Analysis Of Organisation Effectiveness And Organisational Behaviour Business Essay

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According to Gary Johns, "Organisations are social inventions for accomplishing goals through group efforts". This definition covers wide variety of groups such as businesses, schools, hospitals, religious bodies, government agencies and so on.


Organisational behaviour is concerned with people's thoughts, feelings, emotions and actions in setting up a work. Understanding an individual behaviour is in itself a challenge, but understanding group behaviour in an organisational environment is a monumental managerial task.


The key elements in the organisational behaviour are:

• People: People make up the internal and social system of the organisation. They consist of individuals and groups. The groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organisation to achieve their objectives.

• Structure: Structure defines the formal relationships of the people in organisations. Different people in the organisation are performing different type of jobs and they need to be (elated in some structural way so that their work can be effectively co-ordinated.

• Technology: Technology such as machines and work processes provide the resources with which people work and affects the tasks that they perform. The technology used has a significant influence on working relationships. It allows people to do more and work better but it also restricts' people in various ways.

• Environment: All organisations operate within an external environment. It is the part of a larger system that contains many other elements such as government, family and other organisations. All of these mutually influence each other in a complex system that creates a context for a group of people

The most Important factor which are likely to determine the successful performance of work Organisation

Employee Engagement:

Employee engagement is a concept that is generally viewed as managing discretionary effort, that is, when employees have choices, they will act in a way that furthers their organization's interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work.

The primary behaviors of engaged employees are speaking positively about the organization to coworkers, potential employees and customers, having a strong desire to be a member of the organization, and exerting extra effort to contribute to the organization's success. Many smart organizations work to develop and nurture engagement. It is important to note, the employee engagement process does require a two-way relationship between employer and employee.

Reason of Employment Engagement Importance:

An organization's capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results. Engaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success. Engaged employees also normally perform better and are more motivated. There is a significant link between employee engagement and profitability. Employee engagement is critical to any organization that seeks not only to retain valued employees, but also increase its level of performance.

Factors of Engagement:

Many organizational factors influence employee engagement and retention such as:

• A culture of respect where outstanding work is valued

• Availability of constructive feedback and mentoring

• Opportunity for advancement and professional development

• Fair and appropriate reward, recognition and incentive systems

• Availability of effective leadership

• Clear job expectations

• Adequate tools to complete work responsibilities

• High levels of motivation

Other Important factors

The best performing businesses have five factors in common:

• a strong leadership team

• the ability to attract and retain quality people

• a disciplined approach to their business

• the ability to strategically use technology

• the wise use of trusted outside providers


Let's review the top five success factors, in order of importance.

1. Develop a Strong Leadership Team

Two primary factors went into this rating. The first was the ability of leadership to define a

clear vision for the company. To be effective, the vision needs to be well-defined and

explained in a way so people connect with it and are motivated by it.

The second major factor was appropriate involvement of leadership in leading and

supporting projects that are strategic to the organisation.

2. Attract and Retain Quality People

Get the right people in the right spots with a clear understanding of their priorities. If you have the right people, you will move faster and accomplish more in the same amount of time.

Finding people, motivating them, compensating them, keeping them focused, and keeping them satisfied are always hot topics.

This is one of the most dynamic challenges for all businesses. The best businesses have figured out that success in this area starts with recruiting. It's very hard to overcome a hiring mistake, and excellent businesses leave nothing to chance in making their hires.

3. Adopt a Disciplined Approach to Business

Learn how to work on your business, not just in it. This involves planning and, more importantly, aligning your people to execute your business's plan.

For some people, the old-fashioned idea of being "disciplined" is a turn-off.

4. Make Strategic Use of Technology

Organizations have developed a culture that figures out ways to deploy technology, not for technology's sake, but to better serve their strategy. They're also willing and able to invest to make it happen. This investment includes not just the technology itself, but the training to make sure they maximize the utilization of the technology.

5. Develop Relationships with Trusted Outside Providers

To have a healthy business, you need a systematic way of gathering and periodically analyzing vital information about your business. Outside providers whom you trust can be invaluable to performing review of your business.

There are three primary reasons why such organizations are more effective using outside expertise. High-performing organizations:

• Are stronger financially and can afford to hire the best. In addition, they can afford to make contractor selection mistakes and learn from them. Some of the toughest learning experiences in business are related to picking the right (or "wrong") advisors.

• Have a clearer picture of where they want to go. They have a clear vision and strong leadership, and are disciplined in their approach to business. All these factors make it easier to focus a consultant or advisor on something specific. Ill-defined projects are a guaranteed formula for failure. G

• Have stronger learning cultures that allow them to do a better job of listening to and applying expert advice. This feeds on itself: the more they listen and learn, the better they perform, and the better they perform, the better advisors they can hire.

All these factors together give top-performing small businesses the great advantage of being able to utilize outside talent when needed.

Other contributing factors to top performance turned up in our research: attitude, teamwork, commitment, quality-oriented culture, etc. They all play a part, but the five factors described in this paper highlight the areas of greatest difference.

Organisational effectiveness Obstacles:

• Individual Differences

• Human dignity

• Effective communication

• Developing effective employees

• Job Satisfaction

• Empowerment

• Behaving ethically

• Stimulating Innovations and Change

Top three obstacles mentioned above are further described below with suggestions to overcome:


Inspite of all the humans being similar. Everyone has a different gift of the nature; different quality of intelligence, different perception everyone is different and the different ways or behaviour. The concept tells that every person is an entity in him. When it comes to human behavior there cannot be a prescriptive solution. Every individual is to be treated differently even though two persons may have the same behavioral problems. The concept also tells the manager that he had better be aware of his own stereotypes. A stereotype is a tendency to attribute the traits of a group to an individual because he belongs to the said group. The Jew genocide can be attributed to this stereotyping. Unfortunately one is not aware as to how these stereotypes influence his behaviour. This concept, therefore, not only tells that a manager should treat every person as an entity in himself but he should also examine his own stereotypes.


This concept is of a different order from the other three because it is more an ethical philosophy than a scientific conclusion. It confirms that people are to be treated differently from other factors of production. Because they are of a higher order, they want to be treated with respect and dignity. When everyone, the employee, the manager as the CEO of an organization are engaged in the same pursuit. The pursuit of enabling their organization to achieve the objections for it has come in existence. Thus they are on the equal footing. The concept tells that very person should be respected simply because he happens to be an employee just as the manager is.


No matter how good the communication system in an organisation is, unfortunately barriers can and do often occur. This may be caused by a number of factors which can usually be summarised as being due to physical barriers, system design faults or additional barriers.

1. Physical barriers are often due to the nature of the environment. Thus, for example, the natural barrier which exists, if staff are located in different buildings or on different sites.

Likewise, poor or outdated equipment, particularly the failure of management to introduce new technology, may also cause problems.

Staff shortages are another factor which frequently causes communication difficulties for an organisation.

Whilst distractions like background noise, poor lighting or an environment which is too hot or cold can all affect people's morale and concentration, which in turn interfere with effective communication

2. System design faults refer to problems with the structures or systems in place in an organisation.

Examples might include an organisational structure which is unclear and therefore makes it confusing to know who to communicate with.

Other examples could be inefficient or inappropriate information systems, a lack of supervision or training, and a lack of clarity in roles and responsibilities which can lead to staff being uncertain about what is expected of them.

3. Attitudinal barriers come about as a result of problems with staff in an organisation.

These may be brought about, for example, by such factors as poor management, lack of consultation with employees, personality conflicts which can result in people delaying or refusing to communicate, the personal attitudes of individual employees which may be due to lack of motivation or dissatisfaction at work, brought about by insufficient training to enable them to carry out particular tasks, or just resistance to change due to entrenched attitudes and ideas.

Part 2

The managerial approach to Organisational Behaviour

This is concerned with interactions among:

•the structure and operation of organisations

•the process of management

•the behaviour of people at work.

The underlying theme is:

•the need for organisational effectiveness

•the importance of the role of management as an integrating activity

Recommendations for effective performance management:

1) Senior management should show commitment:

The process of performance management within the company lacks participation and benefits none without active senior management support and leadership.

2) Employee resistance should be kept minimal:

PMS is made for aligning the goals of employee and the organization, thus, effective performance management system is only going to be effective when employees understand the importance of performance management system in their own careers.

3) Training infrastructure and capacity building programs:

Surprisingly, given the level of resources provided for the rollout of the new performance management system, employees at every level of the organization appear to lack the necessary knowledge and skills required for their particular contribution to the system.

4) Benchmarking:

Effective performance management can only be sustained when the

performances are compared with the standards set in the organization and as this is done on a continuous basis, this leads to improvement of performance and brings it closer to the benchmark set by the organization.


We conclude the research by stressing effective performance management is a key tool of communication and motivation within organizations seeking a competitive edge through strategic change and control. The framework for performance management system design has its core element as improving individual performance in accordance with the organization's performance, keeping in mind employee's personal goals. Overcoming barriers to change through winning the psychological battle of employee involvement by effective performance and evaluating parameters has become the need of the hour. The KRA's that determine the effectiveness of a PMS are,