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Organization - Effectiveness & Performance

What are some factors that affect employee morale? How does that impact organizational effectiveness?

Why is it important for organizations to measure performance?

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Let us take a closer look through discussion and example. There is plenty of evidence from various sources, so please keep what fits.


1. What are some factors that affect employee morale? How does that impact organizational effectiveness?

Herman maintains that the most effective way to boost employee morale is to provide an optimum working environment. He warns that this can't be done with pep talks when you notice a drop in the level of enthusiasm. "You have to create an optimal environment in the employee's perception, as part of an integrated strategy that inspires people to do their best day in and day out." He proposed seven key issues in creating such an environment that affect morale:

1. Appreciation

Research shows that people often leave an employer because they haven't received the recognition they want, or feedback on how they are doing.

· Perhaps the first step in creating an atmosphere that will motivate employees is expressing appreciation. Supervisors should commend progress toward agreed-upon goals in a continual and consistent manner. Remember to express your appreciation for the invisible people D the receptionist, the janitor, the payroll clerk D as well as the stars. These employees all need to be singled out from time to time and commended for their efforts in keeping the company running smoothly. Ferdinand Fournies, author of Why Employees Don't Do What They're Supposed To Do, counsels that verbal praise should be given immediately after an employee has completed a successful project. Generally, the praise should be specific ("Thanks for getting the marketing report in on time") and honest ("Sections One, Two and Three are great, but let's discuss making changes to Section Four"). Fournies also claims that tangible rewards such as bonuses, time off or gifts are effective ways to express appreciation, especially when given more frequently than on a once-a-year basis.

· Show pride in your staff. You might reprint an article that quotes an employee and send it to interested customers. Publish news about an employee's participation in a trade or professional association in your company newsletter. And post copies of letters of appreciation to personnel on the staff bulletin board.

· Celebrate successes. When people work hard to complete a project, make sure their accomplishments are acknowledged before tackling the next challenge. Celebrating today's win provides the inspiration for tomorrow's effort.

2. Involvement

People want to feel involved in their jobs and important to the success of their companies. They are closest to the work for which they are responsible, and know how it can most effectively be done. Supervisors can motivate staff by asking them to set their own job goals and suggest better ways to do things.

· Employees appreciate knowing they work for a company with a clear sense of the future; they are even more committed when they help define that future. While the benefits of having a company mission statement are great, the benefits of involving each and every employee in constructing that statement are inestimable.

· In a family, people care about each other, stand together against outsiders (the competition), and support each other through times of personal stress. When loyal family members have grievances, they possess sufficient trust to deal directly with those differences. These attitudes work just as well in business settings. You can promote a family environment by encouraging people to car pool or work on projects together, by holding gatherings such as a summer barbecue, and by creating a health and fitness program for workers and their families. People who enjoy one another are usually more productive in the workplace. They have greater loyalty to each other and to the organization.

3. Social Environment

A company's reputation rests on more than just the quality of its products. People judge firms by their philosophy and level of customer service, their involvement in community activities and their commitment to moral, environmental and even political issues. Today's employees are concerned about whether the values of the company for which they work are compatible with their own personal viewpoints.

· It will become increasingly important for businesses to demonstrate their civic responsibility through involvement in community activities. When you can do so in ways that involve your staff, you also increase their loyalty. Low-cost and effective methods of strengthening community and employee ties include matching financial donations to nonprofits, allowing time off for community service, donating obsolete equipment to local organizations, and having personnel give career-choice talks to area students.

4. Management Concern

People appreciate help on personal problems, and want the boss to care about them as individuals. Today's manager must invest a significant amount of time in advising, counseling, coaching, training and listening.
Employees who are helped to perform will feel better about themselves and the company for which they work.

· Managers often worry that staff members don't want them "interfering" in their private lives, but when people are hurting they appreciate whatever assistance is offered. Supervisors are often among the few people who can influence an employee who needs mental health counseling, or should attend a drug or alcohol clinic. Often people need assistance, as well as confidentiality, to use these facilities. Managers can also help workers find childcare facilities, legal specialists and other professionals. It's not unusual for employers to ...

Solution Summary

This solution discusses and provides examples of factors that affect employee morale, as well as how that impacts organizational effectiveness. It also discusses why it is important for organizations to measure performance.