Communication and behavior

in organisation
Workshop 2 + 3

Driving organisational performance through people

MA. Nguyen Thi Trang Nhung

Email: [email protected]
 Objectives
L • Discuss why people are an important resource that
should be understood and measured.
O
1
• Exploring the role of Human Resources play in
L maximising the contribution people make to
O organisations.
2
L • Explain why successful organisations need to have
a range of performance measure in place
O
3
 WHAT IS ORGANISATIONAL
PERFORMANCE?
A complex relationship involving seven performance
criteria: effectiveness, efficiency, quality,
productivity, quality of work, innovation and
profitabity
(Rolstadas, 1998)
Performance should consider quantifying the
efficiency and effectiveness of actions (Neely, 2002)
“Performance management is a complete process
which throws light on the overall organisational
performance to the departments and at the
employee’s level” (McNamara, 2006)
 Group Activity

• https://www.youtube.com/watch?v=9M8Z6W
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• https://
www.youtube.com/watch?v=xSsuG1xaQfE
• https://www.youtube.com/watch?v=fpfC2pA
DWOg
 Group Activity
• Brain storming: Mind map

Organisational performance
Performance management
 Task of the week
Write a short reflection (in one page) for the
question below:
• What have you learned from the chapter?
• Here is the link:

https://pressbooks.senecacollege.ca/organizatio
nalbehaviour/chapter/chapter-8/
 Multidimensions of Organisational
Performance
• In recent years, organisations have
attempted to manage performance where it
can be measured in areas such as:
Financial performance (e.g. shareholder
return)
Customer service
Social responsibility (e.g. corporate
citizenship, community outreach)
Employee stewardship
 Introduce yourself
GROUP ACTIVITY:
• Which organisations have you worked
for? Or you wanted to work for in the
future?
• Were/are they good to work for? (why
or why not)
 People and organisations
• All organisations rely on the avaibility and
effectiveness of three kinds of resources: finance,
technology and people.
• Human Resources (HR) are almost always the key
ingredient for organisational success.
• People are the most unpredictable factor, and often
the largest ongoing cost factor. They may also be the
most valuable asset in any organisation.
• Both the nature of work and workplaces are
currently transforming.
 The Strategic View of People
• Employees are human assets
- Increase in value to organisations when
investment of approriate policies and programs are
applied.
• Effective organisations recognise that employees
have value
- Much as organisations’ physical and capital
assets have value.
• Employees are a valuable source of sustainable
competitive advantage.
 Zappos
MO315: Zappos Strategic HR – YouTube
• In groups of 4 and 5 discuss the following
question:
What are the key lessons we can learn from
Zappos about people and organisations?
• Elect someone to report the highlights back
to the class
 Driving Performance Through
People Management
• Getting people management right is vital in driving
long-term performance for an organisation.
• Five key insights for HR practitioners to adopt that
support/drive organisational performance:
- Anticipation
- Organisational Values
- Alignment
- Simplicity
- Sustainability
 Employee Value Proposition
Employee Value
Proposition is an
ecosystem of support,
recognition, and values
that an employer provides
to employees to achieve
their highest potential at
work

6 Steps to Build Your Employees Value Proposition (haiilo.com)

(Bin, Klein & Whitworth, 2020)
 The HR Paradox
Human capital is amongst the most
strategic assets in any organisation, yet
HR struggles to quantify its impact on
organisational performance. 42% of
global companies report that the impact
of HR operations on company success
is “weak”.
 The link between Organisational
Performance and People
• High-performing organisations are better
places to work because people are more
satisfied with their working conditions, more
engaged with their organisation and generally
happier at work. High-performing managers
see that helping staff reach their full potential
while achieving the organisation’s aims is good
for people and good for business.
 High Performing Workplaces (HPW)
• High-performing workplaces (HPWs) differentiate
themselves through the value-adding performance of
leaders and managers at all levels.
• They understand the bottom-line value of investing a
significant proportion of their time in people.
• Their value is strongly associtated with attention to
the organisation’s intangible’s assets such as:
- Culture, morale, staff skills and innovation capability
- Financial and other quantitative measures of
performance
 What Do High-Performing Managers Focus
Their Attention on?
• Where the day goes
 Time allocation
 Personal agenda reflects the key objectives
• Focus on people
 Employee engagement and staff satisfaction
 Plenty of informal performance feedback
• Communication matters
 Consult with staff
 Masterful in effective communication
• Cultural considerations
 More than ‘the way we do things around here’
 Cultural is continually evolving
 Performance Through People
Seven steps to Performance Through People
1. Leadership that moves people
2. People relationship management
3. Alignment and communication
4. Training
5. Rewards and recognition
6. Measurement
7. Technology
 High-Performance Workplace
GROUP ACTIVITY:
Come up with at least one high-performance
workplace and discuss why you have selected it
Looking at Organisational Effectiveness
• Helicopter View
- Ability to rise above the specifics of a
particular situation and to see it in its overall
context and environment
• Binocular View
- Ability to focus more narrowly, segment by
segment, but in greater detail
 Measuring People’s contribution
• Measurement is not solely the domain of
finance and accounting.
• Understanding the ROI of human capital helps
to determine how to invest most effectively.
• Use metrics and analytics to help predict how
people contribute to organisational
performance and to manage organisational
talent.
 Role of Metrics
• Quanlitative Measures of the cost or benefits of
aspects of HR processes.
• Measurement standards and benchmarks.
• Important to a range of stakeholders for
different reasons.
• It is a complex task
• There are issues of causality
• Pitfalls include linkage, lack of understanding of
value, and difficult to implement measures.
 Measuring Productivity and Success
1. Balanced Scorecard (BSC)
2. Management by Objectives (MBO)
3. Measuring Productivity Quantitatively
4. 360-Degree Feedback
5. Measuring Sales/Service Productivity
6. Time Management Productivity
7. Measuring Productivity by Profit Measusing
Productivity and Success is a continual process-
not a one-pff
 Balanced Scorecard (BSC)

Balanced Scorecard Basics - Balanced Scorecard Institute

 Advantages of BSC

Advantages of Balanced Scorecard within Your Business - Latest Quality

Management by Objectives (MBO)
• Performance management seeks balance
between the objectives of employees and the
objectives of an organisation

Management by Objectives (MBO) - Overview, Steps, Benefi

ts (corporatefinanceinstitute.com)
 360 Degree Feedback
• In 360-degree feedback, the peers, subordinates and
managers (and often the clients- depending on the
industry) fill in a questionnaire describing the employee’s
performance

How to Implement an Organizational 360 Feedback Initiative | CCL

Measuring Organisation Effectiveness?
• Group Activity
In groups of 4 or 5, using Zappos as an
example:
Discuss how you could use the tools we’ve
discussed to measure their effectiveness
 Measuring Organisation Effectiveness
• Lagging indicators
• Leading indicators
• Measures and plans
• Is the real purpose engaging people
 Other HR Measures
“Efficiency is doing the thing right; effectiveness is doing the right thing.”
Doing the right thing at the right time and having people responding in a
positive way is a win-win-situation. (Drucker, 2006)
Table 1: HR measures

Contributed by Potgieter and Peter Vlant, peoplestreme.com

 HR Measures
• Group activity
Select TWO of the HR measures and discuss:
What the measure means?
How is it calculated?
Why is it valuable?
How can it be implemented (and monitored)
within an organisation?
 Video- Employee Turn Over
• Minimizing the Cost of Employee Turnover - Yo
uTube