Key Factors Of Working Organisation Performance

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OB is a field of study that investigates the impact that individuals, groups and structure have on individual behaviour within organizations for the purpose of applying such knowledge towards improving an organisatoin's effectiveness.

Organizations irrespective of their varying cultural differences and nature are based upon some common factors like structure, objective, management and people. The interrelationship of these factors together with the efficient use of available resources determine. The success or failure of the organization.Amongst these factors the behavioural aspect of people is considered to be highly unpredictable. The nature of human behaviour produces a serious and significant impact on the functioining of the organization.

Organisation Structure is the framework within which an organization functions. It serves as a foundation of management. It is needed by evey organization for performing the activities in a structured ans well-organised manner. Good organization structure does not by itself produce good performance. But a poor organization structure makes good performance impossible. No matter how good the individual managers may be. To improve organization structure… will therefore always improve performance.

Focuses on individual differences, the significance of personality and attitudes and approaches to personality. The factors influencing perceptin and draws particular attention to an understanding of problems regarding the perception of the other people. Importance of motivation in organistational performance and different theories and idea about motivation.

Discusses the communications in organizations and identify it as an indispensable part.

Literature review

Organizational growth is both key aspiration of any company, as well as the primary indicator of company's success. Thus, the majority organization regard growth as their essential strategy trying to do their best to succeed and get the results desired. However, the success of growth depends on many factors, key of which are the following: ability to make decisions fast, stamina to implement changes, leadership qualities of top-management.

The importance of growth in ongoing success of a company is caused by competitive market environment and constantly changing business conditions. Competitiveness of the market dictates the necessity to consolidate own resources in order to achieve economies of scale and thus become more cost efficient. This is a hard task, which can be achieved by substantial powerful companies that grow and develop. Moreover, competitive environment provokes the need to inculcate different strategies in order to stay aloft. Those strategies demand substantial resources (capital, human, intellectual) driven only by companies that perceive growth as their key goal. For instance, differentiation needs concentration of production resources, as well as ground intellectual base in order for new products to find feedback from the potential customers. (Steers, 1995) On the other hand, the importance of growth is also provoked by the fact that business conditions become different. For example, nowadays the implementation of advanced technologies become one of the key factors of companies good performance of the market. Internet and E-commerce become the necessity, not the luxury of the day. It means that any commercial organization has to adapt to those changes in order to survive. It is not a secret that companies that do not develop simply cannot afford implementing new technologies. In contrary, the growing companies perceive technological innovations as the first priority.

There exist many decision factors around growth. According to Mullins (2002), the most important is to set the priority of three systems, which influence the corporate behaviour, i.e. the ultimate success of the company's growth strategy


"OB refers, to the behavious of individuals and groups within organizations and the interaction between organisaitonal members and their external environments".

- Curtis W.Cook and Phillip.

"OB is a field of study that investigates the impact that individuals, groups and structure have on individual behaviour within organizations for the purpose of applying such knowledge towards improving an Organisation's effectiveness".

- Stephen P. Robbins.

"Organisational behaviour is the understanding , prediction and management of human behaviour in organizations".

Fred Luthans.

The subject deals with the procedure, the environment of the organisation follow and the

necessary changes they need to step-in in order to get the maximum throughput. According to

my view this theory emphasises the structure of the organisation and the necessary changes it

need to adopt as well.

Actions and attitudes of individuals and groups towards one another and towards the

organisation as a whole, and its effect on the organisations functioning and performance

called organisational behaviour.

OBSTACLES: The obstacles arise in the smooth running process and which in turn decreases the performance and speed of the process. some of the abstractions have some negative impact on the performance of the organisation like absenteeism, work stress, bossism etc. And we have some

solutions to overcome these obstacles in organisation. The solutions most times removes

or decreases these obstacles but which not a permanent solution every time. Some

obstacles may arise newly and which may seek some new solutions in future.


"Management is the art of getting things done through and with the people in formally organized group. Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Management is that function of an enterprise which concernsitself with the direction and control of the various activities to attain the business objectives". -William Spriegel.

"Management is the planning, organizing command,coordination and control of the technical, financial security and accounting activities". - Louis A. Allen.


MANAGEMENT OBJECTIVES: Objectives are described as the results to be achieved by an organization. Managerial objectives maybe defined as the goals which are predetermined, which have a defined scope and the methodologies that suggest direction to the efforts of managerial personnel.

In order to achieve the managerial objective the management should clearly define and effectively communicate these objectives to all the concerned people. The objectives should be formulated in such a way that they are attainable with the available resources as the objectives reflect or determine the ultimate goals of the organization.

Importance of managerial objectives are,

-They provide a basis for the performance.

-They establish identy of the enterprise.

-They provide direction to organized effort.

-They help in uplifting the morale and motivate employees.

-They provide basis for decision-making.

-They provide a basis for control.

The o bjectives of management can be classified as Economic Objectives , Human Objectives, social Onjectives and Organic Objectives.


PLANNING: Planning is outlining what ,how, where, when and by whom, a task is to be achieved. Everything is planned before and a blue print is prepared. Planning is the opposite of random action. Hence , as foar as possible a definite programme of action is made. But because it refers to the future and the future is uncertain. The management takes help from research, facts and trend forecasts. Again planning is the preaction stage and it is the basis of all future actions. Therefore. It states clearly what,how,where, when and by whom the various business activities are to be performed. Some elements of planning given below

Forecasting: The process of preparing forecasts and these are predictions which are based on the past and present data.

Objectives: They are the end towards which the activities of the enterprise are aimed. Objectives are decided by the top management which are considered as targets and aims of planning.

Policies: They specify what can be done or what cannot be done to achieve the given Objectives.

Strategies: these refer to the course of action to be adopted and followed for the achievement of long-tem and short-term objectives.

Budgets: These are the plans giving details such as expense budget, sales budget etc.

ORGANISING: Organising involves identification of activities required for the achievement of objectives of the firm implementation of plans. Organising is the function of making arrangement for all the necessary resources required to work for achieving the objectives. It means making arrangements for all six M's(Money, Men, Machines, Material, Marketing and Managing) of business, therefore it involves the following steps

-Activities determination, Staff recruitment, work allocation. Authority and Duty determination and power delegation.

STAFFING: Staffing consists of various sub-functions like,

-Manpower planning which decides the number and the kind of personnel required.

-Recruitment is a sub-function which attracts suitable number of potential employees to seek job.

-selection of the most suitable persons. placement, induction and orientation.

-Training and development of employees.

DIRECTING: Directing consists of guiding and supervising the subordinates in activities. Management means getting work done by others i.e the subordinates have to be properly guided and supervised in their respective jobs so that the common goal is achieved.

Directions are not only to be given but also to be obeyed. Hence they must be definite, clear cut, understandable, communicable and practicable. Direction sets the Organisation in action.

CONTROLLING: Controlling consists of making the results tally with targets or achieving close correspondence between plans and performance. The process of measuring the current performance of the employees and assess whether the given objectives are achieved or not. The various steps in controlling includes. Establishment of standard works, assessment of actual work, determination of deviation and corrective action. Controlling brings results nearer to the targets.

COORDINATING: Coordinating Means achieving team spirit and unity of action among the subordinates for achieving the common business objectives. In a business unit hundreds of persons are busy in numerous different job in various works in so many different places. But all are individually and collectively working for the same objective , called coordination. Need of coordinatin arises particularly because of the existence of. The following are useful to achieve coordination.

-Clarify the objectives , which is the basic guide for worker.

-Clarification of authority and responsibility of every subordinate so that he knows his specific duties and obligations.

-effective communication between the executive and his subordinates and also amongst subordinates themselves so that good relationship is maintained.

-Good human relationship of the manager with his subordinates.

-Cooperation both amongst the subordinates and between the executives and subordinates.

DECISION-MAKING: Decision-making means selecting one alternative out of two or more alternative solutions. It can be easily shown how decision-making covers all the earlier discussed functions. For example planning means selecting one future course of action out of various alternative courses Again business can be in a number of alternative ways. Organising implies selecting one out of these. The same applies in respect of other fuctinos like directing , controlling , motivating and coordinating. Decision-Making summarizes all the managerial functions.

GROUP LEADERSHIP: If the leader is dynamic and energetic, he motivates the group members to work with zeal for attainment of common goals. He tries to build and maintain high group loyalty among members. Thus, the qualities of the group leader determine the extent to which the group members bind themselves with the group .

COMPETITION: There is intragroup and intergroup competition. Intragroup competition is among the group members. Intergroup competition is among different groups. Competition between members of the group is usually destructive to group cohesiveness. Intergroup competition brings cohesiveness in the group.

ORGANISATIONAL POLICIES: Favourable and clear policies, fair performance evaluation, realistic job description affect the ogranisational performance.

ORGANISATION DESIGN: Organisatin design is the process by which managers select and manage elements of organisatinoal structure. So that an organization can control the activities necessary to achieve its stated goals, In other words, it is the process of designing the organizational structure , the contributes to the effective management and goal achievement.

THE FRAMEWORK FOR CONTINUOUS IMPROVEMENT:The senior management team are responsible for defining the framework for the continuous improvement process. This involves creating a culture in which managers recognise the importance of involving their people in teams to tackle problems and improve the performance of processes for which they are responsible, and working together to identify means to improve the performance of processes which involve more than one function. It also involves creating an environment in which employees feel sufficiently committed to the organisation - and supported by the management team - to put in the effort required to improve things. Management must understand the need for change, communicate this need throughout the organisation and develop a plan to address each of the ingredients for change:


"Communication is the cement that makes organization". -Norbert Wiener.

Communication is a pivotal element in any organistaional setting. It serves as a common thread for management processes. As the nervous sytem to a body, communication is an intergrating system of an organization. Communication also forms a base for the success or failure of a manager. His degree to communicate effectively, makes him a successful manager. In this connection Bernard says, " The executive function is to develop and maintain a system of communication". Thus, it can be understood that communication is the life-giving element to an organization and has to be dealt with upmost care.


Good teamwork starts with a shared understanding of its importance. Many organizations recruit people with an aptitude for and leaning towards teamwork. Their induction process emphasizes it. The way teams work demonstrates it. Although team members have clear and designated responsibilities, they help others when required. Good teamwork behavior is recognized and rewarded. Teamwork is built into the organization culture - it is a part of 'the way we do things around here'.

MOTIVATION: Motivation is the process of attempting to influence or oneself to get a desired course of action, to push the right button to get the desired action. -Flippo

With motivation employee perform the work more than the usual. The motivation

helps the organisation on reactions the stated goals in proper time .These motivation one of

two types and are intrinsic and extrinsic. In the intrinsic motivation on the other hand requires

the verbal words and some admiring words during the work.


When the organisation is much likely to offer attractive packages for hard working employee,

the employee feel much affection towards the organisation and feels the job satisfaction in the

financial aspects. So, sometimes the attractive packages offered by the management become

one of the key factors for the successful performance of the organisation. This will also

attract the new employees to divert towards the organisation, which increases the reputation

as well.


The boss is always bossing, but more bossism in the organisational environment may be

rejected by employee. The bossism with centralized power regarding the decisions reduces

the thinking power of employee at work which becomes obstacle for the organisation in

reducing the solely. Every employee must be given chance to express their ideas, which may

be helpful in improving the better running of an organisation.


Though everything going well the working environment motivates the employee plays a

considerable role in the performance of them. The pleasant work environment motivates

the employee to think about new ideas related to the work. Atmosphere in an organisation

plays very important role in the achieving good reputation and profits. When there is an

unpleasant atmosphere the employees feel irritated and get tired easily, therefore employees

show less interest towards doing work. This results in the bad reputation. Therefore, it is the

necessary thing that the management must provide a pleasant environment for the successful

organisation. The pleasant working environment also depends on the individual employee as


Work stress:

Pushing more work to an efficient employee makes them irritated and which in turn reduces

the quality of the work. More the work stress the employee feels less the performance we

can estimate from them. The work stress reduces the relations between employees. The

management should provide some courses to decrease the work stress, which helps in

improving the performance of an employee. Therefore, the employees feel work stress free

and reputation of organisation increases.


Besides the salary and designation every worker wishes some satisfaction in the work what

they do. If the satisfaction level is low then the employee may resign the job when they feel

boring. When an employee feels the job satisfaction , he can also feel good at home.

(Blum, Terry C., Fields, Dail L.(1997).Journal of Organizational Behaviour).


The HR team plays a vital role in the organisation which enriches the organisation with new

blood and ideas. Making the number of employee in the organisation balance is necessary,

which in turn maintains the production same in timely.

Guiding new employee:

Guiding new employee in the organisation consists of both the work and manner, because the

improper behaviour with seniors may reduce the co-operative environment.

Customer service department:

The customer is the important person to every organisation. The satisfaction of the customer

regarding the product and services of the organisation increases the reputation of the

organisation. The customer service department plays key role in satisfying the customer.


Negative Motivation: It is based on force or fear, i.e., workers can be threatened with demotion, dismissal, lay off, pay cut etc. Negative motivation results in disloyalty to the group as well as to organization.


Positive Motivation: It is based on reward. It is a process of attempting to influence others to do your will through the possibility of gain or reward.

Harassment: sexual harassment occurs, "when submission to or rejection of this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance or creates an intimidating, hostile or offensive work environment."


Harassment free Workplace: Recognizing and preventing Workplace harassment by conducting trainings. And When an employee complains to a supervisor, another employee, or the Human Resources office, about sexual harassment, an immediate investigation of the charge should occur. Supervisors should immediately involve Human Resources staff. Employees need to understand that they have an obligation to report sexual harassment concerns to their supervisor or the Human Resources office.

Closed System: If the organization follows the closed system policy, there will be lack

of information sharing among the employee. No information is disclosed to the all the



Open System: There every one can access the information in the organization. Except some

secure information, most of the information is sharable.

Stable environment: In a stable environment the organization probably name adopts

new methods and ideas. It always follow the older fixed classical methods in problem



Dynamic Environment: In the dynamic environment the organization adopts the new ideas of

the employee which helps the organization in yielding the higher performance rate.

Centralisation: In the centralized organization the decision making is strictly in limited

hands and which decreases the performance of other employee as there is no provision

for them to expose their ideas. The employee in these conditions almost stops thinking in

better way and sent follow what they are supposed.


Decentralisation: With this solution almost every employee can put their ideas for better

performance of their job. When an employ allowed to do so then they feel more regarding their


Division of labour and specialisation:

This is also another obstacle in the performance of the organisation because the division of

labour increases the diversity in the labour which decreases the unity in the organisation.

The specialisation increases the racism on the organisation. The employee with specialized

designation feels greater by comparing the normal designated employee and their is a chance

that they may criticise them. This decreases the work performance of the other employee.

Job enlargement and job enrichment to avoid the organisation should enlarge the

job duties and make them enlarge the job duties and make them enrich by providing

necessary requirements


Absenteeism is the most common reason for the unsuccessful organization. Because of the

absenteeism the genuine customers get irritated by their work been delayed, this may result

in the loss of some valuable customers. Therefore, the organization cannot run successfully.

(Judge ,Martocchio , & Thoresen, 1997)

One should be responsible for not been absent unless it is so emergency for them. If an employee need

a leave, he should feel responsible to inform the HR department or any other respective department.

So that can substitute the position which helps the customer get unbreakable service, which in turn

produces good reputation of the organization. Therefore, this is one of important key factor for

running the successful organization. In the organization we see so many causes of absenteeism, like

family issues and personal illness. Absenteeism sometimes relates to some other factors such as lazy

workers who are not committed to their jobs and poor work environment.

Changes in the Organizational Contexts of Work

Changes in organizational strategies, structures, and processes are mutually exaggerated by the peripheral forces reviewed in and in turn contain considerable effects on the character of employment relationships, jobs, occupations, and occupational structures. Essentially, we highlight on the mainly perceptible of these organizational changes and their possessions on work structures and substance. We bring to a close by taking into account the implications of these changes for occupational analysis and classifications. In doing so, we draw attention to the organizational decisions that need to be factored more straightforwardly into systems for analyzing how work is done today and how it might be twisted in the future.

In this, we talk about two essential developments in the organization of firms. The primary is downsizing and its implications for job security and job stability. The next is the tendency toward flatter organizational hierarchies and the implications for how work is separated between managers and nonsupervisory employees. With flatter organizations, lower-level employees are said to take superior liability as equivalent members of teams (National Research Council, 1997a).

Downsizing: Changes in Job Security and Job Stability

Downsizing, which refers to sinking the dimension of the workforce, was used by a lot of firms in corporate America during the late 1980s and early 1990s to react to new financial exigencies. More newly however, survey results obtained by the American Management Association from its member companies illustrate that workforce reductions are more and more strategic or structural in nature rather than a reaction to short-term economic conditions related with declines in business (American Management Association, 1996:2). The 100 largest companies in the United States reported that 22 percent of their workforce had been laid off since 1978, and 77 percent of those cuts implicated white-collar jobs. Approximately 23 percent of companies surveyed in 1997 reported outsourcing as a source for downsizing.

Flatter Hierarchies: Changes in Management and Teamwork

Alterations in the organization of work have made it potential to eradicate a lot of jobs from organizations and can also make possible their fast restructuring. We look at two such changes: alterations in managerial jobs and the growth in team-based work.

Managerial jobs might well be the ones that have experienced the utmost conversion in their formation in recent years, and their conversion has been the matter of considerable concentration from the business press. To recognize what has changed, it is sensible to initiate by telling the characteristics of the "old" internal labor market of managers.

Teams, Teamwork, and Team-Work

The enlargement of team-based work structures is possibly the most ever-present alteration affecting the workplace in the past two decades.

Changing Employment Relationships

Organizational streamlining sets off a sequence response of supplementary changes in the terms and conditions of employment. In this section we review the most important of these changes.

Changes in Career Patterns

Careers Across Employers

Alterations in business may be fading the prospects for lifetime careers within a single company, but other developments are rising the opportunities for different career prototypes that span organizations

Nonstandard Work

The standard work array that dominated the attention of policy makers, practitioners, and researchers in the United States since World War II was one in which persons worked full-time for a single employer who controlled their work, sophisticated steadily up a job hierarchy, and received a pension upon retirement. Proof recommends that this traditional or standard arrangement is becoming less common, though perchance it was never as prevalent as its impact would otherwise suggest. Replacing it are a series of nonstandard work arrangements such as regular part-time employment, working for a temporary help agency, working for a contract company, on-call work or day labor, independent contracting, and other forms of self-employment.

Conclusions and Implications

The opinion presented in the above suggest a number of common conclusions about changes in the structure of work. Primary, there tends to be a lot greater diversity in how work, jobs, and occupations are structured. The increase of nonstandard work is maybe the best example, but there is also greater variety in how tasks are performed (e.g., the amount of teamwork and employee involvement). In part because the structure of organizations has become more liquefied and the margin around what tasks are performed inside or outside the firm has distorted, the hierarchy and structure of jobs inside firms and organizations has also blurred. In common, narrow jobs have given way to broader jobs; management positions, particularly those in middle management, have been cut, leading to flatter organizational charts and much wider spans of control. Traditional boundaries around jobs, such as the distinction between managerial and production work, white-collar and blue-collar jobs, the barriers around craft work, and the constricted job descriptions of production jobs linked with scientific management have all blurred. At last, the employment relationship defined as the set of mutual obligations and expectations between employer and employee has substantially weakened. Expectations look to have clearly moved toward more transient relationships, even though the data from the labor market have yet to show substantial changes in that direction.