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

Four Types of Businesses for Entrepreneurs to Start With

Entrepreneurship is the process of bringing together factors of production, and organizing profit oriented activities, or the process of distributing economic goods and services for profit. An entrepreneur is a risk taker who possesses skills, such as knowledge and self-confidence. This individual bears the risk of starting a business venture, in the face of uncertainty about future conditions. Most successful entrepreneurs are self-motivated. Entrepreneurs start their own businesses because they do not like to work for others, but prefer to be their own boss and be responsible for the decisions they make. Entrepreneurs have the ability to spot a business opportunity and utilize it, with the hope of succeeding, rather than failing.

Entrepreneurship is a creative activity, as it tries new methods, rather than following routine methods. Entrepreneurship is closely related to innovation, as the success of entrepreneurship, largely, depends on the ability to respond to innovation. It has its objective of economic success, based on the utilization of new means of production. Entrepreneurship is a result-oriented activity, since it emphasizes high levels of achievement and performance. The qualities of an entrepreneur are acquired; thus, an entrepreneur need not be born as one, but can become one through progressive learning.

When selecting the type and size of a business venture, an entrepreneur should consider and conduct analyses on the factors below.

  • Raising capital – most entrepreneurial activities, normally, depend on the availability of capital.
  • Market research – it is the systematic collection of data regarding the consumer levels of demand for the product and cost.
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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

Concept of Personality in Organizational Behavior

The term personality has been derived from the Latin word “Persona” which was associated with Greek theater in ancient times. The Greek actors commonly used to wear masks on their faces during their performances on the stage. The mask worn by the actors was called persona. Personality was thought to be the effect and influence which the individual wearing a mask left on the audience.

Personality is a term that has many general meanings. Sometimes the word refers to the ability to get along well socially. For example, we speak of experiences or relationships, which are said to give a person “more personality.” The term may also refer to the most striking impression that an individual makes on other people. We may say, ‘she has a shy personality’. To a psychologist, personality is an area of study that deals with complex human behavior, including emotions, actions, and cognitive (thought) processes. Psychologists study the patterns of behavior that make individuals different from one another. The word personality is used not only in the field of psychology, but can be applied in most of the other fields of one day-to-day life.

Personality in Organizational Behavior refers to a dynamic concept that describes the growth and development of an individual’s whole psychological system, which looks at some aggregate whole that is greater than the sum of the parts. Personality is the dynamic organisation within the individual of those psychological systems that determine his unique adjustment to environment. The conduct, behavior, activities, movements and everything else concerning the individual are known as personality.… Read the rest

Hofstede’s Cultural Dimensions

Dr. Greet Hofsted had conducted a comprehensive study and explained how culture influences the values at the work place. He worked as a psychologist in IBM from 1967 to 1973. In the time of working in IBM he has collected the analyzed data from aver 100000 individual from more than forty different countries. To the above study he made some additions and he developed four dimensions and later on he added fifth dimension that is long term outlook. Geert Hofstede’s dimensions investigation can support the trade individual in enhance understanding the intercultural variance within regions.

“Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” – Dr. Geert Hofstede

The different dimensions of the Geert hofstede are explained below they are

  1. Power distance index (PDI)
  2. Individualism (IDV)
  3. Masculinity (MAS)
  4. Uncertainty avoidance index (UAI)
  5. Long term orientation (LTO)

Power distance index (PDI)

This dimension explains about the degree of equality or inequality between the people in the society of a nation. A high power ranking shows the inequalities of power and wealth which have been allowed to grow with in the society. The societies are mostly following a caste system which does not permits upward mobility of its citizens. Power distance is defined as “the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally”.

Individualism/collectivism (IDV)

The second dimension of hofstede is individualism/collectivism. The concept in this dimension is discussed most frequently and it is the researched concept.… Read the rest

Guidance in Management

The Concept of Guidance

Guidance in management can be defined as: – “The act or process of guiding” or “The one who shows the way by leading, directing, or advising. “ or “The one who serves as a model for others, as in a course of conduct.”

Good manager guide their employees to continually learn new skills and work toward organizational goals, while being sensitive to their needs. This kind of guidance gives employees a vested interest in their organization, which will affect the quality of their work. The good manager is a leader, not an order giver.

When a manager tells an employee what he want done, instead of giving an order, the manager give their employees the freedom to come up with their best way of getting that task done. It may not always be the best way, and the manager may have to do some monitoring and guiding, but there is also the chance that they will come up with something better than what the manager has planned.

When an employee is given an instruction, they have to think. They have to think of ways to get the job done. They have to decide which is the best way. They have to invest a little of themselves in the solution.

Also, when a manager give an employee an instruction, and lets his employees decide for themselves the best way to accomplish the task, they are more likely to get their buy-in and support. If they have made the decision about the best way to accomplish the task they are more likely to believe it is correct and valuable.… Read the rest