Person Demotivation in Organizational Life - Research Paper Example

RELATIONSHIP BETWEEN PERFORMANCES AND ORGANISATIONAL LIFE CYCLE By Name Course Instructor Institution City/State Date Table of Contents RELATIONSHIP BETWEEN PERFORMANCES AND ORGANISATIONAL LIFE CYCLE 1 Table of Contents 2 1.0 Introduction 3 1.1 Research Question 3 1.2 Research aim/question and objectives 3 2.0 Literature Review 4 3.0 Methodology 5 4.0 Discussion of Findings 5 5.0 Conclusions and Limitations 7 6.0 References 9 Relationship between Performances and Organisational Life Cycle 1.0 Introduction Every organisation desire to become successful, but the present business environment has turned out to be increasingly competitive. For this reason, companies regardless of market share or size are striving to retain their competitive advantage; therefore, they acknowledge the important role played by employees in influencing organizational effectiveness. To overcome various challenges associated with performance and organisational life, companies are striving to create a positive as well as strong relationship with their employees and enable them carry out their tasks more effectively. To realise organisational goals and objectives, the majority of organisations have started formulating strategies that would help them compete in markets that are highly competitive and also to improve their performance. This paper seeks to examine the relationship between performances in the organisational life cycle. The conception that the strategy espoused by a firm must fit with the business environment is not only pervasive in the literature but also intuitively appealing. The organisational life cycles as well as the connection between performance and performance are the main focus of this paper. 1.1 Research Question What is the relationship between performances and the organisational life cycle? 1.2 Research aim/question and objectives 1. To examine the different measures and conceptualisation of organisation performance 2. To determine the relationship between performances and organisational life 3. To determine the preferred strategy for low and high performing firms in the organisational life cycle stages. 2.0 Literature Review In their study, Oluwatayo et al. (2016) observed that the dominating business orientation in companies varies with the firms’ life cycles. The authors observed that the firm’s performance is not determined by the organisational life cycle stage, but the approach used by the firm to deploy as well as manage the available resources in every stage is crucial in determining the performance of the firm. As observed by Auzair (2010, p.56), firms must change all through the organisational life cycle in order to fit in with competitive environment changes and also improve its performance. Employees according to Osabiya (2015, p.66) are key players in the organisation since they determine the failure or success of the business; therefore, it is imperative to make sure that the employees are motivated, satisfied, and organised so as to facilitate improved organisational performance at the early stage of organisational life cycle. Abu-Jarour (2014, p.219) agrees with Osabiya (2015) that motivation has a positive effect on organisational performance, citing that demotivation can lead to low achievements and poor performance. As part of the organisational life, conflicts are mainly caused by lack of resources, which result in high competition for the limited resources (Hotepo et al., 2010, p.7). For this reason, Garcia (2013, p.44), Garcia (2013, p.44) suggest that managers should come up with ways of promoting cohesiveness within organisations so as to improve organisational performance. Longe (2015, p.90) and Dobre (2013, p.59) maintain that integrative conflict management is important for improving organisational performance and that employee empowerment and participation lead to improved innovation, efficiency, motivation and organisational performance. 3.0 Methodology The study used the descriptive research design, and the questionnaire survey was carried out in fast-moving consumer goods (FMCG) company with over 1000 employees. The study utilised stratified random sampling method to choose 200 participants; therefore, the size of the sample was approximately 20% of the total number of employees in that company. The questionnaire survey technique was used since it enables the researcher to gather a lot of information that involves standard responses that could be compared. The participants were given questionnaires that had two sections; the data required to examine the firm’s life cycle stage and data on the performance. The structured questionnaires were administered specifically by the researcher. The data collected was analysed through descriptive statistics. In order to identify the existence of life cycles, the researcher used different measures such as decision-making centralization office procedures formalisation, as well as duties specialisation. The variables used to measure the firm performance included the firm profitability, employment development and turnover. 4.0 Discussion of Findings While identifying the life cycle stage that the firm was in, the firm was observed to be at the survival stage because of the higher number employees (over 1000), the formalisation and specialisation level was very high, but decision-making centralisations were very low. This is in line with Oluwatayo et al. (2016) findings that decision making in firms at the survival stage are decentralised and the use of public relations strategies increases. Organisational life cycle according to Lester et al. (2008, p.315) has five stages; the first stage is existence (birth stage), which is normally characterised by the struggles that the organisation goes through in order to achieve feasibility. In this stage, ownership is concentrated, the structure is simplified, and the revenue and number of employees is somewhat small. The second stage is survival, whereby organisations shift from a simplified structure to one that place promotes division of labour and emphasis on the managers’ role. The third stage is maturity; organisations create organisational structures that are more formal with procedures and policies, relationships in hierarchical reporting, and job descriptions that eliminate the most of the flexibility that existed in the first two stages. The fourth stage is renewal; companies focus on returning the mature organisations back into leaner times devoid of losing the built-up economies (Lester et al., 2008, p.315). The study results demonstrated the firm dominance during the early stages of organisational life cycle. The results demonstrated that the firm grew into the survival stage in just four years of its existence. In terms of performance, the firm managers said that the organisation performance has been remarkable because the firm benefited from the mover advantage. The finding support Oluwatayo et al. (2016) assumption that new firms do not depend on establishing themselves as genuine businesses rather than on environmental influences. With the view to low-performing as well as high-performing organisations, the study established that when a firm is in the survival stage, it does not chase after strategies as envisaged. Firms that are more satisfied with their organisational performance are not the first movers, but instead, the second movers who seek to promote their products. The study established that the firms which are less satisfied with their performance are those chasing after the first mover advantages. According to the majority of participants, the firm needed a structure that would facilitate the firm’s survival in the already competitive marketplace. Most of the respondents considered that the first mover strategy used by the firm was somehow risky since it posed a threat to the firm’s ability to remain competitive. More importantly, the respondents emphasised that innovation is very crucial, especially when the firm is at the survival stage. Some respondents suggested that the firm should develop strong brand recognition by means of distinctiveness so as to remain competitive and improve its overall performance. With the view to conflicts, the respondents mentioned that the conflicts that often happen in the organisation are caused by different expectations, salary comparison, poor cooperation, lack of resources, increased competition amongst workers, and communication challenges. Still, communication problems and insufficient resources were cited as the main cause of conflicts, which lead to reduced organisational performance. In terms of competition, the respondents concurred with Daft and Marcic (2008) findings that many employees get into conflict amongst themselves because of manpower equipment, promotion, financial rewards and incentives. This finding is in line with Abu-Jarour (2014) argument that motivation of numerous employees within the organisation could result in demotivation of other workers. According to some of the respondents, a number of employees work hard with the objective of getting promoted, but when other employees are selected for promotion rather than them, it leads to demotivation. 5.0 Conclusions and Limitations In conclusion, the study findings suggest that all employees should feel the sense of justice within the payment system used by the firm. Demotivation in the firm can happen when workers work for many years in an organisation that use a payment method that does not improve their financial aspects. Therefore, the study findings suggest that there is a relationship between performances and organisation life cycle. As mentioned in the paper, firms can realise their organisational goals and objectives by formulating strategies which could enable become competitive in highly competitive markets as well as improve their performance. Besides that, it has been observed that maintain integrative conflict management and improving employee empowerment are crucial for improving organisational performance. This performance and organisational life cycle research offer firms an understanding regarding how to fit their style of decision making with the structure fit. This study has numerous limitations that have to be acknowledged; for instance, there is limited empirical research with regard to the relationship between performance and organisational life cycle. The study focused only on one firm, and the findings cannot be generalised to depict other firms in different industries. 6.0 References Abu-Jarour, S.F., 2014. Person Demotivation in Organizational Life. International Journal of Business and Social Science, vol. 5, no. 1, pp.215-19. Auzair, S.M., 2010. Organisational Life Cycle Stages and Management Control Systems in Service Organisations. International Journal of Business and Management, vol. 5, no. 11, pp.56-65. Daft, R. & Marcic, D., 2008. Understanding Management. New York: Cengage Learning. Dobre, O.-I., 2013. Employee motivation and organizational performance. Review of Applied Socio- Economic Research, vol. 5, no. 1, pp.53-60. Garcia, M.P., 2013. Organizational Conflict and Organizational Performance. Asian Educational Research Association, vol. 3, no. 1, pp.41-45. Hotepo, M., Asokere, S.S., Abdul-Azeez, A. & Ajemunigbohun, S.S.A., 2010. Empirical Study of the Effect of Conflict on Organizational Performance in Nigeria. Business and Economics Journal, vol. 15, pp.1-9. Jarour, S.F.A.-, 2014. Person Demotivation in Organizational Life. International Journal of Business and Social Science, vol. 5, no. 1, pp.215-19. Lester, D.L., Parnell, J.A., Crandall, W.“. & Menefee, M.L., 2008. Organizational life cycle and performance among SMEs Generic strategies for high and low performers. International Journal of Commerce and Management, vol. 18, no. 4, pp.313-30. Longe, O., 2015. Impact of Workplace Conflict Management on Organizational Performance: A Case of Nigerian Manufacturing Firm. Journal of Management and Strategy, vol. 6, no. 2, pp.83-92. Oluwatayo, A.A., Amole, D. & Uwakonye, O., 2016. Organisational life cycle, business orientation and performances of architectural firms in Nigeria. [Online] Available at: https://epress.lib.uts.edu.au/journals/index.php/AJCEB/rt/printerFriendly/4662/5246 [Accessed 9 December 2016]. Osabiya, B.J., 2015. The effect of employees’ motivation on organizational performance. Journal of Public Administration and Policy Research, vol. 7, no. 4, pp.62-75. Read More