Expert answer:Unit 4 Discussion Present and discuss the mission statement of your organization in a narrative. You should quote the mission statement and cite the source in APA format. Discuss why the organization chose this as its mission and if the majority of employees know and believe in the organizational mission. Requirements: – Learner successfully addressed the concept(s) of the Discussion topic – 5 pts max. – Learner successfully incorporates a minimum of three scholarly sources in the initial post to support their position – 5 pts max. – Learner met the criteria for academic writing (i.e. no spelling or grammar errors, properly formatted paragraphs, APA formatting used for references, etc.) – 5 pts max. – Learner met the 250-word count minimum
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Systems
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Managing Performance
Unit Seven
Managing Performance
A Modern View of Management
The definition of management varies among textbooks and, at times, editions of
those texts. The most modern view of management describes it as the proper utilization of resources to accomplish organizational goals. In essence, the manager’s primary challenge is to effectively allocate available resources to maximize
the probability of attaining organizational goals in the most efficient manner possible.
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Let’s look at each of these elements separately.
“Proper”
refers to effectiveness
and efficiency. As previously discussed, to be effective, a manager
must “get the job done” but to be
efficient, the goal must be achieved
with the minimum consumption of
organizational resources including
time.
“Resources”
encompasses three basic
classifications:
• Money (capital)
• Information technology
• Humans
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“Utilization”
refers to the
allocation and use of resources.
In a world of scarcity, the way in
which resources are distributed
and consumed becomes a central
issue for managers. In economics
terms, the supply of resources is
finite and the demand for
resources is infinite. Pricing
establishes demand at attainable
levels.
Examples of Resources include money, buildings, machinery, computers, information
technology, and humans among others. From a manager’s point of view, most
resources (excluding HR) offer limited manipulation opportunity. For most resources,
the question is that of an allocation nature; who gets what and how much? Consider
IT for example: technology generally includes equipment and systems to process data
7.2
Systems ~n~ Practice Online – Unit Seven – Managing Performance
Unit Seven
Managing Performance
into information. The output of technology is finite; any machine
has a specific capacity. A machine is similarly limited to produce
what it is programmed to produce. A machine may be adjusted to
produce higher output if it is not calibrated correctly. Modifications
to the machine may increase its overall output as a result of
improvements in technology, but the decision is largely limited to
calling a technician or purchasing a higher capacity replacement.
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ow
Human
Resources
Ma
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Time
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Money
Information
Technology
Humans
Or
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Go zat
al ion
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Figure 7.1
Profit
Market Leader
Quality
Public Image
Superior Service
Management is the Proper
Utilization of Resources
to Accomplish
Organizational Goals
7.3
Resources
Systems ~n~ Practice Online – Unit Seven – Managing Performance
Unit Seven
Managing Performance
Unlike the manager’s limited ability to manipulate most resources, the human element
offers a vastly superior potential for improved output. A human being is a complex
combination of attributes, many not controllable in the context of the organization. The
managers within the organization can significantly influence the productivity of the
employees through their behavior and based upon their analysis of the system and
structure of the organization. Since the human element is the most ‘manageable’ of all
resources, the primary goal of managers is to
Wmaximize the level of performance.
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Performance
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There is a simple yet profound formula for performance.
Performance is the result of
O the support system (Figure 7.2).
three elements: capability, motivation, and
N
‘Capability’ is the “can do” element of performance.
The manager must distinguish
,
between capability and ability since capability of employees does not necessarily equal
their ability. A capable employee is one who possesses the aptitudes and talents to
J not be able to do so without appropriperform the required tasks. The employee may
ate development and training. A capable employee
may perform at a substantially
A
lower level than possible if the aptitudes and
Mtalents are not transformed into ability
through appropriate training and development.
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Figure 7.2
Capability
5 do”
“can
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Capability
5
+ Training
1
= Ability
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Motivation
Support
System
“want to”
Incentives
“empowered to”
Tools
Culture
Environment
Internal & External
7.4
Systems ~n~ Practice Online – Unit Seven – Managing Performance
Unit Seven
Managing Performance
The second element, ‘motivation,’ is the “want to” perform. Motivation is the result of
several external and internal factors.
External factors include monetary and other incentives offered by the employer.
Internal factors represent the inborn attributes such as high performance ethics,
responsibility, commitment, and other moral values. A strong desire to succeed as an
individual is the most valuable from a performance aspect. One of the most significant
managerial challenges is to recruit internallyWmotivated individuals; after all, external
incentives are truly limited when compared to internal motivation.
I
L available by the organization to faciliThe final element is the support system made
tate employee performance. From a macro point
S of view and to varying degrees, the
overall layout of the structure and the efficiency
O of processes within the system of the
organization can either greatly enhance or significantly limit the individual performN
ance. The specific and often intangible components
such as culture, environment,
empowerment, participation, and other such, support mechanisms form a powerful
force that significantly and directly influence individual performance. The manager’s
challenge here is to identify and provide theJnecessary support system that would
enhance employee performance.
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Figure 7.3
7.5
Systems ~n~ Practice Online – Unit Seven – Managing Performance
Decisions for Discussion
A Brief Case Study
Lisa relished her promotion to manager of the
claims processing department of a small
insurance firm. The firm recently upgraded
all of its computer systems to improve the
efficiency of its operations. As part of the
management training process, Lisa spent several weeks at the company’s headquarters.
When she returned, she met with the regional
supervisor who told her that productivity had
dipped after the implementation of the new
system, but had recovered overall. There were
still a few underperforming offices-including
hers. Her first assignment was to increase the
productivity of her office to its previous level.
In order to accomplish this, Lisa had a
$50,000 discretionary fund to use as she
determined necessary.
Shortly after returning to the department, she
noticed that Bridget, a relatively new employee, appeared to experience great difficulty in
completing her work on time. Lisa talked to
Bridget casually about the need to keep up
with the workload. Bridget appeared to
understand the need, but her performance
did not improve. Lisa met with Bridget more
formally and was very specific that the pace
had to improve. Before the meeting, Lisa
reviewed Bridget’s personnel file and saw that
Bridget previously was employed in an organization well-known for its employee appreciation program. Bridget’s former employer used
a variety of incentives, such as awards and
gift certificates, to motivate employees. She
also saw that Bridget’s previous employer had
rated her as a highly productive and motivated worker.
During Lisa’s meeting with Bridget, she mentioned to Bridget that she thought a recognition program would be a significant improve7.6
ment and she planned to implement one that
included awards and cash payments to the
highest performers immediately. Bridget
appeared to be enthusiastic about the program, but did not say anything about how it
might affect her performance. Lisa announced
the program to the entire department at the
next staff meeting. Again, the response was
positive, but did not appear to generate any
specific statements of intention to improve
Wperformance. She sensed a reluctance on the
I part of the employees to commit themselves
to specific levels of performance improvement.
L
S After a week, Lisa reviewed Bridget’s performOance and saw that it had improved slightly.
N Overall, the department had improved as
well, but again, only slightly. After a month,
, Lisa reviewed the productivity tracking, saw
that performance, including Bridget’s, had
J improved by a moderate amount, and schedA uled a lunch to distribute the awards and
praise the department for its improvement.
MHowever, the next month she found that perI formance remained about the same; Lisa was
E faced with a dilemma. Should she distribute
the awards or announce that because performance remained constant, there would be
5 no awards? She was sure that many of the
0 employees expected the awards to be distrib5 uted regardless of whether there had been an
1 improvement overall.
B
U Discussion Questions:
1. What was the cause of Bridget’s low productivity?
2. Would continuing the awards program
improve overall productivity?
3. What other elements should Lisa have considered before implementing the incentive
program?
4. How should Lisa spend the $50,000?
Systems ~n~ Practice Online – Unit Seven – Managing Performance
Decisions for Discussion
Henry Ford
1863-1947
Henry Ford built his first automobile in 1896
while he worked as a machinist and engineer
in Thomas Edison’s workshop. Ford Motor
Company was launched in 1903.
Ford cut the costs of production by adapting
the conveyer belt and assembly line to automobile production. And by featuring an inexpensive, standardized car, Ford was soon able
to outdistance all his competitors to become
the largest automobile producer in the world.
On January 5, 1914, Henry Ford
committed the equivalent of an act
of heresy for an early 20th Century
capitalist: he announced that as of
January 12, 1914, Ford Motor
Company would virtually double
the wages of its production workers. The $5 Day, as his masterstroke would be known, infuriated
the other auto manufacturers. Why would
Ford, whose company was known as the producer of low cost cars for the masses and was
already a leader in profitability in the industry, voluntarily pay more than any other company? Ford’s answer was simple: pay more,
get more.
The background to the story is far more complex than the above would indicate. Ford and
his leadership team saw that across the
industry workers were not committed to productivity and quality. With the radical
increase in pay, Ford accomplished two things
simultaneously. First, he positioned himself,
7.7
personally, as the champion of the workers.
This reestablished the trust between employer
and employee. Second, Ford Motor Company
immediately became the employer of choice for
every worker in the auto industry. This
ensured that Ford was able to attract the most
competent and motivated workers and easily
replace any worker who did not measure up to
Ford’s standards. Indeed, Ford was able to
Wimplement an extensive background check to
assure that his workers demonstrated superiI or motivation and character. Turnover at
LFord’s Highland Park, Michigan plant fell from
S53,000 per year to 2,000 within one year.
O
Overall, productivity at Ford increased by an
Naverage of 20 to 30 % with some departments
, exceeding 50%. Ford’s productivity was
already one of the highest in the
business, having doubled in each
J
of the previous 3 years. With the
A
$5 Day, productivity continued to
M
increase, actually exceeding the
capacity of the plant within 5
I
years. With the plant operating at
E
100% of production capacity, Ford
was able to increase sales volume by reducing
5the price per vehicle. Between 1908 and 1920,
0the price of a Model T fell from $850 to $290.
5
Discussion Questions:
1 1. How would doubling wages in your comB pany affect overall performance.
U 2. Would you recommend doubling the
wages in your company?
Systems ~n~ Practice Online – Unit Seven – Managing Performance
Unit Seven
Managing Performance
A Diagonistic Tool to Evaluate
Employee Performance:
1. Make the distinction between capability & ability
2. Determine the type of motivational support that
will be most effective
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3. Make sure the system and structure are designed
to enhance performanceI
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7.8
Knowledge is only potential power. Knowledge is critically
important in that it forms a solid foundation, but it is only
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that; it must be applied before
its benefits can be realized.
The value of this approachA
lies in its practical application and
the potential for the learner
Mto better understand how things
are in a live organization, thus,
increasing the individual’s
I
ability to become a more effective designer of efficient organiE
zations.
In theory, organizational components
are interconnected
5
where the performance of each
0 affects and is affected by all
others. Based on this concept, modern organizations should
5
adopt a holistic approach when
designing or redesigning their
1
structure and/or work processes.
Equifinality suggests the
mind set of continuously seeking
to improve the organizationB
al performance. Finally, realizing
the
true nature of modern
U
organizations as transformational boxes facilitates a focus
on this core purpose and allows us to improve productivity
and to eliminate waste.
Systems ~n~ Practice Online – Unit Seven – Managing Performance
This is a copy of the online form you will fill out in
the COMPLETE section of this unit’s coursework.
Pf(c * m * ss)
Assign yourself a score for each of the considerations below, then fill
out the equation at the bottom of the page.
Motivation – “Want To”
Assess your overall motivation
level to perform the specific job
duties and assign yourself a score
accordingly
WCapability – “Can Do”
Complete
a self-assessment of your
I
capability
in terms of:
L
• Knowledge of job duties
S
• Communication skills
O
• Technical
skills
N other skills needed to perform
• Any
your
job
,
J Assign yourself a Capability
score from 1-10 ____
A
M
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Assign yourself a Motivation
Score from 1-10____
5
Support System – “Empowered
To”
0
Consider the following questions in evaluating
your organizational
support system: do you have reasonable
access
to
5
• Supportive policies and guidelines
1
• Needed space and equipment
B
• Sufficient IT support
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• Additional helpful tools
Assign yourself a Support System score from 1-10 ____
X
capability score
7.9
=
X
motivation score
support system score
Systems ~n~ Practice Online – Unit Seven – Managing Performance
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