The Rapidly Changing Business Environment - Essay Example

LITERATURE REVIEW In the rapid changeable business environment, leaders are expected to make their decisions with regard to impact they do on employee satisfaction (Topolosky, 2014). Such employee-directed strategy helps organizations to reach their financial results through the set of employees’ skills, commitment and participation. According to Mafini and Pooe (2013), the subject of employee satisfaction was studied for years and much empirical examination was made. As a result of such findings, employee satisfaction was defined as an effective measure of positive emotional state that enabled people to contribute more for the benefit of certain organization (Mafini & Pooe, 2013). In order to identify the relationship between employee satisfaction and its direct influence on employee performance, it is important to establish the levels of motivation, such as payment, promotion and reward, need in development, the level of freedom and stress, understand how employees perceive business environment, in a friendly manner or like a hostile surrounding. Motivation The idea of employee’s performance dependence on the level of job satisfaction was followed from the number of theories (Christen, Iyer & Soberman, 2005). Motivation to perform certain tasks is natural while the work itself is fulfilling. Jose and Mampilly (2012) observed employees’ engagement as positive work- related motivational state where they wished to contribute to work assignment that would lead to organizational success. Moreover, they state that in the modern business environment, the best practices are supposed to provide more opportunities for motivation improving through training of additional skills, attitudes and behavior of employees (Jose & Mampilly, 2012). In addition, employees’ motivation to work is supported by investment in staff development, where people see that their skills and abilities facilitate reaching of the organizational objectives. Shahzadi et al (2014) explains employees’ motivation from the point of view of the need that helps employees to attain assured targets. It is also procedure of different physiological and psychological wants that stimulates employee’s behavior to obtain certain performance. Motivated employees are more responsive of the definite organizational goals (Shahzadi et al, 2014). Therefore, motivational approach leads to the right organizational direction and successful accomplishments of business practices. It is established (Abadi et al, 2011) that money is the most fundamental factor that motivates employees, especially in the industry and manufacturing businesses. Reasonable salary and payment, according to Manzoor (n.d.), are the most wanted items that raise employees’ motivation to better performance. Other factors that influence employees’ motivation are the reward and recognition, management tools that contribute the effectiveness of any organization through influencing on each individual or a group. Promotion and reward The organization will only win if its employees are satisfied with the level of their contribution. Such can be achieved if people know what they worth of. Rewards and recognition are essential factors that enable organization to increase employees’ job satisfaction and thus improve work performance (Jun, Cai, & Shin, 2006). While the main objective of reward is to recognize skills and contribution of the particular person, for people outside of the organization, such approach also helps to attract qualified specialists to join the organization and then keep such employees in doing their tasks well and at certain level. Whether a reward is adequate, concrete employee achieves a level of satisfaction (Stoner & Freeman, 1992). Promotions are some of the examples for outside reward approach that are usually provided by the supervisor of a work group. Almost all employees want to reach certain achievements in their career development. However, promotional programs serve not only this purpose, but they also influence the employee satisfaction of one’s position and role and thus lead to the overall employee performance (Pushpakumari, 2008). In such a case, career development is possible through participating in the training programs that provide prospects to career development of employees. Employee training and job performance It is stated (Yamoah, 2013) that the success of every business depends directly from the quality of goods or services it provides, which can be produced and served by the qualified workforce. Therefore, training is needed for employees in order to obtain certain skills and knowledge to bring certain products and services to public (Cole, 1993). The more skills and knowledge employees obtain, the better they can perform organizational activities. Abay (2008) focuses on the significant relationship between the employees training and their further performance. After taking training sessions, employees are capable to perform different tasks despite working environment, their previous skills and knowledge. Elnaga and Imran (2013) state, that trainings give employees those skills that enable them to become more efficient and productive workforce. Moreover, the well-trained staff has higher motivation and morale since they have more friendly feeling toward the company and feel their own value through the investment that organization has made toward them (Elnaga & Imran, 2013). Altogether, such conditions positively influence the results of businesses. Negative effects on job satisfaction There is a great impact of low performance that employees can establish within organization. While in the modern world jobs are getting more demanding, financial, energy crisis and competition increase employees’ concern about their future, bringing feeling of anxiety and stress (Bako, n.d.). All these factors negatively impact employees’ performance, creating stress and making person feel pressure on one. Besides, high demands of a situation bring additional burden to an employee, thus creating negative predisposition for effective performance. Stress is also created with the lack of information regarding authority, tasks to be performed, duties and powers. Besides, job insecurity brings powerlessness and thus threats to employee’s job performance. If not to take measures to reduce negative impacts on employees, business can lose not only qualified employee, but also suffer loss in its overall performance (Manzoor, Awan & Mariam, n.d.). Employee satisfaction and financial performance Chi and Gursoy (2009) state, that employee satisfaction plays the key role in facilitating business to achieve its financial goals. Moreover, if the company takes care of its employees, the workforce takes care of customers and thus brings more profitability to the business. However, studies also show that there is no significant relationship between employee satisfaction and financial performance of certain organization (The Effects of Employee Satisfaction on Company Financial Performance, 2005). Latif et al (2013) instead claim that employee satisfaction is closely related to organization productivity and thus company’s profitability. Moreover, employees’ satisfaction makes a positive impact on organizational performance since they improve operational performance of businesses and quality of good and services they produce. There is no doubt that employees satisfaction is critical in achieving high quality and profitability (Markos, 2010). To achieve profitability employee create basis for that fulfilling needs, interacting with shareholders and adapting to the changes if needed. Friendly environment Elnaga (2013) states that the main factors that increase employees’ motivation and thus influence the job performance are fair pay, incentives, benefits, encouragement, trust, chances for growth, fulfillment of their needs and recognition. Beside these factors, winning workplace culture is friendly toward its employees. All employees generally want a job that would recognize them as valuable workforce, important to them and society where a pleasant working atmosphere would enable them to accomplish all assignments. Employee will be satisfied if the workplace includes transparent communication, clear organizational mission, careful hiring and wirk-life flexibility. Under such conditions, it will be possible to achieve competitive edge for the organization and earn benefits for employees (Mossman, 2013). References Abadi, F. et al, (2011). A Study of Influential Factors on Employees’ Motivation for Participating in the In-Service Training Courses Based on Modified Expectancy Theory, International Business and Management, Vol. 2, No. 1. Abay, A. (2008), The HRM agenda of process focused organizations, Paper to the national workshop of the millennium civil service, Federal Civil Service Agency, Ethiopia Bako, A., (n.d.). 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The Effect of Training on Employee Performance, European Journal of Business and Management, Vol.5, No.4, Retrieved from http://www.iiste.org/Journals/index.php/EJBM/article/viewFile/4475/4543 Elnaga, A. (2013). Exploring the link between job motivation, work environment and job satisfaction, European Journal of Business and Management, Vol.5, No.24, Retrieved from http://www.iiste.org/Journals/index.php/EJBM/article/viewFile/8028/8282 Jose, G and Mampilly, S., (2012). Satisfaction with HR Practices and Employee Engagement: A Social Exchange Perspective, Journal of Economics and Behavioral Studies, Vol. 4, No. 7 Jun, M., Cai, S., & Shin, H. (2006). TQM practice in maquiladora: antecedents of employee satisfaction and loyalty. Journal of Operations Management, 24, 791-812. Latif, M. et al, (2013). Impact of employee’s job satisfaction on organizational performance, European Journal of Business and Management, Vol.5, No.5 Manzoor, A., Awan, H. and Mariam, S., (n.d.). Investigating the impact of work stress on job performance, Asian Journal of Business and Management Sciences, Vol. 2 No. 1, Retrieved from http://www.ajbms.org/articlepdf/3ajbms20121121721.pdf Manzoor, Q., (n.d.). Impact of Employees Motivation on Organizational Effectiveness, European Journal of Business and Management, Vol 3, No.3, Retrieved from http://www.iiste.org/Journals/index.php/EJBM/article/viewFile/265/150 Marcos, S., (2010). Employee engagement: the key to improving performance, International Journal of Business and Management Vol. 5, No. 12, Retrieved from http://www.myopinionatbesix.com/besixsurvey/media/besix-survey/pdf/4.-employee-engagement-the-key-to-improving-performance.pdf Mossman, J., (2013). Employee-friendly workplace culture a key to company success, Denverpost, Retrieved from http://www.denverpost.com/topworkplaces2013/ci_22970656/employee-friendly-workplace-culture-key-company-success Pushpakumari, M., (2008). 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