Organizations throughout the world are undergoing extraordinary change. Advances in information technology, the changing labour force, and global competition are affecting the way both small businesses and large corporations operate. And the changes are not restricted to the private sector. The move towards privatisation means more governments are adopting practices previously the preserve of private industry. Contracting-out services and the formation of new business alliances must be managed effectively.
The globalisation of world markets is facilitated by the ease with which buyers and sellers can now find each other. Never before has the communication technology been in place to aid business transactions on such a scale, and this technology is set to become even more sophisticated in the future.
There is no doubt that a system for rewarding performance can be a very powerful motivating tool to improve productivity, quality and overall teamwork. Yet most reward systems are geared around a few individual managers rather than encouraging a philosophy of one team, one direction and improvement of the overall system. As global competition intensifies, a real opportunity for competitive advantage exists through the encouragement and development of the capabilities of all employees in the service of the organization.
Rewards in the form of money, other tangible items and recognition are integral to motivating individuals and teams to sustain the highest levels of performance. Despite this, the financial and non-financial reward systems in many organizations bear little relationship to the motivational needs of the employees.
Its the workforce, stupid!
Sacher Associates has identified what we call the ten essential components of team performance.
These are: a unified sense of direction, strategy, outputs and performance measures, targets, performance feedback, communication, skills/knowledge, systems and processes, structure and job design and reward systems. These components are what we have been discussing in my blogs, one a month, from February to November.This month is about the implementation of these essential components.
While it is true that organizations are always working with these components to some extent, this is not enough. What really matters is the degree to which these components are being successfully and permanently entrenched in the work environment or culture. This is directly correlated with the highest levels of employee performance and job satisfaction.
Guidelines for organizational restructuring.
You better be lean before you play these games. Jack Welch
In our experience, and without any shadow of doubt, the number one pitfall in organization design is changing organizational structure before the four golden guidelines I cover in this blog have been addressed. The processes contained in the guidelines need to be comprehensively completed before any restructuring takes place.