will negatively affect the flow of information, and work will not only stall, but also its quality would significantly go down, and this hurts the organisational bottom line.in other words, the achievement of performance management effectiveness is dependent on communication within the organisation. Managerial/ leadership styles Demartini (2014) defines management style as an overall method of leadership the managers in an organisation use, or generally, the manner and approach the managers use to give direction, implementing different plans, as well as motivating people. Leadership style determines how well activities are coordinated, as well as how motivated and committed employees are to their jobs. Good leadership could significantly contribute to effective better strategy formulation and execution, enhanced relationship between employees and the management, as well as better coordination in the organisation (Fiabane et al, 2013). Since performance management is fundamentally the ability of company to align its resources, systems and human resources to strategic priorities and objectives, the leadership style has a direct impact or effect on PM. This is because with poor leadership style, the resources of the company, and more so, the human resources would not be utilised optimally, and thus, the company would lose such an ability to a significant extent. The management style applied needs to encourage open communication between the supervisors and the management, and most importantly, the frontline workers. Their relationship, however, needs to remain formal and guided by respect for each other’s position. About attitudes, relationships influence the employee’s attitudes toward performance management. The most important thing is to gain the commitment of line managers in the manufacturing firm having ensured that they have what it takes to manage effective performance. Good line managers can make an unreliable performance management work, or simply put, they have the capability of influencing positive change in the organisation. Performance management’s success certainly relies on the capability of superior managers to bring the management policy to life and use it to foster commitment and ultimately improved performance (Tuffley, 2013). Tuffley (2013) points out that all organisational processes are, in one way or another, affected by the type and quality of leadership in that organisation. The construct of leadership and management overlap, where the leadership process constitutes a process where an individual, a leader, influences a group of people to achieve a common goal, while management is the process of planning, staffing, organising, and controlling in an effort to get the job done. Eppinger & Browning (2012) argues that performance management effectiveness could lead to improved strategic focus among employees and executive, better motivation among the employees, and coordination and cooperation among the organisational members. These are the factors that can directly be influenced by the type and style of leadership in an organisation. Therefore, the management style has a significant relationship with the performance management effectiveness. Saad, Rosenthal-Sabroux & Gargouri (2014) reiterate that the role of leadership and management in the organisation can be compared to the role of a pilot in a plane, since the direction and the decision-making process is supervised and goes through the managers and the leaders in the organisation. Concisely, management style, or leadership style as a behavioural factors significantly impacts the effectiveness of the performance management processes in an organisation. Supervisor- employee relations The role of a supervisor, according to Patton & McMahon (2014), is to oversee employees as their carry out their various duties in the organisation, and this includes ensuring that every last of the employees is doing their role to the best of their abilities. The type of relationship between employees and their supervisors would determine the type of cooperation that exists between these two parties, and according to Eppinger & Browning (2012), an optimal supervisor- employee relationship is one in which there is effective communication and understanding between the parties. A coarse relationship, in some cases, leads to a vindictive workforce that is not only unmotivated, but also uncommitted in the work towards the achievement of strategic objectives. Employee perceptions and attitudes Patton & McMahon (2014) argues that employee perceptions and attitudes are directly proportional to their commitment to work. In order for a company to improve strategic focus among executives, facilitate cooperation, as well as coordination among organizational members, and motivate towards the attainment of strategic objectives, it would need the cooperation of its most important resource; the human resource. Siegert & Levack (2014) reiterates that in order for employees to significantly participate in enhancing performance management effectiveness, and generally contribute towards the achievement of the company’s strategic objectives, their attitudes towards the management, the supervisors, and most importantly, work, is very vital. THEORETICAL FRAMEWORK A number of theoretical models relate to performance management in the organisation and the behavioural factors . One of these is the systems theory, which suggests that many areas within the organisation are interrelated in different ways. Sometimes small changes within a given segment could result into a huge change, a factor that demonstrates that every facet of the organisation has its own role in the overall functioning of the organisation. Systems theory represents the trans-disciplinary relationships between organisational phenomena, whether temporal, or spatial (Patton & McMahon, 2014). Deductively, the systems theory highlights the importance of the employee and how he or she perceives his or her work in the organisation in facilitating effectiveness in the organisation. Employee behaviour is, therefore, a significant area of focus as far as performance management is concerned, since the attitude and commitment of employees towards their respective roles would affect how they communicate, coordinate, and cooperate. The behavioural management theory is one of the organisational behaviour theories that complement the systems in explaining the various ways through organisational behaviour can affect performance management systems. According to Spillane, et al (2013), the behavioural management theory is based on the notion that managers are in the best position to understand the human aspect to workers, and thus, are able to treat employees as important assets, as far as the achievement of goals is concerned. This theory backs the importance of the management style in shaping employee behaviour, which in turn, influences the nature of contribution the workers will make towards the achievement of organisational goals. Eppinger & Browning (2012) argues that managers can directly influence the attitudes of the employees towards work, and this attitude is fundamental in the achievement of effectiveness in performance management systems. This is based on the fact that a positive perception of employees toward work would most likely result to a situation where employees coordinate and cooperate better, communicate more effectively, and are more motivated in participating in the achievement of strategic objectives. These are all constituents of performance management effectiveness, which is why Aguinis (2013) asserts that behavioural factors in any organisation have a direct impact on the success of performance management systems. It can be deduced from most of these theories that behavioural factors in the organisation could influence a number of facets of performance management, for example, good attitudes towards work by the employees could go a long way in facilitating cooperation and coordination among the organisational members, self-monitoring and effective decision-making. Siegert & Levack (2014) point out that behavioural factors contribute to better strategic planning and implementation and as such, result to effectiveness in the performance management process. HYPOTHESES H1= the type and effectiveness of communication in an organisation facilitates coordination and strategic focus among the management team Effective communication is, in many ways, a rudimentary prerequisite for the attainment of goals in the organisation, and no organisation can generally exist without communication. This is because there would be no coordination, and with no coordination, work would collapse H2= the management style significantly contributes towards employee commitment and motivation In their administration of their brand leadership, managers can incorporate their own style, and this variously motivates employees. This happens when the employees become confident in the abilities of the manager to make decisive decisions. They also become comfortable with the manager’s knowledge of the industry, and in such a case, motivation is derived from the manager’s capability to lead. Employee commitment is also a resultant effect of the management style to a significant extent. H3= good supervisor-employee relations have a significant positive impact on employee commitment and focus on the strategic objectives The supervisor has a very strong effect on how an employee perceives the workplace and the gusto with which they are committed to their job. Good relationships between the supervisor and the employees might result not only in the commitment to work, but also an overall focus on the strategic objectives of the company. H4= employee attitudes and perceptions have a significant impact on employee commitment towards the achievement of organisational goals An attitude could make a huge difference in how well an employee works with teams and thus, contributes to the achievement of organisational goals. It is the role of the management to ensure that there are appropriate attitudes amongst the workforce, since there is a positive correlation between employee commitment and attitude. H5= accountability significantly affects self-monitoring thus facilitating better decision-making in the organisation. The ability of employees to successfully complete the various tasks they are assigned to, and their ability to perform the duties that are required by their respective jobs would most likely result to employees who are high self-monitors and thus, better decision-makers. H6= Supervisor-employee relations have a significant effect on the employees’ levels of motivation towards the achievement of strategic goals. Supervisors or the bosses influence not only the perception of the employees towards work, but also their gusto towards the completion of their respective tasks. A supervisor who is able to forge a good relationship with his employees would most likely motivate them in the face of work, and thus their determination towards the achievement of strategic goals. Conceptual/Analytical Framework for the Study The independent variables are behavioural factors, and they include accountability, communication, the managerial style or the leadership commitment, employee perceptions, and the supervisor-employee relationships. The dependent variable is performance management effectiveness, and this would be explained in terms of the behavioural outcomes, and they include the impact on strategic focus among executives, the impacts on coordination, employee motivation, role clarity, the learning process, effectiveness in decision-making and self-mentoring etc. in the analysis, the study would seek to determine how much influence the IVs have on the DV through the analysis of relevant data collected in the subsequent chapters. Theories of Variables The theories in this study are the systems theory and the behavioural management theory. The systems theory suggests that many areas within the organisation are interrelated in different ways, such that in some cases, small changes within a given segment could result into a huge change. This theory represents the trans-disciplinary relationships between organisational temporal or spatial phenomena. The behavioural management theory, on the other hand, is based on the notion that managers are in the best position to understand the human aspect to workers, and therefore, are able to treat employees as valuable assets in order to achieve the goals. Theoretical Premise of the Study The two theories address the main variables in this study. The systems theory explains how the functioning of every facet in the organisation is important for the overall success of the organisation. This is the trans-disciplinary relationships between organisational temporal or spatial phenomena, and to a large extent, explains performance management and performance management effectiveness. The behavioural management theory focuses on employee behaviour, which constitutes the IVs in this study. Variable Prediction Framework Using linear regression, this study would use independent variables (IVs) to predict the dependent variable (DV). Using SPSS, Multiple linear regression tests would be used to test the hypotheses based on the collected data. In other words, regression would be used to determine the extent to which IVs influence the DV. References Aguinis, H. (2013). Performance management. Boston: Pearson. Armstrong, M., & Armstrong, M. (2009). Armstrong's handbook of performance management: An evidence-based guide to delivering high performance. London: Kogan Page. Aguinis, H. (2009). Performance management. Upper Saddle River, N.J: Pearson Prentice Hall. Champoux, J. E. 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