The Importance of Motivation in Organizational Performance
Question:
Discuss about the Conceptualisation of Management and Leadership.
Motivation is the course of action of an individual’s needs and desires and with the help of motivation, an individual’s path could easily be changed. In organizational context, this term is crucial in various aspects as it helps the management to deal with its employees in an effective manner. Motivation could be provided in monetary terms or by fulfilling employees’ needs and desires within the workplace. A constant effort is made by companies for sustaining in the market and in the competitive world. Most organizations are working hard to get it right and remain on top. Management doesn’t know the satisfactory valuation of their performance.
A lot of methods, models and framework for showing units assessment create a stress for an organization as they have to select the path that is same as the philosophy and believe of an organization. Effectiveness and efficiency the most important points to be considered for the performance of an organization. The words Effectiveness and efficiency sound different to managers but as per Chester Barnard’s these two are same words to remain successful (Fernández, 2010).
Performance of Organizations mostly judge by the effectiveness. Mission, goals and vision is the main focus they want to achieve. Organizations judge their performance as per their employees’ efficiency. The desired output is achieved by the finest use of resources. The point to be noticed is the difference of whether the organization is effective or efficient or vice versa. Is it important to highlight the differences? The main aim of this discussion is to view the performance of an organization on the basis of effectiveness and efficiency. The objectives:
- The efficiency and the effectiveness concepts
- Differences and proximities between effectiveness and efficiency.
The American business manager Chester Irving Barnard was a pioneer in generating theories of management and studies about organizations. The book named “The Functions of the Executive” discusses about the organizational theories and the executives function in a firm. This book is used in many university courses as organizational sociology and management theory. He said the organizations are a result of corporation of human activities and discussed the causes of organization’s short living. As per Barnard the necessity of organization is its efficiency and effectiveness (Malcolm & Tabor Hartley, 2010).
The theory of contribution and inducement are main component of Chester Barnard’s view’s management theory. The theory of Inducement-Contribution is not as complex as it looks. It is basically very simple and basic theory that talks about motivation. Cooperative system is the other name of an organization according to Chester Barnard (Nienaber, 2010).
Key Differences between Effectiveness and Efficiency
Can an organization can be ‘efficient’ without being ‘effective’? To get the answer lets discuss on the topic Effectiveness versus efficiency. The terms have a same meaning when it comes to manger but when it is considered from the point of view of success.
|
Effective |
Efficient |
|
Doing the right things |
Doing things right. |
Chester Barnard’s says that the companies are worried about only the quality, output, innovation, sales, creation of value added, cost reduction. These are considered major points to be considered for the success of a company in economic and social grounds (Isomura, 2010).
While reaching to the desired destination on behalf of the organization, it is must to analyses the effectiveness and efficiency of the organization along with the capabilities of employees. Chester Barnard’s considered the Social Transformations in Contemporary Society to choose the staff and leader of the organization, employee’s identification in organization, decision making, and psychological attachment consideration (Novicevic, Hayek & Fang, 2011).
Chester Barnard’s is in favors of changing staff attitudes in an organization for the level of maturity they have. Effectiveness is closely associated with the concept of human capital management. According to him goal achievement and mission fulfillment can be done by organizational effectiveness. Organizational effectiveness can be enhancing by better correspondence, association, initiative, heading, flexibility and positive condition. Chester Barnard’s has originated the idea of Total Productive Maintenance, which has been generally connected in the plants and secured the whole existence of life in each office including assembling, upkeep, and arranging (Fugate, Mentzer & Stank, 2010).
The structure permitted valuing general execution of the plant, since it secured:
- Entire capability (profitability, quality conveyance, wellbeing, social obligation and ethics);
- Entire support basis (upkeep counteractive action framework, viability change);
- Entire investment of the workers (the expansion of the capability of the plant relies upon the inclusion of the staff, paying little attention to the office they have a place with).
As indicated by Chester Barnard’s, framework of Complete Productive Maintenance could be connected as a device, it cannot be used as the procedure to promise operational possibility for leaders. Barnard worried the way that effectiveness management instruments and procedures, for example, benchmarking, time based rivalry, outsourcing, collaborating are gradually replacing the strategy (Haas, et. al., 2011).
It is an aftereffect of organizations mismanagement which result in failure to convert their goals into supportable productivity. Efficiency makes link amongst output and input or how effectively the input are changed into fruitful output.
To increase the output, the Total Productive Maintenance framework by Porter proposes the removal of six misfortunes, which are: decreased yield – from start up to stable generation, process faults, decreased speed, sitting and minor obstacles, set-up and change and apparatus disappointment (Chiou, Lan & Yen, 2010).
As indicated by Chester Barnard’s there is a contrast between organizational efficiency and business effectiveness. Business effectiveness reveals the execution of input and output proportion, whereas organizational efficiency reflects the change of interior process of the organization. For example: culture, structure and group of organization. Incredible organizational efficiency could uplift substances execution as far as efficiency, administration, quality and gainfulness. The Chester Barnard presented seven measurements, for the estimation of organizational efficiency:
- Procedure of organization; ”Social Transformations in Contemporary Society”, 50 Business structure plan;
- Business and management framework building;
- Development of worker and corporate styles;
- Motivation of employee duty; Development of representative’s aptitudes;
- Objectives of subordinates (Green, Skerlos & Winebrake, 2014).
Chester Barnard’s Views on Management Theory
Efficiency and effectiveness are considered as different, yet, in the meantime, they are correlated with each other. And it is essential for the management to acquire success in both the zones. Chester Barnard’s propose that ROA is a right measure of organization success, since it uncovers how gainful association’s resources are in creating incomes. Total resource turnover proportion measures the efficiency of an organization in order to utilize its benefits for skillfully creates deals; in this way it can be dealt with productivity as well.
Net revenue proportion is a pointer of an organization’s prizing procedures and indicate its controls the expenses, likewise it is a decent measure for bench marking methods; in this manner it could be called effectiveness. Therefore, general performance can be estimated by evaluating the effectiveness and the efficiency. Efficiency is about asset distribution crosswise over variety of uses.
Efficiency is not the only criteria to measure organizational success in the competitive and dynamic business environment. All the relevant aspects should be considered while determining the organizational success.
If an organization is effectively managed but because of the poor operational administration, outcome originated will not match as per the expectations. Ineffective and inefficient association along with the inappropriate usage of resources will lead to enhance the cost of production. In relation with attainment of organizational goals and objectives, it is necessary for the management to manage its resources and employees’ efficiency in an effective manner so that optimum utilization of available resources could be done. This will help organization to enhance its market share as well as customer base. In order to remain in the competitive business market, it is necessary for the organization to create its base strong. Along with the base, utilization of available resources should also be taken care. This is significant because the organizational performance is based over four pillars i.e. context, relevant, structure and content. Until, these four basic pillars will not be followed, organization will not be able to manage its works as per the expectations. Thus, desired destination will remain unreached due to which efficiency of the organization decreases (Tajeddini, Elg & Trueman, 2013).
Cost inefficient associations don’t have an appropriate asset distribution management system. Though, such associations have great plans regrading to general achievements as well as to uplift organizational image in the target market. Apart from this, cost has been considered as the most crucial aspect for attaining success and desired goals in the market. It is necessary for the organization to manage its operations and implement certain controlling and monitoring measures with relevance to manage the work in an effective and appropriate manner.
Thus, it could be analyzed that effectiveness and efficiency, both are crucial aspects for an organization. This helps the organization to utilize available resources in an appropriate manner in order to attain desired goals and objectives within the workplace.
Conclusion
Effectiveness and efficiency are considered as the crucial aspect of organizational assessment. Effectiveness is a broader concept under which employee satisfaction, quality; value added services, output and social and economic environment interaction, etc. factors plays crucial role. In order to enhance organizational efficiency, it is necessary to enhance output with the help of available resources. Efficiency and effectiveness are considered as crucial aspects for an organizational success but at the same time, both these terms impact each other.
References
Chiou, Y.C., Lan, L.W. and Yen, B.T., 2010. A joint measurement of efficiency and effectiveness for non-storable commodities: Integrated data envelopment analysis approaches. European Journal of Operational Research, 201(2), pp.477-489.
Fernández, S., 2010. Re-discovering Barnard: the functions of the… leader? Highlighting Chester Barnard’s contributions for the twenty-first century business executive. Journal of Management History, 16(4), pp.468-488.
Fugate, B.S., Mentzer, J.T. and Stank, T.P., 2010. Logistics performance: efficiency, effectiveness, and differentiation. Journal of business logistics, 31(1), pp.43-62.
Green, E.H., Skerlos, S.J. and Winebrake, J.J., 2014. Increasing electric vehicle policy efficiency and effectiveness by reducing mainstream market bias. Energy Policy, 65, pp.562-566.
Haas, R., Resch, G., Panzer, C., Busch, S., Ragwitz, M. and Held, A., 2011. Efficiency and effectiveness of promotion systems for electricity generation from renewable energy sources–Lessons from EU countries. Energy, 36(4), pp.2186-2193.
Isomura, K., 2010. Barnard on leadership development: Bridging action and thinking. Journal of Management History, 16(2), pp.216-232.
Malcolm, S.B. and Tabor Hartley, N., 2010. Chester Barnard’s moral persuasion, authenticity, and trust: foundations for leadership. Journal of Management History, 16(4), pp.454-467.
Nienaber, H., 2010. Conceptualisation of management and leadership. Management Decision, 48(5), pp.661-675.
Novicevic, M.M., Hayek, M. and Fang, T., 2011. Integrating Barnard’s and contemporary views of industrial relations and HRM. Journal of Management History, 17(1), pp.126-138.
Tajeddini, K., Elg, U. and Trueman, M., 2013. Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation. Journal of Retailing and Consumer Services, 20(5), pp.453-462.
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