The Impact of Skill Management on Organizational Performance

This analysis delves into the significance of skill management within human resource management, focusing on its impact on organizational outcomes. Skill management encompasses processes such as training, performance management, feedback, and employee appraisal, aimed at identifying and bridging gaps in employees' skills and capabilities. The human resources department plays a pivotal role in implementing these processes to enhance workforce competencies. By conducting various training programs, organizations aim to elevate the skill levels of their employees, thereby fostering competitive advantage. This paper examines how effective skill management can lead to improved productivity, employee satisfaction, and overall organizational success.

Running head: SKILLFUL MANAGEMENT OF WORK GROUPS
Skilful Management of Work Groups for Organizational Success
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1SKILLFUL MANAGEMENT OF WORK GROUPS
Introduction
Organizational behaviour is referred to the study of the interaction of a group of
people within an organization. There have been many ideas regarding the concept of the
organizational behaviours. It has been mentioned by some of the scholars that the
organizational behaviours is one kind scientific approach that is based in the management of
the workers of a company in terms of maintaining a proper and rich culture within an
organization (Pinder 2014). On the other hand, some of the researcher states that
organizational behaviour is a continuous process that works for the establishment of
meaningful relationship among the employees of the firm along with the increase of the
productivity of the same (Moore et al. 2012). This essay is focused on the organizational
behaviour in terms of highlighting the issue of skill management within the workplace of a
firm which leads to the increase of productivity for the organization as the whole.
Discussion
There has been contradiction of various opinions by the researchers on the concept of
the organizational behaviour, but the most important of all is focused on the skill and
performance management of the staffs of the company in order to increase the productivity
and enrich the organizational culture. The productivity of a certain firm is highly impacted by
the organizational behaviour of the same (Miner 2015). On the other hand, organizational
behaviour does not only indicate the increase of the employee number to positively increase
the productivity, but stresses upon the skill management for the same. Therefore, the essay
will present an argumentative and critical discussion on both the organizational culture as
well as on the skill management of the staffs with regard to the organizational behaviour.

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Skill management is considered as the practice that understands, develop and deploy
people as well as their skills. The skill management is also considered to be one of the most
important factors for the human resource management of a company in terms of increasing
the productivity. A well implemented skill management must identify the skills required for
the specific job roles (Jiang et al. 2012). It must be remembered by the management of the
organization that the skills for every job role is different and requires different forces from
external. Problem solving, decision making, planning, communication, time management are
some of the most important areas of the employees in their respective job roles that requires
the skills management from the external management system of the company. However, the
human resource management of the firm is usually responsible for determining different skill
management process for employees in terms of enhancing the skills and capabilities of them.
The basic purpose of skill management is to identify the gaps of the employees and fill them
up with the required resources.
There is several skill management process practised by most of the companies of late.
Training, performance management, feedback, employee appraisal are some of the processes
that is practised as the skill management process (Neffke and Henning 2013). This are
directly or indirectly linked with the productivity of the employees for the company. The
main objective of any company is to increase the production and therefore the skill
management is one of the mandatory methods for increasing the productivity of the staffs. As
mentioned before, not only the productivity is influenced by the skill management but also
the organizational behaviour is enriched.
Training is one of the most common processes of the skill management. As mentioned
previously in the essay that the human resource department of a company is responsible for
conducting skill management process for the employees. Since increasing the number of
people in the organization does not only increase the productivity, the proper identification

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and management of skills is important for the same (Pollitt 2013). After the identification of
the required skills, the management of the same necessary. In terms of enhancing the skills of
the employees, the human resource department of the company conducts various training
programs within the workplace.
The importance of training lies in the enhancement of the existing skills and
capabilities. During the training process the employees are examined by the management
which helps them to identify the weaknesses of the staffs and arrange the training program
accordingly. In the training, the employees develop new skills required for specific job roles.
Therefore, training definitely plays an important role in organizational behaviour as well as in
skill management. However, there are contradictory opinions about the training as one of the
process of skill management. Some of the scholars say that training increases the level of
satisfaction within the employees who have been the part of the training program, but
decreases the satisfaction level for the remaining employees (Konings and Vanormelingen
2015). Along with this, some other scholars add to this opinion that there has been a
disagreement between the management and the employees as well as the trained and
untrained employees which affects the organizational culture and consequently leads to
negative productivity. However, training is majorly appreciated skill management process for
any company to influence the productivity.
Performance management is considered to be another important part of the skill
management of the employees. Performance management is a continuous process of
communication between the human resource department of the company and the employees
of the same. This particular process goes on throughout the year and includes the activities of
setting of objectives, identification of goals, providence of feedback and the review of the
results. The entire process is based on the performance of the employees in terms of
enhancing their productivity. The consistent and continuous process of evaluation of the

4SKILLFUL MANAGEMENT OF WORK GROUPS
performance of the employees is required for the performance management. This ongoing
process helps the employees as well as the management to evaluate their performance and to
take required initiatives accordingly (Pollitt 2013). For example, Google uses the
performance management process extensively not only for increasing the productivity out of
the people of the organization, but also for the maintaining an appropriate organizational
behaviour within the workplace of the same.
The performance management includes range of activities from the employee
appraisal to rewards and recognition. The performance of the employees enables them for the
appraisals which further enable them for promotion. On the other hand, the feedback
provided by the management of the companies on the basis of the performance of the
employees, identifies the weaknesses of them (Bach 2012). And the positive feedbacks from
the management motivate the employees and as the result of that the employees put more
effort to the productivity. At the same time the organizational behaviour within the
workplace is enhanced. Along with this, rewarding and recognizing the employees with the
feedbacks and other performance management process also encourages and motivates the
employees towards their specific job roles.
In an organization where a team works in collaboration to contribute different talents
and skills posed by them, the employees are deemed to work within a productive surrounding
(Marchington et al. 2016). As the organizations these days are observed to deal with the
challenge of offering new services and products to address changing demands of the
consumers, they focus on the team’s strength of innovating and creating. This indicates that
the work groups require to skilfully managing for being productive. In a high performance
job, an organization requires investing within human resources for social skills and
innovation. Rather than competing with the employees within the group, a productive
surrounding needs organization needs for preparing effective interpersonal relationships

5SKILLFUL MANAGEMENT OF WORK GROUPS
within the place of work (Jordan and Lloyd 2017). For ensuring organizational success, the
management needs to make sure that it accepts all its group members talent and background
that can contribute to the wide knowledge atoned by the team to work together and attain
company objectives.
It is gathered that the stronger the work group within the company has interpersonal
rapport; the better will be a team’s communication for enhanced productivity. Being a team
play, organization along with its work groups has a responsibility to perform (Mäki and
Kerosuo 2015). Huge work groups within which employees are taken into account within a
team but do not have the necessary skills might result in idleness and poor productivity that
might affect the team overall. Additionally, smaller groups with selected individuals tend to
operate in more productive manner. If the team is managed skilfully within the organization,
then each member has the visibility and is anticipated to address standards and generate
results.
Depending on the skills possessed by the team suitable company culture is selected
along with decision making and reward structure selection (Davis and Davis 2017).
Organizational culture today focuses on self-expression. This indicates that the leader of the
companies tries to develop a culture in which the employees employ their creativity along
with encouraging innovative thinking. Such effective organizational culture is basically relied
on self-organizing teams along with supportive project work groups. This requires managing
the teams in a skilful manner that will make sure talent of each employee is utilised in their
suitable work. One such example of skilfully managing teams to ensure organizational
success can be observed on case of Toyota Company (Day and Shannon 2015). The
company follows a collaborative organizational culture that increasing focuses on teamwork,
consensus and decision making relied on shared view of the estimated results. The company
focuses on encouraging trustworthiness and teamwork along with aggressiveness and

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creativity. Creative culture must be maintained by most of the companies in developing a
skilful team for the reason that this culture tends to employ remote and self-managed teams
that needs a level of autonomy in order to function in a better manner. For instance, Apple
Inc organization follows a culture of developing string teams as this is deemed essential in
ensuring effectiveness of the teamwork (Bourne 2016). They believe that if the work group
comprises strong employees that have a lot of employees with identical skills. The company
believes that the work groups can be technically effective but they might fail to consider
minute details important for success of the organization. The most proficient team encompass
members with different skills and strengths. Considering this, it can be elucidated that in case
a team is increasingly technical it can be advantageous if it has a member who is not that
proficient technically but has all the necessary skills for the work (Wagner III and Hollenbeck
2014).
Several benefits can be attained by an organization if it skilfully manages its work
groups as this can ultimately contribute to the success of the company. Proper management
and proper utilization of employee skills can facilitate the companies to increase its strengths.
As this can facilitate a work division within a team in which each member might focus on all
the aspects of a particular project to make an organization succeed (Wagner III and
Hollenbeck 2014). For instance, it has been noticed in Woolworths Limited company that the
employees work in a team and utilise their skills efficiently which facilitates them in which
part the project the team members are comfortable in working. As the employees managed
talents in different fields they manage tasks as per their expertise, they can easily divide their
work based on the tasks they are comfortable with. In addition, certain other organization
performance based advantages can be attained by the companies in case they manage its
entire workforce skilfully. Skilful management of work groups also facilitates in improving
the communication skills of employees. The importance of training lies in the enhancement

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of the existing skills and capabilities. During the training process the employees are examined
by the management which helps them to identify the weaknesses of the staffs and arrange the
training program accordingly. In the training, the employees develop new skills required for
specific job roles. Therefore, training definitely plays an important role in organizational
behaviour as well as in skill management. However, there are contradictory opinions about
the training as one of the process of skill management. In a high performance job, an
organization requires investing within human resources for social skills and innovation.
Rather than competing with the employees within the group, a productive surrounding needs
organization needs for preparing effective interpersonal relationships within the place of
work (Sarangi and Shah 2015).
There are certain disadvantages in case any company is not that focussed about
managing teams skilfully in attaining organizational success. Improper team management can
result in unshared responsibility in case things go working within an organization (Kunnanatt
2016). In such scenario, if a project fails within the company, an efficient team will not
provide support to one another in a way that they can take the blame or responsibility
regarding the miss-happenings in the company. To ensure organizational success all the team
members must work at their best for attaining superior outcomes. Moreover, not encouraging
skilful team work among the employees within the organization can result in unequal
participation and association among the different team members (Holmes and Stubbe 2015).
For instance, Tesco evidenced that it turns out to be challenging to work within a team in case
the employees does not put their best efforts in getting work done. Another disadvantage that
can be faced by the companies in absence of skilfully managed work groups is clash in ideas
regarding working towards attaining a common organizational goal. Organizational works
might not be completed that can impact its success as a situation might arise where projects

8SKILLFUL MANAGEMENT OF WORK GROUPS
can fail or become wring with increasing difference in the working techniques of several
people within the work group (Sarangi and Shah 2015).
Conclusion
This essay was focused on the organizational behaviour in terms of highlighting the
issue of skill management within the workplace of a firm which leads to the increase of
productivity for the organization as the whole. From the essay it is gathered that there have
been many ideas regarding the concept of the organizational behaviours. It has been
mentioned by some of the scholars that the organizational behaviours is one kind scientific
approach that is based in the management of the workers of a company in terms of
maintaining a proper and rich culture within an organization. Moreover, there is several skill
management process practised by most of the companies of late. Training, performance
management, feedback, employee appraisal are some of the processes that is practised as the
skill management process. After the identification of the required skills, the management of
the same necessary. In terms of enhancing the skills of the employees, the human resource
department of the company conducts various training programs within the workplace. It is
also revealed from the essay that the human resource management of the firm is usually
responsible for determining different skill management process for employees in terms of
enhancing the skills and capabilities of them. The basic purpose of skill management is to
identify the gaps of the employees and fill them up with the required resources.

9SKILLFUL MANAGEMENT OF WORK GROUPS
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