Organizational Performance - Assignment Example

i Organizational Performance ii Table of Contents Sl No. Particulars Pg. No Executive Summary & Power Point Object 2 Section A: Difference between Intrinsic and Extrinsic Motivation and their effect on Job Satisfaction and Performance B: Difference between Leadership and Management Styles and their effect on Individual and Organizational Behavior C: Professional, Ethical and Legal Issues 1 4 6 3 Section 2 A: Difference between Working as a Part of a team and an Individual B: Difference between a Group and a Team, Key Factors Affecting the Performance of a Team and Suggestions 6 7 4 Conclusion 9 5 References 10 6 Appendices 11 1 Executive Summary: Motivation is an important tool in the hands of a leader or a manager. It is the way they use the tool that their team performs. An extensive study is being carried out regarding: Motivation, Leadership and management styles, Differences between individual and team performance Differences between groups and teams Positive and negative issues which need to be identified in groups and teams so that performance can be enhanced. A brief summary of the study is reflected in the conclusion part for comprehensive understanding of the whole assignment. Through the study, we find that motivation is an important tool which needs to be used over individuals, groups and teams to enhance organizational performance. Section 1-a: Difference between Intrinsic and Extrinsic Motivation and Their Effect on Job Satisfaction and Performance: Organization is by the people who work in it. The better motivated are the people, the more chances of its sustenance in future. Motivation can be created either intrinsically or even extrinsically. Intrinsic motivation: It is the urge which the employee feels within him/herself. Intrinsically motivated employees derive their contentment in terms of affecting perfection in their job. 2 Extrinsic motivation: It is a general atmosphere which the management creates in the organization to explore their employees’ potential to the ultimate extent. Extrinsically motivated employees try to match the job standards of intrinsically motivated people and may even struggle to exceed those levels for the fulfillment of some desires which can be possible by the rewards which they may receive due to such performance. Usually, upon observing the extrinsically motivated employees, even the intrinsically motivated people may start to improvise on their perfection for attaining such extrinsic benefits. A manager should understand the types of motivation he should employ according to the personality of the employee and behave accordingly. The same differences can be tabulated in the Appendix 1. (Quinn. S., 2010) The point where intrinsic and extrinsic motivations get exchanged is the ultimate place for job satisfaction and performance. However this goal can never be explained arbitrarily. It has to be explained in terms of processes which have been enumerated in the following theories: Maslow’s Need Hierarchy: Every human being has 5 levels of needs, one superior to the other as explained in the Appendix 2: It is the tendency of every individual to try and satisfy the needs from the bottom of the triangle to the top. Once the physiological needs get satisfied, he moves on to the security oriented needs and so on. As he starts moving higher up, the extrinsic rewards for which he was earlier motivated should be accompanied by his intrinsic motivation to achieve job satisfaction and performance. There is a natural tendency to move up and down the triangle continuously according to the circumstances. 3 Herzberg’s theory of hygiene and motivation: Factors of hygiene contribute to the extrinsic motivation and constitute of work conveniences like good relationships with peers, supervisors, salary etc. Their absence could result in dissatisfaction while their presence only leads to neutrality. Job satisfying factors are involved with job performance, work nature and performance. Their absence would give neutral result and presence, a positive motivation. Both the factors are essential for job satisfaction and ultimate performance. Theory of equity: There are two instances. Firstly, people compare their equity to their reward. Secondly, they compare their reward to their counterparts and the equity foregone by them for earning it. If they feel that they have foregone less equity, they feel motivated. Theory of expectancy: There are three questions of expectancy in the worker’s mind. Will I receive a reward if I increase my performance? Will my increased performance change the mind of my employer to bestow reward to me? Would the reward be valuable? (Quinn. S., 2010). Here, it may be noted that a reward which may sound to be valuable to one may hardly be of any importance to other. This difference arises due to their intrinsic and extrinsic mindsets. Sometimes reward announcements may themselves be distracting that an extrinsically motivated employee may only dream of those rewards and never concentrate on the work performance. Then, care should be taken to ensure that the products/services rendered by him should be of required standards. The worker should be: Sure that he can perform the job satisfactorily Have clarity of its perfect execution Sure that he will rewarded satisfactorily He should crave for that reward. 4 All these developments are of recent 25 years where rewards are not yielding commensurate responses from the workers. Leaders understand these mismatches and manage the things to ensure the smooth running of the organization. Thus, leadership and management styles play a major role in involving the employees and extracting the right performance. Section 1 – b: Difference between Leadership and Management Styles and their Effect on Individual and Organizational Behavior: The differences are listed in the Appendix 3. Leader can be effective when he preaches management and follows leadership skills. Thus, both leadership and management are necessary for survival and development of the organization. (Leaggard J. & Blindslev, M., 2006). A further study of leadership and management styles could help us in the analysis: Leadership styles are classified by many theorists basically to describe the possible reactions of the leaders according to the situations they face. The primary classification could be named as: Autocratic, Participative or free-rein (democratic) These are representative of their meanings and leaders may sometimes change their styles according to the situations. This is called situational leadership. The styles can further be refined to follow the model of continuity wherein leaders act according to situations and the sub-ordinates understand such behavior. (Prasad. L.M., 2006). 5 There are also types of: Transactional leadership: Which may be autocratic as it pursues a cost benefit for every action from the leader Transformational leadership: Which may be more focused on identifying the higher needs of the worker and directing him towards their achievement Charismatic leadership: Leaders are followed by the people due to their charisma Situational leadership: Leaders take the lead according to the situation. (Dems. K., 2011) & (Babou, 2008) The Examples of Leadership Styles are given in Appendix – 4. The management styles in relationship to leadership could be referred as: Autocratic and exploitative Directive and autocratic Permissively participative and Permissively democratic (Anon, 2012) Here autocrats in any combination, make decisions unilaterally but under permissive circumstances, give space for the sub-ordinates to act in his independence. Democrats participate with the employees and try to extract their ideas rather than impounding their own thought process. They work closely with their sub-ordinates. Permissive management style gives more independence to the sub-ordinates and is more result-oriented in higher rungs of management. 6 Section 1-c Professional, Legal and Ethical Issues under different leadership and management styles: The leadership and management styles have to be studied in parlance to the individual and organizational behavior as in Appendix - 5. Thus, the individuals who are supervised also act accordingly. We find through research that subordinates under participative and democratic styles are more geared to achieve results than autocratic styles. The organizational behavior and culture is more encouraging in the participative and democratic leadership management styles with high performance orientation. Moreover, where autocratic leadership and management are experienced, the professional, legal and ethical issues are more in number. The subordinates feel suppressed and try to involve company’s name in incomprehensible issues to ensure their job security. The organizational money and time are usually spent in this chaos’s resulting in low productivity. It is the duty of the leaders and managers to train the employee’s brains to work in legal and ethical manners to solve operational problems which is possible only through successive interactions. Thus, participative and democratic styles encourage dialogue to ensure professional, legal and ethical organizational behavior which later transforms into its culture. (Goleman. D., 2000). Section 2 -a: Difference between Working as a Part of a Team and an Individual: There are no specific theories which explain about the difference between working as a part of a team and an individual. But, a closer analysis is depicted in the Appendix 6 which helps in understanding the situation. (Martochio J.J., (2005)) 7 Thus, we can understand that it is easier to align individuals in a team rather than independently and evaluate their performance. It would be more beneficial for an individual to work as a part of a team rather than an individual. While working as a team, they also tend to enjoy the benefits of shared responsibility and limited risk of work completion. (Anon., 2011). However, team performance is not guaranteed by its own. Teams are also made up of individuals and so, they need to be handled individually to ensure team performance. A case study, in this matter, as an example, would give more understanding regarding this topic which is elaborated in the Appendix 7. Section 2 –b: Difference between a Group and a Team, Key Factors affecting the performance of a team and suggestions: The differences between a group of individuals and team of individuals could be enumerated in Appendix - 8. (Brounstein. M, 2012). The Key factors affecting the performance of a team are elaborated in the team theory. Teams should: Have goal clarity Drive towards results oriented structure Employ competent members Have commitment of unity Be able to work in a climate of collaboration Maintain standards to extend quality of work to their customers Ensure encouragement and support from other teams Follow a leadership of principles 8 It is examined that teams can perform only after a set of stages like forming, brainstorming with ideas, and norming. In these stages, there could be many variations which could cripple the goal of performance. A list of positive and negative issues which can happen should be examined to help understand the methodology to work and enhance team performance. Positive issues: The positive issues relating to groups are namely: Independence to work without any disturbance regarding other group mates. They can concentrate on other areas of work while performing the organizational tasks. Thus, they can train themselves on multi-tasking. They can organize and accept two or more jobs at a time for higher payments. Negative issues: They are usually pertaining to: Lack of responsibility on the part of workers Some ambiguous issues are pushed on to the shoulders of other workers and this may lead to clarity issues relating to job performance Misallocation of resources or lack of proper planning on the part of managers confuse the group members and lead to inefficiency Positive issues: The positive issues relating to teams are namely: Work is organized and can help in specialization Can help in enjoying large scale economies over a period of time Work can be planned before the deadlines and so, there could hardly be any issues with the customers Negative Issues: The negative issues relating to teams could be: The workers may be disinterested in performing the same task every time and also would show their indifference towards organizational goals 9 One lethargic person in the team may cripple the team’s performance drastically if he influences other workers to follow his suit Managerial control may discourage the workers to bring in new ideas of execution Subdued importance on individual agendas may lead to dissatisfaction in workers (Larsen C.E & Lafasto F.M.J. (1989)) Suggestions: To overcome the negative issues and improve on positive issues, the managers of groups or teams should thoroughly work hard and ensure that the morale of their workers is always intact. They should train the workers about concentrating on the goals and develop a drive to achieve them through motivation. Thus, motivation should be carefully employed by managers to achieve positive results in terms of team performance and work satisfaction to the workers. When things are done with such clarity, every customer of the business would be very happy. Thus, the performance can be enhanced. Conclusion: Motivation is important in any organization. Intrinsic motivation is the inner urge to work perfection while extrinsic motivation is zeal to achieve rewards announced by the management. A manager should understand the type of motivation to be employed. Motivation can be explained in terms of Maslow’s need hierarchy, Herzberg’s theory of hygiene and motivation factors, theory of equity and expectancy. All these theories emphasize the importance of positive circumstances along with reward satisfaction as the factors for motivation. Leaderships could be of different kinds like autocratic, participative or free-rein. They could even follow styles like transactional, transformational, charismatic or situational to ensure standard performance. Management styles on the other hand could employ autocratic and exploitative, directive and autocratic, permissive participative or permissive democratic styles 10 to ensure performance. Combining all the styles, study proves that democratic and permissive styles which revolve around transformational are more result oriented than autocratic styles. The employees should perform in legal and ethical manners and this should be ensured by the leaders or managers. Individual and team performance differences are not laid out in any specific theory. However, a general football coach’s experience can help us in understanding the rules for enhancing performance. It is observed that team performance can be easily aligned to organizational needs rather than an individual. To ensure easy alignment of goals, there should be clarity, result orientation, unified commitment, standard maintenance in built in the structure. Similarly, there are differences between groups and teams the former more concerned with their job performance while the latter have to perform their job in consonance to organizational goals. The positive and Negative issues are enumerated to realize the best practices for ultimate performance. Thus, motivation has to be carefully utilized to enhance organizational performance. Further areas of interest to study could be to dwell in understanding the motivational aspects for an organization as a whole wherein more individuals could be influenced. We need to dwell into the aspects which could motivate both intrinsic and extrinsic workers at the same time and try to include the effects of such motivation so that leaders could enhance organizational performance. 11 Book References: Laeggard J. & Bindsley.M., 2006, Organizational Theory, U.K. Ventus Publishing APS. Larsen C.E & Lafasto F.M.J. (1989), Team Work: What Must Go Right/What Can Go Wrong, London, New Bury Park Publishers. Available at: http://books.google.co.uk/books?id=5omqfxMK5kAC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Martochio J.J., (2005), Research in Personnel and Human Resources Management, (Vol: 24), U.K. Elsevier Ltd. Available at: http://books.google.co.in/books?id=pQC_JB7NS-MC&pg=PA57&lpg=PA57&dq=differences+between+individual+and+team&source=bl&ots=yPx7_1AFv5&sig=MqOhfHQeySgXJQO5dFl3AlbL0uA&hl=en&sa=X&ei=GaB-T4Ejhe2tB5qcgYYG&ved=0CF4Q6AEwCDgK#v=onepage&q=differences%20between%20individual%20and%20team&f=false Prasad L.M., (2006), Organizational Behavior, New Delhi, Sultan Chand & Sons. Quinn. S, (2010), Management Basics, U.K. Ventus Publishing Aps Internet References: Babou, (2008), Transactional Leadership Vs. Transformational Leadership, Leadership Champions, Available at: -http://leadershipchamps.wordpress.com/2008/08/04/transactional-leadership-vs-transformational-leadership/ Last Accessed: 10th April, 2012. Brounstein. M., (2012), Differences Between Work Groups and Teams, Dummies.com, Available at: http://www.dummies.com/how-to/content/differences-between-work-groups-and-teams.html Last Accessed: 10th April, 2012. Dems. K., (2011), Famous Examples of Different Leadership Styles, Bright Hub, Available at: http://www.brighthub.com/office/home/articles/76450.aspx Last Accessed: 10th April, 2012. Individual –Vs- Team Performance, (2011), emceTT, Available at: http://www.thelearningchain.co.uk/wiki/Individual_-Vs-_Team_Performance_Management Last Accessed: 10th April, 2012. Management Styles, 2012, Available at: http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm Last Accessed: 10th April, 2012. Team Performance Versus Individual Performance, (2011), Best STL, Available at: http://www.microsofttraining.net/article-1932-team-performance-versus-individual-performance.html Last Accessed: 10th April, 2012. Journal Reference: Goleman. D., (2000), Leadership That Gets Results, Harvard Business Review, U.K. Harvard Press. Bibliography: Sansone C. & Harackiewiez. J.M., (2000), Intrinsic and Extrinsic Motivation: The Search for Optimal Motivation and Performance, U.K. Academic Press. Available at: http://www.amazon.com/reader/0126190704?_encoding=UTF8&page=46#reader_0126190704 12 Appendix - 1: Differences between intrinsic and extrinsic motivation Intrinsic Motivation Extrinsic Motivation Self-urge to improve Reward oriented urge to improve Perfection oriented Compete and excel Intangible in nature Tangible in nature Psychological satisfaction Economic satisfaction Sometimes drift towards extrinsic rewards Sometimes crave for intrinsic rewards Appendix – 2: Maslow’s Need Hierarchy Appendix – 3: Differences between Leadership and Management: Leadership Management Exerts influence on people Focused on creating results through and with people. Strong pronouncers of judgments could be weak managers with few exceptions Strong managers with weak judgmental capacity could be weak managers. Leaders use people and chances to achieve results. Managers envisage the desired Leaders focus on objectives, visions and people to stand up to expectations of various stakeholders. Managers plan, budget, control, coordinate and organize different activities to achieve results. Demands performance in the current situation Managers plan activities to fulfill current obligations and create ways for innovation. Appendix – 4 : Examples of some styles of Leadership: Charismatic Leader: Winston Churchill, Adolph Hitler Participative Leader: Donald Trump Situational Leader: Dwight Eisenhower Transactional Leader: Joseph Mc Carthy, Charles De Gaulle Transformational Leader: Martin Luther King Jr., Walt Disney Quiet Leader: Abraham Lincoln, Woodrow Wilson. (Dems. K., 2011) Appendix – 5: Leadership and Management Styles Leadership and management styles Confidence and trust in subordinates Freedom feeling in the subordinates Involvement of superiors and subordinates Autocratic and exploitative No confidence or trust prevalence No feeling of freedom about job discussions Seldom takes ideas on job from subordinates Directive and autocratic Servitude sort of confidence and trust Little feeling of freedom about job discussions Rarely takes ideas and opinions of subordinates to solve problems Permissively participative Confidence to some extent but still not totally willing 75% feeling of freedom in matters of job and discussion Usually encourages ideas and tries to make use of them constructively Permissively democratic Subordinates have complete trust and confidence in him Total freedom to discuss about the things to superiors Always gets ideas from subordinates and uses them constructively Appendix – 6: Individual Vs Team Working as an Individual Working as a Team Power sharing and knowledge are vested in the hands of individual and the basis of power. They are not shared. Skills and professional knowledge is shared and thus liberated. There is a distinction between, individual and organizational development. Team development is usually aligned with organizational development. Personal interests may overcome organizational requirements Individuals could be more inspired towards achievement of organizational goals 1-on-1 management increases the burden of individual responsibility Shared performance and responsibility leads to regulation of goals Capability in future and aspects of progression are focused rather than organizational concepts Quality and expertise of professionalism dominate individual interests Evaluation of individual performance is harder. Evaluation of performance is easier. Appendix – 7 If we observe a football team and its performance, we also understand the efforts of the coach behind the team’s performance. The coach needs to examine the team carefully for its every defect and perfect them so that they do not repeat the mistake in future. If the team is under-performing in the game, he needs to analyze the low scorers and guide them individually. If problem persists, he needs to take a quick decision to ensure that others do not follow suit. Players should not be placed in wrong positions. The coach should know each member individually by name and address him affectionately to ensure there is not friction between him and the player while instructing tough moves. When the performance was low, he should not comment about any individual player and maintain morale of the team. When the team performs well, every player should be congratulated individually. These basic rules also apply for an organization which is on the lookout for ultimate performance. It is in the hands of the manager to motivate the team member’s individuals and even as a team to extract their best efforts. (Anon., 2011). Appendix – 8: Difference between Work Groups and Teams Groups Team Work Individuals are accountable Mutually and individually accountable Perspectives and information are shared by coming together They meet to discuss, make decisions, solve problems and plan for the course of action. Goals of individuals are focussed Goals of team are focussed Accomplishments are for individual records Records for collective results are enriched Definition of roles, tasks and responsibilities on an individual basis Definition of roles, tasks and responsibilities individually to align with team work. Personal challenges and outcome is concentrated Team challenges and individual outcomes are concerned Manager shapes the purpose, goals and their approach Members of team and leader shape the goals and work approach for the team Read More