Professional Documents
Culture Documents
CONTENTS
Introduction
1. Performance Management: An Overview
2. Motivation and Satisfaction
3. Training and Development
4. Recruitment and Induction
5. Employee Evaluation
6. The Problem:- Objective of the study
7. Scope of the study
8. What is a high performance culture?
9. Characteristics of a high performance culture
10. Empathy
11. Emotional quotient
Competency
management
organizational effective
and
4. Organizational structure
5. Measures of structure
Conclusion
CHAPTER 1
(1)
INTRODUCTION
Many studies find that people often overestimate their abilities, making selfcompetency management results dubious.
Usually, a person will find himself with strengths in about five to six
areas. Some- times an area where strengths are not present is worth
developing. In other cases, competency management can indicate finding work
that is suited to ones strengths, or finding a department at ones current work
where one's strengths or needs as a worker can be exercised.
Performance Management: An Overview
Perhaps the most significant benefit of appraisal is that, in the rush and
bustle of daily working life, it offers a rare chance for a supervisor and
subordinate to have "time out" for a one-on-one discussion of important work
issues that might not otherwise be addressed. Almost universally, where
performance
appraisal
is
conducted
properly,
both
supervisors
and
emotional quotient (EQ), and strengths of the individual in areas like team
structure, leadership, and decision-making. Large organizations frequently
employ some form of competency performance to understand how to most
effectively employ the competencies of strengths of workers. They may also
use competency performance to analyze the combination of strengths in
different workers to produce the most effective teams and the highest quality
work.
Competency performance also requires some thought, time, and
analysis, and some people simply may not want to do the work involved to
sufficiently map competencies. Thus a book like the above is often used with a
human resources team, or with a job coach or talented headhunter.
Competency performance alone may not produce accurate results unless one
is able to detach from the results in analyzing past successes and failures.
Many studies find that people often overestimate their abilities, making selfcompetency performance results dubious.
However, competency performance can ultimately serve the individual
who decides to seek employment in an environment where he or she perhaps
can learn new things and be more intellectually challenged. Being able to list
competencies on resumes and address this area with potential employers may
help secure more satisfying work. This may not resolve issues for the company
that initially employed competency performance, without making suggested
changes. It may find competency performance has produced dissatisfied
workers or led to a high worker turnover rate.
SCOPE OF THE STUDY:
It is often said an organization's long-term success depends on the
ability of that organization to sustain the delivery of quality products and
services. However, if this ability to sustain high performance is a learnable
competence, then why do many organizations fail to do so?
The answer to this pertinent question often lies in the following three
major deterrents to sustaining high performance.
10
11
12
within a strong subculture often share in the dominant values associated with
working with the organization.
Countercultures, on the other hand, are the patterns of values and philosophies
that outwardly reject those of the larger organization. Within an organizational
setting, countercultures may be produced with mergers and acquisitions.
Employers and managers of an acquired company may hold certain
values and assumptions that are quite inconsistent with those of the acquiring
company. An organization with a strong high performing culture does share
common elements across the entire organization.
This has the positive side that there generally is no need to debate
certain issues as everyone knows of the correct ways of getting things done. By
default, a developed culture will strive to preserve the tried and tested. If the
organizational culture aligns itself with an appropriately developed strategy, the
net result is a stronger culture, and ultimately, a high-performing organization.
This scenario calls for the leader's role to reinforce the existing culture by way
of modeling, encouraging, and rewarding behavior. According to Edgar Schein,
Leadership and culture are two sides of the same coin. Leaders create and
change cultures, while managers live within them.
Two approaches to high performance include a humanistic framework
and a rational process framework. In the former, high performance will be
attributed to organizations which value trust, and empower their people, work
collaboratively, and connect effectively with the wider community through, for
example, the involvement of stakeholders external to the organization.
In the latter framework, high performance will be attributed to
organizations which exhibit characteristics such as the ability to interpret the
business environment, the ability to foresee and act upon new business
opportunities and the flexibility necessary to maintain core values while still
being able to adjust its output to meet new market demands or conditions.
Furthermore, the willingness to implement employee remuneration
strategies such as stock ownership schemes which increase productivity and
financial returns to the organizations are prevalent.
13
14
(1985,
2002)
have
suggested
more
encompassing
approaches
to
conceptualizing intelligence.
Sternberg suggests that there are other dimensions of intelligence:
social intelligence, emotional intelligence, or practical intelligence or what
scholars refer to as "street smarts. which indicates that an individual is not
limited simply because he or she has a below average academic intelligence or
IQ. Although Gardner did not use the term emotional intelligence (EQ), his
concepts of intrapersonal and interpersonal intelligences provided the basis for
the conceptualization of EQ. whereas intrapersonal intelligence is the ability to
understand one's own emotions; interpersonal intelligence is one's ability to
understand the emotions of others.
In his role as a consultant in organizations, Goleman found that
emotional intelligence (EQ) is twice more important than technical skills and IQ
for jobs at all levels. He also reported that emotional intelligence plays an
increasingly important role at the highest levels of a company. When he
compared "Star performers with average ones in senior leadership positions,
nearly 90% of the difference in their profiles was attributable to emotional
intelligence factors rather than cognitive abilities".
Starting with the Hawthorne Experiments at General Electric,
management started to disentangle the assumptions on that Taylors ideas
were built. The Hawthorne studies well known and discussed at length in
nearly every Organizational Behavior textbook set off a process that helped
management to look closer to the question how workers feel and how social
relations at the shop floor influenced the productivity. In that period the agenda
emerged to what extent social needs of the workers dominated the productivity
but in these early years there was no explicit focus on the impact of emotions
and feelings.
With Maslow, motivation theory started to look at the needs like selfesteem that he thought were major drivers that push our motives forward.
Although not entitled as feeling or emotion by Maslow, it makes sense to
identify self-esteem as one out of five important needs that drive on our
personal motivation, as a basic emotion, especially if we consider the fact that
15
much of our life is spend at work, then the question how much self-esteem
derives form our work relations, how much self-esteem we obtain from our
relationship with our co-workers, direct superior and friends and foes at work
seems significant.
Followed by McGregors management practicing tried to follow a more
fine-tuned idea of men that later merged into various personal traits theories
and models and personal assessment tests that tried to select people that fitted
most perfect into distinct organizations. But the major focus remained always
on the question how to motivate the potentially unmotivated work force. Later
McGregor told that management is responsible for organizing the elements of
productive enterprise including such elements like money, materials,
equipment, and last but not least people. Not very much was said at this time
how much personal feelings and emotions fuel, guide and inform the complex
structure of motivation in human beings.
Although it is argued that McGregor was very closely to consider
feelings and emotions as the very important factors that contribute to the
failure or success of work. McGregor always referred to atmosphere to
denominate a positive and supporting work environment. He denoted that a
positive atmosphere supports people to express their feelings: as well as their
ideas both on the problem and on the groups operation. McGregor
convincingly argued that atmosphere is affecting the functioning of groups
and in developing his argument he constantly used rather strong emotional
words like to be afraid being foolish, tyranny of the minority, to express
hostility, permitting to block its efforts and it was articulate noting: we have
to learn how to operate successfully in our individual relationships with
subordinates. However it did not explicitly associate success or failure with
strong emotions rather it identified situations that instigate or generate strong
emotions (i.e. to be afraid being foolish, block efforts, tyranny, express
hostility).
In the 70s McClelland started to look closer to the question what exactly
motivates managers? He strongly believed that the need for power is
probably the most important motivational driving force for the management. it
articulately noted: a good manager is one who, among other things, helps
16
subordinates feel strong and responsible, rewards them properly for good
performance, and sees that things are organized so that subordinates feel they
know what they should be doing. Above all, managers should foster among
subordinates a strong sense of team-spirit, of pride in working as part of a
team. This single quote illustrates that from now on worker are invited to feel
responsible, feel strong, or simply posses a strong feeling of being part of a
team, we share a spirit, something you can feel, workers will be pride.
McClelland refers here to a set of emotions and feelings that make
management more productive.
Today we call this HRM policy using Firemans phrase putting feelings to
work but as it tried to show feelings did play a major role in the HRM
conception in the 50s and 60s, albeit the major texts used not exactly the
expression feeling and emotion it very well recognized situations and social
environments that produced strong feelings and consequently focussed on the
question how these atmosphere influenced the productivity of groups and the
success of managing people.
A few years later Hackman and Oldham initiate the discussion how much
job related factors influenced the motivation of workers. The basic assumption
Hackman and Oldham put forward was simply that working hard and better
performance happens when work is satisfying and rewarding. it argued that
work has to be meaningful, that people must feel responsible and that they
depend on feedback in order to feel good about their job. Beyond factors such
as skill variety, task identity and task significance this human resource
model encouraged managers to make workers feel significant, identify and
perceive work as something meaningful.
Hackman and Oldham focused on on ready available aspects such
being responsibility for doing something significant; possessing enough
autonomy to catch the feeling of being part of a somewhat important task that
has to be done; and having freedom and discretion how to do the job that has
to be done is all in all encouraging motivating because the worker feels
responsible, significant, and autonomously. While Hackman and Oldham put
forward the brilliant idea that people not only needed to identify themselves with
the job to which somebody else had assigned them, they perform better when
17
they get the feeling and get a sense of being responsible and or doing
something significant that is good for their identity.
All in all, Weber, Taylor, Maslow, McGregor, McClelland, Hackman and
Oldham have in common although their differences could not be greater - that
they focus on personal and individual needs in order to find an answer how to
motivate people and they all refer although from a totally different angle to
some helpful atmosphere that encourage communication, relations and/or
group work or job performance and finally they all seem to be very closely to
argue although not yet explicitly that emotions and feelings play a major
role in organizing people.
While Max Weber and F.W. Taylor strongly believed that feelings
negatively interfere with their rationally planned conceptions how to do work,
most if not all early text that influenced HRM practices believed that social
environment and personal traits do have a positive impact of performance,
albeit job environment and work atmosphere were fully charged with strong
emotions they still did not yet fit the overall rationally designed concept about
organizing work. Max Webers belief in the possibility of rationality, exemplified
in his conception of the rational bureaucracy banished unneeded and inapt
emotions such as love, hatred, and he regarded personal ambitions and
interests as totally inappropriate for a rational organization. Chris Argyris and
Rensis Likert may mark the beginning of a rethinking in organization studies.
No surprise, studies using the concept of emotions and feelings to study
work relationships have increased in recent years. Parallel to the literature that
used emotional labor as a focus to study the positive and negative effects of
emotions there is a tremendous growth of popular books that used to ask how
professionally human being deals with emotion. In addition, since the work of
Goleman, or as it is now called how much emotional intelligence do people
need mastering their job; the concept of emotional intelligence is used to tell the
audience of management best selling books how instrumental emotions are
as a new form of competence in order to succeed in todays work and/or social
relationships. But it was Hochschild, who initially took a new look on the topic of
emotions. Since then, what the use of emotions and the application of feelings
rules are called emotional labor.
18
EMPATHY
The origin of the word empathy dates back to the 1880s, when German
psychologist Theodore Lipps coined the term "einfuhlung" (literally, "in-feeling")
to describe the emotional appreciation of another's feelings. Empathy has
further been described as the process of understanding a person's subjective
experience by vicariously sharing that experience while maintaining an
observant stance.9 Empathy is a balanced curiosity leading to a deeper
understanding of another human being; stated another way, empathy is the
capacity to understand another person's experience from within that person's
frame of reference.
Can Empathy Be Taught?
Unfortunately, many physicians were trained in the world of "Find it and
Fix it" medicine, a world where empathetic communication was only an
afterthought--if this behavior was considered at all. Empathy was known as
"bedside manner," a quality considered innate and impossible to acquire--either
you were born with it or you weren't. More recently, greater emphasis has been
placed on empathy as a communication tool of substantial importance in the
medical interview, and many experts now agree that empathy and empathetic
communication are teachable, learnable skills. As we might therefore expect,
empathy is the cornerstone of several communication models, including "The
Four Habits" model (Invest in the Beginning, Elicit the Patient's Perspective,
Demonstrate Empathy, Invest in the End) developed by The Permanente
Medical Group's Terry Stein with Richard Frankel.
"The 4 E's" (Engage, Empathize, Educate, and Enlist) model used by the
Bayer Institute for Health Care Communication.
The "PEARLS" (Partnership, Empathy, Apology, Respect, Legitimization,
Support) framework adopted by the American Academy on Physician and
Patient, and other models.
Barriers to Giving Empathy
19
revealed
misgivings
(and
misconceptions)
about
empathetic
20
21
What is very important to keep in mind is that empathy does not necessarily
involve agreeing with the other person's feelings. Rather, it does involve
knowing what their feelings or ideas are.
Empathy is not sympathy. Objectivity is lost in sympathy. Someone once
said that "empathy is placing oneself in the other person's shoes, but sympathy
is putting them on and feeling the pinch.
Sympathy involves a feeling of loyalty to another person and, thus, the
loss of objectivity. On the other hand, if you identify with and feel the emotions
of another, you cannot view them in a dispassionate, objective and helpful
manner. How do the differences between sympathy and empathy play out in
the work place? Let's take a look at the two qualities, and how a salesperson,
for example, might be helped or hindered by sympathy or empathy.
Emotional Quotient (E.Q.)
Goleman suggests that EQ at work is a multidimensional construct
consisting of five components, such as self-awareness, self-regulation,
motivation, empathy, and social skills. Unfortunately, Goleman uses the term
EQ to include almost everything but IQ: emotional awareness, accurate selfassessment, self-confidence, trustworthiness, conscientiousness, adaptability,
innovation, achievement drive, commitment, initiative, optimism, leveraging
diversity, political awareness, influence, communication, conflict management,
change catalyst, building bonds, collaboration and cooperation, and team
capabilities.
Bar-On (1997) and Bar-On and Parker's (2000) definition of EQ also falls
into this category. This framework stretches the conceptualization of
intelligence way beyond acceptable limits. As suggested by Salovey and
Mayer (1994) and Mayer, Caruso, and Salovey (2000) there should be a more
restrictive model of EQ based on ability and distinguished from personality. We
do this for the present study by redefining the following Goleman dimensions
of EQ:
22
Taking
feelings
into
account
when
making
decisions.
5
becoming a psychologist, but it means being alert to how what you do and say
have an impact on others. A good way to improve in this area of Emotional
Quotient is to raise your self-awareness by completing an EQ assessment. If it
shows negative differences between how you and other people rate youre EQ,
then be aware that the Centre for Creative Leadership Studies in the United
States has found that over 75% of the reasons for career derailment among
leaders are related to emotional competencies.
23
24
CHAPTER 2
COMPETENCY AND PERFORMANCE
MANAGEMENT: A REVIEW OF RESEARCH
25
LITERATURE
Introduction:
Many organizations today are using the process of 360 degree
feedback to compare an individuals self assessment of his/her own
performance against key position and organization competencies to the
assessment of key stakeholders that the individual interacts regularly with.
The 360 feedback received is then used as input to the Individual Development
26
plan. David McClelland takes the position that definitions for various
competencies, which contain real-life examples of more competent behavior,
provide specific guideposts as to how to develop the competency. The
feedback information also provides a basis for career counseling or explaining
why a person should or should not be promoted.
First and foremost, individuals must demonstrate competencies. Perhaps the
most common place where they are demonstrated is within the scope of a
particular job or project involvement. However, competencies are also
developed and demonstrated by individuals in the following settings: volunteer
roles in the community, professional associations, school projects, sports
participation settings, and even within ones own home life.
Up to this point, it is implied that the main need for identifying and
performance competencies is for individuals who may be pursuing full-time
employment with an organization. However, the need for performance of
competencies also extends to independent contractors seeking project work
with those organizations that broker their services.
Take the example of The Fulcrum Network, an organizational
development consulting brokerage organization. Fulcrum recently released a
manual entitled How to Hire the Right Consultant, in which it identified 18
factors that can be used to evaluate consultants. (Fulcrum Network, 2002, pg.
10) Most of the 18 factors would be considered competencies, according to the
definition included earlier in this article. (Note that the process for performance
competencies will not differ significantly for self-employed individuals from the
process explained in a later section of this article.)
Why Should Individual Employees Map Their Competencies?
A list of compelling reasons includes, at a minimum, the following. An
individual:
Gains a clearer sense of true marketability in todays job market; once the
individual knows how his/her competencies compare to those that are asked for
by the job market in key positions of interest.
27
28
that the companies doing the best job of managing their talent deliver far better
results for shareholders. Companies scoring in the top quintile of talentmanagement practices outperform their industrys mean return to shareholders
by a remarkable 22 percentage points. Talent management isnt the only driver
of such performance, but it is clearly a powerful one senior managers report
that A playersthe best 20 percent or so of managersraise operational
productivity, profit, and sales revenue much more than average performers do.
In one manufacturing company, the best plant managers increased profits by
130 percent; in an industrial-services firm, the best operations managers
achieved increases of 80 percent. (The worst managers in both companies
brought The Universe Graduate Survey 2000American MBA Edition,
Stockholm: Universe. McKinsey career progression surveys no improvement.)
The senior executives in the year 2000 survey thought top performers deserve
pay 42 percent higher than that of average performersa far greater spread
than most companies have but a solid investment nonetheless The researchers
found that paying an additional 40 percent to hire an A player could yield an
overall return of 100 percent or more in a single year. Despite the potential
impact of top performers, both the 1997 study and the year 2000 update
revealed a gap between awareness of the talent issue and an effective
response to it. Only 14 percent of the managers in last years survey (as
opposed to 23 percent in 1997) strongly agreed that their companies attract
highly talented people. Only 3 percent of the respondents to both surveys
strongly agreed that their companies develop talent quickly and effectively. At a
time of greater awareness of the shortage of talent and increased competition
for it, the imperative to manage it effectively is more urgent than ever. Leaders
must make talent a priority at all levels of their organizations, create reasons for
top talent to choose their companies, rebuild their recruiting strategies, create
plenty of opportunities for development, and learn to identify their A (as well as
their less capable) performers and invest in them appropriately companies and
preempt positions
Good people are great for business
29
30
CHAPTER 3
METHODS OF COMPETENCY
PERFORMANCE
31
There are a lot of methods are there for performance the competence.
Some of them are as follows Personal credibility
Interpersonal effectiveness
Personal management
Relationship orientation
Continuous learning
32
33
34
The importance of Interpersonal Effectiveness: With an everincreasing reliance on virtual methods of communication, particularly
email, the opportunity to practice and develop ones interpersonal skills
in a professional context has diminished. When situations arise which
require something other than written communication, whether it be
delivering a difficult message, handling a complaint or issue or building a
relationship with a new colleague or client, employees sometimes find
that they lack the key interpersonal skills required to achieve the
necessary result.
Benefits of Interpersonal Effectiveness Training
This programme will provide you with the tools to: Understand
and adopt the principles of effective interpersonal communication
Network and build rapport and trust Handle difficult situations with
professionalism. Be a more effective communicator in a wide range of
work-related scenarios and contexts
35
opportunities
Determining company policies and procedures as they relate to
personnel is another important aspect of the personnel management
process. HR functions often include drafting vacation, sick leave, and
bereavement policies that apply to all employees of the company. The
personnel management team often is also responsible for managing the
health care program provided to the employees as well.
One aspect of company organization that definitely requires the
input of effective personnel management is the drafting of a company
handbook. Establishing operation policies and procedures, requirements
for employment, commendation and disciplinary procedures, guidelines
for dismissals and promotions, and even something as simple as a dress
code has to be compared with state and federal guidelines before the
handbook is ready for release to the company at large. Personnel
managers and the HR staff are ideal for drafting and reviewing the
company handbook.
Depending on the size of the organization, it may be possible for
one person to handle the personnel management functions. As a
company grows, it may be necessary to expand from a single personnel
manager to a full-fledged personnel management, or Human Resources
team. By understanding the needs of the company at each point in its
growth, management can readily see to the addition to the Human
Resources team over time.
Relationship Oriention
The relationship oriented person sees other people as the best way
to achieve success. In an extreme case, almost everything such an
individual does in life must involve other people.
36
When faced with a problem or a new situation, the first instinct for a
relationship oriented person is to contact a friend or family member who
might be able to help solve the problem or explain how to deal with it.
This person does not like to be alone. Almost all activities must have a
social element, even such simple tasks as doing the dishes, walking the
dog, or working in the garden.
A weekend is not complete unless at least some parts have a social
element. A quiet Friday night makes a relationship oriented person
uncomfortable - unless by quiet you mean going out to a friends house
for drinks and a chat.
Recreational activities are in and of them selves not important only the social element of the activity is important. Almost any activity is
fun if there are friends along and as long as the focus is on the social
element and not on the activity itself (an important distinction).
Finding out about other people is a natural instinct for the relationship
oriented person. How people fit together - who is whose friend, for
example, is extremely important to relationship oriented people.
Verbal communication skills and body language awareness are the
highest of any orientation. Verbal skills are naturally developed from
infancy through the intense desire for interpersonal interactions. A
relationship-oriented person can sometimes be seen actually repetitively
practicing speech patterns, mimicking people they have strong bonds
with, and reveling in verbal handshaking.
Relationship oriented people who are not self-aware consider the other
orientations boring and cold (process oriented people) or greedy,
selfish, and self-centered (goal oriented people). Caveat: These
thoughts dont last long if these other people show a modicum of real
sociability. All can be (nearly) forgiven if someone is friendly.
Homework or studying of any kind only works for relationship oriented
people if there are other people around to do the homework or studying
with.
Solitary, individual, no-talking exams are an abomination to the
relationship oriented person. Group projects with lots of time for social
37
38
Key Behaviors:
Keeps the same style even when working under deadlines, tired, or
opposed on a point.
Stays calm when frustrated.
Works without making mistakes even when there are several conflicting
priorities.
Contributes constructive ideas even when everyone seems to hold an
opposing viewpoint.
Stays on course as policy or procedure changes suddenly.
Works well under tight deadlines.
Works well when having normal day-to-day stress in personal life.
39
[1]
[2]
However, the word definitions in these fields are just the starting points
for detailed analysis of system adaptability.
40
41
in order to maximize results and to learn and apply the most we possibly
can from our collective experience.
APPROACHES TO RESULTS:
Across disciplines, management and program improvement texts
are littered with approaches to create and sustain the use of data.
Unfortunately, the proliferation of similar terms may undermine clear
communication and successful collaboration (Friedman, 2003). Among
the approaches, Results-based Management (RBM) trumpets making
decisions regarding programs based on recently measured results and
consideration of obstacles and facilitators facing current operations.
Another example, managing for Results (MFR), emphasizes building a
results focus into every aspect of management practice and routine.
With Caseys Continuous Quality Improvement (CQI) effort, as with the
Annie E. Casey Foundations concept of Results Accountability, we
recognize that all who can contribute to finding solutions and making
improvements must be involved, not only managers.
Team commitment
In order for any project to be completed successfully, each team
member must feel confident about, and committed to, his or her
responsibilities.
The work products they are being asked to produce and the quality
42
each end-product,
The detailed cost estimates and schedule that they are being asked to
commit to.
Look for the signs that indicate that the team member has accepted
responsibility for the end-products.
CHAPTER 4
COMPETENCY MANAGEMENT AND
ORGANISATIONAL
43
EFFECTIVENESS
Introduction
1
ORGANISATIONAL STRUCTURE
MEASURES OF STRUCTURE
TECHNOLOGY
44
with
the
participating
members. Along
with
ethics
and
45
demand within those segments for the services the organization supplies.
Volunteers), and amount of wastage. Since the organization has as its
goal the preparation of meals and the delivery of those meals to house bound
people, it measures its organizational effectiveness by trying to determine what
actual activities the people in the organization do in order to generate the
outcomes the organization wants to create.
Activities such as fundraising or volunteer training are important because
they provide the support needed for the organization to deliver its services but
they are not the outcomes per se. These other activities are overhead activities
which assist the organization in achieving its desired outcomes.
2. DIFFERENT MODELS OF AN ORGANISATIONAL EFFECTIVENESS
To be effective and achieve its goals, an organization must successfully
respond to environmental factors. How can the effectiveness of an organization
be measured? Various models of determining organizational effectiveness exist
because organizations face different environments, they produce different
products, their organizational members are made up of different kinds of
people, and the organizations are at different stages of development. Each
model is most useful to an organization having a particular combination of
these environmental and organizational attributes.
According to the rational goal model of effectiveness, an organization is
effective to the extent that it accomplishes its stated goals. For example, the
formal goals of the Toronto Blue Jays are to win their division, the American
League pennant, and the World Series.
The human relations model focuses on the development of the
organizations personnel. Marlin Travel sends its agents on familiarization trips
to expand their knowledge of specific hotels, cruises, and destinations.
The competing values model requires that an organization scrutinize the
balance among the above four effectiveness models. In this model there are
three sets of competing values. The first is the tension between internal versus
external focus. The more the organization focuses on one, the less it can
concentrate on the other. For example Apple Computer has focused externally
46
on its customers and making computers that are intuitive and easy to use. The
computer chip maker Intel has had a more internal focus on how to make faster
and more powerful central processing units at a low price. The second set of
values in competition is flexibility versus control. Flexibility allows quick
response to changing conditions and values innovation. Control values the
opposite. Stability and predictability mean that routine activities are performed
well but change is more difficult. The third set of competing values is the
relative concern with the feelings, needs, and development of the people
making up the organization versus the organization and its requirement to
accomplish its tasks.
An organization seeking legitimacy survives by acting in a manner seen
by other organizations as legitimate. An example would be producing a
business plan and projected income statement in order to obtain a bank loan.
Finally, the organization as a high performing system compares itself to
other similar organizations. The Vancouver Symphony Orchestra can measure
ticket sales and customer satisfaction with performances. But to determine the
quality of the orchestra itself, comparison is made to other orchestras in the
world. Effectiveness is seen as the degree to which that comparison is positive.
One method used by high performers to make such comparisons is to examine
industry rankings. An example is the Macleans magazine ratings of Canadian
universities.
3.
47
startups and closures. This tendency is called the liability of newness. Older
organizations die, too, though we often feel a sense of shock when we read of
a well-established company that closes its doors. A recent example is Eatons.
The next stage of development is the organizations youth. Growth now is
by direction, as professional managers brought into the company start to
impose organizational rules and bureaucracy. The goal is growth and
management aims to provide a sense of mission to members of the
organization. The crisis faced at this stage is that senior managers may not
wish to relinquish control to more junior managers by delegating tasks and
authority to them.
At the organizations midlife, growth is through delegation and coordination, the
goal is efficiency, and the structure becomes more bureaucratic and
departmentalized. To be able to change from a red-tape bureaucracy to a
collaborative team-oriented organization is the crisis that will eventually arise.
At maturity this collaboration will be achieved. The crisis at this stage is to avoid
becoming stagnant and enduring a slow decline and eventual death. Instead,
the organization must continually renew itself. In the final stage of decline and
death some organizations cannot change because their management becomes
a roadblock to change. Also, the organizations current structure can become a
constraint on necessary change.
4.
ORGANISATIONAL STRUCTURE
The founder of an organization has to make a series of decisions about
what business to be in, what the organizations goals and objectives are, what
work has to be performed to attain those goals, how the work will be divided
and coordinated, and who will do the work. These decisions may be
interdependent if the organization is small. Making one decision will affect
others. For example, the skills and abilities of the particular people hired into
the organization will then affect decisions about what the organization can do
and how it will do it.
Another simple form of organization would be a restaurant whose manager has
divided the staff into three groups: the bar, the food, and the service.
These simple forms could be much enlarged by adding more people to the
48
49
manufacturing
firm
functional
departments
typically
include
MEASURES OF STRUCTURE
Structure concerns more than the division of labor or the boxes on the
50
controlled by rules that cover almost every situation that may arise. A campus
radio station, on the other hand, may be much less formal, having only a few
rules governing the broadcasting behavior of station members.
Centralization concerns where in the organization decisions are made.
When decision-making is reserved for top management, vertical centralization
is high. Vertical centralization is low when lower-level employees in the
hierarchy are given decision-making authority. Horizontal decentralization
occurs when workers in many different organizational units are allowed to make
decisions without referring to a more central authority.
Organic organizations act more as living things. They have tasks that
are more interdependent and that are continually adjusted and redefined
through interaction with organizational members. An advertising agency such
as Saatchi & Saatchi needs to be flexible in dealing with customers and in
creating concepts for television commercials and print advertisements. In an
organic organization, control depends less on formal job position and more on
expertise relevant to the particular problem being considered. Communication
is both vertical (up and down the hierarchy) and horizontal (across different
departments of the organization) depending on where the needed information
resides. These communications primarily take the form of information and
advice. Commitment in the organic organization is to the organizations tasks
and goals. Members accept general responsibility for task accomplishment
beyond their individual role definition. That is, they do not stick to a job
description as a definition of the work they will do. Organic organizations tend
to be simple, low in formalization, and decentralized. They adapt to and create
change in their environments.
Bureaucratic theory makes the assumption that people are rational and
can work within the rules. These guide behavior, meaning that conflict would be
avoided. Weber provides guidelines for how to structure an organization. This is
the ideal type bureaucracy, as it should work. Non-rational behavior and conflict
between individuals were not anticipated. We now know that non-rationality and
conflict are present in bureaucratic structures.
TECHNOLOGY
51
CHAPTER 5
CONCLUSION
52
CONCLUSION
Competency management is such a process by which one can
measure the working potential of a person or a group of Competency
performance is a process through which one assesses and determines
ones strengths as an individual worker and in some cases, as part of an
organization. It generally examines two areas: emotional intelligence or
emotional quotient (EQ), and strengths of the individual in areas like
team structure, leadership, and decision-making. Large organizations
frequently employ some form of competency performance to understand
how to most effectively employ the competencies of strengths of
workers. They may also use competency management to analyze the
combination of strengths in different workers to produce the most
effective teams and the highest quality work.
Competency management also requires some thought, time, and
analysis, and some people simply may not want to do the work involved
to sufficiently map competencies. Thus a book like the above is often
used with a human resources team, or with a job coach or talented
headhunter. Competency management alone may not produce accurate
results unless one is able to detach from the results in analyzing past
successes and failures. Many studies find that people often overestimate
their abilities, making self-competency performance results dubious.
Usually, a person will find himself with strengths in about five to
six areas. Some- times an area where strengths are not present is worth
developing. In other cases, competency management can indicate
finding work that is suited to ones strengths, or finding a department at
ones current work where one's strengths or needs as a worker can be
exercised.
A problem with competency management, especially when
conducted by an organization is that there may be no room for an
individual to work in a field that would best make use of his or her
competencies. If the company does not respond to competency
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management by reorganizing its employees, then it can be of little shortterm benefit and may actually result in greater unhappiness on the part
of individual employees. A person identified as needing to learn new
things in order to remain happy might find himself or herself in a position
where no new training is ever required. If the employer cannot provide a
position for an employee that fits him or her better, competency
management may be of little use.
Finally, performance appraisals are an important part of performance
management. In itself an appraisal is not performance management, but
it is one of the range of tools that can be used to manage performance.
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APPENDIX
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