Paper Topic:

Impact of human resources practices on employee attraction and stability in a knowledge worker environment

ABSTRACT

The demand for knowledge workers is growing rapidly . They are needed to help ensure the successful integration of information systems with other organizational systems . These workers can deliver the appropriate technology and provide instructions for using it efficiently and effectively . The magnitude of the information revolution and the central role of knowledge workers is underscored by output figures Organizations evaluate the effectiveness of human resource management in terms of productivity . Effective management

of human resources will result in high productivity . The goal of human resource management is to maximize the productivity of human resources . Higher productivity means fewer employees and lower costs . Human resource management is the focus of human resource theory . Often referred to as management or motivation theory , this body of knowledge attempts to provide models that can help managers effectively manage the people for whom they are responsible This looks into the theories , models and principles on human resources management and its effect on employee stability and retention

TABLE OF CONTENTS

I . Introduction Page 1

II . Literature Review Page 3

III . Analysis Page 12

IV . Conclusion Page 24

V . References Page 27

I . Introduction

Human resources management involves people productivity towards attaining the goals of the company while complying with the individual employees ' needs ( Define Human Resources , 2005 . It is the formal structure of managing employees , which is divided into three areas staffing , rewarding and designing work ( Define Human Resources 2005 . Human resources management is involved with training employees making them more productive and also realizing their potentials and tapping their talents and skills and using these to further the aims of the company

Personnel management seeks to determine the impact of human aptitudes attitudes and behaviors on the motivation to perform in the workplace As with any body of knowledge , theories about personnel management come from a variety of sources and have evolved over time . Evolution of personnel management theory has occurred as research and experience provide additional insight into the complex and intriguing subject of human behavior in the workplace

It is said that in human resources management leaders must integrate vision , high-bandwidth , and leading on the edge (Newham 2005 . This means that vision must maximize diversity and result in collective strengths . These strategies will also help 2

minimize possible digressions to company growth . Similarly , in building strategies in to improve human resources management capacity there is a need to consider value-based management (Value-based management 2005 . This simply means that it recognizes and acknowledges the value of value . This refers to value in terms of value for the company , managers , employees and clients . More often than not , this process aims to create value , manage value , and measure value appropriately (Value-based management 2005

Hypothesis

Performance evaluation programs represent a significant application of motivation theory . The process of evaluating an individual 's performance contains elements of positive and negative reinforcement . How well people perform is largely determined by whether their performance is evaluated or rewarded . Many organizations , especially smaller ones , do not have formal evaluation programs because they have survived without them in the past and they see no benefit for them in the future . Yet performance management is essential in adapting measures to upgrade the level of the human performance of organizations . They are now in the process of identifying problem areas in the workplace when it comes to human resources . Although the situation does not appear to be in need of full attention right now , the implications will be felt later on by organization if they do not act consciously on the issue

II . Literature Review

According to Twyla Dell , The heart of motivation is to give people what they really want most from work . The more you are able to provide what they want , the more you should expect what you really want , namely productivity , quality , and service (An Honest Day 's Work (1988 )Bevan Thompson (1991 ) describe an effective performance management as having a shared vision of the organization 's communicated via a mission statement to all employees a regular formal review of progress towards targets a review process which identifies training and development needs and rewards outcomes and an evaluation of the effectiveness of the whole process and its contribution to overall organizational performance to allow changes and improvements to be made . Looking at this , this maintains that every organization needs to start where it should be rightly so - the individual (Bevan Thompson 1991

In organizations , incentive programs are almost always coordinated through human resource departments . These programs are very important because they serve as a motivation to improve the workforce 's attendance and job performance . A popular incentive program is rewarding the employee an extra vacation day the next year when meeting a certain attendance criteria , for example , not using any sick days in a calendar year . It is essential , however , that a program be based on specific objectives that are compatible with the organizational philosophy and policies as well as affordable to the company . Importantly , employees must view the incentive plan to be equitable and

related to their performance to be attractive . Human resources management must , therefore , provide the employees with compromises that allow them to improve and get benefits according to their performances not just with their positions . The benefits should give them high employee satisfaction . The human resources department also plays a major role in an employee 's well being by providing access to healthcare benefits , career path by providing career planning , and workplace morale by providing incentives to do well and excel . When placed in danger within the workplace , the employees can be sure that the human resources will be there to help them with their cause

How the management treats its employees shows the customers and clients how they will treat them when transacting business with them . If the management is harsh in communicating or ing with the employees then they might be that way with the clients too . Good human relations with the employees result in good service of the company because the employees feel good and satisfied and they deliver their service better than those who are not contented with their jobs . By providing good human relations with the employees , the employees will be highly satisfied and they will be more productive . The management that provides opportunities for the employees to grow and develop will be more successful as the employees will be challenged to do better . Employees can also feel their value when they are compensated accordingly and when they are given programs that would make them feel they deserve the job responsibility . As a result , the workers will support the management more and in the end everybody benefits , the employees develop their potentials and gain high job satisfaction

giving the management less problems and a higher productivity turnover and in due course the business thrives (Smith

Businesses continue to succeed because of the value it places in their service and the clients . However , without its human resources , no one will be able to deliver its service . No technology can take the place of human resources . The employees are the most important resource in any way . Humans can adapt and improve , be taught and learn Technology will always be mere tools of humans , either using it to improve himself or to destroy himself

giving the management less problems and a higher productivity turnover and in due course the business thrives (Staneart

Management Theories : Indications for Employee Attraction Stability

As the complexity of the organization increased , coordination relied increasingly on the use of direct supervision and task standardization (Mintzberg , H . 1979 ,

. 1-16 . So , with increased organizational complexity comes an increased need to manage human activities . The human resource management is challenged to meld the demands of the organization and the needs of the workers into a functioning whole Miles (1975 ) proposes that it is through the integration of organizational and human variables that the human resources can create an effective and efficient sociotechnical system . He reviews several mechanisms that managers use to integrate these different and sometimes conflicting variables . These mechanisms include direction organizational design , job design , personnel selection and training personnel development and appraisal , communication , control and reward systems . These mechanisms , in fact , describe the role 7

of the manager , how an individual manager approaches the implementation of these integrating mechanisms is the focus of personnel management theory

Conceptual Framework

Personnel management theory seeks to determine the impact of human aptitudes , attitudes , and behaviors on the motivation to perform in the workplace . As with any body of knowledge , theories about human management come from a variety of sources and

have evolved over time . Evolution of personnel management theory has occurred as research and experience provide additional insight into the complex and intriguing subject of human behavior in the workplace . Miles provides an excellent conceptual framework for understanding the evolution of management theories (Miles , 1975 . He identifies three basic models of management theory and suggests that with a little manipulation most , if not all , management theories will fall in line with one of these basic models . His models of management theory are the traditional model , the human relations model , and the human resource model . Each model is characterized by a specific set of assumptions about human attitudes and behaviors . Inherent in the model assumptions are indications for the way managers should direct the work of others to achieve high levels of productivity . Finally , each model predicts the response of the workers who are managed under the model 's assumptions

Fredrick Taylor : Scientific Management

Fredrick Taylor (1967 ) was instrumental in the development of the scientific management movement . The scientific management movement sought to improve worker productivity through scientific observation and analysis of tasks . Taylor based his works

on observations of shop-floor activities . He postulated that even skilled workers could not perform at optimum levels unless guided by supervisors in the performance of standardized tasks . Workers were not capable of independently determining the most efficient way of performing a given task . Workers were to be closely supervised and rewarded for performing standardized tasks through adequate pay

Human Relations Model

Theories that contribute to what Miles calls the human relations model (Miles 1975 ) began to emerge as early as 1920 . They were theories that began to recognize the negative impacts of standardization to the extent that the needs of the individual were ignored . These theories argued , management must deal with the whole man rather than just his skills and aptitudes (Miles 1975 . They promoted a concerned and considerate management style and the use of rewards other than money

Fredrick Herzberg : Two-Factor Theory

Herzberg 's theories (Herzberg , et al . 1959 ) are frequently cited in discussions about the role of management in motivating worker performance . Herzberg suggests that job satisfaction and worker motivation are enhanced by the presence of reasonable working conditions , equitable treatment and fair pay . These three items however , are not sufficient to encourage optimal worker performance . In other words , they are only half of the picture . Herzberg theorizes that there are two categories of job attitude factors that influence performance . He refers to these categories of factors as dissatisfiers and satisfiers . Jon satisfiers , if present , are motivators . The more satisfied the workers , the more cooperative and productive they becomes

There are some definite similarities between Maslow 's hierarchy of needs (Maslow , 1968 ) and Herzberg and Maslow 's concepts . Miles ' human resource model . Reflecting the works of authors such as Maslow and Herzberg defines the human resource manager 's role as that of a facilitator (Miles 1975 . The goal of the manager is to tap into the full potential of each worker through the development of his /her abilities . Workers are to be fully involved in the control and direction of their activities In response to facilitation and autonomy , workers will provide a high level of performance . Additionally , they will be satisfied because they are afforded the opportunity to utilize their abilities to the fullest This is in contrast to the human relations model where employee participation is used as a means of improving morale (Miles 1975

The management must move the people towards its goals . Motivation for Accel is reducing the gap between individual actual state and some desired state

Once a company is made-up of motivated members , there is a considerable increase in productivity and creativity . Motivational theorists study the different factors that drive

employees to work better and produce outputs at higher levels . Among these theorists are Abraham Maslow , Frederick Herzberg , and John Stacey Adams

Abraham Maslow conceived the theory of the Heirarchy of Needs . This hierarchy was presented in a pyramid , with the most basic needs at the bottom , progressing towards more abstract needs with each layer . The physiological needs , or those required for human survival , occupies the first layer , followed by the safety needs , belonging needs , esteem needs and self-actualization needs . Maslow 's theory , also known as the theory Z 10

revolves around meaning and significance of human work ' states Accel team , for man 's behaviour is seen as dominated by his unsatisfied needs . for when one need is satisfied , he aspires for the next higher one ' Maslow posited that humans continuously strive to meet all its needs , proceeding from one layer to another in a process of perfecting one 's self . However , man must first satisfy his D-needs or deficit needs (the lower four ) before he can finally meet his B-needs , being needs , which is the self-actualization (Boeree

Frederick Herzberg conceptualized the Two Factor Theory , or the Hygiene /Motivation Theory . For the many , this acutely mirrors the psychology of an employee . It states that the hygiene factors , referred to as the animal needs , such as supervision , interpersonal relations working condition , job security and salary , are neither motivators nor de-motivators , but the absence thereof may lead to de-motivation . The human needs , on the other hand , are the motivators and it includes factors like recognition , opportunity for advancement , responsibility stimulating work and a sense of satisfaction in one 's work . To increase worker 's productivity and to evoke genuine concern for the company , the management must satisfy both the hygiene and motivator factors . Hygiene alone will produce employees with few complaints but are not motivated ' so that the job is viewed merely as a paycheck (Value Based Management

Another well-known motivation theorist is John Stacey Adams who developed the Equity Theory on job motivation . Adams is a behavioural psychologist who believes in the necessity of fairness in dealing with the workers . There must be a balance between an employee 's inputs for the company and the latter 's output to compensate the invested resources . Inputs usually include effort , time , loyalty , flexibility commitment

determination , loyalty , integrity , ability and talent and personal sacrifices . Outputs are pay , bonus , perks , benefits , commissions and intangible rewards like security , recognition , praise , reputation training , development , promotion and a sense of achievement (Chapman If the company failed to deliver these in such a way that employees feel cheated and used , de-motivation sets in

The motivational theory , contrary to the previous concept , is towards promoting intrinsic rewards among the workers through their works Intrinsic motivation is the stimulation or drive stemming from oneself (What Is Intrinsic Motivation ) Because of the workers developed fondness for their jobs brought forth by the motivational factors , they have the natural direction to perform better

Elton Mayo 's Hawthorne experiment has proven this . Mayo and colleagues found out that the cause for the laborer 's improved performance was their delight with the administration 's extra attention . The hierarchy of needs shows that humans are not just after the fulfillment of their fundamental requirements . Maslow 's prescription , Hard work and commitment to doing well the job that fate or personal destiny calls you to do ' is the summary of human nature and actualization . While Herzberg claims , after interviewing 200 engineers and accountants in Pittsburgh that people work first and foremost in their own self-enlightened interest , for they are truly happy and mentally healthy through work and accomplishment (Accel Team . Finally , J .C . Adams ' conclusion articulates the worker 's reaction in an equitable or inequitable environment , and that workers increase their outputs to justify higher rewards when they feel that they are over rewarded (Hellriegel and Slocum 430 12

Modern day corporations are considering their human resource as their biggest , most valued resource . More and more leaders are veering towards participatory leadership to make their employees voice out their creative insights about the company , plus it fosters accountability and responsibility among them . Moreover , as organizational charts become flatter , employees at the lower rank become more empowered and capable of making decisions related to their works for the welfare of the company

Quality Circles

Under Theory Z type of management , worker participation is achieved through the use of quality circles (Ouichi W . 1981 . Quality circles are groups of workers from all levels of the organization who meet routinely to identify and solve organizational problems . Through the use of these groups organizations encourage and support a participative decision-making process . Quality circles are committed to the improvement of the performance of the organization . Group members with the support of management , review policies and procedures of the organization . When the need for change is identified , the group will work on the change until it reaches a consensus of opinion on how the change should be made . The management approach thought to be so effective in Japanese companies has many similarities to Miles ' human resource model . Most notably , it recognizes the value of encouraging and supporting the involvement of all workers in the direction and control of organizational activities

III . Analysis

Management style can vary along a continuum from one one that allows for subordinate autonomy within limits set by the manager (Gibson , JL 1979 ,

. 207-230 . The management styles along this continuum have received many labels . The

manager in traditional , autocratic and directive . The human relations manager who falls somewhere in the middle of the continuum has been labeled as supportive , nondirective and laissez faire . The manager who truly allows employee participation in decision-making has been referred to as collaborative , participative and democratic (Smith , 1984 ,

. 16-17 . The less than complimentary descriptors for the human relations manager may relate to the adage that actions speak louder than words . Managers whose statements about employee participation and importance are not matched by actions to involve employees in the decision-making process may be perceived as weak and ineffective

The future direction of the organization is charted based on this intense self-scrutinizing process . The results of the strategic planning process are summarized in a document called the strategic plan . The plan gives focused direction to the human resources segment of the organization so the desired goals are likely to be achieved Organizational bylaws , policies , and procedures are adapted to facilitate the short- and long-term goals set forth in the strategic plan . Because the strategic plan identifies who is responsible for carrying out each part and what the expected outcomes are , appraisals of performance are possible . The functional level strategy is the set of highly related commitments and actions established for operations and human resources and other functional areas . These should be designed to complement business-level strategies and plans . At the functional level these tasks often involve a combination of strategic and tactical planning (Staneart , 2005

The assessment process and development of organizational goals are closely linked to formulating organizational strategies . Potential strategies , in turn , must be evaluated in terms of (1 ) environmental forces (2 ) the organization 's strengths and weaknesses , and (3 ) the likelihood that the strategies will help the organization achieve its mission and goals . The task of creating and evaluating alternative strategies for such organizations is very complex . Therefore , to simplify the discussion , we consider the task of formulating and evaluating alternative strategies only for a single-business firm

The strategic plan has several important uses to an organization . A strategic plan causes the organization to perform an honest assessment of its strategic position . It does this by providing the impetus for an organization to assess its internal and an external environment . The assessment of internal conditions should lead the organization to an honest understanding of its strengths and weaknesses . Organizational strength might come from characteristics such as a loyal staff , previous successful experiences , or a sound financial position . Characteristic that might weaken an organization , include an aging physical plant management /labor conflicts , an inappropriate management structure , or an inexperienced staff . A single characteristic can be both a strength and weakness for the same organization . Also , strength for one organization may well be a weakness for another . An organization 's external environment can present both opportunities and threats to future success

The strategic plan can be used to identify internal organizational problems . Problems are identified as a natural outcome of analyzing the organization 's strengths

and weaknesses . The strategic planning process then causes the organization to address the short-and long-term implications of the identified problems . The response to this assessment is the development of a logical action plan to resolve problems so that organizational goals might be achieved

Expectations for organizational performance and priorities for management action are delineated in the strategic plan . From these expectations will come the direction for all organizational activities and expenditures . The strategic plan will also provide the basis for setting productivity standards . These strategies will provide an objective basis for setting productivity standards . They will also provide the objective basis for appraisal and reward of employee performance . They can be used as basis for the development of management performance expectations . This can be done through the assignment of responsibility for specific parts of the strategic action plan . In this way , the success of the employee is tied directly to the success of the organization . Through the use of incentive or bonus reward systems , the success of the organization can be tied to the success of all employees

The strategic plan can also be used to coordinate the activities of organizational segments into a cohesive whole . The process of strategic planning will encourage strategic thinking on the part of the managers It will also provide a basis for participatory management practices Both of these outcomes will create a better understanding of the role each person and segment of the organization has to play to achieve common organizational goals

Values are the leverage point for the whole internal impulse to excel because they encompass not only what and how but also why . Values provide perspective in the best and worst of times . Creating a statement of an ideal reality allows a person to start building bridges between the current state of affairs and the ideal one . This is similar to Maslow 's Hierarchy of Needs , where the highest form is the self-actualization level . People who take the trouble to create a mission based on values gain clarity about what they really want independent of what seems possible . Creating a statement of an ideal reality allows a person to start building bridges between the current state of affairs and the ideal one . In short , values provide leverage for mission , and mission motivates achievement (Wongwiwatthananukit Supakit

However , essential in all these , committed men and women who fulfill the impulse to improve themselves and who determine the direction a mission will take has a strong commitment to values . This is the factor that ultimately motivates people to stay despite various pressures . In the profession of teaching , for example , it is one thing to have a vision of touching the lives of young men and women . Such goal is noble and grand But it is another thing to stay on course despite the lesson plans one has to finish until late at night , or to remain cool , calm and collected when students could not cope with lessons and still behave inappropriately (Keller 's ARC 's Model of Motivation

Relating it to an organization , coordination could be achieved through the use of organizational goals and how the mission and vision are communicated . As the complexity of the organization increases coordination relies increasingly on the use of direct supervision and task standardization . So , with increased organizational complexity

comes an increased need to manage human activities . The manager is challenged to meld the demands of the organization and the needs of the individual worker into a functioning whole

However , it is only when the employees are highly motivated in their organizations that they stay there and perform at peak level . Quick fixes are based on the notion that managers and consultants can supply some simple stimulus to produce sustained motivation in other people The notion assumes that people are both naturally demotivated and waiting to be pumped up ' or , worse , enjoy being lethargic drones

whose motivational batteries immediately run down if left alone . It assumes that people have no power for self-renewal

Human Capital

The term Human capital had been born by T .W . Schultz and Gary Becker as cited by Cfty (2001 . Technically , human capital refers to the knowledge , skills , competencies and attributes embodied in individuals which facilitate the creation of personal , social and economic well-being (Cfty , 2001 . These characteristics are the assets of employees that he or she used to contribute to an organization . Usually it can be measured through the quality or kind of education and skills that the employee has . Later on , human capital will be developed based on the accumulative experience of the employee that will harness his skills

Influential factors such as culture and traditions play roles in acquiring human capital . The environment of individuals in which he belongs can sway him to acquire knowledge and skills . This has given to the qualitative value and complex nature of

human capital . It also explains why human capital formation and accumulation is quite different across jurisdictions or national boundaries (Cfty

In an organization , as Cfty puts it human capital had been measured by the number of years of formal education and based on the wages of these educational attainment (2001 . There are test that can quantify the knowledge and skills of individuals to assess their value in an organization . These measures had limited the qualitative value of such capital and the complex , versatile and heterogeneous nature of human learning ' that can vary in time had been neglected (Cfty . Perhaps it is not enough to value human capital by merely relying on these tests to be able to come up with what it will contribute to an organization

Importance to the organization

The importance of human capital can easily be identified in companies that rely on the intellectual ability of their employees . As written by Yves Lermusiaux on the article A Review of Human Capital Valuation (2005 ) In software companies and many

business services firms , the financial capital comes from the ability of the firm to transition the human capital into a structural capital that will be shipped out and consequently transition into financial capital ' But still , the valuation of human capital is just approximation

In the structure of an organization , the management level is important It clearly shows that human capital plays an important role in the laying out of organizational structures , for it to become productive According to Lermusiaux (2005 , in discussing human capital , an organization should not look at it as merely expenditures , but also as an

asset . He also stated that there had been models to quantifiably measure the human component of an organization . He cited two models and these are

Cost models (Brummet , Flamholtz and Pyle ) are based on the acquisition cost , including replacement and training costs and opportunity cost of human asset

The Lev Schwartz model , more monetary-centric , is based on the likely future earnings of an employee till his retirement

The importance of individual capital to an organization allows employees to overcome their interests for the sake of the company 's goal . They will be able to share responsibilities for the good of the organization and cooperate to the management level . They will also do their share of responsibilities to improve the work of the organization

Impacts to an organization

Human capitals are imbedded in the work of an organization . As Cfty (2001 ) puts it , these institutions and conditions underpin market activities and civic life and provide a framework in which human and social capital contributes to various outcomes . Perhaps , the economic contributions of human and social capitals are quantifiable . But the qualitative effects to the individuals ' upbringing do not pose great importance . Though , in the end these effects will create more positive and quantitative outcomes for the organization

In the study The Human Capital ROI by Deloitte and Touche , they found out that human practices explain as much as 43 of the difference in the market-to book value of one company compared to another (p3 ) The difference can be pointed at the business pro of a company , as the revenue , market orientation , organizational culture , and number of countries in which a company operates ' according to the study . It clearly

acknowledges the contributions of human capital to a company . The study also reveals that

A practice that works for one organization may not work the same for others

A small set of human capital practices are universally valuable in driving financial success

Certain widely accepted human capital practices vary in how they add value

Turnover ratios may not be a good predictor of financial performance (p .2

Although as stated earlier , it is very hard to assess the real value of human capital . Some organizations that had realized the importance of this capital had invested in human capital by allowing their employees to further their studies through the company 's expenses . These include training and formal education . Some organizations might believe

that it is by chance that these individuals will stay with the company after their education . Still , it is part of how the organization handles the aspect of social capital that will make the employee stay loyal with the company

As Cfty wrote education , learning and training is associated with greater trust , co-operation , reciprocal engagement and social cohesion . He also cited that in one study it was found out that increase in the level of education increase the level of trust in individuals in the participatory mode . Education is also associated with the breaking down of discrimination such as social inequalities

It is obvious that by investing in human capital , the organization can harvest its return of investment when the employee uses his new knowledge to better his responsibilities in the company . In social capital however the benefits according to Smith (2001 ) are the following

Better knowledge sharing , due to established trust relationships , common frames of reference , and shared goals

Lower transaction costs , due to a high level of trust and a cooperative spirit (both within the organization and between the organization and its customers and partners

Low turnovers rates , reducing severance costs and hiring and training expenses , avoiding discontinuities associated with frequent personnel changes , and maintains valuable organizational knowledge

With the contributions to a company it is easy to figure out that human and social capitals have impacts on organizations . These capitals can change the way individuals adapt to changes in their lives . As for the sales of the company , satisfied individuals are more productive thus providing more economic gains for the business . They can create improvements for the company

Gibson et al (2000 ) highlighted 3 perspectives of effectiveness . The smallest element is individual effectiveness , next is group effectiveness and finally , organizational effectiveness . Individuals and groups form the organization , thus individual and group effectiveness form organizational effectiveness . This means that managers should study how effectiveness at the individual and group level can be maximized to achieve over-all organizational effectiveness (pp . 14-46 . While efficiency is about getting things done correctly , using the least possible time and resources . Organizational efficiency is intertwined with organizational effectiveness

Newstrom and Davis (2002 ) confirmed : Organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way (p . 19 . Organizational effectiveness and efficiency in customer care entails the connection between how each individual in the organization effectively performs his /her role in the company by presenting the customers with the solutions they 22

need , and the how each works together to further advance the company 's products and services

Argyris (2001 ) divided learning into two . He believed that , Learning occurs in two forms : single loop and double loop . Singe loop learning asks a one-dimensional question to elicit a one-dimensional answer . Double loop learning takes an additional step or , more often than not several additional steps . It turns the question back on the questioner It asks what the media call follow-ups (p . 91 . Any learning , through reflection and analysis , should dig deeper and wider , thereby making any positive outcome more long-term and more widespread in the organization The most useful learning then is the double-loop learning (Arygyris 2001 ,

. 91

This ties up with learning , just as importantly since this involves self-examination from the employees and up the organizational chart seeking for strengths and maximizing it , zooming on mistakes and inefficiencies and eliminating or minimizing them , and after every step of improvement , includes patting everyone involved at the back and rewarding them for a job well done . If the managers knew what makes their employees unsatisfied and unhappy , they can offer more to the existing and incoming batches of employees

Organizational behavior , organizational culture , diversity communication , organizational effectiveness and efficiency , and organizational learning are crucial concepts to any person who is currently working with , or someday will work , for an organization . These terms are even important to people who desire to start an

organization or business of their own . Knowing what they mean and how they work builds our know-how of working and developing organizations These concepts should also serve as our guides so that we can be happy and productive employees or employers

An efficient means of keeping employees associated with the values and goals of an organization is by developing a culture that encourages employees to focus on a higher purpose for their work . Values that support this kind of consistent operation include the idea that people are basically , good , rational and interested in achievement . Leaders that unify an organization believe that the individual has something to contribute to the organization (Scholl , R , 2003

The bottom line for managers who want to create a culture of success is to start with creating a positive environment . They need to bring in people whose values are in line with the organization 's culture , and continue to acknowledge success and involve the

whole organization in maintaining an environment that allows people to enjoy working hard to meet the company 's goals (Scholl , R , 2003

It is a must for the management to understand the relationship between a strong management and positive organizational outcomes , and that it possesses the opportunity to create , influence , and utilize these positive effects that can result from strong and equipped organizational culture (Ritchie , Michael

The motivational theories capitalize on an employee 's natural desire to perform better due to the intrinsic rewards for their hard work . These rewards may further be cultivated by an organization through fairness and equity in its treatment , granting recognition and responsibility empowering the employees , providing an avenue for

growth and development and making the employee an indispensable part of the company . Still , due to the complexity and diverseness of human nature , no theory can be considered as the most applicable . Each organization is unique and may entail a different kind of leadership intrinsic rewards system and management style

IV . Conclusion

The human , material and capital resources of the enterprise must be managed effectively and efficiently . The practice of management requires foresight , intellectual skill , conceptual insight into business realities and judgment . Every business , from the most successful to the most troubled , does some things very right . The most important part of the reinvention process is identifying these things that one does so well - from the simplest office procedure . Human resources nowadays need to be able to use as many management perspectives as possible in to reinvent their organizations . Lessons one learns from these management theories will enable a top manager to keep his company going expand his client base , market his products more effectively and grow beyond knee-jerk responses and conventional wisdom

With the technological advances that the world has , the human factor in an organization had been nearly forgotten . Still , as the world move forward to accept the challenges of today , the value of human capital in an organization cannot be denied . The world is now re-assessing the value of individuals and the society as well

The impact of the individual in an organization might be the key in addressing various issues that hound any company , even the successful ones . Organizations are now

starting to acknowledge the impact of human capital . But the concept of social capital is usually still being used in the context of society and not on the organizational level . As organizations start to realize that human capital and social capitals are inter-connected in its impact in an organization , they are starting to research on the quantitative value that it will provide . Although , some models for the measurement of human capital are not considered scientific yet , the promotion of the issue is getting clearer . On the other hand , social capital is still very hard for organizations to comprehend its impact

But to build the performance of a worker , employees need motivation People who are satisfied with their job are more motivated to be more productive . In for management to effectively motivate its people it must have knowledge on what determines their motivation . Again , under the principle of cause and effect , and the studies on the behavior of organization , an effective leader could formulate a motivation technique that would fit into the needs of these people and encourage them to be more productive and sensitive to the needs of their customers if they want a solid frontline group . Understanding what moves workers to work more productively would make the

decision of the leaders in coming up with a motivational technique more acceptable to the workers and in turn would give favorable results for the whole organization

In summary , we can say that performance management ought to focus on the individual such that the different principles of planning of management come into play and are overlapping , interdependent factors in the broader organizational system . All affect performance management They provide the astute manager with a fundamental

basis for examining and understanding his own organization especially during those critical times

Managers nowadays need to be able to use as many management perspectives as possible in to reinvent their organizations and keep their balance too . Lessons one learns from these management theories will enable a top manager to keep his company going and expand his client base , market his products more effectively and grow beyond knee-jerk responses and conventional wisdom

Innovation doesn 't occur just once . It is continuous . As managers look for changes , hunt and gather opportunities , reposition and remarket , and do all the things necessary to transform their companies using the management theories they have learned they must constantly evaluate the results . Keep what works and discard or avoid that which does not . Even the so-called steps of reinvention are not really tangible steps Managers should always be seeking and cataloguing strengths , always looking for new weaknesses , always turning lacks into strengths , and always seeking out new opportunities and new customers . The only constant is change . And with constant change must come constant innovation and evaluation 27

V . References

Accel Team . Employee Motivation in the Workplace . 2006 . Accessed 23 Sept . 2006

Argyris , C (2001 . Harvard business review on organizational learning Boston

Harvard Business School Publishing Corporation

Bevan Thompson . The Textbook Approach to Performance , 1991

Boeree , G . Theory . 2006 . Accessed 23 Sept . 2006 http /www .ship .edu cgboeree /maslow .html

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