People Management Unit 5.3: Impact, Strategies, and Recommendations

This report analyzes the impact of organizational structure and culture on people within an organization. It explores how different leadership styles, including autocratic, participative, and delegate styles, affect individuals and teams, and the benefits of flexible working practices. The report also examines the influence of personal differences on behavior in the workplace, and suggests required management styles to deal with these differences. Furthermore, it discusses the application of motivational strategies, the use of coaching and monitoring, and the benefits of training and development. Finally, the report provides people management strategies used in organizations, their impact on people, and recommendations for promoting high levels of performance, referencing relevant theories and concepts throughout the analysis.

People Management
Unit-5.3
/19/2014
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Serial Contents Page No
1.1 How Organizational Structure Impact on People in Organization 3
1.2 How Organizational Culture Impact on People in Organization 4
2.1 Impact of Personal Differences on Individual’s Behavior at Work 5
2.2 Required Management Style for Dealing with Differences in Behavior 6
3.1 Effect of Leadership Style on Individuals and Team 7
3.2 Benefits of Flexible Working Practices to Individuals and Organizations 9
4.1 Application of Motivational Theories to Developing People in
Organization
11
4.2 Different Uses of Coaching and Monitoring in Organizations 13
4.3 Benefits of Training and Development to Individual and Organization 15
5.1 People Management Strategy Used in Organization 16
5.2 Impact on People of Management Strategies Used in Organization 17
5.2 Recommendations for Strategies to Promote High Level of Performance 18
6.0 References 19
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1.1 How Organizational Structure Impact on People in Organization
Organizational structure refers to the way people are organized ---the company's reporting
structure. This structure varies from company to company. "Tall" organizations use many layers
of management. "Flat" organizations use fewer levels, and managers often have a wider span of
control.
Organizational structure can make or break a business. Senior management and upward reporting
must provide a strong base for employees so they are sufficiently motivated. When there are
cracks in this structure, or a lack of forward thinking, businesses run the risk of losing their best
employees due to lack of motivation in the company
Managerial Influence
The efficiency of your managerial staff has a broad-reaching effect in your organization because
of the organizational structure. Weak or incompetent management at any level of an organization
will spread throughout the company as bad managerial decisions in those departments also affect
the departments that come into contact with each them and reduce productivity. Good
management can have the opposite effect, as efficient and intelligent decision-making can help
improve productivity and raise overall efficiency.
Structural Flaws
If your organizational structure is not set up properly, information is not able to travel where it is
needed. If the middle management team does not have effective channels of communication with
the executive team, important company information could take days before it reaches the entire
staff.
Confidence
When a business or company has a strong, consistent organizational structure, employees feel
secure in their jobs. If your organization has a history of hiring from within, promoting effective
employees and longevity, this inspires current employees and allows them to relax their fears of
job loss or mismanagement, and devote themselves to their position. In an article for
AllBusiness.com, Peter Christensen notes Abraham Maslow's theories that all human behavior is
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ruled by each individual's satisfaction with the five levels of human needs. Second on this list is
safety and security. It is safe to postulate that people who have confidence in their management
structure will respond positively to their organization.
Shared Goals
When your business has a transparent organizational structure, you have a conduit to share
corporate goals and plans with your employees. When you share these goals and align them with
your employee's personal goals, you can move teams forward in a productive manner. Once your
organization's management creates a new budget and business plan for the following year, share
the pertinent details with mid-level management and task them to create corresponding plans
with their team members. Each employee's professional development goal should run parallel
with the corporate goals. When business goals are met, employees should be notified so they can
gauge their own progress against that of the company.
Accountability
Effective corporate organizations have clear reporting lines. This means if an employee has an
idea, challenge, issue or problem, he knows exactly who to talk to. When companies do not have
a strong organizational structure, opportunities and complaints can both be lost. The best
companies have strong communication channels built into their organizational structure. The
result is employees who know they have both the opportunity to share ideas as well as the chance
to discuss problems. This also creates a culture where management and employees are
accountable for success and error. The more accountable your employees are, the more likely
they are to work toward success.
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1.2 How Organizational Culture Impact on People in Organization
Organizational culture describes how things get done in an organization – in terms of the values,
behaviors and assumptions which dictate the way people approach their work. Organizational
culture is deeply embedded and is distinct from climate. Culture affects performance, profit and
even survival. We use the Human Synergistic Organizational Culture Inventory, which
incorporates the Circumflex model, to measure organizational culture.
Organizational culture is a vital aspect of any successful business or organization. A positive
culture can help attract and retain loyal and committed employees, which, in turn, can strengthen
relationships with customers and other partners. Just like any other asset, organizational culture
must be monitored and nurtured to ensure that it reflects the organization and its vision. In
unhealthy organizational cultures, a shared standard of excellence may be absent, leading
employees to focus solely on personal goals rather than business goals. For example, a pervasive
culture of greed was among the primary reasons cited for the well-documented collapse of
Enron.
Cultures can be bolstered and they also can be transformed. Such measures typically require a
comprehensive assessment and understanding of an organization’s current strengths and
weaknesses, including corporate values and behavioral norms.
Additionally, effective cultural transformation requires leaders to create buy-in among all
stakeholders and nurture enthusiasm for change that may push.
2.1 Impact of Personal Differences on Individual’s Behavior at Work
Individual differences have a direct effect on behavior People who perceive things differently
behave differently People with different attitudes respond differently to directives People with
different personalities interact differently with bosses, coworkers, subordinates, and customers.
When people arrive at the office, they bring with them their individual traits and personalities.
Regardless of a person's position or responsibilities in the workplace, personality plays a role in
how a person approaches a job, completes a task and interacts with others.
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Teamwork
Individual personalities become recognizable during teamwork activities. Someone with an
outgoing personality is likely to be a cheerleader for the group, focus on positive aspects of the
project, and possibly volunteer for leadership and coordination roles. Likewise, someone who is
shy and reserved is more likely to take a follower role and be more comfortable completing tasks
that are assigned to him or taking direction from others.
Time Management
People who are naturally focused and organized are usually efficient in managing time and
completing tasks on schedule. These people do well in leadership roles, but their personalities
can potentially conflict with those who have a more laid-back and relaxed approach and aren't as
deadline-conscious or motivated. This becomes a problem if a colleague has a manipulative
personality as well, and attempts to sabotage other staffers' work efforts. While not necessarily
poor workers, people with overly-relaxed personalities often prefer to work at their own pace
without constraints of time lines, which can lead to frustrations unless appropriately managed.
Problem-Solving
Analytical personality types have the ability to problem-solve in an organized manner. They
might accomplish this through leading brainstorming sessions, developing decision trees or
workflow charts or creating detailed project plans. Indecisive personality types often throw a
wrench in the works when they're unable to make a decision or choose a course of action, and it
results in stalled work projects. This can be difficult in group work situations in which one
person meeting deadlines is crucial to another person carrying out related tasks and
responsibilities.
Interpersonal Relations
Extroverted personality types are comfortable engaging with colleagues and clients, and are
often able to work out minor differences and create workable compromises. Neurotic personality
types, however, are more likely to be disagreeable in nature. These individuals often do better in
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work environments or positions in which they have limited contact with clients, customers and
co-workers
3.1 Effect of Leadership Style on Individuals and Team
Leadership styles have significant effects not only in small businesses but also in the world's
largest corporations. These styles affect everyone from senior management to the newest college
intern. They create the corporate culture that influences the organization and its performance.
Autocratic Style Effects
Also known as authoritarian leadership, autocratic style clearly defines the division between
leaders and workers. Autocratic leaders make decisions with little or no involvement from
employees. These leaders are supremely confident and comfortable with the decision-making
responsibility for company operating and strategic plans. Although research indicates that
autocratic leaders display less creativity than more contemporary styles, this style still works
when fast decisions must be made without employee involvement. Employees may feel some
disconnect with this style.
Participative Leadership Effects
Also called democratic leadership, this style is usually considered the best option for most
companies. The opposite of autocratic leadership, this style emphasizes that management offers
guidance to its teams and departments while accepting input from individual staff members.
Leaders reserve the right to make final decisions but encourage feedback, ideas, and suggestions
from all employees. Participative leaders generally have a more content workforce, since each
individual has input into decision-making.
Delegate Leadership Effects
This style, also called laissez-faire leadership, is typically considered the least effective option.
In stark contrast to the other primary styles, delegate leaders rarely make decisions, leaving this
function up to the group. These leaders seldom offer guidance to the team and delegate decision-
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making to trusted team members. While offering few advantages, this style often creates some
disadvantages. Job descriptions and lines of authority become blurred and confusing. A loss of
motivation and positivity often accompanies the confusion of team members.
Corporate Culture Effects
Also called organizational culture, corporate culture defines "the way we do things." Leadership
styles have strong effects on corporate culture because employees tend to act in ways that mirror
their leaders. Staff also subconsciously wants to please supervisors and management. Over time,
leaders and employees usually become "comfortable" with each other, which can cause some
"culture friction" when new leaders take over. Every business, regardless of size, has a culture. It
can help or hurt operations, often dependent on the strength and efficiency of leadership.
3.2 Benefits of Flexible Working Practices to Individuals and Organizations.
'Flexible working' is more than just working from home. It's about working from wherever you
need to be, whether that's from a café with a client, a customer's HQ or during your commute. By
making best use of technology such as audio and video-conferencing, instant messenger and
mobile internet this can be achieved while strengthening collaboration and enhancing a sense of
community between colleagues – even if employees aren't physically in the same place.
Attract Skilled & Motivated Staff - Retain Talent
As well as attracting more talent providing flexibility helps you keep trained, skilled people
whose changing circumstances may otherwise have led them to leave. Higher retention rates of
staff and increased return rates from parental leave. When an Employer holds onto its most
skilled and experienced people it's good news for all involved.
Motivate & Energised Staff
Staff morale is higher and this increases your bottom line, productivity and profits. Today's
evidence shows that flexible and enlightened working practices are good for business. Achieving
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a work life balance between the needs of home and work is a win win for the employee and the
employer.
You Will Become An Employer Of Choice
Attract new talent and recruit hard to fill positions as you are known as an Employer of Choice.
Flexibility will give your business a bigger pool of talent to draw from and a real competitive
advantage. Customers are also attracted by the favourable image and employee motivation can
be easy to maintain because of a shared pride. People who work for best employers let others
know about it.
Reduced Operating Costs
Office space can be reduced and used more effectively which lowers accommodation costs. Desk
sharing can be introduced if employees work remotely and flexibly. A flexible and remote
working plan enables companies to retain valued staff by offering them choices to suit their
lifestyle demands.
Improved Business Performance
Flexible working times can help businesses to better meet customers needs as working patterns
can be matched to when the service is required with the ability to match work provisions closely
with customer/product demand.
Good for Small Business
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Smaller businesses often offer flexibility as a successful recruitment tactic. It is one of the ways
they can stay competitive with bigger companies. In addition, many businesses provide flexible
work schedules because they think such policies simply make good business sense. Flexible
schedules provide a work-life balance which is favoured by many potential employees, and
instating such policies can help small businesses to attract and retain the best of the best
Reduces Business Expenses
Companies can save substantial amounts of money through flexible working. Reduces business
expenses: sick time (less is used); productivity (employees are more productive);resources(less
computer space and access are needed, increased hours of customer service; employee safety
(fewer accidents at the job site and commuting);environmental requirements(reducing the
number of commuters) and relocation of employees (tele-working may avoid relocating workers
Australian data from the 2007 National Work/Life Benchmarking Study (Barbara Holmes,
Work Life Balance International) found that best practice organisations reported the following
key benefits from flexible work arrangements:
 37% stated that their work/life balance strategy contributed to a reduction in absenteeism
 88% stated that flexible work place practices have helped to manage staff more
effectively
 79% reported a positive impact on work productivity
 76% stated that flexible workplace practices enabled them to consistently attract and
retain the best possible talent
 54% said that their work/life balance strategies have contributed to a reduction in staff
turnover.
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4.1 Application of Motivational Theories to Developing People in Organization
Motivation is the force that initiates, guides and maintains goal-oriented behaviors. It is what
causes us to take action, whether to grab a snack to reduce hunger or enroll in college to earn a
degree. The forces that lie beneath motivation can be biological, social, emotional or cognitive in
nature.
Researchers have developed a number of different theories to explain motivation. Each
individual theory tends to be rather limited in scope. However, by looking at the key ideas
behind each theory, you can gain a better understanding of motivation as a whole.In
organizations, motivating people is a highly researched subject as it contributes to both the
quality of working life and the productivity of the organization (Wood et al, pg 78).
McClelland’s Acquired Needs Theory can be used to profile people into suitable jobs and Victor
Vroom’s Expectancy Theory can help motivate people by reward success opportunities. While
these theories do not explain motivation as a biological or psychological phenomenon, they were
chosen for their proven value to motivate people in the workplace. Together they provide
valuable insight into human behaviour and can help managers understand and motivate
individuals’ thereby increasing job performance. For example Johari Window theory indicates
that people often enjoy events which include new non-work activities, especially when bosses
and superiors take part in the same teams as their junior staff, which also helps cohesiveness and
'can-do' culture.
4.2 Different Uses of Coaching and Monitoring in Organizations
Coaching and mentoring can provide an array of benefits for organizations of all sizes, especially
small businesses. When conducted in an efficient and productive manner, coaching and
mentoring provides employees a way to connect, learn and grow within the company and along
their own career paths.
Significance
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Coaching and mentoring involve pairing experienced professionals with employees that could
use help adapting to the environment and culture of the workplace. This can include pairing a
mentor with new employees to help them settle into the surroundings and get off to a good start.
Coaching often comes in play when a new employee or current employee can benefit from
personal guidance on specific job duties, processes or responsibilities. Small businesses can also
use mentors to help develop other employees along a specific career path, such as management.
Retention
On an organizational level, coaching and mentoring can provide a host of benefits. Mentoring
and coaching can help encourage loyalty to the company. When experienced professionals help
mold the career of and provide opportunities for mentees, these individuals may feel a greater
sense of connection and commitment to the business. Coaching helps an employee feel
comfortable with management and encourages open communication, resulting in a positive work
experience. This can allow the company to save money that would have otherwise been spent on
the continual recruitment and training of replacement employees.
Related Reading: Coaching, Mentoring & Team Building
Personal Development
Taking advantage of the expertise and knowledge of experienced employees and professionals
can help bring younger or less experienced employees up to speed. This results in better
efficiency across the organization when bringing on new employees. In addition, coaching and
mentoring can help guide an employee along on her career path resulting in an employee well
versed on company expectations. Coaching specifically allows individuals to resolve issues and
concerns within the boundaries of a trusted and confidential relationship. This can help reduce
frustrations on a personal level and improve the job satisfaction of the individual, providing a
benefit for the organization.
Team Efficiency
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