Analyzing Impact Of Employee's Behavior On Organizational Performance: Challenges And Solutions Essay.

Employees are an important asset in any organisation. Therefore, it is important to ensure that employee behaviour is effectively managed to ensure successful operations. Explain the impact of employee behaviour on company performance and describe the challenges are likely to face in the process of managing employee behaviour. Suggest any five solutions to the challenges you have identified.

Challenges faced by modern corporations while managing employee’s behavior

Organisational behavior is related to analysing and maintaining the human behavior in a corporation; management can evaluate the conduct of their employees to improve their satisfaction and performance. Employees are considered as a valuable asset for a company, and high productivity of employees leads to organisational success. The behavior of employees positively or negatively affects their productivity, which directly influences the performance of an enterprise. Modern leaders face various challenges while managing the conduct of their employees, such as conflict, motivation, reward and communication issues. This report will focus on analysing the impact of employee’s behavior over the performance of an organisation. The report will discuss the challenges faced by a corporation while managing employee behavior. Further, the report will provide solutions to influence the behavior of employees positively.

Globalisation is considered as the prime reason behind the enhancing complicity in the business environment. Corporations are entering into different markets to increase their area of operation and revenue. When a company operates at such a high level, they have to provide various type of training to their employees so their productivity and efficiency can be improved in regular interval of time. According to Wood et al. (2016), the process of studying the method of employee’s interaction within groups is known as organisational behavior; the management can utilise such data to formulate policies for establishing the more efficient business environment. Organisational behavior is a scientific approach of management to understand and predict the events of a company.

Chun et al. (2013) provided that the performance of an organisational significantly influenced the behavior of employees, for outstanding business development, the employees’ behavior plays a crucial role. Therefore, it is necessary that all companies build a strong and clear culture in their business environment. The organisational culture can distinguish averageness and outstanding business performance, for example, if an airline company’s motto is that “we fly on time,” but the employees’ work is not punctual enough to satisfy customers requirements that corporation cannot provide outstanding performance. Therefore, it can be stated that employee’s behavior directly affects the customer satisfaction, which influences the corporation's growth.

The values of a company establish a positive working environment rather than corporate goals or objectives. As per Darbi (2012), the decision of top-level management can be implemented efficiently in positive organisational culture. The negative behavior of employees can adversely affect the productivity of other workers. For example, the negative conduct of an employee leads to conflict or dispute between the worker which reduces their productively. The disagreement between employees can lead to trade dispute as well, in which workers stick or raise demands to continue their work. The management can establish a cooperative environment to influence the employees' behavior positively, and proper settlement of dispute leads to employee’s satisfaction.

Solutions for challenges faced by modern corporations while managing employee’s behavior

Following are few challenges faces by modern corporations while managing their employee’s behavior.

A cynical and uncooperative working environment can discourage the employees from performing better. As per Hacker (2017), management face difficulty while establishing a corporative situation because people have different attitude and background. Many people did not prefer diversity in the workplace which leads to dispute between workers. The personal conflicts of employees also lead to an uncooperative working environment which is complicated to be resolved by the management.

According to Robbins and Judge (2012), with the advancement of technology and modernisation, the diversity became issues in modern corporations. Most of the company hire talents from different countries and different backgrounds. The employees find it difficult to settle according to corporation’s culture which adversely affects their work. Many employees did not welcome or behave negatively with employees with a different background which creates a dispute between employees, managing the diversity is one of the critical problems for modern management in companies.

Pinder (2014) stated that motivated and enthusiastic employees perform with their best capabilities which improve the performance of a company, but it is difficult for management to motivate their employees. Most of the employees did not have common interest as the company which is why they did not give their best while working. The lack of motivation can discourage the employees from performing better or improving their work.

Every corporation has negative workers who are difficult to identify, but they can adversely affect the behavior of other employees. The negative employees continuously complain to their co-workers regarding their mistakes. According to Chiang and Hsieh (2012), many of them start rumors or spread gossip regarding other employees which leads to conflict between the workers. They criticise the decision of superior management and find problems in corporation’s environment. Many of the employees have an aggressive attitude; they prefer to fight with other employees based upon their mistakes.

The Proper communication channel between management and employees are necessary for efficient working. As per Gallois and Giles (2015), the lack of an adequate channel for communication leads to employee’s dispute because the employees are not able to share their ideas or concerns with top-level management. Slow communication channels are equally bad for employee’s behavior, for example, if an employee has a problem in the workplace, and he told his supervision about it. The long-time taken by the supervisor to share such issue with mid-level and then top-level management can cause employees to respond negatively to the problem. The conflict between employees increases with the longer time taken by the administration to stop it.  

Following are the solution for the problems mentioned above that faced by a company while managing their employee.

Jerome (2013) stated that the lack of motivated employees could reduce the development of a company. The management can establish an effective reward system which assists in the motivation of employees. The administration can use Maslow’s hierarchy of need theory to prepare a reward system according to their employee’s requirement. The categorised the employees need into five sections which include, physiological, safety, belongings, esteem and self-actualisation needs. The management can analyse their employee’s needs and provide appropriate rewards to fulfill such requirements which motivate them to perform better.

For example, the low-level employees can be satisfied by physiological needs such as money and better-working facilities. In case of mid or top-level management, the company is required to provide other non-monetary rewards such as appraisal, cooperative environment, personal growth, and development to satisfy their needs. Better future opportunities motivate employees to perform with the highest productivity to achieve the given targets.

Establishing an efficient communication chain can allow employees to share their concerns and ideas with the top-level management which can improve their behavior in the organisation. The company can implement various methods to improve the communication such as hold regular staff meeting in which the employees can share their problems with management and resolve such issues. For personal or private conflicts, the managers can conduct a one-on-one meeting which settles the dispute between employees by establishing a common ground. An open door policy can motivate employees to share their concerns instead of unconsciously acting on such issues (Paulraj, Lado, and Chen, 2008).

A company can establish proper diversity regulations to ensure that people with different backgrounds are comfortably settled in the corporation. As per Brooks (2009), the company should create appropriate policies for foreign employees to ensure that they did not face any difficulty in the workplace. Strict diversity regulations should be established to provide that no discrimination and prejudice is happening with the diverse employees, any biased behavior should be punished accordingly.

The culture of a company says a lot about its working environment; the management can establish a positive culture to ensure the friendly employee's behavior. Awadh and Alyahya (2013) stated that the culture includes beliefs and value of a company which is mandatory to be followed by every employee. Effective implementation of organisational culture can assist management in establishing a cooperative writing environment between the employees.

It is necessary to conduct a one-on-one interview with the negative employees to safety understand the reason behind their negative attitude. As per Heathfield (2017), the manager can inform them regarding the damaged caused due to their negativity but ensure that employees did not become defensive. The manager should ask the employees regarding any personal event which is causing them to act negatively in the workplace. The manager should provide a solution for their problem of employee and focus on positive aspects of their life. The manager can complement or reward the employee to ensure their positive behavior in the future.

Conclusion

In conclusion, the employees are considered as a soft asset of a company which can direly influence the performance of an enterprise. The behavior of employees can adversely affect their productivity and management faces different issues while maintaining their employee’s conduct such as diversity issues, lack of communication, and negativity in the workplace, demotivation, and lack of cooperativeness. The management can apply various theories to positively influence the employee’s behavior such as establishing reward system, better communication channel, reducing negativity, strict diversity regulations and positive organisational culture. The solutions can benefit the company into improver their employee’s productivity which eventually increases their development.

References

Awadh, A.M. and Alyahya, M.S., 2013. Impact of organizational culture on employee performance. International Review of Management and Business Research, 2(1), p.168.

Brooks, I., 2009. Organisational behaviour: individuals, groups and organisation. Pearson Education.

Chiang, C.F. and Hsieh, T.S., 2012. The impacts of perceived organizational support and psychological empowerment on job performance: The mediating effects of organizational citizenship behavior. International journal of hospitality management, 31(1), pp.180-190.

Chun, J.S., Shin, Y., Choi, J.N. and Kim, M.S., 2013. How does corporate ethics contribute to firm financial performance? The mediating role of collective organizational commitment and organizational citizenship behavior. Journal of Management, 39(4), pp.853-877.

Darbi, W.P.K., 2012. Of mission and vision statements and their potential impact on employee behaviour and attitudes: The case of a public but profit-oriented tertiary institution. International Journal of Business and Social Science, 3(14).

Gallois, C. and Giles, H., 2015. Communication accommodation theory. The international encyclopedia of language and social interaction.

Hacker, S., 2017. Pleasure, power and technology: Some tales of gender, engineering, and the cooperative workplace (Vol. 5). Routledge.

Heathfield, S., 2017. How to Manage a Negative Employee. The Balance. Retrieved from < https://www.thebalance.com/how-to-manage-a-negative-employee-1918785 >

Jerome, N., 2013. Application of the Maslow’s hierarchy of need theory; impacts and implications on organizational culture, human resource and employee’s performance. International Journal of Business and Management Invention, 2(3), pp.39-45.

Paulraj, A., Lado, A.A. and Chen, I.J., 2008. Inter-organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer–supplier relationships. Journal of operations management, 26(1), pp.45-64.

Pinder, C.C., 2014. Work motivation in organizational behavior. Psychology Press.

Robbins, S.P. and Judge, T., 2012. Essentials of organizational behavior.

Wood, J.M., Zeffane, R.M., Fromholtz, M., Wiesner, R., Morrison, R., Factor, A., McKeown, T., Schermerhorn, J.R., Hunt, J.G. and Osborn, R.N., 2016. Organisational behaviour: Core concepts and applications. John Wiley & Sons Australia, Ltd.