Factors Affecting Organisational Performance

This article discusses the importance of contextual factors in organizational performance and their impact on decision making. It explores different factors such as organizational structures, environmental forces, risk, and business practices. The implications for managers in terms of decision making and strategic management are also discussed.

Running head: FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
Factors affecting Organisational Performance
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1FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
Importance of Contextual factors to the decision making of organizational
performance
As opined by Blau (2017), contextual factors are those who create a vast difference in
the working structure of any organization. This is because these factors affect the operational
processes of business, the changes needed to implement in the company working conditions,
the management system and nevertheless its innovation and technological factors affecting
the products and services provided by the firm. The improvement and evolution of the
framework of any business firm are highly dependent on the effective and efficient
fulfillment of its contextual factors (Avgerou & Walsham 2017). According to Davies (2016),
the importance of contextual factors in terms of business firms is increasing day after day,
and with the passing time, the contextual factors comprehend in increasing a human-friendly
relation with their customers. This, in turn, helps the business to achieve an increase in their
profit earning and strategic management process.
Van der Voet, J. (2014). The effectiveness and specificity of change management in a
public organization: Transformational leadership and a bureaucratic organizational
structure. European Management Journal, 32(3), 373-382. Available at DOI:
10.1016/j.emj.2013.10.001.
The main contextual factor discussed in the above-cited article is Organisational
structures or governance. Precisely, the author of the article tends to apply a new approach to
study the inter-dependency of the need and effectiveness of the change in the management of
the organization's governance and structure to public relations management. In this
connection, the main aspects examined in the article were: the willingness of the employees
towards the change and governance, the behavioural attitude of leadership transformation and

2FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
the effects of the limitations of the organizational structure to the change in management and
leadership.
The implications of this research create a massive impact on the nature and working
of the managers of the organization. The article tends to state that the effective
implementation of the change in the attitude and governance of the managers creates a
significant impact on the complete working structure in all the levels of the organization. The
difference in the leadership process contributes directly to the planned strategies and
formation of the effective organization and thereby the performance level of the whole firm.
Moreover, the article opines that the theory of the change in the governance of the
management crucially lays stress on the leadership attributes of the managers in the top level
management.
Young, W., Davis, M., McNeill, I.M., Malhotra, B., Russell, S., Unsworth, K. & Clegg,
C.W., (2015). Changing behaviour: successful environmental programmes in the
workplace. Business Strategy and the Environment, 24(8), pp.689-703. Available at DOI:
10.1002/bse.1836
The main contextual factor discussed in the above-cited article is Environmental
Forces. The author in the article mentioned above studied a new approach towards improving
the behavioural attributes of the employees working in an organization. The article focuses on
reviewing the literature of the multi-disciplinary approach in a working firm to examine the
work based behavioural changes of the individuals. The section provides research evidence of
the existing performance level of employees in the firm. The report concludes that the main
factors that affect the behaviour of the employees are the several active environmental forces
such as performance appraisal, incentive structure and the infrastructure of the firm.

3FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
The implication of this research to the managers in the organization is that they should
effectively and efficiently work with their greatest zeal to motivate their employees to work
harder. In this connection, the managers are responsible for training the behavioural attributes
of the employees by providing them with prior training programs and providing them with
intrinsic and extrinsic motivational factors of the environmental forces. Therefore, it turns out
to be the liability of the manager to take necessary decisions to make required amendments in
the current environmental forces of the company that affects the change in the behavioural
approach of its employee.
Artinger, F., Petersen, M., Gigerenzer, G., & Weibler, J. (2015). Heuristics as adaptive
decision strategies in management. Journal of Organizational Behaviour
Management, 36(S1), S33-S52. Available at DOI: 10.1002/job.1950
The main contextual factor discussed in the above-cited article is Risk confronting the
firm. The new approach examined by the author of the given article is that it inquires about
the agility of an organization in an in-depth manner and specifically relating the same to the
dynamic capabilities an organization should incur. It focuses on stating how the systematic
errors and risks in the organization are to be managed with the process of ethical decision
making. In this context, the five different classes of the risks are measured by the article that
analyses the importance of the decision making a factor. The report states that it is essential
that the organization should pay importance in understanding the uncertainty and risks that
can appear in the strategic management of the innovation policies and economy. The article
critically states that effective and efficient capabilities are very crucial to meet the
requirements of the dynamic environment of a business firm.
The implication of this research article is stated to be necessary for the managers in
the context that the managers are the working persons of the organization who are responsible

4FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
for carrying up the strategic management process of the entire firm. Specifically, the
managers are the people who are to calibrate the necessary level of the agility of an
organization, furnish the cost-effectiveness of the firm and relate all of the mentioned
implications to the strategic plan process of the firm. The managers are implied to look after
the working schedule of the organization and check whether the desired and targeted goals
and objectives of the firm is being achieved or not. They are liable to maintain a healthy
working environment for their lower level employees to keep their zeal to the highest level
and in turn, would help in retention of the employees and the organization as a whole in the
long run.
Chowhan, J., Pries, F., & Mann, S. (2017). Persistent innovation and the role of human
resource management practices, work organization, and strategy. Journal of
Management & Organization, 23(3), 456-471. Available at DOI: 10.1017/jmo.2016.8
The main contextual factor discussed in the above-cited article is Organization and
business practices. The proposal and approach newly set by the given article are that it
analyses the relationship between the methods of human resource in the business
management system and the innovation strategies of the firm. The report states that with the
change in the trades and trends of technological factors, innovation implementations are
necessary to the traditional way of managing the business process. The mentioned article is
primarily focused on examining the historical practices and procedures that a business firm
used to follow in their earlier ages and how the synthesis change in the market structure of
the business environment created a need of desirable changes in the organization and
business process and concepts.
The critical implication of the mentioned article in respect to the managerial context is
that the managers of any organization explicitly dictate the decisions regarding the business

5FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
practices. In this connection, it is understood by the given article that the required changes to
be done in the organization concerning the difference in the market structure, technology and
innovation practices or any other business practices are in the hands of the manager. They are
solely responsible for taking decisions, implement the same and help their employees work
accordingly to execute the same.
Guillaume, Y. R., Dawson, J. F., Otaye‐Ebede, L., Woods, S. A., & West, M. A. (2017).
Harnessing demographic differences in organizations: What moderates the effects of
workplace diversity? Journal of Organizational Behavior, 38(2), 276-303. Available at
DOI: 10.1002/job.2040
The main contextual factor discussed in the above-cited article is the function of
various firms. The new approach brought into consideration by the above article is the dual-
sided nature of the diversified workplace demographics. The report states that the diversified
firm creates a massive difference in the performance level, social aspects and research
process of the organization. The article critically uses the Elaboration Model of
Categorization to examine the diversified factors that vary the working structure of the firm.
The study concludes with the determination of the positive as well as the negative results for
the future context of the firm with the functions implemented in the diversified firm.
The implications of the given article in the contrast of impacting the managers of a
business firm are that the manager is held responsible for maintaining the diversity of the
workplace. The managers are liable to support the different functions of the firm effectively
and efficiently. As stated in the article that better decision making creates a better-diversified
firm; therefore, the management is the prior assets of the firm who are to maintain the
decision process of the firm.

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One such contextual factor that affects the organizational performance of the Big
Four banks’ can be examined to be the effect of customer relationship management
(Grover et al., 2018). This statement can be reasonably explained as opined by Hair et al.,
(2015), that today's market structure of the business that increases a firm’s competitive
advantage relies on better customer service more than serving better products. This is because
with the change in lifestyle and trends of modernization the customers are becoming more
demanding. In this connection, adopting the strategy and contextual factor of managing the
customer relationship effectively and efficiently will help the Big four bank's organization to
gain competitive strategies and advantages. This, in turn, will help the organization to render
better service to its customers. As implied by Noe et al., (2017), organizations that understand
and execute better Customer Relationship Management gains more human-friendly
advantage from their customer. Not only this, but it also helps the company to gain higher
customer loyalty, increased profit, revenue and decreased cost. The key framework of the
mentioned contextual factors to the Big four bank's organization is analyzed to be the key
focus to the customers, the efficient organization of the CRM, technology, and innovation
based CRM and the management of the knowledge concept of CRM.

7FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
References
Artinger, F., Petersen, M., Gigerenzer, G., & Weibler, J. (2015). Heuristics as adaptive
decision strategies in management. Journal of Organizational Behaviour
Management, 36(S1), S33-S52. Available at DOI: 10.1002/job.1950
Avgerou, C., & Walsham, G. (Eds.). (2017). Information Technology in Context: Studies
from the Perspective of Developing Countries: Studies from the Perspective of
Developing Countries. Routledge. Available at DOI: 10.4324/9781315187785
Blau, P. (2017). Exchange and power in social life. Routledge. Available at DOI:
10.4324/9780203792643
Chowhan, J., Pries, F., & Mann, S. (2017). Persistent innovation and the role of human
resource management practices, work organization, and strategy. Journal of
Management & Organization, 23(3), 456-471. Available at DOI: 10.1017/jmo.2016.8
Davies, A. (2016). Best practice in corporate governance: Building reputation and
sustainable success. Routledge. Available at DOI: 10.4324/9781315569086
Grover, V., Chiang, R. H., Liang, T. P., & Zhang, D. (2018). Creating a strategic business
value from big data analytics: A research framework. Journal of Management
Information Systems, 35(2), 388-423. Available at DOI:
10.1080/07421222.2018.1451951
Guillaume, Y. R., Dawson, J. F., Otaye‐Ebede, L., Woods, S. A., & West, M. A. (2017).
Harnessing demographic differences in organizations: What moderates the effects of
workplace diversity? Journal of Organizational Behavior, 38(2), 276-303. Available
at DOI: 10.1002/job.2040

8FACTORS AFFECTING ORGANISATIONAL PERFORMANCE
Hair Jr, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2015). Essentials
of business research methods. Routledge. Available at DOI: 10.4324/9781315704562
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education. Available at: https://www.amazon.com/Human-Resource-Management-
Competitive-Advantage/dp/0078029252
Van der Voet, J. (2014). The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational
structure. European Management Journal, 32(3), 373-382. Available at DOI:
10.1016/j.emj.2013.10.001.
Young, W., Davis, M., McNeill, I.M., Malhotra, B., Russell, S., Unsworth, K. & Clegg,
C.W., (2015). Changing behaviour: successful environmental programmes in the
workplace. Business Strategy and the Environment, 24(8), pp.689-703. Available at
DOI: 10.1002/bse.1836