The Amo Model Theoritical Framework Commerce Essay

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5/12/16 Commerce Reference this

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Every organization in a public or private sector, struggle for survival and this survival can be gotten if there is a motivated workforce to ensure the organization’s objectives are met. Most organizations tend to neglect and ignore the up-keep of their employees which might affect employee performance and organizational productivity. There are complaints about low performance and productivity in most organizations in Nigeria.

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Researchers like Akinyele (2010) are of the opinion that low performance and productivity in most organizations in Nigeria is caused by the organizations where they operate. Additionally, Akinyele (2010) is of the opinion that about 80% of low productivity and performance is caused by the work environment of the organization and so, suggests that when the environment of an organization is conducive, it confirms that the well-being of the employees will be improved and would lead to higher productivity for the organization (Akinyele, 2007).

Organizations find it difficult to perform up to standard in order to meet their objectives due to the fact that there is low performance and productivity. The reason for low organizational performance and productivity in Nigeria according to Ahiauzu (1999) is that, employees perform better when they are managing their own businesses other than working in an organization. With this, they end up coming late to work, show little or no creativity and are slow in accepting change. This indicates that there is a missing factor which motivates employees that is not present. Also, there are other issues that affect performance and productivity in some organization’s In Nigeria which relates to cultural background, belief system and web of kingship. Again, Keller (2006) suggests that when you give your employees the best, they in turn give it back to the organization. For example, in relation to the organization, there have been a clear case of low performance because of its managerial style and leadership calamity, the way funds are managed and this is affecting the performance of the employees and the organization (Babalola, 2012). Line managers are actively responsible for the well-being and welfare of their employees Boxall and Purcell (2003) because they are the most important assets of an organization (Armstrong 2012).

When employees feel they are not working for themselves and are not motivated in any way, they tend to be disengaged and disconnected with the work and its environment especially when they notice they are neglected by their employers and line managers. For improving the well-being and performance of employees, Boxall and Purcell (2003) as illustrated in the AMO model below suggest that for effective employee and organizational performance, line managers should be able to present, apply, direct and monitor all human resource activities to help improve organizational and employee performance.

THE AMO MODEL THEORITICAL FRAMEWORK

Most organizations tend to neglect the well-being of their employees and due to this, they end up not performing well which in turn affects the performance of the organization. This, can be caused by either the managerial style of the line managers, not having a conducive work environment or even the employees themselves. The AMO model is an illustration of how employees can be motivated by the line managers using the HR policies and practices involved so as to enhance performance and well-being. The term AMO means A=Ability, M=Motivation, O= opportunity. Ability refers to the practices and policies that ensure the employees in an organization get the best and are prepared with the skills to take on any job in the organization, with the assumption that jobs would be challenging. Organizations should ensure that their employees have the necessary skills to be able to use their discretionary practice whereby they are able to participate with minimum supervision. This is why Huselid (1995) and Appelbaum et al., (2000) state that organizations must ensure accurate recruitment and selection process to recruit capable and skilled workers and also ensure necessary training. In order for employees to use their discretionary practice, they need to be motivated with either an extrinsic, intrinsic or trust factor (Appelbaum et al., 2000). Extrinsic this can be financial such as performance pay or commission, incentive pay. Intrinsic pay comes from inner satisfaction and finally, when an organization can enable an environment that is trustworthy and encouraging, then employee’s feel valued and wanted. If all these motivational factors are absent, then employees tend to be absent or likely leave the job. The opportunity to be involved in the decision-making process in an organization gives employees the sense of involvement, engagement and enhances well-being (Appelbaum et al., 2000). According to Wood and Wall (2007), Boxall and Macky (2009) and Appelbaum et al., (2000) , it is the distinguishing feature that differentiates High performance work practices whereby the decision making process should be de-centralized and shared rather than the control of hierarchy. According to Wood and Wall (2007), there are different ways in which employees should be given the opportunity and chance to be involved either being in a self-managed team or the opportunity for their voice to be heard.

RESEARCH ORGANIZATIONAL CONTEXT

It is important to consider the organization used in this research work. In 2004, FIFA (The Federation Internationale De Football Association) the world football governing body recommended the Nigerian Football Association (NFA) to create an avenue for the establishment of the Nigerian Football League (NFL) which would be an independent body but also would still be a member of the NFA. The processes and procedures of acquiring an office including the office of the chairman and vice chairman, board members and other departments was then put in place in Abuja, the Federal Capital Territory of Nigeria. In 2006, the NFL was then in search of sponsors since it is operating as a non-profit making organization but to no avail due to the fact that it lacked legal backup. It was reported to the NFA and the Ministry of Sports and later, the NFL was granted their license to become a corporate body and was immediately incorporated as a Limited Liability Company in April 2006. The title sponsor immediately after the incorporation was awarded to Nigeria’s biggest telecommunication company for four years and then, the NFL was changed to NPL (Nigerian Premier League).

The Nigerian Premier League (NPL) consists of 40 staff and 20 premier league clubs that is spread all over Nigeria and it is in line with the international best practice for the benefit of its stakeholders. Due to the fact that the football body (NPL) is a non-profit making organization, there might be significant impact on the well-being of its workforce having in mind that they are working for an organization that generates no profit and how they are motivated would be at stake unlike a profit making organization whereby the desire of the organization is to make profit. In a country like Nigeria where most of the workforce work not for the experience but for the money would also affect organizations that are non-profit making like the NPL. As money is known to be an extrinsic motivational factor in Herzberg 2 factor theory and by paraventure the company experiences a downturn in finance and it is not able to meet the financial expectation of its workforce, productivity will fall to its minimum as employee performance will be reduced due to lack of no financial benefit or extrinsic motivation. In Nigeria, most organizations are of the opinion that since employees work for the money and not the experience, it should be seriously considered by the line managers so as to create ways to intrinsically motivate the employees. This is why the purpose of this research would benefit the Nigerian Premier League on how to motivate the employees thereby using the elements from the AMO Model by Purcell et. al., (2003) mentioned in this study that it is necessary to intrinsically motivate the workforce, which in turn can lead to career progression. The NPL is faced with a challenge which is now affecting the well-being and performance of the employees (For example, absenteeism, low performance, finance) and as well, the organization (Babalola, 2012). In this case, it can be caused by lack of engaging the employees using the human resource practices mentioned in the Black Box, the managerial style of the managers, cultural differences which can generate conflict Aluko (2003) lack of finance and again, remember they are working for the only thing that motivates them which is the money and it is not available.

CONCEPT OF WELL-BEING

Well being according to Ryan and Deci (2000) is where the employee is fully engaged (Committed), fully functioning (Active) and focuses on self-actualization (Realization of Potentials). CIPD (2006) defines well-being as creating a good working environment to promote the employee state of mind that allows the employee to develop and attain the full ability to perform for the benefit of the organization. Having this in mind, the managerial procedures in organizations tend to have an impact on the workforce of an organization because of the way they are followed and in turn can have an effect on the performance outcome of the organization and the workforce AMO Model Purcell et al. (2003) using the HR practices.

Researchers suggest here that there may be a significant correlation between Human Resource management and the performance outcome of the organization (Becker and Gerhard 1996; Huselid 1995). However, well-being is part of the human resource process and its relationship has been ignored thereby affecting organizational performance. According to Pfeffer (1998), the problem facing human resource management should not be, having the idea of how HRM practices enhance the outcome of an organization but instead understanding how it affects employee well-being, performance and engagement which if present increases productivity.

In the light of this research, employee well-being and performance would be discussed using human resource practices, such as organizational commitment, training and development, ability and skills, motivation and job satisfaction and discretionary behavior, which help to promote a good work life balance in an organization (The AMO Model, See figure 1.1)

Purcell et al., (2003).

From the above model, the Human Resource practices might influence employee well-being if taking into consideration and can continuously develop and increase performance and productivity. If the management of any organization can actually generate a good working environment, the workforce would in turn respond with high motivation and satisfaction which can help the company attain high performance and enhance productivity.

Despite the fact that organizations vary, ways of motivation also vary. The aim of most organizations is to make profit in one way or the other be it a profit making organization or non-profit making organization but most non-profit making organizations, spend more and don’t really make a profit but this can be achieved if only organizations take into consideration the well-being of their employees thereby using the HR elements mentioned by Purcell et al., (2003) to improve well-being and performance.

CONCEPT OF PERFORMANCE

Performance according to Stoner (2002) is vital to measure the effectiveness and efficiency of the organization, which shows how well the organization’s objectives are achieved. Performance in an organization can be negatively impacted upon by different factors which can hinder the progress of the organization. In Nigeria, the impact of organizational performance can be caused by poor communication Inedegbor et al., (2012), culture Aluko (2003) and possibly can be caused by the external environment.

IOA Model for Organizational Performance.

The framework above illustrates an organization’s performance which can have different dimensions that consists of the organization’s importance, financial stability, and effectiveness of the organization, how efficient the organization is and how well they can react to change from its internal and external environment. It also illustrates that the performance of an organization should be linked to how motivated the organization might be and that resources like finance, technology, and workforce can drastically affect the performance of an organization. Drawing from the research organization (NPL), it indicates that the organization suffers low performance because it lacks the only thing that motivates the employees leading to absenteeism and de-motivation.

RESEARCH STUDY AIM

This research aims to examine the ability of the AMO Model by Purcell et al., (2003) to explain employee well-being and performance to enhance productivity in the Nigerian Premier League.

RESEARCH STUDY OBJECTIVES

In order to carry out this research study properly, there are objectives outlined to achieve the aim of this study. The objectives are:

To assess the levels of skills/ability, motivation and incentives and opportunity to participate, measure levels of training and development, ability and skills, organizational commitment, and identify discretionary behaviour and performance.

To identify significant relationships between these variables

To evaluate the employee perceptions of conditions of service and work in relation to AMO to participate in the Nigerian Premier League.

Recommendations and conclusions based on my findings.

RATIONAL FOR THE STUDY

To achieve a positive outcome in an organization, the well-being of employees needs to be taken into consideration because they are seen as the most valuable assets of an organization Armstrong (2008) and the way they are managed has a significant impact on the organization’s performance.

The duty of the HR is to administer policies and practices used by line managers to engage employees, this is why they are of great importance in any organization despite this long contention between HRM and the organizational performance Guest (2011) due to the fact that regulations and procedures of the HRM is in connection to a recent act in strategy (Brockbank and Ulrich 2005).

The aim of this research is to better understand well-being and performance of employees to enhance productivity in organizations especially those facing difficulties like low performance and high turnover, using the AMO Model (Black Box) by (Purcell et al., 2003). The research would in turn have a positive impact on the workforce and organization if the well-being and performance of the workforce are seriously taking into consideration.

For the purpose of this study, the concept of employee well being is measured using training and development, ability and skills, organizational commitment, discretionary behavior and it is an attempt to close the gap between employee well-being and performance with the performance of the organization thereby explaining a bit more about the importance of HRM practices which promotes employee well-being at work and is linked to organizational performance.

The study of this research on employee well-being and performance in the Nigerian Premier League would be important to the organization because it will enable the organization to understand better the concept of employee well-being and performance and how it can be managed to enhance productivity inside and outside the organization. According to Bujai, Cottini and Nielsen (2008), having an insight on the impact of employee well-being and performance in an organization with regards to engagement and other HR Practices is important in having a working environment that is productive.

In order to build a productive workforce, the well-being and performance of the organization either large or small organization should be taking into consideration because most organizations feel its time and money consuming and end up abandoning their workforce. Most managers pay less attention to their workforce and this on the other hand affects the performance and well-being of the organization. This is why it is suggested by Purcell et al., (2003) in the black box (AMO Model) that managers should be careful with the way they manage their workforce. The following chapter illustrates more on the concept of well-being and performance by different authors and why it is important that employers should focus more on their employees to enhance productivity.

CHAPTER 2

LITERATURE REVIEW

DEFINITION OF WELL-BEING

Well-being is a vast concept and has been defined and seen differently by various authors, organizations and how it should be managed is entirely up to the managers of the organization (AMO Model).

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The CCMD (2002) describes well-being as nurturing a good state of mind that helps the employee to have a good sense of purpose, feelings and fulfillment that is alert and open to new experiences. The theory of well-being by Waterman (1993) indicates that it is way above happiness but the actualization of human potentials or abilities which helps in fulfilling the true nature of an employee.

There is this belief that well-being is a psychological state which Ryan and Deci (2000) argues that it is at its best when an employee is fully functioning, fully engaged and shows self actualization and vitality. This has been termed as Eudaimonic well-being. Though there is another form of well-being which is Hedonic well being, this is the subjective well-being that involves life satisfaction, the presence of positive mood and absence of negative mood.

Employee well-being has been a great issue and concern in the minds of employers which they believe now is affecting the performance of the workforce. Researchers have carried out a research on human resource practices and the well-being of employers.

Employee well-being has been linked to employee engagement because of its similarities and for as long as there is engagement in the workforce, there would be increased well-being and performance. In contrast, Robertson and Cooper (2010) state that employee well-being is basically different to employee engagement and describes employee engagement as the positive behavior of employees that indicate there is an uninterrupted attention giving to the organization by the employees.

According to Watson (2010) employee well-being can retain or destroy the engagement level and performance in an organization which shows the connection between engagement and well-being. It further states that employee engagement and well-being either work in isolation or work together. To explain this further, see diagram 1 below.

The above diagram explains that when employee well-being and engagement strongly work together, there would be sustained performance, but when engagement and well-being work in isolation, there would be defaults in the organization’s performance. An example is that organization’s that are finding it difficult to be at their best, their employees try hard to get things working for the organization. Therefore, forfeiting their personal life issues for the organization, may only take the organization for a short period of time which is not going to be sustainable. However, this would lead to employee burnout and disengagement where turnover and under-performance becomes the agenda of the organization (Maslach and Leiter 2008).

An article by Gallup (2012), suggests that employee well-being has a significant impact on the bottom line of an organization. This is the reason organizations are engineering new strategies for gaining a sustained workforce. In as much as an organization is active, it is already in the business of managing employee well-being.

Employee engagement which helps improve well-being, is a vital aspect of an employee to achieve its objectives and is another way of motivating employees to enhance internal and external performance index (CIPD 2011). Employee engagement has been defined by different authors, still, it cannot be managed (Ferguson 2007). The world is changing and ways to meet up with the demands of the environment which Porter (1987) suggests that it would surely occur is the utmost priority of most big and small organizations despite the industry or sector.

According to Cooper and Robertson (2001), employee well-being when in the positive, is an advantage to any organization which indicates that the organization’s workforce is healthy. For an organization to be healthy, it means that it fits to survive in the competitive environment where it operates. Currie (2001) is of the opinion that if organizations want to be competitive and be positively sustained in the environment; it must keep the health and well-being of its employees as its core which is vital for performance enhancement, future survival and development of any organization. Moreover, from an organization’s point of view, the positive correlation between well-being and performance of the workforce, has been considered by Wright and Cropanzano (2004) and according to Samman (2007), Page and Vellla-Broadrick (2009), it has been reviewed that the importance of well-being and its management and measurement has puzzled researchers. Ortiz (2006) agrees with Armstrong (2008) that employees are assets of an organization while Hermanson (1964) described human assets so as to measure and quantify the value of the workforce. Additionally, Roselender et al., (2006) supports the argument that the well being of an employee when fit is an organizational asset.

DETERMINANTS OF WELL-BEING (GENERAL)

The concept of employee well-being by Macey and Schneider, (2009); Macleod and Brady, (2008); Bakker et al. (2008) states that employee well-being in recent times both in practice and in research has been creating a lot of interest in the minds of managers. Though employee well-being has been defined differently by different authors, and there are determinants that impact on well-being. According to an article by Watson (2010), employee well-being can be seen as a physical, psychological and social health of an individual. All these must be complete in an employee and this is why the management of many organizations is so concerned about the well-being of their employees because it is of great benefit to the organization and employees. For the workforce, they would feel a sense of balance between their lives at work, at home and for the organization, high level of sustainability and engagement which will reduce turnover (Watson 2010). In essence, its advantage is all about having the workforce on the job and imputing high level of sustained engagement.

Work is a significant part of an individual’s life and as such, employee engagement and well-being at work are important concepts. Employee well-being, engagement and performance are important aspect of organizational development, as engaged employees are both cognitively and emotionally connected to their work and workplace (Harter and Blacksmith, 2010). The relationship between employee characteristics and business outcomes is assumed to exist, yet the empirical research is limited. For instance engaged employees consistently produce at high levels Moore (2005) yet the unique contribution of employee engagement is yet to be fully revealed. This paper attempts to fill that gap.

According to Gallup (2012), organizations that strive hard to succeed in an environment, are implementing new ways for achieving sustainable competitive advantage which is employee well-being because it impacts on the performance of the organization. There are various determinants of well-being. In general, there are different factors that can influence well-being.

With reference to the definition of well-being by different authors which in summary states that without well-being, there is a significant impact on the organization’s performance or the workforce, many organizations tend to neglect this concept due to the fact that they think about the financial aspect of engaging the employee.

Researchers also have claimed that employee engagement is different from work engagement .Work engagement is seen as a positive, fulfilling work related state of mind characterized by dedication, absorption and vigor (Schaufeli et al 2002, pg. 74). Recent research believes that dedication and vigor are the main characteristics of engagement. Vigor can be seen as that high level of energy and mental resilience while working and persistence in the face of challenges ( Dulagi, 2012). Dedication can be seen as a sense of significance, enthusiasm, inspiration, pride and challenge. Employee well-being according to Ryan and Deci (2001) believes that well-being is not best captured by hedonic conceptions of happiness alone. Instead, SDT also employs the concept of eudemonia well-being which is defined as vital, full and as a complimentary approach. Self determination theory is an organismic psychology (Ryan, 1985) one of a part of holistic psychological theories including Jean Piaget and Carl Rogers and thus assumes that people are active organisms with inherent and deeply evolved tendencies toward psychological growth and development. This can be seen clearly in the phenomenon of intrinsic motivation- the natural tendency manifest from birth to seek out challenges, novelty and opportunities to learn.

Well-being according to Wright (2005) is a universal term that is mostly used when relating to emotions of individuals and research has consistently shown the importance associated with how employee well-being and job performance of an organization is measured (Wright et al., 2007). According to Wright and Cropanzano (2000), people with sophisticated psychological well-being at work are more prolific than people with ill-psychological well-being. Nonetheless, according to Harter et al., (2002); Schaufeli et al., (2006), it cannot be seen as a vital aspect of engaging an employee.

In synergy, Schaufeli et al, (2002); Macey et al. (2009); Mann, (2011); Bakker and Bal, (2010) considers that well-being involves not only the psychological condition of employees due to the fact that Deci and Ryan (2000) sees as the Eudiamonic sensation of employees but also the behavior of employees. In addition, the CIPD (2011) believes that well-being consists of 3 vital units which include reasoning, sentiments and interim. However, it is being conflicted by its problems or difficulties.

EMPLOYEE WELL-BEING AND SDT (SELF-DETERMINATION THEORY)

In the light of this theory (SDT), Fernet et al., (2012) indicates that the confusion from employees and management attitudes impacts on the self-efficacy of the employees and their motivation to participate.

Self-determination theory (SDT) involves a set of related theories that explain human behavior by defining different types of motivation that an individual may engage in for a task or set of activities (Deci and Ryan, 1985). Specifically, Self-determination theory consists of 3 vital psychological needs which should be evident for psychological growth. They are as follows: aptitude, independence and kinship.

Deci, E., & Ryan, R. (2002).

According to the above diagram, Self-determination theory consists of a set of theories mentioned above which is associated with the behaviour of individuals and how they are motivated. It also consists of the psychological needs that when satisfied gives the working environment a sense of intrinsic motivation and human fulfilment (Deci and Ryan, 1985). In essence, the satisfaction of these needs is beneficial for high human functioning (Deci and Ryan, 2000).

In an organizational context, the desire for these psychological needs is important. The need for aptitude signifies that the individual is feeling effective in the environment which allows the individual to express its exceptional capabilities (Ryan and Deci 2002, Deci and Ryan, 2000). According to Deci and Ryan (2000), Deci and Ryan (2011), Deci and Ryan (2002), the need for independence is when there is the feeling to act with the desire from within so as to feel psychologically free. Lastly, the need for kinship relates to when the individual feels the sense of belonging in the environment (Ryan and Deci 2002; Van den Broeck et al., 2008).

The degree which indicates that if the construct of employee engagement is distended to include the psychological well-being of employees, it shows there would be improved business outcomes. This is why Wright et al, (2007); Danna and Griffin, (1999) suggest that there should be an impact of psychological well-being on productivity and performance if the organization wants to survive.

With reference to this study, there is evidence that there is a correlation between the three psychological needs, the employees in general Deci and Ryan, (2000), Baars et al., (2004), well-being that is work-related for example, organizational commitment, discretionary behavior, motivation and job satisfaction which is essential to enhance productivity and performance in an organization.

DETERMINANTS OF WELL-BEING AT WORK

In an organizational context, the term employee well-being according to Cooper and Robertson (2001) impacts on the performance of the employee and can lead to high productivity or outcome which is an added advantage to organizations that encourages a workforce that is healthy. For an organization to be active and healthy, it then shows that it can survive in its environment or industry where it operates because for an organization to be able to survive in its sector, it is unavoidable to ignore promoting the well-being and performance of its employees which in this case is vital to increase employee performance and this can lead to future organizational development (Currie 2001). In line with this research topic, when employee well-being is introduced into any organization, it is likely to change the environment and pave way for innovation which can create positive organizational performance especially for organizations that are under-performing. Research has shown that it took ages for organizations to create a relationship that has to do with employment due to the fact that the well-being of an employee is seen as their responsibility (Guest 2002; Cooper and Robertson 2001). According to a survey by WERS (2004), it purports that the ability of employees in their work environment has been a disturbing research of interest to concerned employers with regards employment relations (Kersley et al., 2006). The following determinants of well-being at work are listed and discussed below:

Organizational Commitment

The main aim that differentiates HRM from other managerial roles is that the organization’s commitment is the main reason why they exist, which according to Guest (1998) is the core purpose of the human resource management. Organizational commitment has been defined by different authors which makes its definition versatile. Some researchers see organizational commitment as the behavior of individuals because they give their best to ensure the organization achieve its purpose (Becker 1960; Gechman and Weiner, 1977). Others like March and Simon (1958) see it as the attitude of the individual whereby they engage themselves to the organization so as to get rewards and incentives from the organization. Meanwhile, Cook and Wall (1980) refer to organizational commitment as the individual’s mood in relation to its employing organization which is related to achieving the aims and objectives of the organization. In the distant past, organizations paid little or no attention to well-being and performance of employees, making them feel de-motivated, but organizations like Cadbury Family and Lever Brothers made sure that

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