Performance Criteria Identified By Hillgren And Morse - Essay Example

?Running Head: PERFORMANCE CRITERIA IDENTIFIED BY HILLGREN AND MORSE Topic: Lecturer: Presentation: Introduction The contemporary operating environment poses great challenges to organizations aiming at accomplishing high performance. This is mainly attributed to unending competition and the desire to command a great market share. Leaders have to remain focused on dynamics of the business environment to accomplish continuous growth. Hillgren and Morse (1998) established that similarities exist among high performing organizations. Their view of such organizations is based on financial accomplishments, employee motivation as well as service delivery and customer satisfaction. This paper critically compares the performance of Abercrombie and Fitch against the four performance criteria identified by Hillgren and Morse (1998). The multinational company deals with designer clothes. The paper highlights some practical examples related to the concepts, ideas and insights from their article titled “high performing organizations”. High Performing Organizations Direction is one of the basic elements identified by Hillgren and Morse (1998). Leaders need to ensure that the subordinates understand the organization’s principles. These are fundamental to its existence. The visionary leadership of Abercrombie and Fitch promotes a sense of purpose in the organization. The leaders understand the company’s vision and apply their skills to entrench creativity among the workers. Sensitization of employees regarding the achievement of the organization’s vision and core values is done regularly through staff meetings and weekly forums, which ensures that all team players in the various departments understand their roles in enhancing success. The sensitization approach corresponds to Hillgren and Morse’s assertion of “a clearly articulated and frequently communicated vision” (p 9), which is significant for high performing organizations. Behaviourization of values as proposed by Hillgren and Morse gives Abercrombie and Fitch a unique characteristic that enhances customer satisfaction. One of the core values is to ensure customer focused service delivery that is based on their needs rather than the company’s interests. Workplace diversity promotes strong interpersonal relationships among the staff, which helps in building talents and encouraging creativity. Exceptional contribution among staff is acknowledged and rewarded. The leaders act as role models of the organizational behaviour. Integrity is upheld and words correspond to the actions of staff members. The value metrics highlighted by Hillgren and Morse have been adopted by Abercrombie and Fitch. They help in establishing the level of customer satisfaction, which signifies the level of collaboration among staff. Value metrics are also significant in determining whether the organizational values have been upheld in service delivery to customers. Bhatt (2002) observed that “anything that gets measured gets done” (p 28). Abercrombie and Fitch’s value metrics are focused on the priority areas that are likely to be affected by the dynamics of the operating environment. For example, customers’ feedback offers a basis for the assessment of the level of satisfaction. After interacting with the company’s employees, the customers are given a chance to confidentially rate and comment the quality of service offered to them. The management is able to determine the areas that require improvements as well as those that require reinforcement through assessing positive and negative feedbacks from consumers. The suggestion box also provides an opportunity to assess the organization’s leadership as well as the priority areas that need further consideration. Performance measurement is significant in assessing progress and planning for future improvements (Edwards et al. 2007). It helps in determining staff awareness regarding the direction of the organization. Abercrombie and Fitch applies this strategy to strengthen the workforce in terms of accomplishing targets. The employees are allowed to set their own targets and identify the resources they need for successful accomplishment of tasks. The targets are agreed among the leaders and subordinates, each person having a role to play in achieving the overall goal. Performance measurement can only be accomplished when the leaders and their subordinates understand the organization’s direction is clearly understood within the organization (Kauhanen & Piekkola, 2006). Hillgren and Morse also pointed out competence as another basic element signifying high performing organizations. Once the vision has been entrenched in the organization, it is important to support its accomplishment through employing competent staff to undertake the day to day tasks. Technical competence is significant since it determines the outcome of the organization’s involvement in a particular activity. Abercrombie and Fitch has established a strong recruitment and selection mechanism that thoroughly evaluates professional competence in the various departments. It involves candidates undergoing on-the-job tests to determine their competence in handling tasks. Those who pass the first stage are then subjected to an aptitude test to determine their astuteness in accomplishing their duties as well as problem solving skills. Interviews are also conducted to evaluate the applicants’ knowledge relating to the organization’s activities. Johnson (2001) observed that recruitment and selection forms the basis of a strong workforce in any organization. It therefore needs to be a comprehensive process that takes in to consideration all the significant aspects of a strong workforce. Apart from technical competence, recruitment and selection also needs to incorporate the assessment of significant attributes such as interpersonal skills. However, Hillgren and Morse argue that interpersonal skills can be acquired through workplace mentoring and training. Abercrombie and Fitch’s recruitment process diverges from Hillgren and Morse’s of a collaborative culture in the sense that candidates’ interpersonal skills are thoroughly tested and largely determines whether an applicant will succeed or not. After selection of new employees, they are inducted into the organization, a process that involves thorough preamble in to the organizational values, functions, objectives and strategies. Kauhanen & Piekkola (2006) argue that ignorance among subordinates is a major hindrance to the success of leadership and organizational productivity. For workers to be effective in their day to day tasks, Hillgren and Morse emphasize on work management skills, which are significant in identifying solutions to emerging problems in the workplace, enhancing coordination in the workplace as well as decision making. Abercrombie and Fitch promotes work management skills through regular training and team building. Workers are taught team work strategies that are significant in accomplishing tasks. Team work has been significant in reducing constant supervision in the organization. Hillgren and Morse also pointed out the need for economic literacy among workers for high-performing organizations. They highlight the quench for financial information among employees. Nevertheless, financial matters in many organizations are considered to be confidential among the top managers. Edwards et al. (2007) observed that unsatisfied curiosity and misguided judgment among subordinates regarding financial matters in organizations leads to reduced motivation and increased cost of supervision. Managers’ failure to allow access to financial information may be attributed to uncertainty in terms of employee turnover as well as the danger of competing organizations acquiring such data. Abercrombie and Fitch is among the organizations that conceal financial data from employees below the level of managers. Economic literacy as emphasized by Hillgren and Morse is not accessible to majority of the workers thereby leading to regular misunderstanding in terms of staff welfare and participation in decision making. Effective communication in leadership has not been accomplished since sharing of financial information is limited. Open communication in leadership allows people to air their views without intimidation, which is significant in determining the key areas that need attention. Such an approach is significant in problem solving within the organization. The leaders need to understand the key motivating factors for the employees, which can be accomplished through effective communication between the leaders and the subordinates. Opportunity is the third element that Hillgren and Morse highlighted among the high-performing organizations. Employees are depicted as rational beings that can apply their creativity and intelligence to maintain constant improvement. The working environment is not always ideal for employees, yet maximal yield is expected from them. The organization’s performance is dependent on workers but as Hillgren and Morse note, application of their abilities may be hindered by the lack of resources. For example, financial resources are significant in making new ideas to work in the organizational processes. Some new inventions have to be tested before real application. The costs involved may be interpreted as additional expenses especially if the company has the capacity to outsource such products. On the other hand, employees may not be in a position to make independent decisions regarding their respective departments due to centralization of authority (Edwards et al. 2007). Moreover, workplace improvements to ensure a safe and conducive working environment may not be among the priority areas for many organizations. Abercrombie and Fitch fails to address these shortfalls thereby lowering the capacity of employees. Hillgren and Morse propose four factors that can help in eliminating obstacles to performance. Firstly, authority among the employees is depicted as a significant aspect that facilitates the accomplishment of tasks in the workplace. Authority in Abercrombie and Fitch belongs to the top management. Employees have limited responsibilities for decision making. They merely follow and adhere to the laid down procedures. Johnson (2001) observes that delegation of authority helps to develop strong leadership in an organization. Abercrombie and Fitch needs to promote departmental teams, each with a leader that is empowered in terms of authority and resources. The teams need to be interlinked through a larger interdepartmental team involving all the team leaders in various departments as well as the organization’s top management. Assigning the employees to various teams helps in developing boundaries within which they can operate as recommended by Hillgren and Morse (1998). Employees present various behaviours in the workplace and leaders need to understand which behaviours can be reinforced to form strong working teams. Terry (1998) observes that as an organization advances, there is need to build effective teams and promote a shared vision in regard to the accomplishment of organizational goals. Building effective teams allows effective collaboration among the organization’s staff, which is important in identifying solutions to emerging issues. Team-building is significant in awareness creation among the people in regard to the significance of working together. Hillgren and Morse (1998) further identified work processes among the significant factors that can hinder or enhance performance. Bureaucracy in organizations may help in streamlining organizational processes thereby minimizing supervision since the day to day operations are structured. Workers are required to fit in certain positions entrenched in the organizational structure (Davenport et al. 1998). However, Hillgren and Morse’s view can be positively analysed as an organizational strategy that focuses on reduction of the bureaucratic processes that limit the independence of workers thereby hindering the performance of workers. However, even though bureaucracy in Abercrombie and Fitch is pronounced, the management has accomplished division and specialization of labour, making it possible for employees to develop expertise in various specialities. Resources are also among the significant factors highlighted by Hillgren and Morse, which affect the capacity of employees to utilize the available opportunities for the accomplishment of organizational goals. Empowerment of employees to spearhead projects that promote the organization’s values is important in enhancing the sense of belonging thereby promoting productivity. Terry (1998) supports this view by comparing an organization with a living thing that is undergoing continuous growth. Inputs in terms of human and financial resources are significant in maintaining consistent growth and improvement of performance. As Hillgren and Morse observe, “time, information, money, materials, tools and technology” (p 9) are significant for employees to accomplish tasks. Abercrombie and Fitch needs to set strategies that present employees with the necessary requirements in line with the recommendations of Hillgren and Morse, which unfortunately are not in place at the moment. Employee motivation is significant for high-performing organizations. Hillgren and Morse highlight some degrading behaviours of managers that humiliate workers’ efforts to accomplish tasks. For example, inappropriate policies may lower the morale of workers especially if good performance is not recognized. Performance and reward management needs to be done carefully to avoid rewarding inapt action while disregarding productive accomplishments (Johnson, 2001). Hillgren and Morse argue that competent leaders in organizations develop an enabling environment that generates employee satisfaction. People are able to own their actions and feel encouraged to work. The leaders tend to offer guidance regarding organizational activities and frequently rewarding achievers. Employees need to know the outcome of their actions and their meaning to the organization’s success. Edwards et al. (2007) argues that people tend to acquire a sense of self importance when they are appreciated for their accomplishments. The performance management system of Abercrombie and Fitch is significant in maintaining high performance among the employees. Individuals are rewarded according to their contribution in achieving the organizational objectives. Regular training ensures that employees maintain competence and are motivated by their increased capacity to cope with the changes in the business environment. For example, with the increased use of computers in the day to day running of the organization, the employees were offered scholarships in groups to acquire skills in information technology. Motivation is increased through elimination of the incessant fear of job loss through changing technology (Kauhanen & Piekkola, 2006). Training in new technology is a form of reinforcement of workers’ skills to accomplish tasks as stipulated by Hillgren and Morse. Upgrading of employees skills is beneficial to the organization as well as the employees. Davenport et al. (1998) observed that sponsorship for skills upgrading is a non-material reward that of greater significant than monetary rewards. Nevertheless, rewards, whether material or intellectual are significant motivators in high-performing organizations. Conclusion The four elements put forward by Hillgren and Morse are significant in maintaining high performance in an organization. It is important for leaders to evaluate whether their leadership provides direction for the subordinates in terms of communicating the organization’s vision as well as ensuring intelligibility of policies. Without clear vision and well defined policies, productivity can not be maintained among employees and hence high performance may not be accomplished. Value metrics also need to be outright and focused on the organizational values. They assist in determining if the organization’s vision is being accomplished. Abercrombie and Fitch has accomplished a clear direction among executives as well as the subordinate. The process of recruitment and selection is also important in engaging a strong workforce. Abercrombie and Fitch employs competent employees through a rigorous selection process. However, some qualified candidates may miss positions in the organization since some interpersonal skills that may be learnt through training and mentorship are also used in eliminating candidates in the selection process. On the other hand, lack of economic literacy generates misunderstanding among employees. There are a number of barriers that hinder effective performance and utilization of emerging opportunities in Abercrombie and Fitch. Employees lack the authority to make independent decisions. Bureaucratic processes also hinder employee resourcefulness in the company. Lack of access to resources is also a significant impediment in accomplishing high performance among employees. The company has maintained motivation through various strategies such as sponsoring upgrading of skills among employees as well as reward schemes. Generally, the company has maintained three among the four basic elements characterizing high-performance as identified by Hillgren and Morse. While direction and motivation have been accomplished, the organization’s leadership needs to set strategies to mend the loop holes in competence and also empower the employees to utilize the available opportunities. References Bhatt, G.D. (2002), “Management strategies for individual knowledge and organizational knowledge”, Journal of Knowledge Management, Vol. 6 No.1, pp.28-31. Davenport, T.H., Delong, D., & Beers, M. (1998), “Successful knowledge management projects”, Sloan Management Review, Vol. 39 No.2, pp.43-57. Edwards, T., Colling, T. and Ferner, A. (2007) “Conceptual approaches to the transfer of employment practices in multinational companies: an integrated approach”, Human Resource Management Journal, 17, 3, 201-17. Hillgren and Morse (1998). “High Performing Organizations”. Executive Excellence. Vol. 15, 10, pp 9 Johnson, J. W. (2001), “The Relative Importance of Task and Contextual Performance Dimensions to Supervisor Judgments of Overall Performance”, Journal of Applied Psychology, Vol. 86 No.5, pp.984-96. Kauhanen A. & Piekkola H. (2006). What makes Performance-Related Pay Schemes Work? Finnish evidence. Journal of Management Governance, 10, 149-177. Luthans, F., & Stajkovic, A. D. (1999). Reinforce for Performance: The Need to go beyond Pay and even rewards. Academy of Management Executive 13(2), 49-57. Terry, L. (1998). “Administrative Leadership, Neo-Managerialism, and the Public Management Movement.” Public Administration Review, Vol. 58, 3 pp 194-200 Read More