Effect of Motivation on Employee Productivity

Employee motivation has always been a central problem for leaders and managers. Unmotivated employees are likely to spend little or no effort in their jobs, avoid the workplace as much as possible, leave the organization if given the opportunity and produce low quality work. On the other hand, employees who feel motivated to work are likely to be persistent, creative and productive, turning out high quality work that they willingly undertake.

Organizational performance at individual, collegial and organization levels are being jeopardized and subjected to various organizational changes. Specifically, as developed organizations became larger, more multifaceted and more challenging, concerns about organizational performance competencies development and how it could likely to impact culture and direction of the organization have been in the forefronts of business dialogues. There had been much to say about the role of motivation and their expansion but very little has been done on developing motivation-based performance and much little movement on investigating organizational performance and its relative effect on employee’s productivity in organizations.

This is the fact that all organizations are relying on their people for the continued survival and growth of their organization. People, or the employees, are the key in sustaining the organization and this importance of their role gives responsibility to the organization to motivate them so that they can work more effectively. Motivation is the process that account for an individual’s intensity, direction and persistence of effort towards attainment of goals. Motivation is the energizer of behavior and mother of all actions. Therefore, motivation is directly related with productivity.… Read the rest

Innovation Culture in Organizations

Growth creates a need for structure and discipline, organization changes which can strain the culture of creativity that is so vital to future success. To sustain competitive advantage, companies need to institutionalize the innovation process; they need to create an internal environment where creative thinking is central to their values, assumptions and actions.

Innovation is the engine of growth. It is also a mindset – meaning it is influenced by beliefs, values, and behavior. Company culture therefore has a huge influence on innovation, being able to either facilitate it or restrain it. Realizing this, many companies have attempted to put systems and processes into place that encourage an innovation culture. However, while such measures are often viewed as the panacea, they are really just the beginning. To shape a truly innovation culture, the top people in a company need to develop a mindful approach where their every action and word reflects a real desire to encourage and develop new ideas.

Effect of Innovation Culture in Organizations

One of the most vital capabilities of an organization is innovation and that in organization culture is really critical. The effect of innovation can effect in both positive and dark ways for an organization or say a company with higher number of consumer with different needs and demand. The challenges for innovation culture are both predictable and unpredictable. Predictable challenges can be overcome by forecasting abilities but unpredictable challenges can result in disastrous turnings. For example if an company makes changes in its management hierarchy say it replaces its supervisor that can result in either widening communication gap or erasing that further can result in better production or a worker strike.… Read the rest

Introduction of Market-Based Management

Market-Based Management is found on the principles that cause societies to become wealthy instead of mired in poverty. It sees the business as a small society with exceptional features requiring variation of the education drawn from society at large. Through this variation an organisation could build MBM structure and ever-evolving mental models.

Market-Based Management is a holistic approach to organization that incorporates theory and practice and organizes businesses to deal effectively with the challenges of change and growth. It also draws on the training learned from the failures and successes of individuals to attain prosperity, peace and organisational progress. Thus, it involves the study of the history of economies, politics, societies, cultures, governments, businesses, conflicts, science, non-profits and technology.

Market-Based Management is the exceptional management tactic developed and executed by Koch Industries, Inc. It is a company philosophy that is embedded in the science of human action and functional through five dimensions: Vision, Knowledge Processes, Virtues and Talents, Decision Rights and Incentives. Koch Industries’ MBM Guiding Principles articulate the rules of just conduct and describe the main values which direct the day by day business activities.

Market-Based Management is an approach of philosophy which centers on using the tacit knowledge of workers to the benefit of the business. It is stand on creating a situation where workers can feel secure to speak their opinions and question decision making, because the values and the culture permit it. Market-Based Management was based on the fact that capital, ideas and talent are permissible to flow freely and is situated where it is most likely to produce wealth and innovation.… Read the rest

Kotter’s 8-Step Change Model

Change is the word that best described of the modern societies and culture. Change occurred in almost every aspects of life. Change presses us out from our comfort zone. People changed in their life to avoid stagnation and to improve their quality of life and become a better person. This is also true in business where the rapid change in technologies, the way of doing things, advances in information technologies, internal and external pressures, e-business and globalization creates a competitive environment in most organization in order to survive and to be relevant. How business react, operate and adapt to any changes determine the survivability of the company. In organization, change is necessary but often proves to be challenging.

To guide a change (managing a change process) may be the greatest test for the leader of the organization especially when there is resistance. Therefore to lead a change is essential but difficult. The successfulness on implementing change in an organization requires a series of phase, a correct tools and proper planning.  It involves the use of basic tools and structures to control and manage any organisational change efforts. This means that a change manager in every organisation is duty-bound to initiate and lead change in an organization. It really clarifies that, management implies leadership and leadership is a subset of management. The change management focuses on people, their resistance, their coping mechanisms and ultimately how they accept change in the workplace.

There are many management thinkers at different times who have proposed many different theories and model regarding the nature of change management and how to manage the changes effectively for better of the organisations. … Read the rest

Organizational Architecture

By organizational architecture, we mean the entire organization, including organizational structure, control systems and incentives, processes, organizational culture and people. In this case, there are three conditions to be fulfilled by an organization to make the organization profitable. First, various elements of the organization shall be parallel to each other. Second, organizational strategy should always be consistent with the organizational structure, and finally, strategies and organizational structure must be consistent with the competitive conditions prevailing in the firm’s market that are the strategy, architecture and competitive environment.

As noted above, the organizational architecture is the totality of the organization itself which consists of various components. The components are the structure, control systems and incentives, processes, organizational culture and people.  The organizational structure is a formal organizational structure used to manage a firm. Control system is the system used to measure the performance of managers and units while the incentives are tools used to reward the performance of managers. Processes are the manner in which decisions are made and work is performed while the organizational culture is the values and norms in the organization shared by its employees.

Factors Affecting Organizational Architecture

There are five factors that influence the architecture organizational architecture which are size, strategy, technology, environment and country culture.

1. Size

The larger the organization, the more complex its structure. When a small organization such as a single grocery store, a two person consulting company or restaurants it can be a simple structure. In fact, if the organization is very small, it may not have a formal structure.… Read the rest

Leadership Scorecard

Role of Leadership in Organizations

Leadership has been described as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. A definition more inclusive of followers comes from Alan Keith of Genentech who said “Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.”

In an organization where there is faith in the abilities of formal leaders, employees  will look towards the leaders for a number of things. During drastic change times, employees will expect effective and sensible planning, confident and effective decision-making, and regular, complete communication that is timely. Also during  these times of change, employees will perceive leadership as supportive, concerned  and committed to their welfare, while at the same time recognizing that tough decisions need to be made. The best way to summarize is that there is a climate of trust between leader and the rest of the team. The existence of this trust brings hope for better times in the future, and that makes coping with drastic change much easier.

In organizations characterized by poor leadership, employees expect nothing positive. In a climate of distrust, employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. Poor leadership means an absence of hope, which, if allowed to go on for too long, results in an organization becoming completely nonfunctioning. The organization must deal with the practical impact of unpleasant change, but more importantly, must labor under the weight of employees who have given up, have no faith in the system or in the ability of leaders to turn the organization around.… Read the rest