successful performance in work organisations

IMPORTANT FACTORS THAT DETERMINES SUCCESSFUL PERFORMANCE IN WORK ORGANISATIONS

BY

ADELAKUN OLUWAFEMI.A

MBA 5C A4019368

University of Wales

December 2010

Successful performance in work organisations: Adelakun Oluwafemi .A A4019368, MBA 5C1

Table of Content

Page Number

1.0 Introduction …………………......................................................................

1.1 Scope ……………………………………………………………………….1

2.0 Effective management and successful performance……………….………2

2.0.1 Henry Fayol: Universality of management principles……………………..2

2.0.2 Peter Drucker: The management process…………………………………. 3

3.0 Leadership and Performance………………………………………………..4

3.0.1 Trait Theory of Leadership………………………………………………..4-5

3.0.2 Style Theory of Leadership………………………………………………. 5

4.0 Employee Management and Organisational Performance…………………6

4.1 Motivation……………………………………………………………….. .6-7

4.1.0 Maslow theory of motivation……………………………………………….7

4.1.1 Taylor’s theory of motivation …………………………………………… 7-8

4.2 Training and Development………………………………………………..9-10

5.0 MANGEMENT, Cornerstone for organisational effectiveness?................11-12

6.0 Conclusion………………………………………………………………..13-14

Bibliography……………………………………………………………… 15


1.0 Introduction

Upon the attainment of organisations aim and objectives rest the success and ultimate survival of the

organisation. Every work organisation is concerned with being effective. There is however, a

multiplicity of variables that impinge upon the overall performance and success of the organisation.

The people resource, quality of management. Leadership and training and development are central to

the performance, development and effectiveness of the organisation (Mullins 2010)

Organisations effectiveness is often related to factors such as increasing profitability, improved

service system or obtaining the best result in significant areas of organisational activities.

Organisations must ensure that they meet satisfactorily or exceed the demands and requirements of

customers, and are adaptable to requirements, changes in the external environment and the demands

of the situation.

Successful performance of work organisation is dependent on organisations objectives and

competitive priorities, considering that organisations differ in so many ways as well as in style of

their management. However, common and essential to all organisations are some key elements.

This paper will focus on the following as factors to be considered for successful performance of

work organisations to include:

Effective management

Effective leadership

People resource management (Motivation and Training)

1.1 Scope

To critically discuss the factors that are considered necessary in determining successful

performance of work organisations as well as obstacles to effective work performance and it attempt

to proffer solution on how to overcome these obstacles making references to practical case studies

and examples. This paper will focus on BOC Gases Nigeria plc and Zenith bank Nigeria plc where I

have worked in the past.

Also, this paper attempts to criticise and analyse the validity of the statement that ‘management is

the corner stone of organisational effectiveness, and the integrating activity that permeates every

facet of the operations of the organisation’

Both questions are discussed simultaneously.

2.0 Effective management and successful performance


The term management has been described by many scholars, but common to them all; management

is being identified for accomplishment or getting work done through the performance contribution of

others. Management is concerned with making things happen and keeping work on schedule,

engaging in routine interactions to achieve planned actions. David Boddy (2008). Said effective

management requires management to have a clear understanding of what is being managed since we

live in a world of managed organisations an organisation is therefore, defined as a social

arrangement for achieving controlled performance towards goal that creates value.

Management is usually done through coordinating functions of planning, organising directing and

controlling. It is the responsibility of managers to manage, but organisations can achieve their aims

and objective only through the coordinated efforts of their members. This involves effective

management of people resource, which is a core function of leadership.

Although, many theories have been propounded on management, it is necessary identify their

relevance to modern day management.

2.0.1 Henry Fayol: Universality of management principles

Fayol’s principles reflect the functions of management as a matter of controlling material resources

and processes rather than people. His classical view on management and organisation were largely

concerned with efficiency I.e. doing things right He. identified five (5) principal functions of

management to include planning, organising, commanding, coordinating and controlling which is

today the concept of the universality of management principles. In other words, the idea that all

organisations could be structured and managed according to certain rational principles.

Although Fayol’s managerial functions may seem like a minor topic – and rather old fashioned - it is

a foundational model. The five functions are a helpful frame work for understanding management.

However, Fayol’s theory could be effective as a traditional approach for managers, but in modern

day management, it could however, be defective as his approach to management omitted the people

resource in terms of motivation and communication. Fayol assumes that employees will carry out

task when commanded to do so, regardless of whether or how far they may want to. In modern work

organisation, people resource are vital to success performance in organisations, hence, organisations

cannot afford to lose them, but need to develop strategies to retain their loyalty and commitment.

2.0.2 Peter Drucker: The management process


He argued that a manger has one basic function – economic performance. He further said

management can only justify its existence and its authority by the economic result it produces which

is a measure of its effectiveness, even though as a consequence of its action, significant non-

economic results occur as well.

He added that Successful performance of management is often measured by its effectiveness, hence

effectiveness is doing the right things and it relates to obtaining best possible results in the important

areas of the organisation, optimising the use of resources, increasing profitability, and attainment of

the aims and objectives of the organisation.

Take for instance at BOC gases Nigeria plc, management is focused mainly on effectiveness and

efficiency which this support Henry Fayol’s view that management is all about efficiency and

druckers view on management effectiveness. Such that at Plant managers ensure that resources are

well utilised in production to avoid waste to achieve optimum results,, managers at BOC gases are

assessed based on their unit performance and productivity. Hence, this recognition that management

has given to efficiency, and effectiveness in Boc Gases has been a major determinant of its success

in timely delivery, and value to customers, and this is evident in its annual profitability. At BOC

gases management is centred on a lean production system that tends to eliminate waste and ensure

that resources are best utilised.

As vital is effective management to successful work performance, poor management in terms of

resource, material and people could be disastrous to the performance and profitability, hence

managers at all levels within the organisation must give attention to being efficient and effective. For

effective management, there is a need for managers to have a blend of and understanding different

approach to management and use it to their best advantage as this will aid the overall successful

performance in work organisations.

3.0 Leadership and Performance


Leadership goes beyond management. Management involves getting things done using the resources

of the organisation, and the formal patterns and rules within the organisation. Leadership, on the

other hand, sometimes involves driving through changes and new initiatives, which may be

unpopular in some quarters (www.thetimes100.co.uk). There has been disagreement about the

definition of leadership, considering the complex interactions among leaders, the followers and the

situation. For example, some researchers define leadership in terms of personality and physical

traits, while others believe leadership is represented by a set of prescribed behaviour. In contrast,

other researchers define leadership in terms of power relationship between leaders and followers.

According to this perspective, leaders use power to influence followers’ behaviour. Leadership can

also be seen as an instrument of goal achievement, in other words leaders are individuals who help

others accomplish their goals (Robert and Angelo, 2007).

Effective leadership is highly crucial to work performance. Poor leadership result in poor

performance, hence; the manager need to understand the nature of leadership influence, factors that

determine relationships with other people and the effectiveness of the leadership relationship

because increasingly Leadership is seen as a central feature of an organisational performance.

Because of the importance of good leadership in especially in the changing nature of work

organisations, there is a considerable volume of theory and research covering it. It is however,

difficult to summarise such a body of research into a day to day management. This paper will be

examining a few approaches used to explain leadership.

3.0.1 Trait Theory of Leadership

According to Adair, a leader needs to exhibit certain attributes in order to effectively exercise their

leadership functions. The trait theory is based on analysing the personality characteristics or

preferences of successful leaders. Until 1950, the trait theory was of the prevailing belief that leaders

were born and not made, selected people were thought to posses in born traits that made them

successful leader, and this justifies the idea of a leader trait. The qualities approach focuses attention

on the individual in the job and not on the job. It suggests that attention is given to the selection of

leaders rather that training for leadership. (Mullins, 2010).

Robert (2007) believed that leadership traits were not innate, but could be developed through

experience and learning. He opined that traits play a central role in how we perceive leaders, and

ultimately impact on leadership effectiveness. He identified eight (8) positive traits that make a

leader effective including intelligence, self confidence, determination, honesty & integrity,

socialability, emotional intelligence, extraversion, conscientiousness. Managers at all level in Zenith

bank are expected to posses and exhibit some of these traits to make them better leaders. However,

in support of Kretneir view, executive Management at Zenith ensures that adequate trainings are


http://www.thetimes100.co.uk/

given to manager’s and even subordinates (training them to become effective leaders and managers)

in developing these traits which were said to be found in leaders according to stogdills.

3.0.2 Style Theory of Leadership

This theory is of the opinion that there are a cluster of leadership behaviours that are used in

different situations. While there are many different styles, they mainly relate to the extent to which

the leader is focused primarily on task or performance (directive) behaviour or relationship/people

(supportive) behaviour. It is possible to identify a range of approaches to leading change in an

organisation, depending on the use of authority by the leader, and the amount of freedom given to

subordinates.

An authoritarian approach involves a leader making the decisions themselves and then telling

others what to do. A consultative approach involves talking to people who will be involved in a

decision, perhaps asking them for their views and ideas, and also informing them of any changes that

are likely to take place. A democratic/participative approach involves allowing participants to get

involved in decision-making - perhaps through a teamwork approach. Motivation and leadership

(Anon., 2009)

In Zenith bank, managers at all levels have adapted a mixture of leadership styles including

participative, authoritative style, coaching style of leadership depending on the business situations.,

but often times at the branch and zonal levels, a mixture of authoritative and participatory styles are

often employed.. Employees are often given voice in the decision making process. Such that

executive Management has created a fora in which employees can contribute to decision making

through the banks’ online decision making portal. When zenith was to migrate from its old software,

employees were consulted to give advice and suggestion as to what management can do to improve

on the existing software. Usually it has become the culture of zenith to hear the opinion of each

employee before decisions are taken, however, at the final decision process a representative from

each branch of zenith is invited to be physically present at the final decision session, though

executive management still has the final decision. Employee empowerment and participative

leadership have increased the bank’s market base. Employees are more committed and satisfied.

Participative management has help Zenith bank to develop employees to become leaders. Through

participative management, employees are encouraged to take part in decision-making, express their

ideas and to showcase their talents and skills.


4.0 Employee Management and Organisational Performance.

Organisations are made up of individual members. The individual is a central feature of

organisational behaviour; often time’s employees or people as the case may be are often referred to

as resources, asset or capital. This is however, an instrumental approach implying a means to an end.

Human or people resource are clearly the most valuable asset of any organisation and a resource that

need to be carefully managed. It is people who make the organisation, without people, systems and

procedures and indeed organisation themselves are meaningless. As Austin points out, ‘exceptional

people management produces financial success, companies which look after their staff on average

out-perform the stock market by two or three times and there is no moral dilemma in either choosing

to make money or look after people’. If employees feel valued, they give more of themselves to be

more productive. Overriding considerations in managing people resource are motivation, training

and development,

4.1 Motivation

The relationship between the organisation and its members is influenced by what motivates them to

work and the reward derived from it. The nature of work organisations, style of leadership, the

design and content of jobs can have a significant effect on the satisfaction of the staff and their level

of performance. Motivation may be stimulated from personal interest such as keeping safe or from

external factors, praise and reward. Different theories have been developed in motivating employees.

In all the theories examined in this paper, Wages and salary or remuneration as the case may be is

considered a primary motivator. Other motivating factors include; performance recognition, a sense

of achievement, responsibility and empowerment, opportunity for career development, a sense of

challenge and enjoyment. A motivated workforce will work harder and achieve greater output in less

time, therefore reducing labour costs. It requires less supervision and demonstrates pride in its work,

making a greater impact on the customer. (Mullins 2010; Marc 2006)

However, unmotivated work force will be the opposite, being dissatisfied with their job functions in

the work environment. This can negatively affect both the quality of the work as well as how

efficiently employees carry out their duties and responsibilities and the overall performance of work

organisation. It can also this can lead to frustration and conflict. Thus, for an effective performance,

the manager needs to know how best to elicit the cooperation of staff and direct their efforts to

achieving the goals and objectives of the organisations. Employees need to be motivated to gain

their commitment and the likelihood of them behaving in the best interest of the organisation will be

guaranteed.

Johnson Idowu, the MD of BOC gases Nigeria while delivering a lecture in 2009, ‘said the

achievement rate in performance and profitability is owed to employees. This shows the importance


and value attached to employees in Boc gases. It has found that by valuing employees, providing

realistic goals and a stimulating environment for them to work in, it increases employees’ motivation

and commitment. At BOC gases, staffs are well motivated and as such work together in teams to

achieve individual and teams objectives’. This means that, they focuses on customers, treats people

fairly and is determined and devoted to receiving feedback from others.

4.1.0 Maslow theory of motivation

Abraham Maslow argued that individuals are motivated by five (5) essential needs. He developed a

pyramid called the ‘hierarchy of needs’ to demonstrate the human needs: At the bottom of the

pyramid are basic needs (Physiological), those that motivate people to work – food and shelter. Boc

provides a conducive working environment, regular monthly pay and essential facilities such as a

restaurant, a clinic on office premises. Once these needs are met through wages and salaries,

individuals want safety and security. For example, admirable job conditions. BOC provides the

security of job employment as well as pension and sickness schemes and the option to join a union

to give people a sense of belonging. It ensures health and safety in the workplace. Social needs refer

to the need to belong (Love), to be part of a group. BOC promotes team and group working at

various levels. The company ‘Steering Wheel’ assesses individual and group work and enables both

plant and administrative staff to work as a team.

Self-esteem may arise from a promotion. Boc gases lay emphasis on self-respect and respect for

others and recognition for hard work, self assessment. BOC has a cyclical (360 degree) feedback and

appraisal system that helps to recognise individuals’ contributions and importance and celebrate

achievement. Right at the top is Self-fulfilment- the area for creativity, challenge and interest. Boc

offer Personal Development Plans, recognition of skills and talents, opportunity for promotion and

career development programmes. Maslow suggested that achieving one level motivates us to achieve

the next. (Robert and Angelo, 2007).

4.1.1 Taylor’s theory of motivationIn 1911, the engineer Frederick Taylor published one of the earliest motivational theories. He opined

that workers will be motivated by obtaining the highest possible wages through working in the most

efficient and productive way. Performance was limited by physiological fatigue. For Taylor,

motivation was a comparatively simple issue – such that what workers want from their employers

more than anything else was high wages. However, these categories of employee are usually

productive, but little or no opportunity was given for employees to think for themselves, or to be

creative in what they did. Increasingly motivation is based on values rather than purely a financial

reward. Staff remuneration at BOC Gases Nigeria plc has some similarities to Taylor’s theory. Its

financial reward packages are highly motivating At Boc employees are given more than just basic

pay increases. It provides Pension scheme providing equal contributions from the company,


Employee discount card, Christmas or pay slip vouchers, and free healthcare for all staff, holiday

bonuses (Easter and Christmas bonus). Other non-financial factors include: staff training to improve

personal skills, timely promotion.

Management at BOC gases understands that there are factors other than money which motivate

people in both their personal and working lives. Employees are more motivated when their employer

creates a pleasant working environment, where they feel valued, generally through increased

communication and asking for their opinions. Annually, staff at BOC is invited to take part in a staff

satisfaction survey which gives them the opportunity to express their views on almost every aspect

of their job.

Some of the benefits available to BOC employees include career breaks between 1 to 4 years to

which they can return if they wish to, a 40 day study vacation as well as its award winning

retirement savings scheme.


4.2 Training and Development

Training is an activity designed to improve the competence and ability of individuals in order to

enable an organisation to meet its objectives. Development is said to be activities designed to

further the personal needs of individuals. Mullins (2010, pp. 503 -504.) says that ‘Training is

essential to improve knowledge, skills and to change attitude. It is necessary to ensure an adequate

supply of staff that is technically and socially competent and capable of career advancement into

specialist department or leadership positions’.

Although the potential benefits of training may appear obvious, it does not necessarily follow that

training, per se, will lead to improved performance. There has to be an appropriate training culture

which has to be relevant to the need and requirement of the organisation. Continuous training

therefore, is a key element of improved organisational performance and the need for a continual

process of staff development. Training and development is one tool Managent often uses to ensure

effective performance in work places and usually the responsibility of human resources department

BOC believes that a critical factor of successful performance has been recognition for training need

and development. BOC gases developed a flexible and structured approach to training and

development, which adapts to individual employee needs. This allows employees identified as

having the potential and desire to do a bigger or different role to take part in training to develop their

skills and leadership capability. BOC provides a wide range of safety training workshops and

courses to support the safety needs of business and employees. Training courses include on the job

training as well as off the job training. On the job training include safety training with gas cylinders,

refrigerants, laboratory gases, cellar safety, cryogenic gases and healthcare. All employees in Boc

has access not just to the training they need to do their job well but also to leadership training to

grow within the company. BOC gases offer strategic career planning to help staff increase their

sense of ownership in the company, to become more organised, productive and flexible as well as

being capable of meeting the needs of internal and external customers. New skills and abilities in

areas such as decision-making is developed which makes them more effective. Employees are

usually sent oversees for on the job training and conferences

Also, a significant factor of zenith success today lies in its massive investment in training and

developing its workforce. It employs University graduates and give them adequate training on the

job and off the job. Zenith bank‘s orientation programme provides graduate trainees (new recruits)

with a comprehensive induction session which usually last for about 6 weeks. New Recruits will

usually resume into the orientation programme where they are formally welcomed into the Zenith

Family and the cultures and values of the Bank gradually imparted into them in a warm and cordial

environment before they go off to their various departments and branches. With a rapid training

schedule, they are able to develop to their first level management position whilst working as a Team


Leader in any of zenith branches. Zenith takes staff training and development as a key priority,

considering the nature of industry it operates. Front line officers, supervisors, and managers at all

level are being trained continuously to keep abreast of trend and new development in the industry

and this has been the strength of its success and outstanding performance over the years, and a

strong competitive advantage. A recent study by the bankers association of Nigeria revealed that

zenith bankers have a wide understanding of the banking market in Nigeria which ranked it first in

the industry.

5.0 MANGEMENT, Cornerstone for organisational effectiveness?


Corner stone has been defined by the concise oxford English dictionary as an important feature

upon which something is based. Hence, it is correct to say that management involves creating a

frame work for integrating of all activities within work organisations; this is because management is

saddled with the responsibility to coordinate and manage resources in achieving organisational

goals. Management is regarded as relating to people working within a structured organisation and

prescribed rules. However, it is not conclusive to say that management is the cornerstone of

organisational effectiveness. In modern day organisation, effective management still contribute to

effectiveness, but cannot form a standalone basis upon which organisations achieve effectiveness.

Traditionally, management is focused on control and commanding such that employees carry out

task when commanded or instructed to do so regardless of whether or how far they want to do it

What makes organisation to be effective is a multiplicity of factors and not a single factor, as

organisations focuses more on sustaining their performance and effectiveness through good

leadership & corporate governance, innovation as well as technology advancement. In today’s nature

of work organisations, there is been a shift from the conventional management approach of control

of the work force towards an environment of coaching, support, self-directed teams and

empowerment.. This places an ever growing importance on leadership. Leadership today is

increasingly associated not with command and control, but with the concept of team work, getting

along with other people, inspiration and creating a vision with which others can identify . Leaders

are focused on moving people and organisations forward by increasing the competency of

employees and the cooperation of teams in order to improve the organisation. Effective leaders

create an environment that encourages the development of skills, learning and openness so that

employees can participate in the deployment of financial and human resource. A major report from

the advanced institute of management research refers to the dual role of leadership. Leaders both

motivate employees and design effective organisation to enable employees performs effectively.

Lou Gerstener, former CEO of IBM and Larry Bossidy former CEO of Allied signals, endorsed this

conclusion noting that: organisational effectiveness and success requires a combination of effective

leadership and management. This in turn, leads to the realisation that today’s leaders need to be

effective at both leading and managing. (Robert and Angelo, 2007).

In only fifteen short years of operation, Zenith Bank has attained heights which took first generation

banks over seventy-five years to accomplish. The bank’s success and accomplishments have been

traced to its unique and excellent leadership style anchored on strong management principles and

structures.

Also, the relevance of science and technology has a significant contribution in the case of

organisations effectiveness. Zenith bank relies heavily on information technology in gaining

competitive advantage. It uses the best banking software in Nigeria which guarantees customer a

maximum turn around time of five (5) minutes in the banking hall. In a recent survey commissioned


by PricewaterhouseCoopers in conjunction with Business Day Newspaper, Zenith bank was awarded

the most respected bank in Nigeria. The Zenith brand has powered ahead of competition also on

account of its huge investment in Information Communication Technology (ICT), a fact attested to

by the Web Jurist award which rated Zenith Bank as the bank with the best website in Nigeria. Also,

Zenith Bank was last month named Bank of the Year by Bankers magazine, a subsidiary of

influential Financial Times of London.

Also, Innovation and improvement has increased organisations competitiveness and effectiveness in

the market, and thus affects their performance. Zenith Bank has pioneered several e-products and

services to satisfy the yearnings of its teeming customers. Such products include Zmobile, a service

which allows customers transact their banking businesses using their mobile phones. Alertz, a

message alert system which enables customers monitor all transactions on their accounts via short

text messages delivered to their mobile phones.

A careful analysis of Zenith bank Nigeria plc, shows that the bank’s success and accomplishments

have been traced to its unique and excellent leadership style anchored on strong management

principles and structures, Innovative abilities, and technological advancements as well as human

capital development. For Zenith Bank excellent service delivery, development of human capital

employee satisfaction, professionalism and corporate governance have provided the grounds for

consistently high returns to stakeholders.

We can therefore say that management only is not the cornerstone for organisational effectiveness,

but a multiplicity of factors as identified.

6.0 Conclusion


In today’s business and work organisations, effective leadership and good management plays a vital

role in addressing challenging situations that may arise due to uncertainties. The role of the leader is

to help to create the teamwork structures and to encourage the teams to take responsibility for

decision-making. Each of these approaches will be used in different settings. The key is to use the

right approach in the right setting. In many situations, the consultative and democratic approaches

will be more motivating as we see in the case of Zenith bank Nigeria plc, because managers at all

level places more responsibility in ground level employees, encouraging them to feel involved.

When employees are involved in decision making, they are far more likely to 'take ownership' of the

initiative and be more committed

There has been much research on motivation. Employee motivation is a fundamental task for

managers as early motivational theory such as that of Taylor suggested that pay motivated workers

improves production. However, businesses now need employees to have greater motivation and have

a stake in the company for which they work. Maslow and Herzberg demonstrated that employees are

motivated by many different factors. At Boc gases employees are provided opportunities to take a

share and a greater interest in their own employment. Since every employee is an individual with

different needs and aspirations, the process of reviews and personal development plans allows

recognition of their abilities and achievement, as well as potential development. This benefits the

individual by providing career progression. It also benefits BOC gases by ensuring the business can

deliver high levels of customer service through its skilled employees. (BOC Gases, Annual report).

Continuous training and development of employees is an essential element for continuing growth in

zenith bank and BOC gases both companies requires employees who are committed and flexible in

order to aid its expansion of the business. The expansion of zenith relies on retaining existing

customers and acquiring new ones. All customers need to be confident and happy in zenith. This

relies on committed and flexible employees delivering the highest standards of service to meet

Zenith’s goals and objectives. Zenith’s structured approach to training and developing its existing

and new employees provides a strong foundation for its continuing growth and a basis for its

competitiveness and effectiveness.

Hence poor leadership and management, internal inefficiency, complex environments, conflicting

goals ,employee dissatisfaction, lack of employee involvement as well as flawed communication

posses threat and uncertainties to organisational performance and effectiveness. Organisations

therefore, must pay attention to these factors by ensuring flexibility, create good communication

system and maintain a healthy relationship with stakeholders and employees to perform

successfully.


Drawing from the fact that organisational effectiveness is based on a multiplicity of factors, it is

therefore logical to conclude that effective leadership and management, innovative capabilities,

technological advancement, employee satisfaction and human capital development form a base for

organisational effectiveness and central factors for successful performance in work organisation.

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