Organizational Structure and Employee Performance - Essay Example

Employee Performance Name: Institution: Date: Organizational structure and employee performance The structure of the organization may be regarded the organization’s anatomy, offering a foundation in which organizations run. Organization’s structure is alleged to influence the organizational members’ behavior. For this reason, the structure of the organization can either break or make a business (Suttle, 2012). It is purported that in case of any cracks within the organizational structure, or insufficient forward thinking, organizations run the possibility of losing most of their employees because of poor motivation within the organization. The structure of the organization correlates directly with performance of the employee. This is why some factors within the structure of the organization need to be considered so as to enhance employee performance. Businesses that have an organizational structure that is transparent have a channel to share business plans and goals with the employees. When goals are shared and aligned with personal goals of the employees, teams can be moved forward in a manner that is productive hence enhance employees’ performance. It is important that professional development plans and goals of every employee run parallel with the goals of the business (Math, 2012). The moment the goals of the business are met, it is vital that employee be informed in order to determine their own development against the company’s goals. An organizational structure that is healthy will facilitate efficiency of employees while an organizational structure that is unhealthy will deter employees from attaining their full potential. When organizations have a powerful and steady structure of organization, employees get confidence within their jobs. For instance, if a company has a record of hiring employees internally, promoting efficient workers and durability, this motivates present employees and facilitates them to relax their panic of losing jobs or mismanagement, and dedicate themselves to their current position (Rao, 2008). It is suggested that individuals who have assurance in their structure management will possibly react productively to their organization. In terms of accountability, the best organizations have transparent reporting lines. This indicates that if employees have a problem, issue, challenge or idea, they know precisely who to address. When organizations lack a powerful organizational structure, there is a possibility of losing both complaints and opportunities. Effective organizations have powerful channels of communication constructed into their structure of organization (Math, 2012). The outcome is that employees will acknowledge they have the chance to share ideas and the opportunity to discuss issues. This also builds a culture in which employees and management are held responsible for error and success. When employees are held responsible, they are likely to enhance their productivity by working towards success. The significance of the structure of the organization is specifically vital for communication. Since organizational structures facilitate authority distribution, employees get motivated by having a direct communication with their managers. The structure of the organization is significant for evaluation of employee performance. The linear product and functional structure in organizational structures facilitate supervisors to effectively assess their subordinates’ work. When reviewing the evidence connecting the structure of the organization to performance and satisfaction of employee, it was noted that not all employees desire the flexibility and freedom of organic structures. Math (2012), contends that a number of people are most constructive and satisfied when work responsibilities are standardized and uncertainty is minimized like in mechanistic structure. He further argues that whichever discussion of the impact of organizational structure on the performance of employee has to tackle individual differences. To demonstrate this point, employees’ choices for centralization, specialization of work and span of control were considered. The proof basically illustrated that specialization of work adds to higher productivity of employee, but at the cost of decreased satisfaction of job. However, this account does not consider the kind of job responsibilities people perform and individual differences. Specialization of work is not an endless source of productivity that is higher. Problems start to come up and productivity turns out to be at stake, the moment human diseconomies of carrying out repetitive and narrow roles surpass the specialization economies that the organizational structure stipulates (Math, 2012). An evaluation of research shows that it is perhaps safe to state that no evidence to back a connection between employee performance and span of control. However, it is spontaneously safe to contend that large spans may result to higher performance of the employee since they offer supervision that is more distant as well as more chances for personal inventiveness. It is established that there is moderately strong evidence connecting job satisfaction and centralization. Generally, organizations with less centralization have a greater participation in decision making (Rao, 2008). Participative process of decision making is positively linked to satisfaction of job. However, individual differences are likely to surface. The decentralization contentment link is strongest with members of staff who have self esteem that is low. Since people with self-esteem that is low have insufficient confidence in their capacities, they put a higher significance on decision making that is shared meaning that in decision outcomes, they are never held exclusively responsible (Rao, 2008). Employee Performance and Performance management In an effort to enhance performance of employees, an organization must realize the obligation to the progress for the employees’ quality, prosperity, and style of leadership in which factors that influence performance of employees are assumed to add to the higher interest of the organization via performance and achievements of the employee (Cardy, 2003). Employee performance is said to be influenced by various factors. For instance, it is established that compensation has substantial influence that is positive towards motivation and that motivation has substantial influence that is positive towards performance. Hence, management needs to consider compensation policy of the employee, thereby making them to be greatly motivated and enthusiastically responsible and in control of achievement endeavors. This is why performance management is essential for employee performance. Performance management is important in evaluating the performance of employees thus assess success of the organization. Performance management is regarded the orderly procedure by which a company engages its employees, as members and individuals of a group, in enhancing effectiveness of the organization in the success of company goals and mission (Ellis-Christensen, 2012). Performance management of employee entails work planning and setting prospects, constantly monitoring performance, development of ability to perform, periodic rating of performance in a review design, and rewarding excellent performance. An effective company plans its work in advance. Planning entails setting expectations of performance and goals for individuals and groups to conduit their endeavor s toward accomplishing objectives of the organization (Cardy, 2003). When employees are engaged in the process of planning, they are able to comprehend the organization’s goals, what is expected of them, why and how. The typical requirements to facilitate planning of employees’ performance involve instituting the standards and elements of their plans for performance appraisal. Standards and elements of performance need to be understandable, measurable, equitable, achievable and verifiable (Weatherly, 2004). Through important elements, generally employees become accountable for responsibilities or work assignments. Plans of employee performance need to be flexible in order to be adjusted for objectives of changing programs and requirements of work. When effectively used, these plans are likely to be valuable working documents frequently discussed, and not just any other paperwork. With regards to monitoring, projects and assignments are continually monitored in an effective company. Effective monitoring entails consistent performance measurement and offering continuous feedback to work groups and employees on their development toward achieving their goals (Hillgren & Cheatham, 2000). Mandatory monitoring performance requirements entail carrying out progress evaluations with employees whereby their standard of performance is evaluated against their standards and elements. Constant monitoring offers the opportunity to assess how well members of the staff are fulfilling preset standards and to adjust problematic or unrealistic standards. By continuous monitoring, there is easy identification of unacceptable performance in the course of appraisal phase and assistance offered to tackle such performance instead of waiting for the time when review of ratings is assigned (Hillgren & Cheatham, 2000). In an organization that is effective, developmental needs of employees are examined and addressed. For this matter developing means enhancing employee’s ability to perform via training, issuing assignment that initiates fresh skills or greater levels of tasks, and enhancing work processes, or other techniques. Offering employees with developmental opportunities and training supports good performance, strengthens competencies and skills that are work-related (Engelmann & Roesch, 2001). It also facilitates employees to cope with changes within place of work, like introduction of the latest technology. Rating is also a component of performance management. Now and again, companies find it constructive to summarize performance of employee. This might be valuable for evaluating performance occasionally or amongst several employees. Organizations should know their excellent performers. Within the framework of formal requirements of performance appraisal, rating involves evaluation of group or employee performance against the standards and elements in a plan of employee performance and allocating a review rating of history (Cardy, 2003). The record rating is allocated in terms of procedures involved in the program of organization appraisal. It is grounded on performed work in the course of the whole appraisal phase. Rewards are effectively used in organizations that are successful. Rewarding entails acknowledging employees, as group members or individually, for their regular performance and recognizing their involvement toward the organization’s mission (Engelmann & Roesch, 2001). Good performance is acknowledged without waiting for formal awards nominations to be solicited. Performance management in an organization is advantageous to both the manager and the employee. If properly done, it brings about a two-way opportunity for communication, and the acquired information can be very helpful. The performance management frequency is determined by the policy of the company, the team size and the complexity of group responsibilities. Some employees get motivated when they know their work add to the success of the company. Therefore, performance management is able to inform employees how they are performing in regards to this (Cardy, 2003). Through regular performance management of employees, employers can deal with behavior or performance issues before they turn out to be serious problems. References Cardy, R. L. (2003). Performance management: Concepts, skills, and exercises. Armonk, NY: M. E. Sharpe, Inc. Ellis-Christensen, T. (2012). What is Performance Management? Retrieved on 17 August, 2012, from file:///E:/Documents%20and%20Settings/Edmond/Desktop/what-is-performance- management.htm Engelmann, C. H., & Roesch, R. C. (2001). Managing individual performance: An approach to designing and effective performance management system. Scottsdale, AZ: WorldatWork. Hillgren, J. S., & Cheatham, D. W. (2000). Understanding performance measures: An approach to linking rewards to the achievement of organizational objectives. Scottsdale, AZ: WorldatWork. Math, P. (2012). The Effects of an Organizational Structure on Employee Motivation. Retrieved on 17 August, 2012, from file:///E:/Documents%20and%20Settings/Edmond/Desktop/list_7486634_effects- organizational-structure-employee-motivation.html Rao, R. (2008). Organizational Designs and Employee behavior. Retrieved on 17 August, 2012, from file:///E:/Documents%20and%20Settings/Edmond/Desktop/3951-organizational- designs-and-employee-behavior.html Suttle, R. (2012). The Importance of Organizational Structure. Retrieved on 17 August, 2012, from file:///E:/Documents%20and%20Settings/Edmond/Desktop/importance- organizational-structure-2783.html Weatherly, L. A. (2004). Performance management: Getting it right from the start. SHRM Research Quarterly, vol. 2, pp 1-10. Read More