Putting Measures on Human Performance - Coursework Example

Name: Course: Tutor: Date: Accountability Introduction Hoskin and Macve (1990) observe that putting into place measures on human performance in an essential aspect of managing both private and public businesses. Different structures are being used today to run and manage organizations. The recent years have seen an introduction and rise of new organizational structure trends, and as observed and explained by Thomas and Mabey (1994), these are“different from the formal, 'top-down' command structures seen in traditional organizations. Modern technology allows us to develop organizations which are differentiated - allowing local flexibility and autonomy - but highly integrated at the same time. This change has also been as a result of the radical changes in today’s corporate environment, whereby different organizations are setting up or forming new organizational forms which they are comfortable with and one that will offer them the results they need in manageable and cost effective ways (Eisenmann and Bower 348-355). According to the business and management dictionary, is a type of “organizational structure consisting of a relatively large number of relatively small semiautonomous units, which are controlled mainly by the setting of financial targets from the centre. ‘M’ stands for ‘multidivisional’ (Dictionary of Business and Management 2006). Given that one main attribute of the M-form type of structure is the element of autonomy, the demand and expectancy on the employees to be accountable if profitability is to be maintained is high (Bower 18-24). On the employee side, this structure can be highly welcomed and appreciated since it allows them to determine how far they can go, do or produce without the traditional supervisory eye glaring at them or pushing them around as they work. In this essay, I will examine and evaluate the claim that putting measures on human performance is vital to getting things done and running in an M-form business today, private or public. I shall also highlight the some of the possibly intended and unintended consequences that that these measures might have on people as well as the organizations and what can be done to minimize the unintended consequences. As I present my evaluation, it is however important to clarify and understand exactly how these M-form structures run or operate. Chandler (1991, 31-50) points out that the study of the adoption of the multidivisional organization structure by fifty of the largest companies in the United States, and his detailed examination of four of the pioneers of that revolutionary structural form, led him to develop his highly influential strategy or structure thesis. His central conclusion was that companies being driven by market growth and technological change to develop greater diversity in their products and markets, were able to manage their new strategies efficiently only if they adopted a multidivisional organizational structure or the so-called M-form (Chandler 1-12). Chandler continues to explain that the reason this structural form proved so powerful was because it defined a new set of management roles and relationships that emphasised on the decentralization of responsibility to operating divisions whose activities were planned, coordinated and controlled by a strong corporate management - the general office in Chandler's terms - which also made the company's "entrepreneurial decisions" about resource allocation. He showed how the management process created by this organization allowed companies to apply their resources more efficiently to opportunities created by changing markets and developing technologies (Chandler 1-12). According to Chandler M-form is based on a management model that where authority and responsibility are focused on the organization’s apex which constitutes of the General manager or CEO. When it comes to creating a multi-divisional structure, firms are divided into several single corporate entities also known as divisions. In essence, the M-form was developed on the basis of devolution of assets and accountability philosophy from the top corporate level to the divisional level (Chandler 1-12). The evolving organizational needs have contributed largely to changes in how organizations are structured with the objective of finding a better, more economical and easier way to run an organization. Bradt (1998) adds another perspective to this observation by suggesting that organizations can be regarded as people management systems. They range from simple hierachies along traditional lines to complex networks dependent on computer systems and telecommunications (Bradt 3-4). Human resource managers can encourage organizations to adopt strategies for their structures which foster both cost-effectveness and employee commitment. Organizational structures can be classified into a number of types, including functional, divisional, matrix, federations and networks (Bradt 3-4). Some of the main benefits to this style of organizations are that if one division fails and collapses, it doesn't threaten the rest of the business. Secondly, a division can still use the brand and name of its parent company. Lastly, the company can be more flexible about its operations. On the negative side, there is need for increased accounting and the organization can end up paying more taxes they are not careful. In addition, this structure is vulnerable to the execution of reckless decisions (Chandler1-12). The role of management accountants In a further definition of the organizational structure of M-form, it is also imperative to describe the roles of the corporate accountants. The management accountants work within one specific company. The role of the management accountant is to perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy. Management accountants are essentially key figures in determining the status and success of a company. Some choose to become a Certified Management Accountant (CMA), a similar credential to CPA, but with a greater focus on cost accounting, financial planning, and management issues. Job responsibilities can range widely. Depending on the company, your level of experience, the time of year and the type of industry, some of the tasks carried out by accountants include; budgeting, handling taxes, managing assets to helping determine compensation and benefits packages and aiding in strategic planning. (Ghoshal & Bartlett 91-112). The need for accountability The inner dynamics of the M-form’s organizational structure presents a great need for the employees to be accountable. According to Hunt (1998), accountability is a concept in ethics and governance. It is often used synonymously with such concepts as responsibility, answerability, blameworthiness, liability, and other terms associated with the expectation of account-giving. Accountability is the acknowledgment and assumption of responsibility for actions, products, decisions, and policies including the administration, governance, and implementation within the scope of the role or employment position and encompassing the obligation to report, explain and be answerable for resulting consequences (Hunt 1998, 54-80). Accountability is very important because any decision made or action taken will affect others as well. In the M-form organizational structure, the demand on employees to be accountable is vital in ensuring that profitable gains are achieved. Employees as well as employers who are not accountable in their work cannot guarantee optimal performance. An accountable employee knows that any violation of the organization’s values amounts to misrepresentation (Hunt 1998, 54-80). Job or work performance Employee performance can determine whether an organization will succeed or not. According to Campbell (1990), job performance represents behaviors employees engage in while at work which contribute to organizational goals. These behaviors are formally evaluated by an organization as part of an employee's responsibilities. In order to understand and ultimately predict job performance, it is important to be precise when defining the term. Job performance is about behaviors that are within the control of the employee and not about results (effectiveness), the costs involved in achieving results (productivity), the results that can be achieved in a period of time (efficiency), or the value an organization places on a given level of performance, effectiveness, productivity or efficiency (utility). Performance and profitability cannot be delinked. Managers or employers however need to establish practical, accountable, flexible and manageable performance standards and indicators to measure or gauge performance standards. Over expectancy to perform on employees could result in stress related repercussions on the employees, rooted feelings of inadequacy and poor work attitudes in the work place (Campbell 258–299). Conclusion Based on the sentiments of Hoskin and Macve (1990) and other literatures reviewed in this essay, it is evident that putting into place measures on human performance in an essential aspect of managing both private and public businesses. Human performance is very vital in any given organization where profitable results are expected to be realized or attained. Thus, performance cannot be separated from an organization’s objective to make profits. However, this expectancy should be balanced and not over demanded because the effects would translate to negative outcomes in that organization. It is established in this paper that there is great need for accountability if at all an organization is to realise its strategic goals on human performance. Accountability is a very important aspect in the management of an organization especially for organizations with an M-form organizational structure mainly because any decision made or action taken will affect other divisions as well. In the M-form organizational structure, the demand on employees to be accountable is vital in ensuring that profitable gains are achieved. Therefore there is need to put in place accountability measures so as to ensure the proper functioning of organizations at all levels (Hunt 1998, 54-80). Works cited Bower, Joseph. The CEO Within: Why Inside Outsiders Are the Key to Succession Planning. Boston: Harvard Business School Press, 2007. Bradt, Robert. Virtual Organisations: A Simple Taxonomy. Infothink ,1998, pp. 3-4 Campbell, John et al. The substantive nature of job performance variability. In Murphy, Kevin. Individual differences and behavior in organizations.San Francisco: Jossey-Bass. 1996. pp. 258–299. Chandler, Alfred.”The Functions of the H Q Unit in the Multibusiness Firm", Strategic Management Journal, 1991, 12, pp 1-50. Dictionary of Business and Management. 2006. M-form . Retrieved on November 13, . 2011 from Read More