The Amo Model Theoritical Framework Commerce Essay

The Amo Model Theoritical Framework Commerce Essay 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 organizations 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. 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 organizations 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 (19 95) 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 employees 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) , i t 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 i mmediately after the incorporation was awarded to Nigerias 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 Bo x, 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 dont 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 organizations 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 organizations performance which can have different dimensions that consists of the organizations 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 organizations 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). 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 organizations performance. An example is that organizations 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 organizations 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 organizations 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 empl oyees 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 individuals 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 organizations 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 Car l 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 organizations 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 individuals 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 per formance of employees, making them feel de-motivated, but organizations like Cadbury Family and Lever Brothers made sure that

Napoleon Bonaparte Essay

During Napoleon’s reign as Emperor of the French Empire he made laws, or a set of codes, that applied to all of France. He enacted laws that protected the people, promoted religious tolerance and took away the serfdom and feudalism systems, all of which gave people more freedom over their land to support themselves and their families. The well-being of the people was compromised since the workers lacked many rights, this being evident by the fact that trade unions and strikes were illegal, which encouraged employer abuse. One aspect of Napoleons opening up government positions other than the nobility class was that it would have provided officials who could sympathize with the commoners, and therefore would have brought fresh ideas to the French political scene. A downside to his rule was that he limited the freeness of speech and press by closely monitoring the press and prohibited any ideas that seemed to be against the French Emperor in his eyes; and also the French Police read peoples mail. Napoleon showed a keen interest in learning early on in life. It was primarily based on the desire to learn about new military strategies. On the contrary, he suppressed new ideas and learning from coming into the empire by quieting anybody who spoke or thought differently than himself. For example, Mme. Stael was a writer who had established a salon where European people with influence could come together and share new ideas with one another. Napoleon saw this as a threat to his power, so he shut down the salon and exiled Mme. Stael to Germany where she could no longer write and spread new ideas in his French domain. Napoleon promoted equality by allowing people from all social backgrounds to obtain government careers by based upon ability only as opposed to whose family you were born in, or what rank you had. Another way was by his changing the standards of aristocracy that was based upon ones merit in state service. He contradicted himself by claiming he had when equality for all citizens. Women were considered â€Å"less than equal† in the empire and  lacked many of the rights that men had, and was considered as a minor in court cases. RECOMMENDATIONS 1.If I were to grade Napoleon’s leader based on the principles of the Enlightenment I would give him a C. Because even though he did secure some freedom for the people, he still failed at equality for all people being taking so many freedoms away that the Revolution had made. 2.I would tell Napoleon to change his laws limiting women so much, otherwise he should stop saying â€Å"freedom for all!† 3.Should follow the philosopher Diderot and apply his ideas of social equality that would make a better society.

An Analysis of Google’s Internal Management

An analysis of Google's internal management and its possible application to other industries. Abstract Google is a company which is well known for providing a unique work environment, welfare system and flat structure for employees. It has also been awarded â€Å"The best company for work† many times. We are going to do the research on their internal management, and then define their key factors of success; moreover applying Google's management to different industry. Keywords: Google, internal management, welfare system, work environment, different industry. List of figures Figure   Introduction In a company, the internal management is the most important factor. In addition, if a company has a good internal management, employees will not only enhance their effectiveness but also keep those employees with good performance to stay in the company and reduce errors.Consequently, my topic is to investigate how the internal management encourages employees to be creative and effect ive. I am going to do the research on Google, which is a well-known search engine. Google's internal management is also well known to the whole world for its work environment, welfare system and company culture. I have chosen this topic for my research report, on the one hand, I want to be a successful leader and I am going to study business management for my master degree.On the other hand, my father and his friends are all successful businessmen, who always teach me some practical and professional knowledge about management and share their personal experiences to me. Furthermore, they once suggested me studying business management, which may be useful in the future, for the reason that if you want to organize a company profitably and prosperously, you must master in good management skills. As a result, I am Interested in business management. I strongly believe that a good management method could affect the whole enterprise.Every year, Fortune Magazine sorts out a list, named †Å"Fortune 100 Best Companies to Work for†. In preparing the list, the magazine relies on two criteria: the culture and the policies of each company as well as the opinions of the company's own employees. Google has topped the Fortune's list for many times. It can be proven that Google's internal management has done very well. Thus, the following research objectives were set: 1. To analyse Google's internal management (SWOT). 2. To estimate how well Google's internal management could be applied to different industries. 2. Literature Review 2. Work environment A good work environment could influence employees very much. For example, to reduce stress, Google's employees can play volleyball, football, video games, table tennis or even roller hockey on the campus, which makes employees feel like they are still at the college campus rather than being in the office. (Kuntze, R. and Matulich, E. 2010). Another remarkable example is that respecting the employees who are from different cultures. Google currently has 14 offices in different states and more than 40 countries worldwide; it must have many workers from different nationalities.In different offices have various local customs of decoration and interior decoration (Google). 2. 2 Welfare system Google provides its employees with a wide range of benefits to make sure that the employees are satisfied and loyal to the company. These benefits include: free food, onsite childcare, healthcare services, transportation services, laundry and dry cleaning services, sport facilities, pets allowed, 20% creative time program, environmentalism, numerous holiday and leave days, and other services (Kuntze, R. and Matulich, E. 2010). The other companies have never executed these benefits mentioned above.In addition, their welfare system has few innovative rules, â€Å"The company has a policy of unlimited sick leave, and only expects employees to work 70% of the time. It factors in opportunities for staff to think of ways to work better, and allows impromptu sport during the work day. † (Logan, 2008:3). 2. 3 Company culture Although Google is a Large-scale company, their leader tries to maintain their atmosphere feels like a small company without hierarchy, employees can say whatever they want to say, they can bring up all of their ideas or thinking to their manager whenever they want. Google). Furthermore, Google attempts to keep the good employees in the company and have a good relationship between leaders and employees. Every Friday afternoon the founders gather all employees into an open area for a TGIF meeting. (Raphael: 2003). 3. Methodology A SWOT analysis is a well known management tool, one of which could very quickly to find strengths and weaknesses. It could apply to all kinds of research. That is the reason why SWOT is one of the most common used management tools recently. Strengths |Weaknesses | | | | |Opportunities |Threats | | | | Figure 1: SWOT analysis table. In this research d oes not need to calculate the data. SWOT analysis is one of suitable management tools in this research, it is also easy and clear to use and understand.Therefore, I will use SWOT to analyse Google's internal management, after that I will apply Google’s management method to manufacture industry, and do the SWOT analysis again, interpreting the analysis according to my own working experiences. First of all, the data will be collected from Google website and my work experience, moreover, some of the research which had published from experts. The collected data will be consisting of work environment, employee's welfare system, company culture, relationship between leader and team members. After that, using SWOT analysis to analyse all the aspects mentioned above.Followed by an investigation to see whether Google's internal management can be applied to different industry or not. 4. Analysis and results |Strengths |Weaknesses | |Good work environment. |High costs. | |Good welfare s ystem. |Low pay. | |Keep structures flat. |Lost in the crowd. | |Opportunities |Threats | |Create new policy for welfare system. More and more competitors use the same method. | |Encourage employee to work at home. | | Figure 2: SWOT analysis of Google's internal management. Strengths Google's internal management has many strengths, one of strengths is that all of its offices have good work environments; they design different interior decorations according to different culture, and build up many recreational facilities, for the sack of reducing stress as well as increasing creativity and efficiency.The second strength is good welfare system, Google formulates some benefits not only to keep the good employees and encourage them to do their best but also devote to the company. Hamel reports that The Founders' Awards, an annual multimillion dollar payout to teams who've made outsize contributions to Google's growth, is one key retention mechanism The goal: to ensure that internal entre preneurs have no incentive to take their best ideas somewhere else. (2006: A16).The third strength is to keep structures flat, in a large company usually has hierarchy that would waste lots of time on paper works and have difficulty in retaining a good relationship between high level managers and low level employees, however Google try to keep the office's atmosphere like a small company. In Google, employees could raise their queries or propose their ideas to the managers or founders directly. It is unlike usual management which needs lots of paper works. Weaknesses Certainly, not everything could be perfect; Google also has some problems about its management.The first problem is cost; Google spends about 50% of revenue on their welfare system. (Kafka, 2009). Although founders thinks that could increase productivity and efficiency of the organization, the budget of welfare system spending still too much. The second problem is low salary, Google sets up many employees’ benefi ts and bonus system are better than other competitors; however, their pay is lower than the others. Most of Google's employees have fixed salaries that are significantly lower than the industry average, even when those base salaries are supplemented by stock options. (About. com 2009).The last example is lost in the crowds, the problem is some of employees want to issue their ideas but there are too many ideas in Google. Consequently, employees feel depressed when they can not issue their ideas. Hardy (2007) reports that with more than 20,000 people working for Google, some people feel their ideas are lost in crowds. It is a highly competitive environment with everybody trying to make the next â€Å"in† thing. Opportunities Google could create new policy or develop their welfare system, trying to find the new thing could let workers pay more attention to their works and elevate employee's creativity.In addition, encourage employee to work at home. Even though offices are deco rated like home or any places make employee feels relaxed, it is still a office not home, as s result, enable the workers to work at home could be one of the new solution to increase efficiency also reduce the costs. Threats After Google created the new vision of internal management, there are more and more enterprises copying Google's management method, not only the same industry but also others industries and applied to their companies. Accordingly, Google's competitors could provide the same or better condition o attract Google's good employees to their company. |Strengths |Weaknesses | |Good work environment. |Working environment atmosphere too relax. | |Good welfare system. |Poor management. | |Opportunities |Threats | |Good relationship between managers and employees. |Worker's education level. | Figure 3: SWOT analysis of Google's internal management is applied on different industry (Manufacture).Strengths All of the employees who are from different industries, they all need to work at a good environment. In manufacture industry, employees work at dangerous environment, they need a place to release their stress. Like Google's office, there are many places or equipments to help their workers reduce their stress. The next point is welfare system, most of the manufacture companies use original management, they do not have a good welfare system. As a result, if manufacture companies use Google's management method might urge worker's morale.Employees would feel satisfied staying in the company for a long time, it is good for those manufacture companies, because in this industry, company prefer employee who has long experience. In manufacturing, experienced worker's efficiency is more than apprentice. Weaknesses Many employees find the work environment far too much fun and perhaps even an ‘overload' of happiness. Most workers are able to find their focus and sanctuary at work but for some, a more professional and structured work environment is necessary . Arrington, 2009). In manufacture industry, workers should be very engrossed when they are working. If employees feel too relaxed when they were working, an accident might happen. The other point is hierarchy structure, most of employees who work for manufacture industry, and the education level is less than employees who work for information industry. Thus, in manufacture industry should use hierarchy structure to contain every step, because it would be easier to find the problem if error happens during the process.Moreover, the last point is industry's character is different, the duty of the manufacture industry is to produce goods, company must have done their work in time, however information industries mainly focus on creating new things, time is not a big issue as for them. Opportunities As we known, manufacture industry usually use original management. This management has a big gap between leader and worker, because they are very difficult to meet each other. Using Google's method might ameliorate the relationship between leader and worker.Thanks to the low hierarchy, workers and managers can interact intimately, in this way; relationship between them will definitely become closer. Threats The Google's management style is free; it gives their worker to organize their time management by themselves. Although Google's employees have a lot of free time, they still do their job very well. The main problem is education level. In the information industry, most of employee's education levels are higher than people who are working for the manufacture industry.The meaning is high level education employees are more positive, their time management organization are better than those employees with low level education. 5. Conclusion I used SWOT analysis to define the unique aspects of Google's management and assumed that it is applied to different industries; I learned two important points from this research as well. The first one is that I understood why Google can win â€Å"The best company for work† many times. Actuality, Google's salary is lower than industry average but it

Organisational Theory Common Practices In Organisations Business Essay - Free Essay Example

Sample details Pages: 11 Words: 3271 Downloads: 10 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? As one of Britains leading food retailers and has 586 stores throughout Great Britain and various store outside U.K. Tesco has grown greatly and increase its market share from 10.4% to 15.2%. This increase in costumers has also given Tesco a large amount of profit. Don’t waste time! Our writers will create an original "Organisational Theory Common Practices In Organisations Business Essay" essay for you Create order Tesco has 164,500 shareholders, its profit is about 505 million pound after the tax has been deducted; about 50% of this is then distributed to the shareholders. The rest is then set aside for investment in stores and improving services for the costumers. Tesco is a very large firm with several positions of responsibility. Being such a large organisation, it provides a lot of power as well as responsibility, Tesco has chosen the Hierarchical Structure for its level of responsibility. This structure is in shape of a pyramid. It begins at the top with the chairman where the ultimate power lies and broadens out towards the base with the lowest amount of responsibility being given to the workers. Managing Director Research and Development Administration Manager Finance Manager Personnel Manager Marketing Manager Tescos objective of product promotion is to give a large and relevant range of product promotion in their entire store. This then should be both the customers and the product. They aim to differentiate their market and they try to make the promotion strategy to the market they are aiming at. Within the organisation there are different functions areas each, which control different section of the business. It is up to the managers of each department to ensure that each member of staff within their department carries out the correct tasks to ensure that the business is run successfully. 1.2 Types of Organisational Structures There are three different kinds of organisational structures they are (Mullins, L. J. 2005): 1.  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   Flat structure 2.  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   Hierarchical structure or pyramid structure 3.  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   Matrix structure Flat structure does not have more than three levels and the organisational chart is overall flat. A business with a flat structure is likely to be relatively small and in a flat structure everyone knows everyone else, they have good communications techniques because few people are working in flat structure. They will be good at responding quickly to new ideas or specific customer requests. The advantages of flat organisational structure are: Fewer tiers that means easier communication A short chain of command making the decisions to be implemented quickly Employees may be motivated to being able to make decisions. The disadvantages of flat organisational structure are: The organisations may lack direction if too many people in the organisation have a say in running the business Decisions may take time to be made if many people may wish to comment There may be confusion over responsibilities and things may not get done HIERARCHICAL STRUCTURE A hierarchical organisation is taller than a flat structure and it has many levels. The word hierarchy means systems whereby grades or classes are ranked one above the other. Sometimes hierarchical structures are called pyramid structures because they have more employees in the lower levels. In a hierarchical or pyramid structure each functional area has many staff to do a particular task and the staff that work here have specific skills and talents in their own job. In a hierarchical or pyramid structure communication can become distorted as messages pass from one level to another so staff at the bottom level receive a slightly different message than the one they should have received from the manager. The advantages of hierarchy structure are: A leader or leadership team can give the business a direction A leader or team could make quick appropriate decisions on behalf of the organisation. Employees are clear about their position and Span of control within the organisation. Employees know who to report to in events of problems instead of going to the owner directly for irrelevant issues. Employees become motivated because they get a chance to become promoted to a higher tier. Communication within the organisation can smoothly follow the chain of command up and down the structure. The disadvantages of hierarchy structure are: Decisions can often take time to follow the chain of command Employees can be demotivated if there are considered as at the bottom of the hierarchy. Decisions may be made by a few that are not in the interest of everyone on the organisation. MATRIX ORGANISATIONAL STRUCTURE Matrix is a different type of organisation structure it can be neither flat nor hierarchical. It is often found in organisations where they deal with different kind of special projects. In a matrix structure all the members need to communicate because they are from different kinds of functional areas and their input is needed to make a decision for a special project. In matrix everyone has special individual talents and skills in their specific department, this ensures the best possible outcome for their project. However there is a disadvantage because the people who work in the matrix structure only have specialised skills in one area so they cannot get wider experience. Finally, it is difficult in matrix structure to communicate effectively and respond to any changes in the organisation. Advantages of matrix structure Project managers are directly responsible for completing a project High level of motivation Easier Communications were specialist can contribute to new ideas Disadvantages of matrix structure There can be conflict between line managers and project managers over the allocation of resources. With manager having more authority it would be difficult to control them. It can increase staff costs as more mangers are created. 1.3 Tesco Organisational Culture Culture There are four types of organisational culture that can take place within a business, the term culture, describes the typical approach within a business, culture is the personality, share beliefs and the procedures that a business uses to solve any problems. The four types of organisation culture are Power culture- this type of organisational culture will be found in a business that emphasises on making individuals rather than decision-making, which enables decision to be making a lot quicker. Role culture- this is usually found in big companies where all staff have a defined job role, this culture is split into two functions that are organised in a hierarchical way, this culture works Task culture- in this type of culture, the company selects a team to work towards a specific project, there is no formal hierarchy involve in this culture. Person culture- in this type of organisation the administrative back-up for an individual to perform his or her own things, there is no formal structure at all and this are mostly practice in a professionals, e.g. architect and entertainment stars. Tescos employees practise the Role business culture, since all employees are provided with appropriate job skills training, so they follow the job description scheme. This encourages the employee to work harder, since they are giving the chance to express themselves. Furthermore Tesco treat all employees fairly and honestly regardless of where they work. All staff will have a written contract of employment, with agreed terms and conditions, including notice period s on both sides. All staff are entitled to reasonable rest, break, access to toilets, rest facilities and potable water at their pace of work, and holiday leave in accordance with the legislation of the country where they work. Any employee who suspects infringement of policy has the right to inform the authority without fear of persecution and the allegation will be investigated, and take appropriat e action as necessary. This applies to all Tesco employees whether they are in full time, part time, or temporary employment. Tesco aim is to ensure that their company is a satisfying place to work by giving their staff the opportunity to be themselves, actively encouraging their health and well- being and supporting their work/life balance needs. The staffs are entitled to various kinds of leaves such as; maternity leave, career breaks, parental leave etc. Tesco use extrinsic reward for a vast majority of employees in order to motivate them and gain as high level of output possible. Extrinsic rewards include extra bonuses based upon quantity and quality depending o the employees job. 1.4 Factors influencing individual behaviour at work There are many different factors that influence individual behaviour at work. These are: 1. Demographic Factors: The demographic factors are socio economic background, education, nationality, race, age, sex, etc. Organisations prefer persons that belong to good socio-economic background, well educated, young etc as they are believed to be performing better than the others. The young and dynamic professionals that have good academic background and effective communication skills are always in great demand. 2. Abilities and Skills: The physical capacity of an individual to do something can be termed as ability. Skill can be defined as the ability to act in a way that allows a person to perform well. The individual behaviour and performance is highly influenced by ability and skills. A person can perform well in the organisation if his abilities and skills are matched with the job requirement. 3. Perception: The cognitive process meant for interpreting the environmental stimuli in a meaningful way is referred to as perception. Every individual on the basis of his/he reference can organize and interpret environmental stimuli. There are many factors that influence the perception of an individual. The study of perception plays important role for the managers. It is important for mangers to create the favourable work environment so that employees perceive them in most favourable way. 4. Attitude: According to psychologists, attitude can be defined as a tendency to respond favourably or unfavourably to certain objects, persons or situations. The factors such as family, society, culture, peers and organisational factors influence the formation of attitude. The managers in an organisation need to study the variables related to job as to create the work environment in a favourable way that employees are tempted to form a positive attitude towards their respective jobs. 5. Personality: Personality can be defined as the study of the characteristics and distinctive traits of an individual, the inter-relations between them and the way in which a person responds and adjusts to other people and situations. The several factors that influence the personality of an individual are heredity, family, society, culture and situation. It implies to the fact that individuals differ in their manner while responding to the organizational environment. Personality can be regarded as the most complex aspect of human beings that influences their behaviour in big way. CHAPTER 2 2.1 Different Approaches to management The process of management has been useful in addressing management challenges for more than a century. Many of the challenges faced by managers during earlier periods were similar to those faced by managers today. For example, Taylor ´s concern for the productivity of employees is shared by managers today. Indeed, the challenge of meeting international competition is often addressed as the challenge of declining worker productivity. Among the challenges that managers have faced in the past are: Increasing worker productivity, meeting the challenge of international competition, replacing old work methods and equipment with newer, more expensive equipment, developing new products, maintaining employee motivation and morale, integrating the changes in societal values. 2.2 Early perspectives of management The first known management ideas were recorded as long as 3000-4000 B.C. One example is the building of the pyramids in Egypt. Archeologists and historians have discovered that the Sumerians in 3000 B.C. used form of recordkeeping for commerce that was a relatively sophisticated system of accounting. Throughout the history, management style was often autocratic and paternalistic. Servants, soldiers or workers who were supervised were all expected to do as they were told. The autocratic owner or manager was generous, as long as people stayed in line. Classical theory is a grouping of similar ideas on the management of organisation that evolved in the late 1800s and early 1900s. This theory contains three general branches. The most important characteristic of all three is an emphasis on the economic rationality of the individual employee at work. The rational economic assumption was an extension of the ideas developed by Adam Smith. Smith ´s classical assumption was that people choose the course of action that maximises their economic reward. To get employees to work hard, managers should appeal to their monetary desires. The assumptions are generally based on pessimistic views of human nature. Although these views are true to some extent, they oversee more positive aspects. These theorists recognised that humans have emotions, but they felt that emotions could be controlled by a logical and rational structuring of jobs and work.   2.3 The human relations approach   Neoclassical theory is a group of management ideas that developed from the 1920 ´s through   the 1950 ´s. The predominant characteristic of these ideas is the emphasis on the social, needs, drives and attitudes of individuals. The neoclassical theorists felt that employees could not simply respond rationally to rules, authority and economic incentives. They believed that employees brought their social needs with them to the organisation and that effective management required a more-human oriented approach. 2.4 Modern management   The ideas of classical and neoclassical theorists have many applications in the management of todays ´ organisations. However, modern management theory highlights the complexity of modern organisations and integrates ideas from the other management theories. Since individuals are complex and people ´s motives, needs, aspirations, potentials vary, there can be just a few static principles.  CHAPTER 3 3.1 Leadership styles Leadership has three specific styles. These are known as autocratic, democratic, and laissez-faire (James A. Robinson, 1983). Autocratic is when a person was to take control of the situation. The leader would decide what will be done and would make clear what the groups expectations are. This style is often used to suit dangerous situations where decisions need to be made quickly. It also seems to suit individuals who are confident (and are often task orientated) as little notice is taken of individuals when decisions are made. Democratic is when the task is person orientated. This means that the leader or captain would take advice from his/her team mates. They would listen and act on the opinions of the group. Democratic often goes as far as taking a vote with a major opinion. Laissez-faire is when the group is encouraged to do whatever they want to do. The term laissez-faire is French for let it be. There is little direction from a laissez-faire leader. Successful use o f this style depends on the members of the group. 3.2 Motivation theories Motivation is one of the most crucial skill that a manager needs to have it is the reason why it has to be studied it could be described as a leadership skill because a good leader has to be able to motivate their staff; firstly we need to know what motivation is. Motivation is a set of processes that moves a person towards a goal, thus motivated behaviours are voluntary choices controlled by the individual employee. There are two main overall categories of theories of motivation these are formal and informal theories of motivation informal theories are based on assumptions of managers these are the assumptions on what motivates staff. These are theory X and theory Y types of management the basis of these is that theory X managers believe staff are not motivated enough and dislike work and responsibility, theory Y managers believe the opposite that staff are motivated and seek responsibility. The other assumption-based theory is the social assumptions. The Fredrick Taylor the ory of motivation also falls under the assumption based theories it is assumed that by Taylor money is the only motivator and the last main assumption based theory was the hawthorn studies about the impact of social relations on motivation. The formal theories of motivation The formal theories of motivation fall under three main headings these are content theories, process theories and reinforcement theories. Content theories consist of four major theories that are going to be evaluated to give a deeper understanding to what content theories are all about. These theories are Maslows hierarchy of needs, Alderfers modified need model Herzbergs two factor theory and McClellands motivational theory. Process theories being about expectations of the individual brings in the concept of the psychological contract this is described by Mullins (2005) as the unwritten codes of conduct or expectations that individuals feel their organisations or employers should meet, these are hard to meet fully but there has to be a balance a little give and take so as to satisfy both needs of the employee and the organisation. The process theories are based on this ideology of expectation is the main driving force for individuals as long as they believe that they are working towards something that will meet their needs, and individuals are under that assumption their manager or organisation work on a similar policy of effective reward and recognition. CHAPTER 4 4.1 Groups / Team Effectiveness With the increasing awareness of the paths to achieve organisational effectiveness, the role of effective work team becomes more and more important nowadays (Willis, S. 2001). Work teams have long been considered an effective device for enhancing organisational efficiency and team work ranks near the top of the list of factors that lead to management success.(Bennett, 1999) In order to build an effective work team, managers are playing a crucial role in effective team building. It is the premise of this essay that the effectiveness of a team depends heavily on the communication skills, which include self-awareness, assertion, listening and process management skills exercised by the team members and managers Team-working is crucial in todays society due to such fierce competition from other firms within their market on factors such as productivity, quality, innovation and technology, which requires the collective inputs of individuals each with different abilities and skills to p rovide the desired product or development. According to Willis (2001) there are seven key elements that are essential to high-performance work teams which consist of: Commitment, contribution, communication, co-operation, conflict management, change management and connections. To compete effectively, managers/leaders must design a network to consist of these factors along with skilled employees who support each other in the achievement of corporate goals.   However, according to Mullins, (2005) as a group or team increases in size, problems start to arise regarding communications and co-ordination.   Large groups are difficult to maintain and often require a high level of supervision or a strong team leader (Tuckman, B. W. 1965). When a group is over-sized there is usually an increased level of absenteeism and the group may become split into smaller groups or sub-groups which may lead to competitiveness and friction within the company.  Conclusion and Recommendations Tescos organisational structure is a hierarchical structure. In a hierarchical structure the communication can be distorted as messages pass from one level to another, this means that the staff at the bottom level receive a slightly a different message than the message they intent to receive it. Many people have to be consulted before a decision is made so the company is slow in responding to changes and challenges. This means they cannot provides quick services to their customers and it is going to affect in terms of sales and profit but there is an advantage that if everybody is consulted they will come out with the best results. In hierarchical structure there are specific functional areas and job roles. The employees can be easily identified and given training so they can provide good services to their customers. Hierarchical structure has good delegations because they are many people with specialised skills are working here so they can easily assign their subordinates for a particular task. The span of control is less than the flat structures. In hierarchical structures they have good promotion prospectus so the staff are motivated and they provides good services to their customers.