Analyse the Relationship: Innovation and Competitive Advantage at ISS

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This report analyzes the relationship between innovation and competitive advantage within an organization, specifically using ISS World as a case study. It explores the connections between job satisfaction, commitment, and motivation, linking motivation to empowerment and highlighting its significance for business performance. The report delves into reward strategies, performance management, and work-life balance. It also examines empowerment's impact on organizational structure, culture, and employee relations, including flat and matrix structures, lines of management, reporting lines, and communication channels. The study also discusses reward strategies, including extrinsic and intrinsic approaches, and their effects on employee motivation and retention. Furthermore, it incorporates Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory to explain motivation and empowerment in the workplace. The conclusion emphasizes the importance of these factors in enhancing business outcomes.
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Analyse the relationship
between innovation and
competitive advantage in an
organisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
2.0.....................................................................................................................................................3
2.2.....................................................................................................................................................6
2.3 ...................................................................................................................................................8
2.4...................................................................................................................................................10
2.5...................................................................................................................................................11
2.6...................................................................................................................................................12
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
Innovation and competitive advantage in an organization has relation. Because when
company perform innovative things than in market organization also enhance competitive
situation for other firm.
ISS world is founded in 1901 by Copenhagen. It is worlds leading facility services
company. ISS stands for international services system. This study discusses the relationship with
job satisfaction, commitment and motivation, also links motivation with empowerment and
shows empowerment importance for business point of view. This study also shows the
empowerment, its impact on organization structure and culture or employee relationship. Study
represented reward strategy, purpose of reward strategy (Ivanov and Mayorova, 2015). The study
also conclude meaning of performance management, meaning of appraisals and purpose of
performance management and appraisals in company. Study includes work and work life
balance, managing a work/ life balance and its means for individual. Also, shows the HR
intervention, need to measure HR intervention and tools and technique to measure HR
intervention.
2.0
Introduction
This study will explain that the relationship with job satisfaction, job commitment and the
motivation. Also, describes why it is important in company. This study shows how motivation
link to the empowerment at workplace and importance of motivation and empowerment in
improving business performance.
P1 Relationship between job satisfaction, commitment and motivation
Job satisfaction means high levels of company commitment which is very important
because it improves the productivity of workers. Also, there are various factors which may affect
employees performance and their productivity. These types of factors include various
characteristics of the job role and organizations, attitudes towards worth of wages and salary,
company belief and commitment etc. Whereas, motivation is an impulsive process that also
impacting the work conditions, connection, productiveness, uniformity and emotional state of
workers and employees (Jiang and Liu, 2015). These motives shape the hierarchical structure of
job motivation encompassing peoples and consequences of their performance. The motivation
system is a combination of extrinsic and intrinsic motivation. Whereas, intrinsic motivation
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shows the learning and growth of individual. And, extrinsic represents rewards such as monetary
and non monetary, prestige and success. Organization commitment also very important part in
company and individual work life. Employees interest is enhancing if organizational behaviour
be control decently the organization commitment can lead to good outcome such as
effectiveness, rising performance, reduction in absenteeism etc.
P2 Motivation link to empowerment at workplace
Maslow's Hierarchy of Needs
Maslow's Hierarchy of needs is a motivation theory which has five tiers of individual
basic needs. The needs are physiological needs, safety, belonging and love, esteem needs and
self- actualization needs.
Physiological Needs: These are biological needs and important for human being survival
i.e., food, drinking water, air, clothes, shelter, sex, sleep etc. If theses basic needs of
persons are not satisfied and cannot function optimally. According to Maslow's the
physiological needs are very important and all the others needs are secondary.
Safety and Security Needs: These needs includes security from the elements, order, legal
law, stableness, freedom from anxiety. An individual physiological needs is satisfied their
safety needs take priority (Maletič and et.al., 2016). If someone does not feel safety in
surroundings, they will desire to find out safety before they try to meet any high level of
living, but needs of safety not that much important as basic physiological needs.
Social belonging and Love Needs: Once this both needs are satisfied, the third need arise
that is social belonging and love needs. The need for social relation motivates behaviour.
This need includes intimacy, trust, friendship, receiving and giving affection, acceptance
and love.
Esteem Needs: Esteem needs are categorized into two segments the first one is esteem for
oneself and the second one is willingness for reputations and respect from others. Self
esteem includes achievements, self-respect, independence, command etc. whereas, desire
for respect and reputations includes position, prestige.
Self- actualizations Needs: This is the last need of human, in this need individual realize
their potential, self- fulfilment, seeking personal development and prime occurrence.
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Illustration1: Maslow's Need Hierarchy Theory
(Source: Maslow's Hierarchy of Need, 2017)
Herzberg's Two- Factors theory of motivation
According to Herzberg, there are few job components that effect in satisfaction while
there are different job factors that let dissatisfaction. Herzberg divides this theory into two parts:
Hygiene factors: These factors are those factors which are important in organizations for
motivation. They are not lead to positive satisfaction for long time duration, but if they
are absent at workplace, then they can lead to dissatisfaction in an organization. Hygeine
factors shows job environment and job scenario. These factors also shows physiological
needs which the individual desired and awaited to fulfil. It includes pay, company
policies and administrative policies, fringe benefits, position, working conditions, job
security etc.
Motivation factors: Motivation factors return positive and optimistic satisfaction. These
components are built-in to work. Factors of motivation, motivates organization
employees for their performance. These factors include various benefits which are used
for motivation i.e. recognition, achievements, promotions and growth opportunities,
obligation and significance of work.
With the help of these theories employees of ISS World can be empowered at workplace.
Because every person wants motivation to achieve something if organization full-fill their basic
needs such as from physiological to self-actualizations needs then employees thinks that
organization think for them, and they are important assets for company. Employees of ISS World
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feel empower when they all needs are satisfied, and they also have state of devising choice about
their activity, they also have self-assurance in the private impression of having the quality to
execute job adequate. Employees are also felt that their work are valuable.
Illustration 2: Herzberg's Therory
(Source: Herzberg’s Two-Factor Theory of Motivation, 2018 )
P3 Business Performance
Motivation is important in an organization because if employees are motivated their
attitude in organization is always positive and that reduce negative vibes in ISS world
organization. Also, motivated employees performance increasing that also impacted business
performance of ISS world company can growth in appropriate way (Lonial and Carter, 2015).
Empowerment is also essential in organization, because empower employee are eligible to
perform their task freely, and they are also able to train other person itself. Empower employee
not need to mange. It will mange itself and also enhancing the performance of business.
Conclusion
The above study has been concluded relationship of motivation, job satisfaction and
commitment in nan organizations. In this included different types of job satisfaction such as job
role, attitude of organization etc. and also explaining motivation with the help of extrinsic and
intrinsic motivation. It has been included motivation link to empowerment at workplace with the
help of theories such as Maslow's Need Hierarchy and Herzberg's Two factors theory. Above
study also describes motivation and empowerment importance in business performance.
2.2
Introduction
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The study explains the meaning of empowerment. Also, it describes impact of
empowerment on organizations structure. This study shows the impact of empowerment of
organization culture and the employee relationship. Study is base on ISS world organization and
their employees.
P1 Empowerment
Employee engagement is a management policy that purpose to providing instrument and
resources to employees for making their positive decision in the firm without supervision and
guidance. Empowerment is a long term process, assets modifier scheme that concern important
period and financial investment from the system leaders (Leal-Rodríguez and et.al., 2015).
Empowerment advert to the delegation of work authority and obligation to worker and concern
them in the decision-making process. On the other hand it implies freedom, authority, power,
motivation and encouragement.
P2 Impact of empowerment of structures
Flat and matrix structures: Empowerment impact the ISS world organization structure.
When employee are empowered than the decision-making process are conducted at every
level of organization instead of the top management. Also, employee can expand their
expertise in various department. If organization flat or matrix empowerment make their
impact at every segment of organization hierarchy.
Lines of management: Empowerment also impacted Lines of management of an
organization. Line of management is a system in which employees are directly involves
in the production or manufacturing process and also delivery of products and services of
firm (Johnson, 2016). If employees of ISS world are empowered than they can involve in
manufacturing or delivery process and perform their job role more efficiently. It will
helpful for enhancing company production as well as company growth or profitability.
Reporting lines: Reporting lines means a relationship of employees and their supervisor
or leader. Reporting lines are two types in an organization that indirect or indirect
reporting lines. If employees are empowered than they can mange all their task without
supervision because they are known their roles and responsibility in ISS world
organization. Empower employee also reduce the work pressure of their supervisor and
leader. So empower employee is good thing in industry.
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Communication channels: Empowerment is also important p[art in organization
communication channels. It will help to communicating at all level of company,
employees and the management. With the help of empowered employees, everyone
easily understands all the functions of the industry. They also become proactive in
solving trouble and issues of firm and individual, take risk and also work together. It is
also managed healthy relationship between employees and mangers.
P3 Impact on culture/ employee relation
Empower employees also make their impact on culture and relation of employee in an
organization. If ISS world organization employees are empowered they can perform their task in
more efficient manner, which bring positivity in the firm. Empower employees is more
responsible and also able to take risk. When organization employee are more empower than they
will also participating organization decision-making process, which is very important and crucial
thing in company (García-Álvarez, 2015). Mangers of company respect their opinion and also
consider their point in decision of firm. Empowerment of employees or worker can also impact
the productivity and profitability of company. Because they are highly trained person, they are
known how to accomplish the task and also they consume very few times, so it will enhance the
productivity of company. Empower employee also retain in organization and also support
company objkective. They participate in achieving industry goals and objectives. They also
motivate their sub-ordinates in the company premises.
Conclusion
This study has been explained the meaning of empowerment such as the power, ability,
authority and responsibility. It has been concluded that the impact of empowerment on
organizations structure such as flat and matrix structure, also lines management, reporting lines
and communication channels. Also, it has been describes the impact of empowerment on
organization culture and their employees relations. It concluded the responsibility, decision-
making process of firm, productivity etc.
2.3
Reward strategy:
Reward strategy includes design and implement reward policies and practices which is
support to keep employees happy, loyal to the organization and motivate employees to work
harder. Reward strategy are two types extrinsic strategy and intrinsic strategy.
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Short term reward:
Short term rewards means to offer reward per quarter months to sustain employees in
organization. Short term reward gets more profit to organization and use as tool to inspire goal
achievement (Noe and et.al., 2017). Short term reward is cash bonus linked to financial,
operational and behavioural measure. Short term reward creates a better work environment and
motivate employees to work potentially.
Long term reward:
Long term reward means offer long term reward which offers incentive as reward
annually or per two to five-year. Long term reward is designed to improve employees
performance by providing incentives which is not included in salary that encourages employees
to hardly work and keeps happy to employees. Long term reward specially designed for
executives who make important decision for the organization. it leads loyalty for company and
leads retention of employees. It's important to produce desired results.
Extrinsic strategy vs intrinsic strategy:
Extrinsic reward Intrinsic reward
Extrinsic rewards are financial which is given
by manager to employees, It gives reward on
the basis of work performance and
achievement of goal by employees.
Intrinsic rewards means an employee who is
motivated intrinsically for own satisfaction
(Palacios-Marqués, Merigó and Soto-Acosta,
2015.). Employee gets reward on the basis of
self working performance which is inspired by
manager cause working performance.
Extrinsic rewards are salary hike, bonus,
trophy, car allowance, promotion and gifts.
Intrinsic rewards are praise, recognition, and
acknowledgement.
Purpose of reward strategy:
Reward strategy main purpose in organization to develop business productivity and achieve high
goal. This strategy support to retain employees and enhance employees motivation through
reward.
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Recruitment: reward strategy is helpful to hire eligible candidates which is suitable for business.
Reward strategy like incentives, bonus, car allowance and business trips which attract employees
and agree on low salary (Rajapathirana and Hui, 2018). Company get profit in recruitment
process through reward strategy
Productivity: rewards strategy support to retain employees and reduce turnover. Through this
strategy company gets benefits. Reward strategy enhance loyalty of employees so that encourage
employees to work hard that will enhance productivity of business.
Conclusion – It is very important for the ISS World to offer rewards to their employees to
motivate their employees so that they can work for the gal achievement of the organization.
2.4
Performance management -
It is the set of outputs and activities to meet an organizational goal efficiently and
effectively. It can directly focus on the performance of the departments, employees, organization
or the procedures which take place within the particular task. Performance plans are set up with
different performance indicators which shows the productivity performed by the employees,
output produced by the company and their employees, attitude of the employees, management
towards their work and their commitment towards their job task. The good performance then
rewarded by the management and thus the employees get boost up by such rewards. If there is
any poor performance then the effective measures will be taken to improve the performance and
implement such measures for the improvement of the performance if the individuals.
Performance management helps in the development of the individual along with the discipline
towards their job task.
Appraisals -
After gathering the information from the performance management the appraisals is
given to the individual by ISS World. The company offer the appraisal according to the data of
the performance management (Wang and et.al., 2016). The company gives the Annual appraisals
to their employees as they observe the performance of the employees in the whole year and then
assumption the appraisals according to their overall performance for their job task.
Purpose of performance management -
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Employees do better when they are satisfied with there work. Their performance can be
improved by the utilizing the right technology. Employee performance can be improved by
motivating them to do there work well. Performance of the team can be improved by giving
them incentive or appreciate on there hard work done by them for the desired goal of the
team or the organization. Delegating the authority to the team is playing a important role in
the improving the performance of the entire team, it is the one of the precious way to
improve the performance of the team.
Conclusion
Performance management helps the ISS World to monitor the performance of the
employees and could reward the employees for their best performance and can also improve the
weaker employees by availing them with through the measures to improve their performance.
Reward given to employees motivate employees and helps them in attaining the organizational
objective.
2.5
Introduction
This study shows the meaning of work life balance, managing the work life and the
meaning of work life balance for individual.
P1 Work/Life balance
It is a term which is commonly used to represented balance between time for allocated
work and aspects of life. It includes interest of personal, family, social and leisure activities.
Management of work/life balance -
Management of work/life is very important to balance the both. It can be done by
evaluating the strengths and weakness of the employees. The factors assumed that are lacking the
employees to balance both life. The ISS world should allow the flexibility to their employees so
that they can easily balance the both phases of their life. Task should be divided among the team
so that the employees cannot feel burden, and they will effectively accomplish the task. Balance
between work/life can be created by creating the personal development plans for the employees
this can help them to balance both things easily.
Resource Requirements -
Resource requirements can be the vital part for the business this includes the necessary
element which are helpful in the business process.
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Targets -
Targets are set before that should be accomplished by the individual and that can be for
anyone. This helps to achieve the business goal effectively and has set up the criteria for availing
the task performance according to that set of targets.
Review – This helps to access whether the objective is attained or not that helps to accumulate
any measures if necessary.
This all is very important for the balance of the work life and that helps in the better
management of the life. This all helps in achieving the organizational goals effectively and
efficiently.
Conclusion -
It is very important for an individual to balance the work life so that they can easily
manage the both life. This can be done by the developing the personal plans.
2.6
Introduction
This study shows the meaning of HR intervention. Also, explaining the needs to
measuring HR Intervention. And this study concluding the different techniques and tools for
measurement of HR intervention.
P1 HR Intervention
HR Intervention means a process in which HR department is involves such as
recruitment, HR policies, talent development, training and development, appraisals, rewards,
incentives, survey, competency mapping, individual developments plan, payrolls, holidays,
orientations, induction etc. It is the process that focus upon employees to better understanding
their own behaviours and other behaviours as well.
P2 Need to measure HR Intervention
Ensuring alignment with strategies: HR intervention measurement is very important
for alignment with the strategies. It is process of determining company long term
objectives and also establishes the goals to achieve (Fernández-Mesa and Alegre, 2015).
The HR functions meet and impacted the other are of business like performance
management, talent acquisition, training and development, employee retention and
engagement etc. therefore, proper aligning the HR strategy with the company business
strategy is fault-finding to accomplish the industry mission. For better alignment of HR
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