Organisational Factors That Impact On People Performance Management Essay

Covin and Slevin and Hostager et al., defines organisational structure as a arrangement of workflow, communication and authority relationship within an organisation and also come to an conclusion that all these factors can have a key effects on an organisation’s activity. Increase in an Organisation size simultaneously increased task speciality and segmentation. Forehand and Gilmer (1964) and Hall, Haas, and Johnson (1967) pointed out that formalization could severely limit the amount of individual freedom and discretion at work; and Hall (1977) reasoned that highly centralized organisations often limit the contribution that employees can make in carrying out their work. However, an effective organisational structure creates a chain reaction of shared support and increase employee morale, internal communications, efficiency, and effectiveness to work as a team and accomplish organisations goals and objectives. Many educational authors have accounted a bond connecting job satisfaction and organisational structure. For example, “organisations with flatter structures tend to portray feelings of self-actualisation and create less anxiety in employees” (Lam, 2004).

In more bureaucratic type of organisations or ‘Machine bureaucracy’, as described by Mintzberg, which are very highly specialised with centralised control and a rigid structure make employees unable to access the required information to carry out specific duties and can lead to a unclear chain of command, meaning that employees may not be able to figure out who they are supposed to be speaking with about a project or concern. Balancing the need for flexibility among departments with the importance of a clear chain of command is an important part of organizational structure to boost efficiency (Lam, 2004).

Work ethic mostly depends on a strong organizational structure. Employees feel motivated and trustworthy, though, when they get treated with respect and have access to opportunities for promotion, the effect of organizational structure on employee ethics or morale can also be harmful, for example, “if an organization regularly awards department head with increases and bonuses while freezing Junior staff salaries can quickly dissatisfied lower level employees and could cause high-turnover” (Ellis, 2003).

Through research on an organisations structure one can classify two main type of management styles. The two main styles are:

A hierarchical management structures (traditional structure):- Traditional organisational structure’s mainly common fact is that it shows the boundary between the management level and the lower levels. Managing people is one of the most essential aspects of the organization, and how they do their work and how they treat employees. In traditional structures, one cannot have this kind of flexible administrative structures, but only possible in the modern structure. Flexible management structure gives employees the motivation to be part of the team and the idea. Employees are given the opportunity to contribute to the program of work and to give a more positive ideas, in the sense that feel wanted by the organization, and not just a number on the system (Sunrisepage, 2013).

A “humanistic” management structures (New modern structure):- This type of structure is more flat and open and employees and management can be seen as equals thereafter. This motivates employees to use their creative ideas and get rewards for the work they have done. Rewarding employees increase the satisfaction and motivation = positive attitude = reduce turnovers = more productivity and profit.

Some other benefits are as follows:-

Individuals work as a team.

Multi skilled Employees.

Employee security is higher.

Outsourcing becomes more flexible.

A more stable structure.

Self managing employees (Sunrisepage, 2013).

According to the Schein (2011), organizational culture “is the set of shared values, beliefs, and norms that influence the way employees think, feel, and behave in the workplace”. As stated by Nelson and Quick (2011), organizational culture is divided into four main functions: provide sense of identity to employees, amplify their dedication and loyalty, strengthen organizational morals, and provide control mechanism for shaping behaviour.

Organizational culture has the ability to improve organizational performance, and employee job satisfaction, sense of uncertainty about the solution to the problem (Kotler, 2012). If organizational culture becomes inconsistent with the expectations of internal or external stakeholders, the effectiveness of the organisation can get affected (Ernst, 2001). As stated by Kopelman, Brief and Guzzo,(1990), that organisation culture and performance are clearly inter related. Therefore, a strong culture makes the employees to follow it rather than a week culture which only provides broad guidelines (DuBrin, 2012).

We can summarize the effects of organizational culture on employee behaviour and performance depends on four main ideas. First, identifying the culture of an organisation make employees to be aware of its history and the current procedures of doing work, this provides guidance about the expected behaviour in an organisation. Secondly, organisation culture encourage dedication and loyally of the employees towards the organisations philosophy and ethics. These dedications create a bond and achieve effectiveness between employees to work towards common goals. Third, organisation culture creates a control mechanism through its customs and by recruiting, selecting and retaining employees with ethics as best wanted by the organisation to “channel behaviours towards behaviours and away from undesired behaviours”. Finally, certain types of organizational cultures can be directly related to increased efficiency and productivity than others (Bulach, Lunenburg, & Potter, 2012; Hellriegel & Slocum, 2011).

Task 2: Understand Approaches to Managing the Differences between Individuals That Impact on Their Performance at Work

Many factors force an organisation like dynamic environment, globalisation, market demand, and competition to demand for a diverse workforce. Personality has been defined as “an individual’s characteristic patterns of thought, emotion, and behaviour, together with the psychological mechanisms–hidden or not–behind those patterns”. No two people are alike, they can at any point, and even the twins have unlike personalities and behaviour. It was found that the personality “is determined by the genetics, environment and situation of individuals” (Robbins & Judge, 2009). These personnel include men and women, workforce with dissimilar ethnic background, age, physically challenged workers, and workers who vary from the leading group. Individual’s behaviour is difficult to comprehend as a whole and should be considered as a “closed box” and to get advantage from diverse personalities in a proficient and productive way, human resource managers have to attempt to recognize and understand the personalities of their workers. By understanding how personality affects behaviour in the place of work, be able to help and conclude that what is motivating employees to behave or to do extremely well in a certain way. (Aksu et. al., 2009).

Diverse workplaces can support collaboration, fellowship and inspired thinking. Interpersonal relationship behaviour at workplace can also be get affected by personalities. In some cases, different personalities can assist interpersonal relationship. Some individuals may get pleasure from meeting with person with same personalities they have. But different personality can also cause difficulties at workplace. For example:- “Type A personalities might appear overbearing to Type B personalities, causing friction. Type B personalities might seem too emotional to Type A personalities”.

In the workplace different personalities get motivated by various other factors. The personal differences help each other in getting motivated and bring in employees the power to compete and outshine in their fields. It does have a negative influence as well sometimes that employees can take one with abilities as their rival rather than following him they can just get to the worse of developing personal grudges against him. Moreover, employees with imaginative personalities innovates new ideas, accomplish unlike results and integrate creativity into their work. Individuals with “compassionate-focused personalities” might view their occupation as helping civilization or creation the world a healthier place. Spirited employees may possibly outlook the place of work the same as a ground where they look forward to strike away others to show their capability. Organising individual’s strong point can enhance motivation and increase productivity. Ethics in the workplace can also be influence by different personalities. Organisations have to set up well-built principles to direct ethic at workplace regardless of personality types (prenhall, 2013).

Different personalities and traits have to be considered as an asset by managers in all organisations and industries and should be used in a suitable and correct way to be a competitive business in global market. This goal can be accomplish by making strategies to line up with the recruitment and selection of suitable and loyal candidates. Organisations should also spotlight their attention on the behaviour and personality of candidates before selecting them as an employee (Hellriegel and Slocum, 2011).

Furthermore, organisation can make use of “diverse performance scheme” to deal with diverse groups of people. To attain the foremost level of output in performance from each employee, leaders and managers must promote the extrovert (outgoing person) with rewards and prompt the introvert (shy persons) with legal use of disciplinary threat. (Furnham et al, 2009).

Organisation managers and leaders should also possessed specific skills and processes to effectively manage behaviour. There are four set of skills that provide a building blocks for effective behaviour management in an organisation.

Outstanding self-insight and perceptual skills: – Great managers and leaders know their own style of managing people behaviour and personality, and their own strengths and weaknesses. However, these leaders are also aware of a fact that what is comfortable for them may not be the perfect match in all situations. Such skill of self insight assist in managing “prejudicial thinking and stereotyping”. And that creates a leader or manager who accepts diversity as a capital and is able to consider decisions from diverse outlooks. In other words, having these skills help managers to understand employee’s capabilities, their motivators and the reason for their behaviour (Sweeney and McFarlin, 2001).

Situation analysis: – To manage behaviour in workplace also involves the ability to analyze. Excellent managers are aware of important aspects that have to be “sized up” in a situation. They began by start calculating the management implications of those issues and aspects and then design their behavioural strategies to match (Sweeney and McFarlin, 2001).

Leading and Motivating: – Many managers still fail in managing behaviour effectively even though with brilliant perception and analysis skills. For example: – “knowing what motivates subordinates in a particular context is useless unless the manager also has the ability to lead”. It’s about having high expectations and help people to meet. It’s about making difficult decisions and has the courage to take risks. Looking opportunities for change, building enthusiasm for change efforts, and be an agent of change (Sweeney and McFarlin, 2001).

Personal flexibility and adaptability: – This is the one of the biggest challenge often faced by managers in managing behaviour in workplace. For example, “a manager who must help warring subordinates move beyond their interpersonal conflict may decide that a mediation approach is the best way to proceed, despite the fact that imposing a solution feels easier, quicker, and more comfortable”. Many managers survive by looking out for only those situations where they will experience comfort. But unfortunately in today’s dynamic world managers need to be flexible to either extend and confront themselves in weak areas or go away once the moment comes for “Greene corporate pastures” (Sweeney and McFarlin, 2001).

Furthermore, to manage behaviour effectively in an organisation a manager need to address four sets of issues in series: –

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Identify the behavioural challenge: – First, managers should understand what kinds of behaviour are vital for excellent performance in their organizational context. After that managers should consider whether the behaviours they’re presently considering are reliable with those criteria.

Identify the causes of current behaviour: -managers must recognize what is forcing employees’ existing behaviour. In short it means finding what is important and what motivates them. And also how an organisational goals, characteristics and policies are impacting workforce behaviour (Durai, 2010).

Choose a solution or strategy for achieving behavioural goals: – The third step involves creating alternatives and selecting a scheme for upholding, improving, or redirecting behaviour. Managers can only create resolutions if they are aware of what the organisational behaviour has to offer and be able to exactly evaluate the pros and cons of substitutes (Hill and Jones, 2010; Sweeney and McFarlin, 2001).

Implement, monitor and adjust strategies as required: – “Implementation means that managers must develop a clear time frame for taking specific action steps”. Managers also must be prepared to inspire, persuade, and motivate subordinates to embrace the steps necessary to actually modify existing behaviour. Managers need to be prepared for this opportunity and take action adaptively. Also, things hardly ever go as considered. If possible, managers have to attempt to foresee what might go wrong and build up some contingencies to deal with them. Monitoring behaviour and make the compulsory adjustments are generally essential as well. This concluding action puts manager’s leadership, flexibility and adaptability to tests (Sweeney and McFarlin, 2001).

Task 3: Understand the Organisational Factors That Impact on People Performance

Yukl (2006) defines leadership as “the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives”. Furthermore, Northouse (2007) defines leadership as “a process whereby an individual influences a group of individuals to achieve a common goal”. These definitions propose numerous elements vital to the fact of leadership.


(a) Leadership is a procedure,

(b) Leadership involves persuading others,

(c) Leadership occurs inside the framework of a group,

(d) Leadership involves “goal attainment”, and

(e) These goals are mutually shared by leaders and their followers.

Different researchers agreed on different views about leadership, some academic authors believe in the “great man” theory that leaders are born and unsurprisingly hold the necessary talent which let them to carry out as a leader (Grint, 2000, Nietzsche, 1969, Lawler, 2005), and the qualities they represents are “subconscious” (Lowen, 1975), while on the other hand, some authors put forward that an individual or human can build up a leader qualities through hard work and experience (Henrikson, 2006; Kakabadse and Kakabadse, 1999; Kakabadse and Myers, 1996).

Leadership style influence job performance, stress, satisfaction and turnover. Moreover, leadership style also affects organisations, teams, work environment, departments and leaders who desires are high and always want high results should not depend on a single leadership style (Goleman, 2000). One of the first research on leadership was undertaken by Lewin (and others authors) at Lowa University in 1930s. The research identified the impacts of leadership styles have on groups and organisations (Eagly et al 2003). Three vital styles were put forward in this research. They are: –

Transactional or Autocratic or Authoritarian leadership: – These type of leaders are “do as I say” types. In this style the authority is centralised with the leader and decisions are imposed by the use of rewards and punishment (Bass and Avolio, 2000). Communications in this type is usually one-sided from leaders to the followers. The main advantage of transactional type of leadership is speed in decision making. However, poor morale, no shared vision and little motivation are some of the disadvantages of autocratic leadership. According to Herre, (2010) teams directed by transformational leaders are more productive. Furthermore, supported by Burke et al., (2006) that autocratic leadership style is found beneficial for team results, like output, effectiveness and team learning. According to Bass and Avolio (2000), transactional leader are only worried about goals achievement and the level of output rather than improvement and development of followers to make them perform extraordinarily well. These types of leaders certainly not generate the optimistic and favourable environment at work.

Transformational or Democratic or Participative leadership: – According to Shamir et al., (1993) democratic leaders centres on converting the own-interests of the followers in the direction of shared interests. Participative leaders accept “individual thought, intellectual stimulation, encouraging motivation and idealized influence” (Bass and Avolio, 2000). It means that democratic leaders give more interest to the necessities of subordinates and followers to support innovative ideas. It is a human relations approach, in which all individuals of the group are seen as essential contributor to the final resolution. The main advantages of democratic leadership usually include better morale, support, effective decision making and new innovative ideas. However, there are some potential disadvantages of transformational leadership like delay in decision making, “diluted accountability for decision” and settlements to satisfy everyone but are not the most excellent solution. These leaders encourage his/her followers to accept the vision of the organisation and maintain the confidence through “inspirational motivation” that they will achieve the goals and objectives. Such inspirational motivation increases outcome with perfection and loyalty of the followers (Bass and Avolio, 2000).

Laissez-faire or situational leadership: – Laissez-Faire leadership can be described as “a nondirective, passive and inactive style”. In this style leaders believe in internal drivers to motivate their followers. Moreover, in these style leaders sets few rules and exercise little control over the followers. Leaders in this style leave the members after given a goal to decide by themselves about how to achieve it. The only functions of a leader are primarily work as a group member and offer advice and direction when requested. The main advantage of situational leadership is the opportunity for individual development. And the disadvantage is “the lack of cohesion and unity toward organisational objectives. The lack of a clear vision and direction for the followers of the organization lead to accept dissimilar goals and objectives, and lift the level of tension between the followers and decrease productivity and quality (Daly, Speedy& Jackson, 2003).

According to CIPD (2012), flexible working is “a type of working arrangement which gives some degree of flexibility on how long, where and when the employees work. The flexibility can be in terms of working time, working location or the pattern of working”. Flexibility in the place of work is to talk about the improvement of working practices to suit the desires and wants of the 21st century. There are many form of flexible working and some of them are as follows: Part-time working, Term-time working, Job-sharing, Flexitime, Compressed hours, Annual hours, Mobile working/ tele-working and etc. well-substantiated with designed flexible working plans be capable of bringing several benefits to the organisation.

Many authors have their own views for the need of flexible working. Such as:-

According to Monkcom, (1998) to serve “as a response to employee demands”, and also “to reduce [the] cost base” for the organisation.

Furthermore Wagenberg, (1998) means “to adjust [workplace strategies] to the continuously changing demands of workers”, while seeking “cost reduction” for the organisation.

To promote “increases [in] employee morale”, while “the main benefit is that it reduces operating costs” for the organisation (Management Today, 1998).

The employers and the employees can get benefits from flexible working because the two parts have flexibility to organize their functioning arrangements in a way in which is appropriate to them. This can make it possible at organisations to adapt to the economic situations changes and the various employees to a better balance their life working and family. According to a report by the “Family Friendly Working Hours Taskforce” there is a strong and compelling business case for flexible working:-

Declining in absence and increased retention reduce in costs – 65 per cent of employers agreed that flexible working help in retention and furthermore, save money on recruitment, induction and trainings.

Increased productivity – 58 per cent businesses reported progression in productivity.

Improved capability to employ from a “wider talent pool” – 42 per cent of employers said that flexible working had a positive effect on recruitment in their establishment.

Better loyalty – 70 per cent of employers reported enhancement in employee’s loyalty (Stredwick and Ellis, 2005).

According to Secord (2003), flexible working allows employees to achieve a better balance between life and responsibilities at work. In today’s society, men and women desire to find equilibrium among work and family responsibilities. Advantages of flexible working hours for employee are: –

More freedom for employees.

Travelling is easier.

Enhanced confidence and reducing nonattendance and unpunctuality.

Decrease in overtime and fewer mislaid time.


Employees can also get financial support by working in flexible shifts.

There are many theories that have influenced the management of personnel in order to accomplish motivated labour force. These motivation theories help organisations to understand why individuals act the way they do and provide guidelines and plans that enable the organisation to get the best performance and loyalty out of its employees. Managing workers effectively to get the best performance they can provide, is not a clear-cut task as quoted by Vroom and Deci (1970) “The question of what motivates workers to perform effectively is not an easy one to answer”. Motivation is defined Kreitner, (1995) “the psychological process that gives behaviour purpose and direction” and supported by Buford, Bedeian, & Lindner (1995), definition “a predisposition to behave in a purposive manner to achieve specific, unmet needs”.

Employee’s performance is one of the organisations main concerns to stay competitive in a dynamic and expanding competitive market because of globalisation and industrialisation. This compels managers to hunt for strategies and techniques to satisfy and motivate their employees. Even though managers are occasionally grants incentives like salary increments, bonuses, promotions and opportunities for progression and development; however the question is; Do these incentives are enough to motivate and satisfy employees to give off their best?

Frederick Herzberg understands this question and the matter of employee satisfaction and motivation in the 1950s and 60s. And create a Herzberg’s ‘Motivation-Hygiene Theory’ also known as the ‘Two-Factor Theory’. According to Herzberg some features of a work are always related to job satisfaction while other factors are associated with job dissatisfaction (Ratzburg, 2003). This is categorized into motivator factors and hygiene factors of Motivational-Hygiene Model.

According to Herzberg, motivational-hygiene model employees are motivated when they countered challenging but pleasurable work and can accomplish growth, development, express their responsibility and recognition. Herzberg identified the basic needs and is the business or organisation responsibility to facilitate them to its employees in order to “self-actualise”. Some of the basic needs are: good lightning, good working conditions, proper salary, good ventilation and good supervisory relationship and the absence of these basic needs are cause of dissatisfaction in a work.

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The key of Herzberg’s Motivation-Hygiene or Two-Factor Theory is that the aspects that contains motivation factors be likely to direct to job satisfaction and in the absence of these factors employees do not be likely to dissatisfied, they are just “not satisfied”. However, the “satisfied” employees work effectively by putting extra efforts and boosts productivity (Sacbusiness, 2013).

Hygiene Factors

The hygiene or maintenance factors contain the physiology, love and safety needs from Maslow’s hierarchy of needs. These factors do not affect the job directly but are related to the workplace conditions. In the absence of these needs employees become dissatisfied, and even if provided by the business does not necessarily build strong motivation (Gibson et al, 2000). These factors contain: business guidelines or policies, supervision, interpersonal relation with co-workers, salary, work environment, personal life, job security and status. According to Herzberg, these are hygiene factors because they are compulsory to preserve and uphold level of satisfaction and in absence can also cause dissatisfaction. These factors are not directly act as motivators but are vital to avoid dissatisfaction. However, enhancement in these factors or conditions does not generate motivation (Huling, 2003).

Motivator Factors

There are characteristics in some workplace that provide employees job satisfaction. According to Herzberg, motivator factors contain the physiological need for growth and recognition and are not the result from “carrot and stick incentives” instead they are intrinsic (relates to job content) to work itself. The lack of these aspects does not cause high dissatisfaction but in the presence, these factors result in higher motivation and effective job performance. Some of the motivator factors are: growth, accomplishment, responsibility, acknowledgment, works itself, progression (Dartey-Baah, 2011).

How organisations operations affects the environment and is its policies are ethical and cleared, have positive or negative impact on its employees motivation level. According to Sen (2010), business ethics can be defined “as written and unwritten codes of principles and values that govern decisions and actions within a company”. Taking McDonalds as an example, it has many expectations from its employees as its main focus is on its customer. Thereby they have a code of ethics for employees where a system was established so that employees will know more than to perform their jobs technically. Their values (McDonalds: 2013) state that they are committed to sustainable business practices and are determined to conduct their operations in a manner that does not compromise the ability of future generations to meet their needs. And that they take seriously the responsibilities that come with being a leader.

There are many downbeat features of business ethics to the business because of mistreatment of employee, low wages, negative cultures, unclear plans, and the end result with employee is low motivation. This is because employees will get confused if what the organisation is preaching is different from what it is practising. That why it’s important and vital for McDonalds to implement its ethical policies right, in order to achieve sustainability. For example: McDonald’s chooses the supplier who produces sustained food, like ‘ Greenpeace’ a company works with McDonald’s to make sure the soya they source from Brazil is produced by companies that do not destroy the rainforest. Moreover Pat Venditti, forest campaigner at the charity, says: “What we’ve seen is that they have taken a very good leadership role in terms of how they approach environmental issues”. Furthermore, McDonald’s announced to turn its spent cooking oil into biodiesel fuel to power its vans in the UK and also switch over to non-hydrogenated cooking oil in its restaurants (Guardian, 2007).

According to Kotler and Lee (2005), “Corporate Social Responsibility (CSR) is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources”. Furthermore, supported by Little (2003), CSR provides a ways to businesses for managing and persuading the attitudes and perception of their stakeholders. Moreover, in a simple term CIPD (Charter institute of professional development) (2009), describe CSR is how businesses or organisation’s carry out their trades in ethical approach, considering their impacts environmentally, socially, economically and in term of human rights. Fraser (2005) inspects the speculation behind CSR is all about being profitable while at the same time diminishing their negative impact on stakeholders. Employees are the most valuable resource for every business now days. That’s why to every organisation who want to be competitive and to succeed requires a good CSR policy in respect of HRM (Human Resource Management) to attract skilled employees, retain employees and motivate those employees.

A CSR scheme helps to set up certain condition that can contribute in raising the level of loyalty or commitment and motivate employees to become more productive, inventive, develop skills and support employees to look out for innovative methods to identify and take advantages of opportunities for maximizing profits, reducing costs and absenteeism (Industry Canada 2009). Furthermore, according to Zappala and Cronin (2002), a good interrelationship between employees and organisations bring additional advantages like good public image, goodwill, increases workers morale and society support. CSR does have effect on HRM and changes working conditions, makes better health care, gain more employee rights etc. CSR also affects employee engagement. According to Hewitt, higher level of engagement with the staff encourages them to say more positive things about the business, staff will be determined to stay with the business and endeavour or struggle to attain higher than what is likely in their every day job.

Task 4: Understand Methods for Developing Human Resources

If employee’s motivation is determined by the availability of unsatisfied needs, then it’s sensible for a manager to identify and distinguish needs according to its importance for individual employees. Abraham Maslow understand this concept and build up a model called “Maslow’s Hierarchy of Needs” in which he described that low-level needs like physiological requirements (air, water, sleep and shelter) and safety needs (Safer living, health insurance, Job security) have to be satisfied before other higher- level needs like esteem needs (self-worth, accomplishment, consideration, acknowledgment, status) and self-actualisation needs (Truth, fairness, knowledge) (Abahe, 2013).

The Kellogg Company is an international food manufacturing corporation. Kellogg’s manufactures cereal and convenience foods, including crackers, frozen waffles, toaster pastries, vegetarian foods, cookies, fruit-flavoured snacks, and cereal bars. According, to Maslow it is essential to identify the place of each individual within the hierarchy so that all elements of Maslow theory can be taken into account. Inside Kellogg’s all persons are motivated to work throughout all of these levels and this provides positive effects for each organisation and employees. For example:

Physiological needs – Kellogg’s provides reasonable and competitive income which helps its employees to get basic needs. Kellogg’s also have “Cornflex flexible programme” which lets employees to decide individual’s benefits that suit them. For example: “childcare vouchers, cash alternatives to company cars and discounted life assurance schemes”. Competitive income and saving through Kellogg’s programme aids employees salaries to go further and also motivate them to become more productive and loyal.

Safety needs – Kellogg’s values the protection of its employees and because of this the company in committed to provide a secure working environment to avoid catastrophes. Kellogg’s also provides training from time to time to keep their employees competitive, safe and productive. However employees have to take responsibility, as they are accountable for examining the health and safety rules. Every employee have different needs therefore, Kellogg’s provide different working patterns (work part-time, job sharing, tele-working) to assist in choosing the best alternative for a healthy work-life balance.

Social needs – Kellogg’s runs group meeting called “huddles” on weekly basis which provide an opportunity for employees to communicate with their managers or leaders in an informal way to ask for information on business, including revenue information and company products. The reason for this group meeting is to give them a sense of belonging to enhance confidence in employees, strengthen team work, keep them focused on organisation goals and objectives and aid each personnel to contribute to the organisations “K-Values”( such as being positive, recognising diversity).

Self-actualisation – Kellogg’s provides opportunities like to take ownership of tasks to its employees to take on challenges and stimulating responsibilities, to aid them in progression and advancement throughout their careers (Businesscasestudies, 2013).

According to Weaver and Chelladurai (1999), mentoring is “a process in which a more experienced person (i.e. the mentor) serves as a role model, provides guidance and support to a developing beginner (i.e. the protégé), and sponsors that individual’s career progress”. However, coaching is defined “as a goal-directed, multi-faceted process for enhancing people, work and life and, as an industry, it has, and is still, experiencing rapid growth” (Brock, 2006). Coaching and mentoring are powerful methods that assist personnel’s and organisations to maximise their potential. Coaching and Mentoring are more and more being identified as vital or essential in employees’ development. However, a key conclusion is that there is a wide complexity in the success of coaching and mentoring procedures adopted.

Organisations uses coaching and mentoring as a development tool provided to a senior management. The benefits of coaching and mentoring to the organization are as follows:

• Lower employee’s turnover.

• Competitive and well performing workforce.

• Improved skill and knowledge of the employees.

• Better probabilities of accomplishing aims.

• Succession planning.

• Complete utilization of man power.

• Improvement of communication within the organization.

• Strengthening of organisation culture and morals (Exforsys, 2013).

Organisations use coaching and mentoring to develop an employee skills and knowledge to improve their job performance, which leads them to the accomplishment of organisational objectives (CIPD, 2008).

According to Oxford Advanced Learner’s Dictionary (2013), “training is a process of learning the skills that you need to do a job”. Furthermore, “Training refers to a systematic approach to learning and development to improve individual, team, and organizational effectiveness” (Goldstein & Ford 2002). On the other hand, development refers to actions leading to the attainment of new knowledge or skills for purposes of individual development.

Training and development programme have a positive impact on the individual and team performance. And are also useful concerning the other outcomes from employees like motivation, empowerment and attitudes. Only right kind of training and learning opportunities benefits the employees and organisations, therefore T&D that does not focus on the needs of organisations is waste of time and money.

The employee related benefits with T&D (Training and Development) are as follows:

Job Performance- Training results in enhanced and superior work performance because of the acquisition of new set of skills (Hill & Lent 2006). Barber (2004), found that “on-the-job training” help employees to learn superior innovation and tacit skills. Tacit skills are behavioural skills learned through informal learning that are helpful for efficient performance. Providing new skills to employees will not only increase performance but also raise motivation levels.

Retention – Lack of training and development in one of the vital key reason employees leave the organisation and the turnover decreases therefore, by providing T&D sector an organisation can retain more employees for a long term.

Future safety- Training also helps managers and employees to attain skills for future role before getting promotion.

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T&D increased individual job satisfaction and makes the organisation looks more attractive to future employees.

There are plentiful of benefits for the organisation by providing training and development to its employees like training and development also help to create a pool of professional and skilled workforce readily available to fill a gap whenever necessary. Motivated workers increase productivity and profit with low productive cost because of skills and knowledge (U.S Department of Labour, 2011). Training employees continuously provides expertise and professional inside the organisations which increase efficiency and effectiveness and reduces the overall cost. Sustaining quality is vital for every business in the long run to stay competitive (Hopkins, 2007). TQM (total Quality Management) and other quality management techniques involve the training of staff as an essential to its successful operation. Furthermore, high turnover is also one of the main problems with organisations. Therefore, the benefit of providing training and development give a sense of belongingness to its employees allows reducing employee’s turnover (Kandula, 2006).

Training is also beneficial for the service industries, as the source of primary income for these businesses are solely is his experience and skills of its staff. Therefore, provide training to its current employees make them expertise and professional which not only increase the return on investment but also reduces the operational cost, as hiring a professional with high skills are comparatively more expensive in the long run than providing training to current employees. Provide training to the organisation new recruits help them to understand the job, requirements, and responsibilities and understand the organisation culture. Having a training programs also fortify the communication between the different levels of an organization. These benefits are long term benefits as the company not only make profit in the front face to face communication and technology, but their learning can bring them a lot of knowledge to be used in the future as well. Companies can enhance and expand their boundaries.

Task 5: Review How People Are Managed Within Organisations

High end people management strategies and plan can make business more competitive in the dynamic environment and increase performance, through effective management of human capital rather than physical capital.

According to Bailey, (1993), Guest, (1997) and Huselid, (1995) these practices can increase business performance by:

Enhancing individual skills and capabilities.

Promoting positive attitudes and increasing motivation

Provide staff with more responsibility so that they can take full advantage of their skills and abilities.

For McDonald’s, its employees are their most valuable asset because employees attitudes, abilities and commitment begins the customers satisfaction and is also the most effective and efficient route to success. That’s why McDonalds try hard to draw and employ the finest applicants and offers the most excellent place to work.

Some of the people management strategies integrated in McDonalds strategies are:

Recruitment & Selection: It means employing the right applicant for the right job at right time. According to Watson (1994), “Recruitment and selection are conceived as the processes by which organisations solicit, contract and interest potential appointees, and then establish whether it would be appropriate to appoint any of them”. McDonald’s wants those who desire to stand out in delivering exceptional facility. McDonalds identified the vital skills and behaviour before recruiting the applicants. McDonalds also provides job description which outlines the various duties and responsibilities and also the person specification for outlining the various skills set required (Businesscasestudies, 2013).

Training & Development: Employees are the greatest assets of every business. Continue development of employees is important to maintain motivation, satisfaction, performance and loyalty. McDonald’s success secret is its highest quality standard, services and hygiene (cleanliness). Proper trained staff and managers are the first key step to attaining these standards. McDonald’s provides wide-range training courses (floor based, or “on-the-job” training) for crew and operations management and career (Businesscasestudies, 2013).

Rewards & Recognition: McDonald’s rewards and recognise its employees for their contributions, boosts the employees’ morale, motivation performance, by giving bonuses, promotions and qualifications (Boone, 2012).

Organisations are operating in keep changing environment and facing volatile market problems daily. Hence, to create a sustainable and competitive organisation, organisations have to improve them-self continuously. More and more, companies are recognising the potential of their human resources as a vital element of sustained competitive advantage.

According to different researches conducted by different authors (Arthur, 1994, MacDuffie and Krafcik, 1992, Harel and Tzafrir, 1999, Lau and May, 1998 and Sivasubramanyam and Venkataratnam, 1998), they have found a major relationship between people management and outcome of organisation such as productivity, quality, market value, return on investment, employee turnover and sales.

First Bartel, (1994), identified that by investing in the human capital of the employees can boost the productivity of employees. Second, High Performance Workplace emphasis effective people management policies can increase the motivation of the employees (Ichniowski et al., 1997; Wood, 1999). Third, according to Appelbaum, Berg, Bailey & Kalleberg, (2000) and Preuss, (2003), increasing the independence and responsibilities of the employees make them all rounder’s and possibly reduces waste and inefficiencies as it allows the organisation to obtain benefits of the precise knowledge of non-managerial employees. Fourth, effective policies can boost the employee’s commitment toward their work and willingness to do a superior work (Ichniowski et al., 1997). In the course of these strategies organisations give individuals a sense of responsibilities on their shoulders and they think of themselves as the stakeholders and work like as they are working for themselves and are making profit for their own good not for the company. This thinking should be in the employee mind so that the potential they have can be bring out and the organisations can make it work in the best possible way. These can be the impacts which people mostly gain from the management strategies when it gets implemented on them.

Implementation the exact strategy helps an organization from getting out of financial crises or any kind of crises they are facing. Many professionals have concludes different principles of high performance. According to Weber (2005), said organisational structure and processes is the key for high level performance. Furthermore Van de Ven (1999), proposed the need to align strategy and behaviour is the key. Moreover Deming (1986), agreed on the qualities of measuring people, processes and outcomes is the key. From all the above views of different authors the AMA (American Management Association) developed a model of performance that centres on five major characteristics or strategies for organisations to accomplish high level of performance.

Strategic approach: An organization’s reliability of strategic approach assists in determining its success. Strategic approach helps organisations to see how well the organization “walks the talk”. Furthermore, strategic approach boosts the performance by assisting an organisation in setting up a clear vision and also provides flexible and attainable strategic plans to support the organisation vision. This approach also set clear articulated (express) philosophies that set the standards for individual’s behaviour, to sustain mutual relation and motivation. This whole approach let the leaders, managers, and employees to work constantly with the organisation strategic plan and philosophy for a high level performance (Overholt et al, 2007).

Customer approach: Customers are vital for the living and success of all businesses, but adopting a proper kind of customer approach by organisation is most important for establishing high performance business. An organisation needs to have a clear approach to attract new customers, treat new customers and retaining those customers. To be high performance organisation one have to be more focused to the current and future needs of their clients or customers and should have very strong emphasis on customer service, than other competitors. To increase their performance organisations needs to understand that different customers have different needs. And to manage this, an organisation can create different processes to manage different category of customers and this help the businesses to move in the market that require them to change how they care for their customers (Overholt et al, 2007).

Leadership approach: Organisations needs to have a strategy in managing individuals to attain a particular set of behaviours. To be a high performance organisation, it needs to clear about what type of behaviour employees must demonstrate to execute the organisations plans. An additional essential factor connected with high performance is “making sure employees believe that their behaviour affects the organization”. Leaders are not sufficient on their own therefore; they must be able to encourage others to work for the success of the organisation. To be a high performance, organisation management should promote the individual who has the finest abilities and knowledge to do the job, based on their talent and merits rather than organisation politics (Overholt et al, 2007).

Processes and Structure (Metrics, Customers, and Training): According to AMA Survey 2007, “defined performance measures are a major key to success”. Organisations need to arrange their policies, processes and procedures effectively to support strategies. Organisations have to strengthen strategies, setting up work flows and everyday jobs that most efficiently facilitate workers to meet all customer needs within the confines of the strategy. Such businesses are likely to exercise a large variety of metrics to measure the work for every department and the organization as a whole. Furthermore, to boost performance an organisation needs a strong focus on customers, training and development that is essential to do jobs effectively and efficiently and keeping with up-to date technological advances (Overholt et al, 2007).

Values and Beliefs (Optimistic, Ethical, and Ready for Challenges): Values and beliefs are vital for any organisation to implement its strategy and accomplish its mission. To be a high-performance organisation one have a set values that are the deep drivers for employee’s behaviour and are well understood by the vast majority of the employees. An organisation needs to create a workplace environment which promote loyalty, cohesiveness and flexibility and, treat employees well, to fulfil their satisfaction therefore, increases individual and organisation performance level. To get best of its employees, organisation should provide freedom to its employees to invest their own skills and knowledge in the decision making process to change processes or procedures to improve outcomes. Finally, an organisation needs to have a stronger set of ethics-related values to enhance its performance as a whole (Overholt et al, 2007).


Human resources management is vital to any organization and it is therefore important to understand how to manage people. It has been identified through this project that different individuals have different needs, behaviour, and skills, and that must be taken into account when managing people. Organisation must be able to identify the different effects, both externally and internally, and which affect the performance of the people in it. After this selection must take steps such as restructuring the organization and accordingly, the application of methods appropriate leadership, and providing factors necessary to create motivation within employees, and enhance their skills current through measures such as training and development. And how to transform the policies and activities, corporate social responsibility to motivate employees.

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