Sample Essay on Improving Organizational Performance (Magud)

Improving Organizational Performance (Magud)

Introduction

In every production process, organizations formulate policies and put in place action plans that are goal-driven (Cardy 2011, p. 61). Convincingly, production strategies put in place underlie accurate and measurable execution plans that are entirely the sole responsibility of organization management. Production managers must work in collaboration with employees and ensure that the input-output conversion rate depicts the company’s projected levels of performance. In other words, employees’ performance is highly valued in every production process and managers must try as much as possible to incorporate the interests of employees with an intention of improving the general industrial growth (Cardy 2011, p. 61). In all instances, businesses operate with an objective to maximize levels of profits through proper assignment and allocation of their resources.

The major aim of this study is to compare how different organizations use different management strategies to affect employees’ performance while creating a base for improved output levels. The significance of this study revolves around the observed industrial changes and different levels of output released into various markets by companies that either operate in the same industry or in different industries (Cardy 2011, p. 63). As observed, improvement in industrial performance gives the rationale for an inclusive management process, which links to either performance management or to high-performance work with significant improvements in the social welfare of every stakeholder alongside expanding production processes.

The two chosen companies for this study include the Royal College of Nursing and CEMEX UK. Royal College of Nursing and CEMEX UK can be compared and contrasted because the companies use completely different strategies to influence performance levels. However, the objective to improve on output levels and maximize profit remains similar to the stated companies with small deviations in company execution plans (Cardy 2011, p. 63).

Definitions

Performance Management (PM)

The concept of PM aims at identifying sources of organizational strengths and weaknesses, ways of managing the available resources, and converting every input into output as outlined in the company’s production strategies (Sahu 2007, p. 44). Other than regulating the industrial capacity, the process of PM concentrates on how a company uses the available resources such as finances as well as employees within various departments to influence growth through a combined production plan and service delivery. The combined efforts of employees enable managers to measure the result of a particular process to determine whether the company is successful in its production plans or not, reward employees appropriately based on the measured success of individual performance level (Cardy 2011, p. 66). On the other hand, managers must also recognize instances of failures to be able to learn from failures and use the highlighted production impediments as the stepping-stone for improving performances (Sahu 2007, p. 48). In order to influence performance within an industrial setup, organizations must work within a well-defined performance management framework, which again varies based on the organization’s production culture and work ethics (Sahu 2007, p. 48). The PM framework allows a company to put together its policies, strategies, and action plans in order to allow for stable and revolutionized performance. Such a framework is known to affect both internal and external business participants in a clearer way (Avis & Chartered Institute of Management Accountants 2009, p. 27). In addition, the designed PM framework should always be consistent with the company’s production objectives of the maximum operation and extended services to meet the targeted consumers. The general management approach to performance used by most companies follows stages similar to the ones shown in the diagram below (Cardy 2011, p. 69). The main characteristics of performance management entail clearly defined vision and purposeful outcomes, efficient and effective employees’ involvement in industrial processes, and proper management arrangement.

High-Performance Work (HPW)

Even though there are marked similarities between PM and HPW, the latter is more inclined towards sustained long-term production improvements (Rao 2004, p. 101). The initiated plan aims at facilitating performance rather than providing room for consultation with the objective of equipping employees of the organization with the required knowledge and skills necessary for transforming both internal and external business environments way (Avis & Chartered Institute of Management Accountants 2009, p. 30). In most cases, companies that use HPW as the management approach create room for internal promotion, leveraging industrial technology, working through skill diagnosis, ensuring proper implementation of strategies to eliminate some of the barriers that may prevent completion of the proposed performance plans as well as maintaining internal standards and performance excellence. This management strategy goes beyond the motivational aspect and defines the objectives of the company in light of current business processes and its uncertain plans (Rao 2004, p. 101). HPW is one of the most current strategies that properly define the work relationships between managers and employees and compares with reactions of consumers and investors towards the kind of products and services offered and returns on investment.

As mentioned, applying PM and HPW in the company’s production processes is highly critical since the duo ensures constant streams of income as well as improving returns to investors (Armstrong 2012, p. 107). An elaborative framework in areas such as communication, organization of work, accountability, and good employees’ relationships within the organization are all motivational strategies that enhance industrial performance and growth way (Avis & Chartered Institute of Management Accountants 2009, p. 30). The impacts of specific approaches managers give to organization performance are all important for consideration with respect to the mentioned companies above.

Comparing and Contrasting Royal College of Nursing and CEMEX UK

Differences

CEMEX UK is a cement supplying company that aims at combining the performance efforts of 4,000 employees to ensure the complete delivery of its products in a more rotational and formal way in different market segments. The company serves its potential customers through prompt, efficient, and sufficient delivery (Rao 2004, p. 106). Currently, the business processes and employees’ level of performance are driven by the urge to fulfill the company’s objective of unending the supply of cement and cement products to both domestic and international markets. Such a production plan remains motivational and makes managers be more flexible in their decisions while extensively applying various models that allow proper management. Given the nature of the work, the company’s management operates under unique theoretical concepts and aims at affecting delivery through teamwork, creativity, creating a base for entrepreneurial processes, and focusing on stakeholders’ requirements (Armstrong 2012, p. 107).

Through the teamwork concept, CEMEX UK is ready to work with other companies in the same industry in a way that will help improve industrial performance levels (Moynihan 2008, p. 119). The need to merge with other companies in the same line of products and, or service delivery is facilitated by factors such as globalization and changes in production technologies. The company’s strategy is to remain influential among potential producers of the mentioned products and retain a larger share of both domestic and international markets (Moynihan 2008, p. 122). The management team through internal control processes enhances growth and ensures that employees put aside personal interests for the sake of the company’s progress. The ideology of teamwork cuts across the entire company and affects even the actions of other stakeholders, majorly consumers and investors (Mitchell 2007, p. 64).  Similarly, through creativity and innovation, the company management is open to inclusive ideas that will help improve levels of production. Identification of opportunities and renewal of methods of service delivery becomes one of the targets of the company with an objective to outperform some of its competitors (Armstrong 2006, p. 23). The management team is always generative and ready to adjust as long as the proposed internal and external business changes have positive impacts on industrial performance. Underlying the same concept, the company’s performance management seems to be driven by the interest of shareholders who in this case are employees, consumers, and potential investors (Moynihan 2008, p. 119). Managers learn from their encounters and are ready to adapt to changes in behaviors of each category of stakeholder as controlled by both internal and external stimulants. Other than focusing on behavioral changes of the mentioned stakeholders, the company prioritizes the needs of stakeholders such as the need to allow for further investments, develop better methods of delivery to fulfill the taste requirements of consumers (Armstrong 2006, p. 30). Finally, under this category, employees’ needs must be given the highest level of attention since employees spend a lot of time maintaining industrial growth. Ensuring good health through better pay, provision of job security, and assurance of constant job supply affect employees’ input levels.

Contrary to the mentioned specifications of CEMEX UK, Royal College of Nursing as a company aims at using the 800 available employees to make improvements on services offered by nurses. In this context, the services offered by nurses are controlled by the company through ensuring fair practices with application non-exclusionary health policies (Armstrong 2006, p. 30). The services that are currently offered by the company’s staff followed several adjustments in organizations’ performance culture to create a base for implementation of the most needed methods of service delivery (Bhattacharyya 2011, p. 51).  Royal College of Nursing is working on a platform of role divisibility and performance specialization through proper identification of areas of weaknesses and making quick adjustments to the proposed processes with an intention to eliminate such weaknesses (Moynihan 2008, p. 121). The company through its descriptive approach has developed a performance appraisal model that allows employees in various departments to link their past production experiences to the current industrial requirements while planning for future activities (Mitchell 2007, p. 69).

Just like CEMEX UK, the Royal College of Nursing operates under its own theoretical concepts which the organization management recognizes as highly important for organization growth (Armstrong 2006, p. 34). The first and most evident theoretical concept revolves around integration with the other Human Resource practices. This means that the Royal College of Nursing works under the stated principles of HPW. For example, the company had to review the performance and positions of all employees as was demanded by the principality of improved industrial processes (Bhattacharyya 2011, p. 56). This state was facilitated by the urge to monitor each employee’s level of performance within and outside the company’s premises. The entire goal here was to make the employees familiar with the demands of the newly appointed HR director. Within the process of HPW, the performance managers had to identify the benefits of subjecting employees to the proposed review processes and what the company should not be engaging in or allowing employees to get involved in without a genuine course (Bhattacharyya 2011, p. 56). Thus, employees must retain high levels of integrity for both current and future production processes.

Similarities

  • Both CEMEX UK and Royal College Nursing aim at improving the working relationships between organization management and employees. The application of the two approaches of performance management is a show of concern to create an environment that recognizes the efforts of both managers and employees towards improving industrial growth. On a similar argument, all the concepts are linearly related since by improving the working relationship between managers and employees, the overall performances level of the companies which aims at fulfilling the interest of customers and other stakeholders will significantly improve.
  • The concepts used by the two companies recognize the impact of behavior change on production processes. A positive behavioral change would mean an improved organization performance and significant growth in output whereas a negative behavior change inhibits individual willingness to get involved in productive activities of the company. The role played in performance management, in this case, is somewhat regulatory and leans towards influencing the identified behavior changes for the general benefit of the entire company. If for example there are observed shocks in employees’ response towards proposed activities, the performance manager in both cases must identify the reasons behind such low response and how to control its adverse effects on the company’s performance.
  •  There are shared principles in both PM and HPW as applied by CEMEX UK and Royal College Nursing respectively. Such principles as the creation of a secure, healthy, and good working environment are general to the two companies and appear to be the driving force for the proposed levels of production. Individual employees’ performance is guided by business culture and production ethics. Apart from aspects of motivation as a way of influencing employees’ response to industrial activities, the principles within PM and HPW revolve around strict regulations which link to value requirements for the stated companies.

Application of PM and HPW to the general performance of CEMEX UK and Royal College Nursing

Both PM and HPW follow similar review stages of employee performance, the company’s relationship with external business environments, and the role competitors play in shaping the overall industrial performance in different market segments (Sydor 2010, p. 43). The concepts of PM and HPW as applied within the two companies revolve around allocation of companies’ finances, employees, Information systems, and another category of assets defining ways by which the two companies can work to deliver on their proposed plans, setting out current performance strategies with an intention to improve on areas of weaknesses as well as defining community long-term strategies with an aim of expanding areas of operation (Mitchell 2007, p. 67).

The two case studies show important elements of performance management which are either long-term or short-term depending on the reasons for the application (Bacal 2011, p. 88). Various factors are a complement to these processes and the best approach is where managers

+tend to remain relevant to changes in business environments. Through the process of HPW, important areas covered by the Royal College Nursing include high involvement, HR practices, reward, and employee’s commitments (Kandula 2006, p. 28). Through high involvement, there are aspects of trust and communication improvements between employers and workers. The level of trust is clearer when we focus on how Royal College Nursing involves employees who in this case are nurses in the review processes. The new processes proposed by the newly appointed HR are only meant to empower employees in their respective areas of work and retain full discretion and control over the various approaches (Sydor 2010, p. 49). Through HPW, Royal College Nursing provides high levels of motivation to the staff, ensures proper leadership, good communication within the work environment, and teamwork. The process as applied by the organization proceeds for the circulation of organizational performance information and new strategies of ensuring growth. This ensured that every employee within the company has a copy of the proposed business plan and stated targets, developing staff associations, facilitating progress through teamwork, and including employees in making policies that will affect their current methods of production (Grote 2005, 70). HPW, therefore, controls the major goals of Royal College Nursing, which currently appear different from previous objectives. The company is motivated by the urge of changing its production approaches so as to remain stable within the healthcare industry (Kandula 2006, p. 26).

Similarly, CEMEX UK identifies some of the reasons to use PM as a way of influencing employees’ decisions to make improvements in their respective areas of performance. As observed, the company management works on a proposed strategy of aligning and responding to different business needs, remaining clear on issues of communication and a good understanding of performance standards, grading of employees and developing mechanisms of motivation. This advocate for advocating for performance-feedback approaches as one of the ways of monitoring employees and company development as well as ensuring that employees establish high levels of work attitudes (Kandula 2006, p. 23).

Conclusion

The most important area to be considered in any process of performance management should be those areas that aim at influencing the response of stakeholders towards industrial growth (Rolstadås 1995, p. 90). Company stakeholders are categorized into employees, consumers, and investors whose reactions towards the proposed production processes affect the entire organization’s performance. Consumers ensure organization growth through the constant purchase of company products only if the items released by the company give consumers the required level of taste (Grote 2005, 70). The consumption levels of customers increase with improvements in methods of production and proper delivery. On a similar account, improvement in a company’s return to equity motivates investors. The investment demand is directly proportional to maintained levels of industrial growth (Rolstadås 1995, p. 91). As companies expand their activities, investors become more interested in making investments. This is motivated by the fact that investors are risk-averse and only want to invest in a less risky portfolio.

On the part of employees, rewards and other commitments towards improving employees’ welfare facilitate employees’ recognition of belonging (Pulakos 2009, p. 201). Motivation to employees accounts for greater company returns. Performance management should therefore take close consideration into issues of financially rewarding, profit sharing, combined decision-making processes, and application of measurable action plan (Grote 2005, 78). All these areas are relevant to organization management and ensure that the identified production methods enhance industrial progress (Pulakos 2009, p. 203).

In general, performance management highlights employees and organizational changes in line with changes in business environments (Sydor 2010, p. 49). In most cases, performance management organizational culture aims at enhancing the welfare of employees and ensuring that employees are properly equipped with the newly established production plans (Grote 2005, 78).

References

Armstrong, M. (2006). Performance management: Key strategies and practical guidelines. London: Kogan Page Ltd. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0CEUQFjAD&url=http%3A%2F%2Fwww.ftms.edu.my%2Fpdf%2FDownload%2FUndergraduateStudent%2FIOP%2520STUDENT%2520ARTICLES%2F0749453923%2520Armstrong%27s%2520HandA.pdf&ei=KT9NU4euKoug7AbH3IHwAw&usg=AFQjCNEUwxvTpMJ8PAQp9jQta3Yln4Z-xg&sig2=rItXV98TBSHXoxNIdTJfOw&bvm=bv.64764171,d.ZGU

Armstrong, M. (2012). Performance management: processes, strategies and practical guidelines. London: Kogan Page Ltd.

Avis, J., & Chartered Institute of Management Accountants. (2009). P2 – Performance management. Oxford, U.K: CIMA/Elsevier.

Bacal, R. (2011). Performance management. New York: McGraw-Hill Professional.

Bhattacharyya, D. K. (2011). Performance management systems and strategies. Dehli: Pearson.

Cardy, R. L. (2011). Performance management: Concepts, skills, and exercises. S.l.: M E Sharp.

Grote, R. C. (2005). Forced ranking: Making performance management work. Boston, Mass: Harvard Business School Press.

Kandula, S. R. (2006). Performance management: Strategies, interventions, drivers. New Delhi: PHI Learning.

Mitchell, D. (2007). Performance management. Chandni Chowk, Delhi: Global Media.

Moynihan, D. P. (2008). The dynamics of performance management: Constructing information and reform. Washington, D.C: Georgetown University Press.

Pulakos, E. D. (2009). Performance Management: A New Approach for Driving Business Results. Chichester: John Wiley & Sons.

Rao, T. V. (2004). Performance management and appraisal systems: HR tools for global competitiveness. New Delhi: Response Books.

Rolstadås, A. (1995). Performance management: A business process benchmarking approach. London: Chapman & Hall.

Sahu, R. K. (2007). Performance management system. New Delhi: Excel Books.

Sydor, M. J. (2010). APM best practices: Realizing application performance management. New York: Apress.