The organizational performance
is achieved with innovative methods under the improved Human Resource department. Better resources yield productivity and engage employees. The innovative workplace provides new opportunities and highlights the productive ventures in the market. Employees’ performance is attributable to the prevailed practices in organization, systematic handling, and innovative technological frameworks. Innovation in management processes influences the overall performance of the organization. Though it is a complex process, it attains improved productivity by motivating the workforce. Public organizations always work to implement better methods of productivity and innovation in the workplace. The broader aim includes the quality of products and services to generate positive outcomes. The change is always specific for programming, HR management, and problem identification in an organization. The human resource department uses innovative technology in recruiting and training employees. The same notion is analyzed in this research study.
Innovative organization psychology drives organizational performance. The current research study aims at discussing innovative techniques employed by human resources to replace traditional ones, hence attain organizational performance. The hypothesis of the study is to find out the role of performance management through commitment and encouragement to achieve the objectives of the organization. The null hypothesis states the relationship between motivation and technological advancement. The study used a qualitative approach to understand the relation of innovation and organiztiaon. A significant relationship is found between motivation and technological advancement, while innovation is also positively related to the performance of the organization.
Chapter 1- Introduction
Over time, the dynamic, competitive environment of market places shifted the human resource managements’ approach from traditional to the innovative one. Human resources and capabilities considered as the strength of the firms’ competitive advantage in the market and regarded as the asset. The efficient human resource in an organization contributes significantly tothe high competitive advantage a firm would have in the marketplace. From the project managers’ perspective due to the significant role of the human aspect of a project, considering the individuals’ potentials enables them to get closer to success.
As such, the study on methods to improve the employees’ performance at work has been addressed from different perspectives by academia so far. Through the lens of work and organizational psychology, individuals well-being and performance at work are the multidimensional concepts that cannot be described through a singular dimension. The innovative psychological approach requires a movement from the narrow concentration on the negative feelings to the positive psychology, which introduces a more balanced-account of well-being and performance at work.
HumanResource Management (HRM) has been evolved by the contribution of work psychology to come up with the new mechanisms which bring about the achievement of organization’s performance by improving the individual’s performance and increasing their engagement. The classic approach towards employees’ performance was based on the passive role of the employee;however; the new perspective concentrated on the active partof employees at deciding on the organizational, societal and managerial initiatives. The innovative organizational psychology put their efforts on explaining the existence of a link between the improvement of employees’ performance, which directly leads to the advancement of an organization’s performance as well.
Related to the innovative and the new psychology of work is also exploring the influence of technology on the return, and feeling of individuals at work. By the emergence of modern workplace technologies, a new question has been raised, for instance, how robots behave as a member of a team, how social media may affect the performance of individuals within a company, or how new technologies may influence the role of human resources. These concerns engaged numerous scientists, the practitioners, the managers, the students, the HR managers, the project managers to work on the socio-technical management system. Technology affects the three aspects related to employees’ performance; those affecting dimensions are their motivation, functioning, and well-being. An organizational psychologist argues under the socio-technical management perspective that how even a simple technological intervention can negatively or positively affect people’s satisfaction, productivity, and well-being.
This study intends to look into specific innovative themes that are worth considering to explain the future direction of human resource management.
The question this study is going to address is how new phenomena like new technologies and innovative organization psychology approach make the traditional human resource management perspective to move away? And how the emergence of new sciences like talent management might contribute to exploring the relationship between the individuals’ performance at work and the organization performance.
New performance management mindset encourages motivation and commitment to achieve organizations’ objectives, alongside with this, according to positive psychology movement, we believe that organizations might go further to produce more innovative outcomes rather than the traditional ones.
Chapter 2- Literature review
Evelin Priscila Trindade et al. (2014) addressed the relation between individual well-being and performance at work. The authors take into account organizational psychology. As a starting point, they look into the development that the concepts have had over the past decades. They believed that the field of work and organizational psychology and the study of individual well-being and performance is indeed a highly dynamic research area. As a conclusion, they explain how the work-related well-being influences overall life well-being or can be considered as general well-being in life that contributes to the survival and resourcefulness of the individual.
Thomas A Wright & Russell Cropanzano (2000), discussed the concept of psychological well-being and job satisfaction as predictors of job performance, they first discussed the tradition perspective concerning the link between the happiness and the job satisfaction, they believed that as long as job satisfaction is limited to one’s job, it does not include the aspect of individuals’ life outside of work, the fact is as authors claimed the psychological well-being in which the happiness considered in a broader sense rather than job satisfaction would refer to employees’ life in general.
Michael D Coovert& Lori Foster Thompson (2014), researched on the influence the new technologies might positively or negatively have on the worker’s motivation, functioning, and well-being. Ethical debates have always been a center of attention concerning the maximization of person-job fit through the scientific selection and placement techniques, by the advancement of the new technologies the workers not only might benefit from technologies to learn new knowledge and skills but also to gain new abilities. One aspect of the recent era as an innovative technological epoch is social media and the new communication method between workers through social media and how would be the effect in general.
Nik Chmiel, F Fraccaroli& Magnus Sverke (2017) moved away from the traditional approach towards the workplace and discussed the modern and up to date work and or organizations mindset relied on psychology rather than management center stage, what they are examining in their book is how managers, coworkers behave and organizations function. From their perspective, it is important to study the contemporary organizational life and search for the answers to the concerns concerning how people think, and behave when they are doing their jobs. Their method is based on the science-based, and systemic research, by taking into account the evidence relating to working conditions and organizational function.
Nicole Renee Baptise(2007), discusses on existing work of HRM and advance the arguments for establishing the linkage between HRM practices, employee wellbeing at work and performance in the public sector. The author works on improving individual and organizational results through enhanced efficiency and productivity.
As a starting point, we will first look into the concept of performance at work, and then we will examine different factors that are used to measure the workers’ performance. In the second part, we will discuss the impact of technology inthe workplace. Meanwhile, we are explaining the efforts of well-known firms that are considered as successful cases that improved the performance of their employees at work.
Performance at Work
Performance at work has been defined as “the work-related activities expected of an employee and how well those activities were executed.”
Measurement of performance has always been debated, some authors believe that the measures are not objective and it depends on the purpose behind the analysis, and the factors are not necessarily externally defined, as such, they argue that the concept of performance needs to be operationalized first. What has made the job even more confusing is that the idea has heavily related to the cultural differences, and recognizing the socio-political contexts in which the performance is considering. According to management literature, there are five reasons for measurement of performance. (1) sometimes organization wants to analyze that how they get to the point that they are at present, it enables them to forecast the parameter values used in the decision analysis model, and their reward system for the future.
(2) The need to understand the present status sometimes requires that the firms measure their potentials for more ambitious achievement for the future.
(3) Then they will flowingly sketch a plan towards their objective that they want to achieve. They define where they want to go, and what are their targets.
(4) After identifying the goals, it is time to measures the tools to reach them, the question of how a firm is going to get there. The tests enable them to manage the budgeting, and to plan their activities, and then to maintain their continuous improvements.
(5) the last reason behind the measurement of performance at work is evaluating how an organization knows that they got there.
To address each reason, in each stage, the measures must be created for different users and different Causes. For managers, the purpose would be for the learning and self-improving, for supervisor, the causes are for integration of internal measures to achieve the overall organizational achievements, they also consider the tests to monitor how activities are moving forward by workers, last but not least for adjusting the internal reward system. For all other actors in the organization, it is about having a sense of belonging and continuous improvement.
A performing business is the achievement of the targets set by managing the organization. However, as mentioned before performance is not a such a concept can be defined objectively, most of the authors started from the conceptual definition, as such, performance for them is about the capability and future. However, when we were talking about the measures, it was all about the data related to the past to evaluate the future. There is a contradiction here, at one hand the data are accumulated about the history and then turned to information when decision-making models use them, and on the other hand, information based on the past data is only enjoyable as long as it helps the management committee to forecast the future, and plan for the improvement of the firm. If we believe that performance is about the future, then to enjoy the performance management, we need first to explore what causes production. Based on the traditional definition of performance is accounting, performance is all about the amount of net income. Or in other words, the difference between sales and costs, however, the point is that sale itself is the result of different elements of performance like customer satisfaction, quality, delivery, innovativeness, flexibility, and costs. Costs per se also arethe result of processes concerning the knowledge of markets, social relations, the relation between different actors, etc. Therefore, performance might be defined in any of this level. Conceiving the fundamental processes of performance would be the stepping stone to determine the measures that lead to actions. Based on this understanding then we can come to the new definition of performance that is all the effort to utilize the potentials and manage well the levels in any stage of a process to attain the objectives of an organization considering the constraints and the situation.
The concept of employee engagement has attracted authors’ attention over the last years in performance literature. It has been claimed that employee engagement is a key to n organization’s success and competitiveness. It is claimed that engagement is significant for the firms to face challenges they are facing, as such, employee’sinvolvement has been considered as an element to gain a competitive advantage for firms in marketplaces. Researches have shown that those firms that have at least 25% of their employees’ engagement, they have a higher return on assets, profitability, and the value of the shareholders are higher. Surprisingly, notwithstanding the considerable advantage of engagement, today,commitment is on the decline. For example, half of America employees in their workplace are not engaged; this phenomenon is called “engagement gap” that costs almost loss of 300$ billion a year in terms of the firm’s productivity.
Considering the significant effect of employees’ engagement to an organization, the efforts have been dedicated to finding a solution to promote the employee’s engagement. Besides the organizational purposes, the employee’s commitment has both psychological and behavioral effects as well. From the psychological perspective,participation would bring energy, enthusiasm to a workplace for employees. Engaged employees feel a connection to the works; a term has been coned concerning this concept which is “the harnessing of organizational members’ selves to the work role”; in such engagement, individuals are expressing themselves physically, emotionally. Through the process of engagement, not workers are having high levels of energy; they define themselves and recognize their identity in their works. In other words, engagement can be defined as the psychological, physical, and emotional presence of an employee at the workplace. When workers are wholly present at work, they are more attentive, enthusiastic, integrated, and connected to their roles.
However, there is not still an agreement on the concept of engagement and the necessity of research on it. It has been criticized that there is not a clear distinction between engagement and other concepts, like job satisfaction. Like the concept of performance at work, participation also is difficult to define or measure. Some theories have been developed so far to propose a framework to enhance the workers’ engagement. Looking into the fundamentals of employee’s engagement, psychological meaningfulness, psychological safety, and mental conditions are essential concepts to strengthen engagement. Psychological meaningfulness will be achieved when individuals feel that they are useful, worthy.
Psychological safety is about the secure feeling of being in a role without fear of damage to stats, or career.
Psychological availability links to the physical, emotional availability of workers in their role. Consequently, the three concepts of meaningfulness, safety, and accessibility were significantly linked to the idea of engagement.
One of the essential factors in deciding organizational success is wellbeing at work. Healthy employees are playing an important role in the efficiency and profitability of a firm. All businesses try hard to be in a healthy decent condition, and if their employees are not in an acceptable state of health and wellbeing, this is unlikely that such employees contribute to the success of the organization. Due to the importance of the wellbeing of employees, a lot of researches have been dedicated to making clear the relation between HRM
practices, employee wellbeing, and performance relationship. Despite the importance of the employee’s wellbeing at work, there is still little evidence that attention has been paid to the link between employee wellbeing and performance in the public sector. Wellbeing at work has defined as “overall sense of the happiness, physical and mental health of the workforce,” related to this is also the concept of job-related wellbeing that is, “individual’s feelings about themselves about their job.”
Job-related wellbeing refers to people’s satisfaction with their jobs in terms of the payment, the relation among colleagues, relationship with managers and supervisors, and also is related to the overall condition of workplace including job security, training, and last but not least, it is about the nature of the work. Most of the authors believe that the concept of well-being at work is an indicator of showing the physical and mental health of the workforce. Accordingly, well-being is related to the condition of working in a stress-free and safe environment. An exciting work environment which is rewarding, stimulating, and enjoyable contribution to the well-being of workers at work. A lot of research has been done concerning people’s sense of wellbeing or distress from economics, sociology, and psychological perspective. To assist the employees with their wellbeing at work, employers thrive on making an environment for employees to flourish and use their full potentials for the benefit of themselves and organization as well.
In many studies, well-being is measured by the relationship between HRM and happiness. A positive correlation has been found between high-performance, and commitment work systems, and organizational performance. Work systems also have been indicated as an element of satisfaction and organizational performance. In terms of the relationship between HRM and happiness or organizational achievement, although some studies show a positive association between HR practices, happiness, and organizational performance, most of the studies found a non-significant connection between happiness and organizational performance.
Besides happiness well-being, there is also relationship well-being. By relationship well-being, we mean relationships between employees, a few studies establish positive relationships between these two elements. The prominent result of such studies shows that high-performance work practices or helpful employment are linked with trust, a generally pleasant atmosphere at work. Overall conclusion in terms of the relationship between HRM with different aspects of employees, well-being shows a positive correlation.
Health-related well-being, there is also some research studies conducted so far to explain a health-related component. Data show a negative relationship between HRM and health-related well-being. Surprisingly, while studies show the positive association between healthy workplace and reduced stress, there is no critical link between health-related well-being and organizational performance.
The Organizational Health Framework
The organizational health framework is a theory based on the fact of how key individual and organizational elements interact to determine employee well-being and corporate performance.
Unfavorable work experiences or “stressors” are expected to cause employees’ pressure, which is a manifestation of negative psychological responses to stress. According to research studies that have been conducted so far, pleasant work experiences, positive emotional responses, have been shown to influence individual well-being outcomes. Adverse or unpleasant work experience does not necessarily result in stress. However, there is a possibility that people’s perception of unpleasant experiences caused by lack of positive work. Besides such results, there are also some debates that employees’ stress is their problem rather than a corporate issue, but stress researchers proved that there is a link between occupational stress and organizational performance outcomes. One aspect of the study is what is the indicators of occupational stress, corporate climate, organizational climate, positive and negative work experiences. The correlation of the elements is shown below.
According to the organizational health approach, it is not enough if occupational well-being being examined itself, professional well being must be study in connection with the outcomes that might affect the corporate performance. The organizational health framework above shows that there is a relationship between the individual and corporate features on the one hand, and occupational well-being and organizational performance on the other side. According to this theory, occupational wellbeing includes both emotional and cognitive elements. The emotional components are morale and distress. The cognitive component is related to job satisfaction and employees’ judgments about their levels f satisfaction with their work.
From a theoretical perspective, the cognitive dimension of individual wellbeing more strongly has an impact on judgment-related outcomes in the workplace, for example as the decision to quit the job, while the emotional parts are linked to emotive-related behaviors such as organizational withdrawal, harassment, unwise behaviors. According to quality of life research studies, two emotional factors – distress and morale, make direct contributions to overall employee wellbeing. However, based on this model, employees characteristics are the prominent determinant of individual distress. Corporate atmosphere is also the strongest element of individual morale. Stress management intervention that focuses on teaching employees how to cope with their stress is a method which has been neglected from the corporate management point of view.
Psychological well-Being (PWB)
Impact of PWB on Individuals
Well-being compasses three-part: physical, social, and psychological well-being (PWB). PWB is the essential facet of well-being; work has a direct impact on PSW, rather than physical or social aspects of well-being. PWB is much similar to other terms that are regarding the positive mental states, including happiness or satisfaction. Thriving people are those who are standing in a good state of psychological well-being; which means they have control over their stresses and are successful in keepinga positive attitude, the other factor is physical well-being, which is linked to the amount of exercise, sleeping, eating and drinking habits; the last indicator of growing individuals is the status of their social well-being, which is regarding how their social network is supporting.
Although the concept of PWB is close to the satisfaction, the idea of “job satisfaction” or “motivation” is not quite the same as PWB. Job satisfaction is about how satisfied a person is with their roles or job; job satisfaction is a factor to measure the PWB; however, there are some cases that an employee might be delighted with his career, but feel frustrated with his or her relationship with their colleagues, or the quality of the management and supervision. The same goes with the concept of “motivation” as well, an employee might be very energized and motivated about his or her job, because they feel that what they are doing is essential, and they do not want to let people down, however, for some reasons like lack of resources or unreasonable workload they might feel frustrated.
Research studies have also illustrated that the higher levels of PWB are linked to higher levels of remuneration, more successful marriage and friendships and better health, and last, but not least it is also connected to the better work performance. The first question that comes to minds is whether PWB is the reason for bringing happiness or feeling of joy cause PWB. In order to find the answer there are a lot of cross-sectional studies that have been done, and the most of them produce the same conclusion: the greater general feeling of happiness is connected to the better results on the life factors; for instance, people with higher PWB come out of better in three primary life domains (work, relationships, and health). In the relationship between health and PWB, the question is how people with higher PWB live or behave to protect themselves against illness. Some efforts like not to smoke, doing exercises, take care of sleeping habits are all the measures that one can tackle to get closer to the higher PWB. In addition to this is the link between the higher PWB and life success, as some authors have discussed so far, higher PWB is associated with a set of behaviors and psychological processes that are associated with success.
Grounds of PWB
It has always been debating what factors will influence the levels of PWB? Most of the scientists believe that is the mixture of both genetics and environment. The genetic will affect PWB through the characteristics of each person. Our genes help to determine our personalities, and our characters account for the level of PWB. Personality partly is inherited which has an impact on the level of PWB, some personality factors including openness, conscientiousness, extroversion, agreeableness, neuroticism are linked with PWB, but among these factors, stability, and extraversion
are more connected to having a higher PWB.
Some scientists (Alexander Weiss 2008) started a series of research studies on 973 pairs of twins and focused on the link between genetic factors and PWB. The result of research has illustrated that all the resolution of changes based on genetics in PWB were justified by the variation in characteristic elements. In other words, our gens would affect our personality, and our nature would affect out PWB.
If we believe that PWB is entirely determined by personality, then it means that other factors like daily experiences and events have no impact on PWB, and the inherited factors determine the PWB. However, such an interpretation is not alright personality affect out PWB partly. Other factors related to what we are doing or how the environment is also affecting the PWB. Among all the environmental factors, work is one worth considering.
Work is crucial for almost everyone, unemployed individuals are facing the lower level of PWB, and as soon as they find a new job, the level of their PWB is moving back toward the point which is called “set point,”which is the average level of PWB. There is a reciprocal relationship between work and PWB, work is essential for work, and work is important for PWB. Being jobless would have the upsetting and negative consequences for people, and also some work is unhealthy and cause damage to the level of PWB. However, in general working is suitable for people and it has been illustrated that it will create mental balance, and would prevent depression. Having income give people the bargaining power to have access to goods, and services they need, which bring them both the essentials and the pleasure of life. Besides the financial aspect of working, a good job provides more than economic reward; it would give motivation to individuals, give them purposes, and also make their lives disciplined. These are the other two essential factors of PWB — a sense of purpose and meaning. Interaction with other people at work is one of the factors account for their well-being. Consequently, people with higher PWB are better employees and would bring more top benefits to their firms as well.
Impact of PSW on Organization
All the facts explained earlier was about the level of PSW for individuals, and as a result, it has been described that higher PWB is about the life success, better health, better relationships with others, and now in the following section, we will explain how PWB contributes to the performance of an organization.
Research studies have shown the links between the various aspects of the psychological climate in an organization and productivity. Over time some specific factors have taken into account to examine different aspects of company climate to see how productive a firm is. The said factors are supervisory support, concern for employee welfare, skill development, effort, innovation and flexibility, quality, performance feedback, and formalization. Case study of manufacturing industry shows that they benefit from the well-being of their employees. The point is based on the industry the whole scenario would be different. People who work in service industries are facing different kinds of challenges. In other words, in any position that employees are dealing with customers, they might encounter the customers who are irritated or angry, sometimes employees to satisfy the customers’ needs have to do taskswhich are outside of the scope of their regular job. Such kind of behavior considered as good “organizational citizenship.” There are some examples that a simple problem in the workplace took a long time to be fixed, and business ‘leaders might never link such issues to the well-being of their members.
According to studies, customer satisfaction and service quality have also been shown to be linked to employee well-being. Among different factors like productivity, customer satisfaction, patient care, and service quality and PWB, it is perhaps not that much surprising that PWB has highly linked with the efficiency and outcomes for organizations. And also, research studies show that PWB is directly correlated with a performance at work.
Based on the studies, there is a direct relationship between the positive psychological well-being and productivity, an increase of one point on the PPWB scale shows an increase in productivity as well. In addition to this, the study of 8000 separate business units in 36 companies shows that there is a significant relationship between well-being scores on an employee survey and business unit level outcomes, such as customer satisfaction, productivity, profitability. Besides that, there is also a link between PWB and employee engagement.
There is an immense amount of research offering support for the idea that organizations in which employees PWB is higher will get better results. In other words, a higher level of PWB iswholly linked to the essential organizational benefits. However, the main question here is how such a relationship works?
A study conducted in the UK across 15 different organizations ranging from pubic to private ones, a version of a well-being survey has been offered. Besides the links between PWB and important organizational outcomes, research of this kind has also looked into the impact that key workplace factors have on the psychological health and well-being state of a company. This kind of studies brightens the path for us to conceive what workplace factors accurately might drive levels of PWB. And consequently for sure is answering the question that a high level of PWB leads to better outcomes for organizations. Through the research conducted, researchers develop a clear idea of the factors in the workplace that have an impact on PWB. The first factor is the demands placed on people at work.
When employees are facing extortionate demands, PWB gets likely damaged.
However, contrary to this is not right; in other words, lower demands do not necessarily mean the higher levels of PWB. For instance, in the situation that a person must go to work, but he or she has nothing to do at work. At first glance, it might be assumed that it is so pleasant for employees; however, the majority of workers won’t stay at such a work for a long time, and they prefer to work in a firm could feel useful. And this is the point we mentioned earlier, demands of work make the individuals feel worthwhile and useful. Meeting the reasonable needs at work give the feeling of satisfaction to employees. As such, the relationship between PWB and work demand is not always straightforward. It is not indeed a case that reducing work demands will necessarily lead to lower PWB. And also, organizations will not achieve good results by increasing their demands on employees. As a result, it can be claimed that reducing demands does not automatically improve PWB, and organizations also will not achieve good results by continually increasing demands on people.
When the pressure is low, performance will not be at its maximum. As the pressure increases, performance increases as well, but then when the pressure goes further to an unreasonable level, affect the level of performance adversely.
Within the global markets, the key drivers include price as well as profitability and operational excellence. These ingredients contribute towards better profitability of the company. Operational excellence, according to Pot, can be achieved through autonomous teams as well as selecting the right person for the right job. Pot provides the example of IKEA, a company that specializes in furniture and home products, that is capable of deploying its human resources in such a way that it maximizes employee performance.
IKEA staff holds a short meeting of all the departments in which they discuss what should be done and how specific improvements can be carried out. The range of spectacular processes, as well as products offered by the company, involves taking suggestions from employees, stakeholders, management, suppliers, etc. which enables them to combine innovation with inclusivity (Pot, 2011). Pot then gives the example of Philips, where innovation within the workplace was provided through the development of smart working space and by economizing on decreasing the number of offices and maximizing on the current office space, which was previously under-utilized. Cox, on the other hand, points out that to improve workplace performance, participatory innovation is required within the workplace (Cox, 2012).
Participatory innovation happens to be a view contradictory to the contemporary technocratic and traditional view of innovation as it drives experts to specific departments such as the Research and Development department. Furthermore, the concept of employee-driven innovation also happens to be connected coherently with the role of employees as mediators, innovators, as well as facilitators with the three subcategories being employee, steered innovation, employee-driven change and employee inclusive innovation (Cox, 2012).
Rout states that there happens to be a paradigm shift when it comes to employee engagement precisely in the case of the millennial workforce as it cannot be treated like the generation Y or baby boomer generation because the millennial workforce, which is the workforce born in the 1990s happen to be more psychologically driven, having their approach to productivity which means that different employee engagement programs need to be established.
In a survey collected by Rout, it was found that about 79% of the millennial workforce today would like to work with a company that is socially responsible and has its independent identity (Rout, 2017). Osmani states that traditionally performance of an organization is measured using financial indicators which include growth rate as well as earnings, however, when it comes to non-financial elements, employee performance happens to be the most important indicator, and the factors which contribute towards it include turnover rates, job satisfaction, quality as well as productivity.
Thus to obtain a competitive edge, companies need to enhance employee performance through innovation. Innovation can be garnered when employees provide ideas for services as well as the product as it leads to better competitiveness and increases efficiencies (Osmani, 2015).Innovation for employee performance is necessary because it improves the effectiveness of work as well as the administrative process, which means that innovation increases the timeliness of the output as well as the attendance of employees on the job. Thus to incorporate innovation within the performance management approach, the managers need to acquaint themselves with innovation management (Osmani, 2015).
Innovation management refers to the introduction of new aspects of developing the business one way or the other. Ortt describes innovation management as the organization as well as governance of the innovation processes. Research and development can be considered as a broader term for innovation management. However, research and development management uses a specific approach that Is compatible with innovation management (Ortt, 2008). To improve employee performance, there are particular tools and techniques of innovation management which can be incorporated such as creating innovation strategies, ideas, and creativity, selection portfolio management, implementation management as well as human resource management.
Long-term goals, as well as decision making, is done by top managers who happen to be responsible for making strategic decisions. However, the management innovation approach has been deemed as being a significant factor when it comes to sustaining the businesses in changing markets. Senior managers are now opting for various innovative strategies to enhance employee performance to maintain a competitive edge (Yu, 2018). It is also necessary that innovative behavior is incorporated within the workplace so that sustainable development can be obtained. Research by Yu finds that when the employees trust the company they work for, they perceive that the external environment is safe and that they can take risks for the progression of the organization (Yu, 2018).
Arslan argues that there happen to be rapid changes within the global market and demands of the employees are changing which is why there is a growing need for innovation management practices as managers have to make decisions in the rapidly changing complex environment which is why it is better to improve and monitor employee performance through innovative management approach (Arslan, 2011). Furthermore, performance measurement, as well as performance management, happen to be two different concepts and should not be confused when using an innovative management approach because performance management is what the managers process and analyze when the information has been developed for measurement. This means that performance management involves using data that has already been measured. Quality management systems can thus be used for perusing innovative management practices as they ensure that employee performance is up to the mark (Arslan, 2011).
Eagar provides insight into what the future of employee performance management is going to be like and states that the next decade is going to be different and will require more innovation for global executives and markets to recognize. Thus to stay in the game, companies should adopt five primary decentralized innovation resources such as new technology-induced business venturing and development. This means that there will be efforts in the future to seek top-notch business development, which means that companies should focus on deploying employees in new business areas (Eagar, 2017).
Eagar also states that the innovation process management approach is also going to one of the top-notch trends in employee performance management in the future as the companies will require to find different ways they can manage the innovative process. This means that the new methods must be according to the creative management approach, which will enable the proper application of innovation holistically. New dimensions of change, such as frugal innovation as well as an innovative management approach, can enable a company to forge a global innovation network (Eagar, 2017). Another concept that will change the scope of employee performance is the orchestration of decentralized competence centers. This is because Eagar is of the view that companies should invest in innovation management and become more global by decentralizing their competence centers (Eagar, 2017). More investments in research and development can help develop this idea. Thu companies that want to excel in innovation management need to keep a close eye on emerging hotspots such as proactive business innovation, high speed/low-risk innovation, integrated innovation, and customer-based innovation (Eagar, 2017).
Sánchez states that it is necessary to link strategic adaptation to innovation management practices because innovation, which is a specific set of activities that provide a competitive advantage, provides an increased understanding of the capability of the company to the employees. Thus innovation can be directly connected with strategic adaption (Sánchez, 2011). Sánchez also instructs that companies should develop an innovation audit model that can help in organizational innovation management as well as good practices for determining the innovation capabilities of a firm. The concept of an innovative management approach happens to guide the employees in the right direction of the development of their profession as it helps them to identify the main barriers which hinder the plana and progression of the employees from working. This approach is concerned with setting different procedures for the employees, which they must achieve to gain better feedback on their work. Most of the innovative work is done on the ‘manager’s part for the benefit of the employee as well as the company (Sánchez, 2011).
Boukis asserts that there happen to be managerial uncertainty in the market as managing innovations tend to differ from different routine tasks that managers are accustomed to. This means that the everyday tasks which the managers have to complete cannot be compared to those that involve innovative strategies such as unstructured tasks, autonomy, and creative thinking tasks, which are different entirely from stable and standardization tasks (Boukis, 2015). Thus there can be material uncertainties, which means that creative and innovative practices are required to measure and manage employee performance. Managerial uncertainty includes difficulties and fluctuations in staffing the project team, changes in resource deployment, difficulty in maintaining administrative integrity, and co-operation with other departments (Boukis, 2015). Therefore, an innovative management approach must be used when dealing with managing employee performance.
Lendel points out that innovation management approach processes happen to be entirely up to date when it comes to discussion and recent literature. Recently, innovation has been taken as an essential technique for enhancing the performance of employees. Companies are not involved anymore in developing their innovative management approach and thus base their strategy on opinions from partners, customers as well as employees (Lendel, 2015). Thus companies are now collecting necessary support, insights, and much-needed information by obtaining knowledge from employees and exploring market opportunities. There has been increasing implementation as well as the adoption of workplace innovation practices, which the top management in companies has used for deploying the best human talent as well as organizing work-related processes in such a way that there is better performance as well as good work (Karanika, 2017). There should be culture orientation within the workplace to provide ample opportunities for the staff members to participate.
Karanika states that workplace innovation psychologists need to influence the innovative management approach. In order to do that, they must surpass the human resource management domain and become acquainted with production systems design (Karanika, 2017). Thus workplace innovation psychologists must understand the relationship between job tasks as well as operational systems and how these job activities can relate to different issues within human resource departments. This way, by surpassing the domain of human resource management, innovative organizational psychologists will be able to partake in both improving the quality of the working life of employees as well as enhancing the performance (Karanika, 2017).
It is thus imperative to broaden the horizon of innovative management approach from the immediate issues such as individual health, job design, human resource management issues to organizational strategy and innovation in marketing, production systems, design, and IT systems (Karanika, 2017). The strategies that focus on open approaches towards innovation have reached the executive agendas, according to Burcharth, and many companies tend to struggle with their implementation these days (Burcharth, 2017). This is because many innovative approaches tend to present persistent managerial issues. Once a company commits towards collaboration in the form of an innovative management approach or “open innovation,” a wide range of practices such as commercialization and knowledge acquisition can into place. These practices have become widely popular and are now recognized as a way to achieve innovative performance (Burcharth, 2017).
The overall expectation of managers when it comes to an innovative management approach in terms of performance outcomes is that there should be an accelerated internal development on maximizing profits through innovation. This method will facilitate open access to competencies, knowledge as well as resources that will enable the companies to better realize the strategic potential and monetary gain of innovation processes (Burcharth, 2017).The main secret to obtaining top-notch profits as well as prosperity, according to Burcharth, in today’s business, the environment is only through improvement in management systems and innovation. It is also necessary to prepare organizations where open innovation is reimbursed in the management processes. This can be done by building a relationship between employee autonomy as well as openness. Organizations should keep in mind that in case of collaboration with external customers such as suppliers, firms need to give autonomy to employees and make certain compromises for engaging the employees (Burcharth, 2017).
Arsalan emphasizes on the need for innovative management practices as he states that there has been a rapid change in electronic commerce as well as the private sector in which customers demand better services. Innovative management practices such as performance management and strategic planning happen to make the entire process transparent and engage the employees (Arslan, 2011).Furthermore, in order to sustain an innovative management approach for enhancing employee performance, organizations must develop a top-notch strategic plan for innovation. This is because the management of the innovative approach for employee performance within the organization poses a challenge, which is often faced by the managers of the company. Factors such as lack of innovative activities, inefficient planning, etc. tend to cause an absence of unified procedure, which causes a lack of transparency (Lendel, 2015).
Implementing innovative approach for management processes happens to be challenging for the managers because of lack of expertise on innovation, variation in the motivation of employees, lack of adequate information, failure to secure innovative knowledge and information, issues with security of the innovation process, the problem with measurement of employee performance, etc. There are also numerous factors that contribute towards the failure of management of the innovative procedures, which first includes lack of support by the employees as well as measly participation by the upper-level management, which causes indifference (Lendel, 2015).An organization should develop mechanisms for the management of innovation as Sánchez, anticipates the need for different kinds of capabilities for sustaining technological innovation such as advanced manufacturing capability, product development, process innovation as well as organizational flexibility. Thus for the implementation of an innovative management approach, the innovation strategy must include creation as well as alignment of the creative vision with that of organizational goals (Sánchez, 2011).
The business environment, according to Sørensen, is often challenged as well as fragmented by the project-based structures, which include opting for the lowest cost and high result (Sørensen, 2013). This approach often leads to a low level of innovation on behalf of management as well as the employees (Birchall, 2011). Innovation is thus no longer considered a particular task by the research and development departments, and more than 70% of every innovative approach today is derived by increments and incentives. It is thus essential to note what motivates employees to innovate when it comes to an innovative management approach for employee performance.
Innovation is not just required as a requirement just for research and development employees but is considered as an experience and approach for day-to-day practice. Hence, the employees must always be aware of innovative management techniques and should contribute towards keeping the working processes top notch. The employees should be motivated to indulge in innovative practices on day to day basis and must address operational challenges through an innovative mindset (Sørensen, 2013). Research by Sørensen revealed that human resource management and job design could have a profound effect on the adoption of an innovative approach by employees. Sørensen found that there is some indication that employees consider human resource management as being associated with commitment and ownership regarding work issues. In contrast, employees tend to consider innovative management approaches as contributing to a higher degree of motivation.
Thus the research by Sørensen reveals that human resource practices tend to have a rather positive impact specifically on innovation because a combined innovation strategy that values input of the employees as well as strengthens the innovation performance is better than traditional human resource management practices (Sørensen, 2013). This means that the routine tasks which the managers have to complete cannot be compared to those that involve innovative strategies such as unstructured tasks, autonomy and creative thinking tasks which are different entirely from stable and standardization task. The involvement of employees in an innovative management approach can be encouraged to different organizational levels, such as the promotion of employee innovation by the line manager or by senior managers. Employees happen to contribute towards the innovation process in enumerative ways, and management controlled innovative behavior can result in the development of innovative approaches, new products, better business routines, and penetration into new markets through an innovative approach. Employee innovative behavior is thus characterized by entrepreneurial as well as proactive characteristics (Sørensen, 2013).
Islami states that if the management wants the employees to perform high and be satisfied at the same time, it is necessary that the employees should have an idea as to what is expected from them and what constitutes a high performance (Islami, 2018). Management by Objectives (MBO) method, as a method for measuring performance as well as ensuring performance appraisal, can be done for enhancing employee effectiveness. Management by objectives happens to be a process that is not completed in a moment but takes gradual steps. There happen to be four steps that are incorporated within the Management by Objective method in which first there is goal setting, which is accompanied by action planning in which the actions which the management will take for ensuring that the employees are performing up to the standards will be taken. The third is self-control preceded by periodic reviews in which three processes are involved, namely, object formulation, execution process, as well as performance feedback (Islami, 2018).
Ntanons states that the application of Management by Objectives method was made for the first time in General Motors in the USA, which was done under the supervision of Peter Drucker in 1954. The result of the application of this method indicated that the satisfaction level of employees enhanced. Thus this method can be applied in factories as well as firms such as hospitals, small and medium enterprises, schools, etc. (Ntanos, 2012). Peter Drucker first applied this method for performance appraisal of the employees and stated that during the application of such a system, a hindrance is encountered by the management because of the existing traditional system of administration (Ntanos, 2012). The employees must be aware that their supervisors are there to help them and should know about their goals. There should be a continuous feedback system that the manager can use to determine the performance of the employees (Ntanos, 2012).
Merwe states that psychometric tests tend to contribute towards better placement as well as the efficiency of selection when it comes to occupational decisions such as classifying human resources. From line manager to filing clerk, there is scarcely any job for which psychometric evaluation can not be used. Merwe states that job assignment, termination, promotion, as well as hiring, can be aided through psychometric tests (Merwe, 2002). The case of psychometric tests happens to contribute towards placement as well as the efficiency of selection within the industry. Merwe mentions that psychometric tests are handled well with sensitivity as well as insight; they tend to be rather useful in predicting the behavior of the employees (Merwe, 2002).
Management control systems tend to provide insights that are useful for managers in aiding them in performing jobs as well as in assisting the organizations in developing and maintaining behavioral patterns that are viable (Otley, 2013). There are two main aspects in which management control systems help, such as operational control as well as administrative control. This is because the administrative or managerial control provided with the help of insights and information into the employees, helps the management develop KPIs or key performance indicators that aid in operational control (Otley, 2013).
The Balanced Scorecard Approach, which was developed by the Harvard Business School in the early 1990s, happens to be a multi-dimensional approach for measuring employee performance, which happens to be linked with the organizational strategy. Otley states that financial measures should be associated with employee performance, which means that employees will be more motivated to do work if economic benefits are aligned. With the increase in information technology, the share of content done through manual labor has also decreased manually. This means that the nature of work for the employees has been becoming rather cognitive and having soft skills like creative problem-solving. Decision making etc. happen to be the aspects that increase employee performance. Along with soft skills like cognitive thinking, people management has gained momentum when it comes to achieving high performance by the employees.
Karanika states that technological tools, as well as automation, can automate the repetitive tasks for achieving the desired outcome. This has generated knowledge workers and information workplaces where different technologies can be easily used. In an organization, the use of technologies as a form of driving force happens to be used for augmenting the efficiency of the services as provided to the customers or clients of the company (Karanika, 2017).The use of technological tools can reduce costs as well as aid in the distribution of information, which results in a competitive edge of the company. Achieving employee performance as well as engagement on a higher level, especially for a changing workforce, is imperative, and this can only be achieved, according to Jha.through tools such as Gamification, Thumbs-up, gthanks, etc. Jha states that the workforce today, especially the new workforce comprising of the Millenials, happens to have a close affinity with technological tools, which means that tools that enhance productivity can prove beneficial (Jha, 2018).
For a workforce driven by technology, it is engaged in the workforce means to have ample growth opportunities for not only professional growth but also for personal development. When it comes to what the organizations want, achieving the right level of engagement means that employees should be incorporating their passion, enthusiasm, as well as intelligence when it comes to working. There are more than thirty human resource practitioners that Jha interviewed for his research through face to face interviews. During the interview sessions, Jha came to realize that there are some common views that have been expressed by the HR professionals who have incorporated different technological tools. The research indicated that the new technology-oriented workforce happens to be career-oriented and seeks developmental opportunities. A technological tool that can engage, measure, and increase the performance of career-oriented individuals happens to be “My Career,” which highlights the career path of the employee as well as highlights the developments and performance of the employee aligned together.
In case the employees require immediate feedback, the best tool happens to be “Thumbs-up,” which formulates a transparent, instant, and interesting way for managers to transfer feedback to the employees. Another tool happens to be “gThanks,” which has been implemented at Google, and the employees have publically recognized this tool to create an atmosphere of trust within the organization at Google. One tool highlighted by Jha happens to be“Gamification” which adds features that resembling games such as achievement badges, leaderboards, challenges, quests, etc. which make the employees track their performance easier and feel like they have achieved a higher reward when they receive bonuses through badges (Jha, 2018).
This is also a form of performance assessment, which creates a form of joyful experience for the employees. Gamification has can also be implemented by the training and development department to make the entire learning experience for beginners easier and more engaging. The new workforce also happens to seek self-importance within their work, which means that they look for more opportunities within the workplace, which creates a sense of belonging. This can be achieved through the Gamification tool. A dashboard can also be created by the top management online, where the workforce shares their views as well as opportunities for growth. Thus a dashboard must be designed specifically for the workforce so that they can vocalize their concerns or their ideas online. This employee dashboard will create a form of self-reflection platform where the significance of the roles of each employee will be indicated.
Furthermore, a fun work environment is always good for keeping employees engaged and for increasing their performance, which is why Jha states that companies such as Microsoft, as well as Google, tend to promote engagement of the employees by creating and channelizing tools that create fun factors within the workplace. Moreover, job roles should be aligned with the business needs, and progression should be a shared vision across the company where each employee channelizes his or her abilities. This should be reflected through performance appraisal, feedback, and technological tools such as dashboards, Thumbs-up, etc. (Jha, 2018).
Furthermore, performance solutions such as ADP software, which happens to align the corporate goals with that of the employees, can be best for tracking the annual meetings between supervisors as well as employees and keeping the objectives and goals aligned. This software can also be used for getting the most out of a performance review and also for formulating different goals for individual employees. Human resource managers can provide technological tools for tracking the staff of the company all year through feedback forms, note-taking, as well as through payroll and performance solutions such as ADP. This software reduces the performance review cycles, aligns the goals as well as objectives of the employees with that of the organization, keeps the payroll and benefits as well as rewards for the performance simple through analyzing the reward to current performance ration which the management decides (Jha, 2018). Benefits management platform can also enable the administrator to learn of the needs of the employees and manage the vacation time, retirement plans, company compensation policies, health insurance as well as paid time off accordingly. Thus a benefits management service can benefit the organization as it helps the managers to understand the needs of the employees and monitor their performance.
Spangenberg, on the other hand, provides a rather alternative view to management by objectives and states that this measurement method has not objectively met with the expectations of the companies engaged in competition on a global level (Spangenberg, 1994). For example, the company, Beer, and associates at Corning Glass were disappointed by the Management by objectives program and developed different management solutions that combine the strength of the Management by objectives program and added the accountability of employee development in the framework. This resulted in a performance management system that can now be used as a measure to enhance the performance of the employees and for measuring their performance. Thus a performance management system, as defined by Spangenberg, provides a link between the employee performance appraisal as well as the strategic planning of the company (Spangenberg, 1994).
Spangenberg provides an example of the use of a performance management system for performance appraisal in the Electrical company plc in the UK. A longitudinal evaluation of the wholesale company shows that the performance management system used within the company changed according to the audit capabilities as well as the evolutionary capabilities. The initial measurement system used by the company was implemented to meet the needs of the employees in the early 1990s. At that time, there were fewer employees of the company, which meant that there were fewer branches, which means that managers could easily reflect on different measures as well as dedicate the existing resources with responsibility for making sure that measures were taken against explicit criteria.
During the early 2000s, Electrical Private Limited Company had to enhance its market share as well as branch coverage, which meant that it needed to hire more employees as well as enhance its branches. Thus the performance management system also changed to cater to the changing needs of the employees as well as bonus and performance measurement systems. This resulted in a new performance management system, which is known as the balanced scorecard. The Balanced Scorecard system emphasizes non-financial as well as financial measures, which must be part of the information system for the employees. The Balanced Scorecard system translates the different business unit’s strategies as well as the different missions of each branch into different measures as well as objectives.
Moreover, the criteria, as well as different measures, are not only balanced through internal measures like innovation, learning, growth, business process, but also through external measures such as customers and shareholders. The Balanced Scorecard system tends to emphasize and uses different measures to inform as well as communicate with different employees about the drivers of the future as well as current success.One major strength of the Balanced Scorecard system as a performance appraisal system is that it focuses most on linking the performance measures along with the unit strategy of the business. Another framework which Simmons discusses regarding the Balanced Scorecard system is associated with the management of strategy, which is known as the strategic framework meant for action (Simmons, 2003).
There are four specific processes that include clarifying as well as translating the strategy as well as vision. It also involves linking as well as communicating the strategic objectives and measures. Furthermore, planning, setting the targets as well as aligning strategic initiatives is also important. Balanced Scorecard system also involves enhancing strategic learning and feedback. Many companies worldwide have adopted this system, such as Rexam Custom Europe, Cigna property and assurances, Rexam plc USA, as well as Skandia (Simmons, 2003). In terms of the case of Electric Private Limited Company, during the 2000s, the competition between the different branches enhanced, which meant that sub-optimal behavior was on the rise.
The company changed its performance measurement strategy by identifying the need for replacing the bonus as well as performance appraisal systems which meant that the company-wide balanced scorecard was implemented as it balanced the measurement of the performance with the profitability of the company while keeping the focus on the employee satisfaction, skills as well as customer service (Kennerley, 2003). The changed measurement system, which was introduced within Electrical plc, enabled the organization to incorporate a new performance-driven culture within the organization. As a result, the branches provided greater focus to the employees and enhanced inter-branch co-operation along with information sharing. This aided the branch in focusing on the issues which were of immense importance to the company as a whole and were in sync with the company (Kennerley, 2003).
Kennerley points out that the changes which Electrical Private Limited Company implemented in their performance measurement system demonstrated the enlightening importance of how the measurement system should remain aligned with the strategy as well as the environment. The performance measurement system, which was first implemented, was static because it was not aligned well. Still, the system applied the second time prompted the realization that the management should align the objectives and goals of the organization with that of the employee’s performance (Kennerley, 2003).
The 360 feedback system is also one performance measurement system appreciated and trusted by the managers as well as employees. Many of the organizations tend to have adequate performance appraisal systems already in place that usually operate on an annual basis. However, the traditional performance appraisal system happens to have major criticisms because of the use of measures that are difficult for assessing and rating. To make assessment easier, the 360-degree feedback performance appraisal system provides competency-based assessment for measuring performance for the systematic collection as well as feedback of performance data regarding an individual or a team. When it comes to the traditional performance appraisal system, it tends to be a top-down process in which managers, as well as superiors, evaluate their subordinates.
360-degree feedback, on the other hand, builds on the feedback of regular or traditional performance appraisal, and it is evident that in such kind of performance appraisals, a wide range of individuals are involved as this system is more credible as well as fair. The 360-degree feedback’s main objective is to generate self-awareness for the employees as well as to deliver the objectives of career development as well as counseling (Mukhopadhyay, 2006).
The 360-degree approach happens to co-ordinate well with employees that are good with self-assessment as it associates more with intuition and self-analysis of the employees. Many firms happen to be involved with 360-degree feedback performance appraisal depending on the level of acceptance at the workplace. Kennerley suggests that peer evaluations also happen to be an appropriate way of evaluating employee performance, especially when it comes to developmental purposes (Kennerley, 2003). However, it is necessary that peer evaluations are done sincerely and for job retention, such as the rating of records as well as promotions. Peer input can also be highly effective when it comes to awards as well as recognition.
Peer evaluators happen to have a difference of opinion when it comes to keeping the reviews anonymous, so general feelings of discontent are not created among the colleagues. It is advised that the raters should be kept confidential for ensuring that feedback is done honestly, which means that teams should be matured enough to a point (Kennerley, 2003). The main disadvantage of using peer evaluations for employee performance happens to be that it is incredibly time-consuming (Kennerley, 2003). Depending on the culture of the company, it is extremely important to know that peer ratings happen to have the potential for generating tension and feelings of contempt among peers. Peer evaluation can also cause discord and breakdown cooperation among the employees.
Voirin states that individual performance within the workplace happens to be often defined as being a single indicator of global competitive strength with a set of different associated criteria that reflects an individual’s professional success. The criteria mostly used for measuring employee performance happen to be sales, quality of services, quality of goods, productivity, and direction of the employee (Voirin, 2012). Furthermore, performance support systems can also be used as performance support as well as training tools for workers to keep them engaged within the performance task at hand. The performance support system tends to improve the productivity for the worker by not only providing access for integrated information but also to on the job training, advice as well as learning experience (Mendonça, 2010).
The main aspect in which the performance support system happens to be to deliver ample of knowledge to the end uses specifically when it is needed for completing a process as well as a task. This means that during a performance situation, there are a lot of changes that take place that requires learning as well as adaptation to the task. When an employee is presented with a problem within the changing work environment, he or she might not clearly understand the problem. This is why a performance support system is needed for channelizing observational learning as well as training intervention for improving task performance (Mendonça, 2010).
The performance support system provides improved productivity for the workers as it is associated with a two-fold system that users having the knowledge and skills can complete a task and has the performance support system, which provides the users with knowledge regarding each and every task. However, Mendonça also points out that a performance support system should provide the user with the right kind of knowledge needed for completing a task.
Managers must also be aware of the underlying reality that this kind of systems tends to have a huge amount of content such as procedural information, training segments, insights, diagnostic knowledge, system information as well as problem-solving insights that have solutions for different problems in certain situations (Mendonça, 2010).
The performance support systems are designed to provide performance as well as training support to employees while they perform tasks. According to Mendonça, a performance support system enhances worker productivity through job access to insights, integrated learning experience, and advice (Mendonça, 2010). There is a two-fold premise involved with a performance support system; one that the users need to have knowledge competencies regarding the task, and two have specific knowledge about how to perform the task.
Learning environments are of immense importance when it comes to the adaptation of workers to the performance support system. Blended learning environments, accompanied by performance support systems, provide an efficient as well as the less costly method for measuring the performance of employees, especially during the performance of complex tasks (Mendonça, 2010). Striteska states that the main focus of the models related to performance measurement has been on financial elements throughout the 1980s. By the early 1990s, numerous studies indicated that financial data is not an accurate enough measure for performance, especially in the new economy (Striteska, 2012). There is a rise of an increasingly complex market where companies compete with each other for better resources and where financial reports are not considered a major indicator of shareholder value.
Shareholder value in sustainable terms in now being driven through non-financial factors, which include employee satisfaction, customer loyalty, organization’s innovation, and internal processes. As pointed out by Striteska, shareholder value is now defined and driven through non-financial elements such as employee satisfaction, employee performance, innovation within the organization, and customer loyalty (Striteska, 2012).
It is imperative to point out that performance management and performance measurement are not two same nations as the literature present on performance measurement is rather extravagant and detailed as compared to performance management (Striteska, 2012). The most widely accepted systems for performance measurement include Balance Scorecard and the Business Excellence Model. The Business Excellence Model provides a structured approach for improvement opportunities by translating the strategy of the company into specific tasks, targets, and goals. There is a structured approach provided by Balance Scorecard as well, which, in contrast with the traditional techniques such as Performance Measurement Pyramid, reflects the non-financial factors (Striteska, 2012).
The Balanced Scorecard approach aids the organizations in developing top-notch performance measurement systems, which is not dependent on financial factors. There are three functions that the Balance Scorecard fulfills; the method of measurement, the strategic management system, and the communication tool (Striteska, 2012).
Fixed targets are chosen for channelizing the organizational strategy into financial as well as non-financial performance indicators. By introducing Balanced Scorecard within the organization, the strategic actions, goals, signs, etc. become part of the perspective of each employee. The EFQM Excellence Model for performance measurement was designed back in the 1990s and was introduced to the European Foundation for Quality Management. The EFQM Excellence Model provides eight main concepts for performance measurement: people development, innovation and change, leadership, partnership development, result-oriented, customer focus, continuous learning, and consistency of purpose (Striteska, 2012). The performance measurement system based on the EFQM Excellence Model enables the activities related to strategy, leadership, people, policy, and resources as well as processes.
There are four perspectives involved in the Balanced Scorecard approach. The first perspective is the financial perspective in which the emphasis if on measuring the long term objectives proportional to the profitability of the goals. The internal business process perspective has a significant impact on the satisfaction level of the customers and aids the organization in achieving financial objectives. The learning and innovation perspective involves training the employees and cultivating productive corporate culture related to the self-improvement of the employees (Farooq, 2014 ).
Performance pyramid is another tool used for determining the employee performance through non-financial as well as financial performance measures. A performance pyramid links the strategy of an organization with that of its operations. There are a total of four levels of objectives within the performance pyramid. On the left side, there is external effectiveness, while on the right-side internal efficiency is measured.
Voirin states that the performance of individuals within the workplace is the single indicator of professional success within the workplace, and attainment of objectives set by the management is considered as a measure of job performance. Other factors of measuring performance include the quality of goods and services, sales, productivity, etc.
Efficient performance is often considered as a “black box” that is solely focused on achieving the right results (Voirin, 2012). The multifactor job performance models have a distinction between contextual as well as task performance, which attracts substantial attention to research. There have been many researchers who have also sought to measure work performance through the nature of work, such as teamwork, empowerment practices, customer-oriented, and project management (Voirin, 2012). Adaptive performance model centers upon the ability of an individual to adapt to changing circumstances and dynamic work conditions. Employees who demonstrate adaptivity to changing environments by adjusting their routines, behaviors, and keeping right work-life balance along with it score high on the adaptive performance model.
Voirin states that other researchers highlight the significance of a different variety of behaviors that tend to be rather adaptive on a scale ranging from new events to work situations. Pulakos was the first one to propose an adaptive performance model according to global standards (Pulakos, 2000). Pulakos described the first step towards measuring performance according to the adaptive performance as reviewing how the employee reacts to changes and then analyzing one thousand critical incidents where behavioral adjustments need to made (Voirin, 2012).
A total of 24 jobs, including those in the military, were reviewed in research conducted by Pulakos et al., who proposed eight dimensions of adaptive performance. Ultimately the aspects were worked upon by Pulakos et al. (Pulakos, 2000). Which includes dealing with unpredictable work circumstances, handling stress related to work, learning new work tasks in an adaptable way, and dealing with uncertain situations. Other dimensions of adaptable performance include innovatively solving problems, using technologies and materials that are adaptable, having cultural adaptability. Demonstrating adaptability in physical orientation and demonstrating interpersonal flexibility also scores high in determining the adaptive performance of an individual.
Different factors of the dimensions mentioned previously were considered by Pulakos et al., who used them depending on the type of the organization and the technical circumstances of the employees. Voirin considers the dimensions proposed by Pulakos to study the efficiency of the employees in detail with the unpredictable and predictable situations at work.
Furthermore, successful adaptive performance entails that the staff members can function and deal with uncertain situations. These situations might include restructuring of the workload, changes in the priorities of tasks, lower resources provided to the employees (Dorsey, 2006). Exceptional adaptive performance concept points out that those employees adapt quickly and make decisions in the face of ambiguity and uncertainty well are high scorers of adaptive performance, can handle the crisis, and correspond with upper management well.
Another dimension of adaptive performance pointed out by Pulakos is the ability to find innovative solutions to ill-defined, atypical, and complex problems (Pulakos, 2000). Employees are expected to manage stress while handling issues that are not well defined and are ambiguous. Employees should also be able to manage stressful situations that are unpredictable. Those who do not panic and continue to work with appropriate feedback from the management score high on adaptive performance. Due to technological innovation, there has been a rapid increase in the ability of employees to engage themselves along with the evolution of different occupations. The employees must demonstrate innovative and creative thinking in the face of ordeals by willingly engaging themselves in learning new technology and dealing with it inefficient manner (Dorsey, 2006).
Performance measurement through adaptive performance concept entails that employees must anticipate and learn new skills to the extent that managing their work environments becomes easy for them. Adoptive performance promotes multidisciplinary teams, which are characterized by successful project work (Dorsey, 2006). The existing adaptive performance measurement scales, however, have some limitations as the current scales do not only reflect the underlying dimensionality of the adaptive performance concept.Other adaptive performance measures are also restricted to specialized context. A six-item scale that was developed by Ruyter for measuring the ability of employees in a bank did not work well. The scale was designed for measuring the adaptability of the employees in dealing with the demands of the customers, for example, being sensitive to the demands of the customer. Chen, on the other hand, assessed the adaptive performance of flight attendants and pilots in demonstrating adaptation to flight simulation (Chen, 2005).
War games were used by Neal to investigate specific problems with the active responses of the employees. However, according to Voirin, none of the scales designed were able to measure the performance well because they were not psychometrically sound and did not have a multidimensional scale (Voirin, 2012). For a performance measurement system to be effective, the method should focus on critical success factors such as employee needs in particular sectors and businesses. Birchall argues that for an innovation performance measurement system to be effective, the innovative actions taken by the firm must be relative to the success factors in the marketplace (Birchall, 2011). The innovative performance measurement has been divided into two terms, known as nature and scope of measures.
By the scope of innovation performance, Birchall means that a firm must be focused on the operational activities and aspects of innovation, which are future-oriented and focused (Birchall, 2011). The traditional performance measurement methods happen to include measurable parameters such as quantifiable indicators, which are related to more substantial nonquantifiable factors. Innovation performance measurement has three main clusters, which become apparent. These clusters are different from traditional measures and are based on the functional planned approach and rational approach, which leads to incremental change.
Ivanov highlights the importance of performance prism for the interest of measuring the performance of the employees in a bigger picture. The performance prism was first created back in 2004 by Neely, who created the system to offer the management a wider focus as well as a narrow focus, depending on the need of the organization (Ivanov, 2014). Performance prism has interrelated perspectives for the measurement of the performance of the employees. The first perspective is the stakeholder satisfaction that includes key stakeholders, their needs, and wants, such as the employees and customers. The second perspective is the strategies that the firm has to apply for satisfying the stakeholders and for making sure that the needs and wants of the stakeholders are satisfied.
The third perspective of the performance prism is the process or processes involved that need to be applied by the organization for satisfying the needs as well as wants of the stakeholder through executing the strategy. The fourth perspective is the capabilities of the organization. This involves the capabilities which the organization has to ensure that strategy is implemented using the core competencies. The stakeholder contribution is the last perspective in the performance prism provides that the needs and wants of the organization from the stakeholder.
The management teams can use the performance prism tool for influencing the thinking of the top management when the key issues need to be addressed. This model, however, is not good with analyzing the innovation performance. Still, it can be used for assessing the competencies of the employees as well as the processes of the employees. European Foundation for Quality Management excellence model happens to be a cause and effect relationship based technique that analyses what the employees are doing as well as analyses the results of the organization (Awadallah, 2015).Awadallah develops more on the concept of the Balanced Scorecard, which was initially developed in 1992 as the performance measurement system. The main objective of this method was to overcome the issues encountered by inadequate financial-based performance measurement techniques (Awadallah, 2015). Despite the widespread demand, the adaptation of a balanced scorecard has ranged from being successful to not tangible to outright unimpressive (Awadallah, 2015). Balance scorecard has been applied to almost all industry sizes and sectors, such as from the service industry to those that are mass producers of products, from small and medium enterprises to large and from public to the private sector (Awadallah, 2015).
Innovation happens to be recognized as a significant variable for gaining competitive advantage as well as growth. However, change is considered a vague concept in performance measurement because of the differences in the learning and execution of innovation. The Berkeley Innovation Index happens to be an open project which allows for the management to measure the innovative capabilities of the employees in a holistic sense (Sidhu, 2011). The Berkeley Innovation Index covers different facets of innovation through Strategy and Leadership, Organizational Operations, Tactical Measures, and Measures in various domains such as culture of the organization. The Berkeley Innovation Index is considered a pioneer in the field of performance measurement and sets the baseline for measuring creativity at the group level as well as individual level.
The intended use of the Berkeley Innovation Index is to maximize innovation while promoting strategic action and planning within the workplace. The algorithm in the innovation index uses a specially designed link between success and creativity levels used in the projects. The report is formed by combining the entire data in the company, including the psychological profiles, knowledge sharing of workers, and teamwork done by the employees to check the potential for success in new projects (Sidhu, 2011).
The potential of the company can also be measured using the Berkeley Innovation Index as it can measure the industry position, innovation culture, operational effectiveness, etc. For example, a company can measure the weakness of its operations while another company that is performing well but is having issues in alignment with innovation can use the Berkeley Innovation Index for risk factor failure analysis. According to Akinbowale, managers tend to be capable of forging judgments regarding the performance of employees, which are accurate most of the rimes. He highlights that rating inaccuracy occurs because of a deliberate conscious reflection of the rater’s agenda, which leads to unconscious bias (Akinbowale, 2014).
The ratings of employee performance tend to be bunched together as either high performance or moderate. The amount of negative information is less likely to be present than the amount of positive news, and as a consequence, the tendency to rate employees above-average decreases. This occurs due to interpersonal conflict of telling the employee that their performance might be below the average. Emphatic buffering is a process in which the manager posses the tendency to review or mark the performance of the employee at a larger or middle scale. The manager in this situation rates the employee by avoiding negative responses because emphatic buffering occurs. According to Akinbowale, there is enough evidence to suggest that the performance appraisal policy used by the managers for achieving goals is often contrary to what the performance rating displays. Thus the ratings might be motivated or market by the fear of avoiding any form of conflict that might arise due to the poor performance of an employee (Akinbowale, 2014).
Performance appraisal can either be negative or positive in impact depending on how the employees perceive it. Employees who receive a positive feedback score might receive the estimate as being motivational. Employees with higher feedback will be motivated to perform well or maintain this feedback (Akinbowale, 2014). Positive feedback is symbiotic with appraisals and feelings of worth or value.
Negative feedback, on the contrary, might have reduced impact on the motivation of the employee or it might lead to the grievance. The most tedious part of an appraisal or performance measurement policy is to objectively and accurately measure the performance of the employees. To measure the performance, managers must keep in check the main tasks completed and evaluate the accomplishments of the employee against the period of task completion. Measuring performance also encompasses the quality of the job completed.
Different inputs can be taken, such as feedback forms from sources such as employees, peers, supervisors, and customers (Birchall, 2011). All the perspectives received through feedback can thus be combined using an appropriate way for achieving a complete view of how well the employee performed. It is necessary to monitor the performance of employees on a day to day basis (Akinbowale, 2014).
Useful measurement and monitoring techniques involve providing feedback on time as well as reviewed that are timely for the work done according to goals and problems faced by the employee. Cox highlights that timely recognition regarding work activities motivates the employees to work harder and achieve goals (Cox, 2012). Measurement of performance is based solely on few factors tends to provide inaccurate results. By measuring the activities of employees, upper management might mark the employees as being outstanding even when the organization might have failed to meet the objectives on a larger scale. Therefore tools and techniques that are balanced in measuring the performance must be used by the employees (Cox, 2012). A popular performance appraisal technique is the 360-degree feedback technique that evaluates the input received from different levels present in the firm along with the external sources such as employer, customer, and supplier reviews. Aggarwal states thatn the 360-degree feedback heavily rely on the customers, superiors, line managers, subordinates, and reports of the colleagues (Aggarwal, 2013). The 360-degree feedback technique is best for letting the employee know how they affect someone with their actions.
Aggarwal points out that most of the employees perceive 360-degree feedback tool as being essential for their self-development as the context of competition is eliminated with self-awareness (Aggarwal, 2013). This is because at the end of the feedback, there is no prize to be won except from self-improvement, and it is considered as the highest context of achievement.
The behavioral changes required might be demonstrated through the reviews, and the notion of behavioral change might lead to self-awareness in the employee. The 720-degree feedback has become the pioneer for change in the feedback system. Rick Gal, who was dissatisfied with the working of 360-degree feedback, approached the 720-degree feedback for a more intense and personalized look on performance measurement (Aggarwal, 2013). The 720-degree review is more focused on the perception of investors and customers.
The 720-degree review focuses on the analysis of those that matter the most and takes into consideration the opinion of the most important stakeholders (Birchall, 2011). The 720-degree method provides individuals with different views relating to that of leaders and individuals that are career-oriented.
The 360-degree review, on the other hand, involves a long and tedious procedure in which the performance of the employees is evaluated through feedback mechanism while in 720-degree feedback, provides the employee with tips and insights regarding achieving the set targets (Aggarwal, 2013). Smith and Kendall introduced a Behaviorally Anchored Rating Scale that grabbed the attention of Aggarwal in his research regarding the issue of validity and reliability of performance ratings. The behavioral anchor scale informs the manager about the performance of the employee in numbers. The behaviorally anchored dimensions can also be conceptually as well as operationally understood and distinguished from each other.
This means that on the rating scale, the rater will observe rather than judging the performance of the employee (Aggarwal, 2013). Behavioral statements or examples of performance in a concrete sense are used for understanding the multiple facets of the performance of an employee. Human resource accounting is also a technique that can be adopted for performance measurement (Aggarwal, 2013). The theory of human resource accounting states that individuals that work for the organization, such as the employees are the assets of the company or enterprise in the form of information, insights, skills, or investment. These employees invest their skills in the company and this value of the human resource is then used for decision making within the enterprise (Aggarwal, 2013). The human resource accounting method can ascertain the cost of the turnover labor as well as project the development of human resources.
Human resource accounting can also aid in planning of personnel policies as well as calculate the return on investment on human resources. This means that the technique will ardently lead to enhancement in the efficiency of the employees. The human resource accounting method, however, has one drawback that it does not measure the value of the employees relative to the organization and focuses just on the cost. Aggarwal states that some of the employers use assessment centers for determining the performance of the employees over a short, long period, such as two to three days by observing and analyzing the behavior in relation to work-related tasks (Aggarwal, 2013). In the assessment center technique, the concepts are somewhat flexible, and the methodology is simple. The main drawback of this method is that it can be quite challenging to handle and is often expensive, so small enterprises might not be able to use it.
Assessment centers require large staff, and a great deal of time goes into managing the entire process. Only a limited number of individuals can be processed for their performance, which makes it more detailed but less suitable as a cost-effective solution (Aggarwal, 2013). Some of the exercises used in assessment centers include basket exercises such as simulations, interviews between clients and subordinates, which are staged in a way that role-playing is involved.
Fact-finding activities as well as decision-making issues are considered in which oral presentations and written communication skills are tested. Some other techniques which can come in handy when measuring the performance of employees include a balanced scorecard, forced distribution, electronic performance monitoring, human resource costing, 270-degree feedback, confidential reports, and 180-degree feedback. The ranking method happens to be the fastest performance measurement method, which is cost-effective, as well as transparent. The ranking method is also simple and easy. However, it is less objective because morale problems are often encountered in dealing with this method. This method is only suitable for a small amount of the workforce (Aggarwal, 2013).
Chapter 3- Methodology
Current research is based on an interdisciplinary research approach. In this paper, the innovative human management methods will be explored to improve the employees’ performance at work by taking into account the new organization psychology and modern human resource management. The research question in this study will address that how new phenomena like new technologies and innovative organization psychology approach make the traditional human resource management perspective to move away? In addition, how the emergence of new sciences like talent management might contribute to exploring the relationship between the individuals’ performance at work and the organization performance.
The hypothesis of study is to find out role of new performance management mindset in the encouragement of motivation and commitment to achieve organizations’ objectives. It entails that according to positive psychology movement, we believe that organizations might go further to produce more innovative outcomes rather than the traditional ones.
Ho: significant relation between motivation and technological advancement
H1: no significant relation between motivation and technological advancement
Ho: significant relation between innovation and organizational performance
H1: no significant relation between innovation and organizational performance
The first section is about the organizational learning process, second is about innovation, third discusses the performance of organization and fourth is about demographics. (See Annex)
On the basis of each employees’ activity in HR departmentfollowing table is drawn.
Table 1 Analysis of Organizations
|Activities of employment
||Role of HR
||HR based activity
||Skills related to HR
(Source:Imran, Maqbool & Shafique, 2014)
The organizational analysis is performed to analyze the role of innovation and motivation for employees. By asking participants about their job function, nature and interaction, above table is constructed on the basis of information provided. The information suggests that impact of technology is significant on the work performance of employees. It is necessary for companies to implement technology and innovation in working environment, to speed up the functioning (Pirohov-Tóth, 2019). The scope of technology advancement for the latest trends in work is analyzed and described in the table.
This information is divided in six thematic areas, i.e. work, future, technology, working practices, HRM, and other trends. These research implications provided that multiple fields are using technologies and innovative practices. Innovation is increasing the speed of organizational performance (Anbalagan, 2017). It is found out that these emerging fields are likely to have a strong impact on work performance and organizations. For instance, human resource functions are going to have impact of technology, in the form of digital platforms, such as labor market platforms, eBay, and Amazon (Subramanian &Nilakanta, 1996).
Artificial intelligence is a key technology augmenting the scope of HR performance, data analysis, making predictions and finding different patterns. Next, the field of robotics is affecting employment level because its use is increased in industry (Ahmad Bowra, 2012). The routine manufacturing is now associated with robots, to save labor costs and training. The augmented and virtual reality is another hallmark of technology that has increased performance of organization. Besides, inspiration as far as money related motivators, thankfulness, criticism and rewards assume huge job (Imran, Maqbool & Shafique, 2014). Members likewise referenced that they feel it empowering when their associations actualize some thankfulness apparatuses and efficiency measures. It is legitimately connected to improve the exhibition of workers just as their efficiency. In multiple industries, like construction, healthcare, aerospace etc. this technology is implemented. Employees’ performance is also increased by wearable devices. For instance, employees are now easily tracked, their performance is measured and motivation is increased (Parshetty, 2019).
The member’s job and commitment in various ventures has introduced that they are dealing with various exercises with the assistance of innovation. The associations are utilizing procedures to screen the exhibition of workers, record them and measure it with explicit instruments. HR administrators are supporting their staff through help, alleviation and actualizing potential programming identified with the exhibition. HRM requires the examination of most recent patterns for workers, to improve their presentation, measure their progress and sort out the exercises (Pirohov-Tóth, 2019). In HR field, representative’s association and commitment is explicit to bring profitability, as it serves the office with expanded productivity. Practically, this issue is inferable from the advancement and usage of innovation at work environment. The improvement in issue detail is likewise centered on the usage of innovation. For example, a few members revealed that if a representative is associated with deceitful practices and identification, programming and safety efforts can evaluate the impulses (Long, 1978).
it is clear that the association gets all the important supplies and data, at that point the business market will offer sensible costs for every one of the merchandise and ventures. The mechanical progressions significantly affect how a business must be continued and the collaboration with clients and administrators. There are businesses the executives’ applications that pursued new expert administrations and furthermore human asset the board. Another innovative progression is client self-administration. Through client self-administration, the clients can understand their inquiries and can do inquiries to a concerned site on the web.
The scope of technology in every sector is engaging employees, boosting their performance and supporting HR functions. The transaction, information exchange and increased level of security are attributable to block chain activities (Zahid Hussain Bhat, 2011). The participant’s role and contribution in different industries has presented that they are managing a number of activities with the help of technology. The exhibition level is improved when workers get significant help about their working and expected set of responsibilities. Emerging technology is significant to support HRM. Managing people, recruiting, training and development of staff is integral for an organization (Subramanian &Nilakanta, 1996). Technology has made it easier than ever. The organizations are using strategies to monitor the performance of employees, record them and measure it with specific tools. HR managers are supporting their staff through facilitation, mitigation and implementing potential software related to the performance.
The evidences collected from the participants provided that training and skills are some major elements that are required for employees. The performance level is improved when employees get substantial support about their functioning and job description. Moreover, motivation in terms of financial incentives, appreciation, feedback and bonuses play significant role (Ahmad Bowra, 2012). Participants also mentioned that they feel it encouraging when their organizations implement some appreciation tools and productivity measures (Imran, Maqbool & Shafique, 2014). It is directly linked to improve the performance of employees as well as their productivity. Realistically, this matter is attributable to the innovation and implementation of technology at workplace.
In the field of technological performance, artificial intelligence, automation and virtual reality are key concepts discussed by the employees. Today, in various business sectors, banking institutes and in academic institutes, technology is implemented in form of software and management systems (Parshetty, 2019). Its key part is linked with management of staff, training and development and measuring their patterns of performance. The improvement in problem specification is also focused on the implementation of technology (Long, 1978). For instance, some participants reported that if an employee is involved in fraudulent practices and detection, software and security measures can assess the instincts. Developing innovation is critical to help HRM. Overseeing individuals, selecting, preparing and improvement of staff is fundamental for an association. Innovation has made it simpler than any time in recent memory.
HRM necessitates the contemplation of latest trends for employees, to improve their performance, measure their progress and organize the activities (Zahid Hussain Bhat, 2011). In HR field, employee’s interaction and engagement is specific to bring productivity, as it serves the department with increased efficiency. If employees are provided with innovatory support for their functioning, and performance, it is likely that they can increase their efficiency. (Ahmad Bowra, 2012)
Chapter 4- Discussion and Analysis
The studies provide the evidence of employee’s motivation and innovation practices in HR. It has been found out that innovation is positively related to employee’s performance. Significant support to employees provides increase in productivity and output. The results provide analysis of productivity of workers, while working in banks, and a specific relation of innovation and performance. The literature concepts from different organiztaions offer a clear analysis that how motivation of employees can be increased and innovative practices can increase productivity of HR management. The evidences and examples from different organiztaions are used to discuss the authenticity of hypothesis.
Motivation of Employees at workplace
Employees are the ones who contribute most to the business success, most business who are now flourishing or making higher profits higher than their competitors is because of employees, who works tired less to make the company successful. To keep success in the long run, companies try to maintain a good and healthy relationship with their employees, but other things are mandatory for employee satisfaction, which most of the organizations didn’t care much about.
One of the most important factors is realistic goals, companies that set an unrealistic goal for their employees mostly ends up in higher turnover rate as compared to the market trend. Setting clear and realistic goals pumps up employee motivation, which directly leads to the higher achievement of targets(Birchall, 2011). Targets that are unrealistic, more often considered employee reasons for resignations. When an employee achieves targets, which were to attain then it should be celebrated, not a lavish kind of celebration, but a small group of people congratulates their piers for the performance he led to high motivation.
The regular break is also important, working hours should not be extensive where employees work while day and they don’t have time to maintain work-life balance, this led disturbance in their family life, and they mostly come offices with distorted minds and create reasons for a day off or create organizational environment worst.Transparency and clarity should be important, huge profits are achievable only if there are trust and transparent relationship between employees and managers. Transparency helps to maintain the idea that everyone has the same level of information, and make sure clarity should be in the assigned task and everyone is clear and confident about the task or job which he or she is given. Transparency and clarity both are important in their way, without transparency effectiveness of information will be vague and the result came out from them will be demotivating.
Technological advancement for organization
With the passage of technological advancement, the organization has adopted some changes that make the business run resourcefully and effectively. Technology keeps the data flow, manage contacts and also try to keep every individual’s record who is a member of the organization. If the organization gets all the necessary supplies and information, then the business market will offer reasonable prices for all the goods and services. The technological advancements have a significant effect on how a business must be carried on and the interaction with customers and operators(Aggarwal, 2013). There are business management applications that followed new professional services and also human resource management. Another technological advancement is customer self-service. Through customer self-service, the customers can solve their queries and can do questions to a concerned website online.
Applications such as UserVoice and GetSatisfaction have enhanced the mindset of the software developers to understand what the customers need and also what they want to say. As a result, this has given the right to customers that they can share their views anytime. Web Conferencing has built up an easy communication network between salespeople and customers. There are Webinar Applications such as Cisco WebEx and GoToWebiner which have provided the content to get spread. Also, the webinar apps have become necessarily important to many organizations. Moreover, there is IP Telephony that has moved the organization to VoIP service than to landlines. Keeping communication over landlines and telephones has become very cheap. The organizations have other means of communicating with one another that is skype, WhatsApp, Imo, and many more which has gained popularity worldwide. Mobile apps have also introduced that provides easy access to the CRM systems, different updated documents, and the view. However, an employer can also make calls through an IP phone system and can also get into web conferences.
Innovation and organizational performance
Technological importance is always having a huge impact if you are running a business. In 21st
century where the demand of product depends upon many factors for example confectionary items sales pumps up in weekends or during special celebrations like Eid or independence day. This kind of variability can only be met when organization can have technological Help.In many companies like pharmaceuticals where human involvement is highly discouraged where controlled environment is necessary to operate and to maintain medicine life, technology plays great role from making till packaging. Without technology it wouldn’t be easy to do all these delicate jobs, without harming people health and keeping standards control.
Technology also improves lives of its employees and customers, due to technology cross border trade, buying and purchasing of items are just one click away. Now on websites you can order from car to a needle from any ware in the world and pay it through your debit car or credit card. This technological advancement led to create new market called e-commerce. Fast track options allow organization to move products over a large geographical area of the world.When this type of technology is used the bond between customer and organization will increase, and customer will become loyal to its supplier and will never trust any other company to choose their product from.
As the market further evolve and use of technology increases, invocation involve in the process. Innovation led to the idea to create different thing by using these same technologies or it can be defined as a process that involves multiple activities to uncover new ways to do things., for example now people are nature conscious so by using innovative ideas some companies are making plastic begs which are friendly to the mother nature and can reduce plastic waste, some companies decrease their carbon emission by introducing new technology and making innovation in previous ones that led to decrease sound pollution and carbon emission. As the innovation increases people like their product more than competitors due to change in people’s demand and due to carrying behavior for the mother nature.
Relation between innovation and HR
As innovation increases it makes an impact on HR solution and recruitment as well, know there are multiple and effective ways from which HR recruiters can find their desired people in their respective salary slab. There are multiple ways and platforms through which organizations can recruit their desired employees without going anywhere, for example, online recruitment websites, which is the most popular way of recruitment in the 21st century(Cox, 2012). Through website employer post job opportunities which are available in its organization and suitable candidate apply on it by seeing qualification requirements, experience and personality traits.
Another way that HR can help its employees through technological advancement while working is through Real-time learning applications. Through real-time learning applications employees can excess learning and development app any time any ware easily even through its mobile and can get answers on a day to day problems(Sidhu, 2011). Theses application can also provide a solution to any problem related to work that can create ease for managers and staff. Training can also be provided remotely about any new product that is to be launched soon.
Talent management dashboard is also an innovation in HR. Through talent management dashboard companies and managers can get a view of the talent pool. This helps them to communicate the nature of talent and professionalism which they require in future development and expansion.While all these development, HR also seeks feedback from organization customers, whether or not the training and close observation of employees needs to bring change in people’s behavior(Akinbowale, 2014). Today performance management applications can give and receive customer’s feedback, whether or not the employees are doing the right thing as directed. This helps the managers to look into trouble if there is and take corrective measure to gain customer satisfaction as customers want. It creates managers’ and peers’ confidence as well.
Technology and innovation are very important whether it’s for organization profit or employee motivation, training, and development. Due to the globalization of the workplace and the increasing requirement of people around the world, technological advancement is necessary to meet the increasing requirement to run the business and maintain healthy relationships and standards.Technology and innovation also help the business to understand its daily cash requirement; it also helps to utilize resources effectively and efficiently. It can manage cost-effective products and its whole process, the product which is highly cost-effective will led to higher profits and employees will get a higher return in against it. With proper technological use, an organization can save time and money; they can start a meeting on the internet rather than on board rooms(Awadallah, 2015).
Technology innovation helps in improving employee organization relationships, the employee can better understand what type of work and services the organization wants and can deliver according to it. While the organization will understand its employees according to their desired needs.Innovation also reflects an organization willing to change and making efforts for its target market(Ivanov, 2014). Changing environment create need of its customers, and by seeing innovation and new products according to customer demand and needs, customer loyalty increases, that will never switch to other substitutes or competitors for sake of little difference.
Every large or small organization has Information Technology departments that are hiring a large number of people on internships or a permanent basis. The main purpose of the Information Technology department is that it handles all the technical issues or problems that arise in an organization. But when a bank is involved in the department of information technology, it tries to invest as much as it can through this information technology work(Birchall, 2011). The main aim is to find out the effects of information technology on the performance of the employees. When many employees are working in this department, the time is saved and the plentiful work is done within a short time.
The product based application likewise gives preparing and improvement to the representative before making or giving over another undertaking. It explains the essential abilities which are important for doing a particular undertaking or work. Innovation makes effortlessness and less outstanding burden on HR, however actually, it makes disturbance and mutilation like numerous representatives don’t feel certain and simple while depending on innovation, they urge and attempt to apply old frameworks that they are utilizing in past(Voirin, 2012). In this situation, the director must persuade and comprehend their worker’s shortcomings and attempt to persuade them to utilize present day applications and innovation which can lead extraordinary advantages for the organization, and unquestionably, these benefits will profit representatives in since a long time ago keep running as motivators, rewards, and examinations.
At first, the workload is quite excessive and continuous but the employees are vigilant and control the problems in an instant that occur during their tasks(Chen, 2005). When the information is easily available, the bank employees try to produce good quality service. The team of IT employees must be fully trained in what they are doing and how they are tracking technology to achieve business goals, and efficiently working to maintain systems and operations. Moreover, if employees are focused and concentrated on their work, then only innovation can take place(Dorsey, 2006). The employees are quite motivated and encouraged when they receive appreciation from the senior managers or the branch manager. In terms of HR, all the employees are trying to flourish their information technology department more to get better results. When many ideas and different intellectual skills are gathered, then a change or an innovation can come into existence. In most of the banks, the working hours are quite prolonged which might be hectic for some of the employees but at the end of the day, the outcomes are fruitful and beneficial for a bank(Pulakos, 2000). In this way, the interactive skills of the employees can lead any bank to a higher level.
Chapter 5- Recommendations
Employees are considered as the most essential part asset of an organization. They contribute most to organizational development, making higher profits for the organization. They create an atmosphere of a company where all can work together and can give greater benefits to the company and its staff welfare. Motivation in an employee can only be shown through his performance. It depends on an employee where he can gain motivation and how he manages everything within a short time. Some employees get the motivation by incentives, leaves, or appreciation by the manager for completion of the task. A new study shows us that during the building of pyramids of Giza, the workers were highly encouraged and had higher pays and used to work with full concentration. This is because to keep them pumped up so that they can do work properly and effectively(Farooq, 2014 ).
Managers should encourage employees to involve in work or tasks assigned to them. There must be sound Job descriptions of every employee according to experience, work, and workload. If an employee performs a task on time and with his full efforts, then he should be appreciated. Employees who are little motivated to work could be because of multiple reasons, maybe some disturbance at home, salary issues, irrelevant behavior of line managers or might be dealt with proper strict action. The Involvement of employees in an organization creates progress and better outcomes in organizational work(Striteska, 2012). When the employee is motivated by his work and the praiseworthy comments he gets from his higher authorities, then only he can show his abilities and his determination in his tasks. When the environment of the organization is quite friendly and cozy along with cooperative co-workers, then only his viewpoints and his opinions are considered and he gets a chance to think out of his boundary line.
Not everyone is suitable to engage in decision making. However, an organization must judge an employee according to his abilities and how much he knows about his work. Everyone must be assigned a different task that not only earn them satisfaction but also motivate them to work(Mendonça, 2010). The staff creates a plan to connect everyone and those who have capabilities to bring change in better decisions, knowledge, and preparation are applauded. If any important information is shared with some of the employees and not the entire team, then it might be difficult for other co-workers to catch up and register the information. If the small group of people makes change management plans, the staff may be unable to observe the latest ideas after the decisions have already taken(Kennerley, 2003).
All the staff members must know what are the pros and cons of the decisions that they have taken and how they have to work effectively to make it successful. Employees who are focused on their work and have worked amazingly with the change must be rewarded(Simmons, 2003). Every employee has a unique tempo to work with his organization and how he manages his work and completes his tasks within a certain time which shows his confidence in his self and his hard work. Having a complete involvement of employees can lead any organization forward and maintaining the enthusiasm at all levels. If the organization shows complete trust in the employees, then only they can trust their performance and display remarkable skills that they have got in themselves(Spangenberg, 1994). When many people are participating in any project, the problems can easily be solved along with various new ideas that exhibit good planning skills. In this way, an organization can reach the heights of success and its development only depends upon the staff members who are determined to make it grow further. An organization must hire well-deserved and dedicated employees who can bring great changes and achieve higher.
Technology transformed all the processes of human resources throughout the world. According to recent studies, 77% of Human resource managers used data analyses to help employees and to find an employee according to their needs and works. Human resources are set up to make employees compete and capable enough so that they can do work effectively and efficiently. In this scenario, technology plays a great role while making employees stand out from the crowd(Jha, 2018). There is multiple ways through which technology helps recruitment, selection and empowering employees according to the desired needs and wants of the company. The company always wants its employees to be empowered and willing to do the hardest task in the required time frame with the full motivation that why these changes in human resource recruitment and training are necessary for an organization and employee development.
To ensure avoiding risk and to keep the pace of development of work in an organization, big data transforms and digitize the information human resource needs this information can be used to monitor and understand their target market. It also helps to allow Human resource professionals and managers to make decisions that are in favor and can help in making huge profits for the company(Karanika, 2017). The trend of using HR systems is increasing in developing the organization. They can give access to multiple job seekers while sitting on a laptop and doing some clicks. These devices can also be operated on telephones and are helpful for both employers and employees. This type of HR system mobilizes the recruitment and selection process which are both times consuming and cost-effective for the organization, as now a day’s multiple organizations are doing cost-effective business and didn’t entertain products and services which are source cash outflow(Otley, 2013).
Cloud bases application and software also helps organizations and HR and are inevitable in the 21st century. It has some problems, like before placement of HR cloud-based solution or process, requirement needs of company should be understood, whether the company needs a cloud-based software or it can continue its operation on a regular software. After cloud-based operations, the collection and restoration process of data will become easier, all documents and important files can be easily accessed online, and are at minimal threat of online virus, natural calamity, and hacking threat(Birchall, 2011). In some companies for employee’s easiness, they introduce software from which employees can do company work from any remote place in the world. The only thing which is required is an internet connection which can get easily at a minimal cost. According to the study it is commonly observed that the employee who works remotely cab have better work-life balance and due to which they can meet deadlines and work effectively for the company profit motive(Ntanos, 2012). The software-based application also provides training and development for the employee before making or handing over a new project. It clarifies the basic skills which are necessary for doing a specific task or a job.
Technology creates easiness and less workload on HR, but on the contrary, it creates disruption and distortion like many employees don’t feel confident and easy while relying on technology, they encourage and try to apply old systems that they are using in past. In this scenario, the manager must motivate and understand their employee’s weaknesses and try to convince them to use modern applications and technology which can lead great benefits for the company, and definitely, these profits will benefit employees in long run as incentives, bonuses, and appraisals(Sánchez, 2011).
Managers should encourage employees to involve in work or tasks assigned to them. There must be sound Job descriptions of every employee according to experience, work, and workload. If an employee performs a task on time and with his full efforts, then he should be appreciated. Employees who are little motivated to work could be because of multiple reasons, maybe some disturbance at home, salary issues, irrelevant behavior of line managers or might be dealt with proper strict action. The Involvement of employees in an organization creates progress and better outcomes in organizational work(Lendel, 2015). When the employee is motivated by his work and the praiseworthy comments he gets from his higher authorities, then only he can show his abilities and his determination in his tasks. When the environment of the organization is quite friendly and cozy along with cooperative co-workers, then only his viewpoints and his opinions are considered and he gets a chance to think out of his boundary line.
Not everyone is suitable to engage in decision making. However, an organization must judge an employee according to his abilities and how much he knows about his work. Everyone must be assigned a different task that not only earn them satisfaction but also motivate them to work. The staff creates a plan to connect everyone and those who have capabilities to bring change in better decisions, knowledge, and preparation are applauded. If any important information is shared with some of the employees and not the entire team, then it might be difficult for other co-workers to catch up and register the information(Burcharth, 2017). If the small group of people makes change management plans, the staff may be unable to observe the latest ideas after the decisions have already taken.
Chapter 6- Conclusion
The study focused on employee motivation and engagement at workplace. The test and results proved that employee motivation and engagement is related to innovation. The technological advancement play significant role for HR activities, monitoring employees and managing them. All the staff members must know what are the pros and cons of the decisions that they have taken and how they have to work effectively to make it successful. Employees who are focused on their work and have worked amazingly with the change must be rewarded. Every employee has a unique tempo to work with his organization and how he manages his work and completes his tasks within a certain time which shows his confidence in his self and his hard work. Having a complete involvement of employees can lead any organization forward and maintaining the enthusiasm at all levels. If the organization shows complete trust in the employees, then only they can trust their performance and display remarkable skills that they have got in themselves. When many people are participating in any project, the problems can easily be solved along with various new ideas that exhibit good planning skills. In this way, an organization can reach the heights of success and its development only depends upon the staff members who are determined to make it grow further. An organization must hire well-deserved and dedicated employees who can bring great changes and achieve higher.
Technology transformed all the processes of human resources throughout the world. According to recent studies, 77% of Human resource managers used data analyses to help employees and to find an employee according to their needs and works. Human resources are set up to make employees compete and capable enough so that they can do work effectively and efficiently. In this scenario, technology plays a great role while making employees stand out from the crowd. There is multiple ways through which technology helps recruitment, selection and empowering employees according to the desired needs and wants of the company. The company always wants its employees to be empowered and willing to do the hardest task in the required time frame with the full motivation that why these changes in human resource recruitment and training are necessary for an organization and employee development.
To ensure avoiding risk and to keep the pace of development of work in an organization, big data transforms and digitize the information human resource needs, this information can be used to monitor and understand their target market. It also helps to allow Human resource professionals and managers to make decisions that are in favor and can help in making huge profits for the company. The trend of using HR systems is increasing in developing the organization. They can give access to multiple job seekers while sitting on a laptop and doing some clicks. These devices can also be operated on telephones and are helpful for both employers and employees. This type of HR system mobilizes the recruitment and selection process which are both times consuming and cost-effective for the organization, as now a day’s multiple organizations are doing cost-effective business and didn’t entertain products and services which are source cash outflow.
Cloud bases application and software also helps organizations and HR and are inevitable in the 21st century. It has some problems, like before placement of HR cloud-based solution or process, requirement needs of company should be understood, whether the company needs a cloud-based software or it can continue its operation on a regular software. After cloud-based operations, the collection and restoration process of data will become easier, all documents and important files can be easily accessed online, and are at minimal threat of online virus, natural calamity, and hacking threat. In some companies for employee’s easiness, they introduce software from which employees can do company work from any remote place in the world. The only thing which is required is an internet connection which can get easily at a minimal cost. According to the study it is commonly observed that the employee who works remotely cab have better work-life balance and due to which they can meet deadlines and work effectively for the company profit motive. The software-based application also provides training and development for the employee before making or handing over a new project. It clarifies the basic skills which are necessary for doing a specific task or a job.
On the basis of above discussion, and hypothesis, it is proved that technology and innovation are closely related to productivity and employees motivation. Technology creates easiness and less workload on HR, but on the contrary, it creates disruption and distortion like many employees don’t feel confident and easy while relying on technology, they encourage and try to apply old systems that they are using in past. In this scenario, the manager must motivate and understand their employee’s weaknesses and try to convince them to use modern applications and technology which can lead great benefits for the company, and definitely, these profits will benefit employees in long run as incentives, bonuses, and appraisals.
The purpose of this questionnaire is to find out the organizational learning methods under innovation management. This questionnaire has four main sections. The first section is about the organizational learning process, second is about innovation, third discusses the performance of organization and fourth is about demographics.
The research questionnaire is to assess the role of organization. Complete anonymity of gathered data will be provided. Please answer all the questions and reflect your opinion about the organization. If you feel any statement is not relevant, circle X as (no idea).
- Organizational Learning Process
Each statement has different choices, kindly circle them: (1 = strongly disagree, 2 = disagree, 3 = nor disagree nor agree, 4 =agree, 5 = strongly agree; X = do not know)
- Employees are important source of information for the organization (1,2, 3, 4, 5, X)
- Last decisions offer valuable information for current decisions (1,2, 3, 4, 5, X)
- New business services should be tried often (1,2, 3, 4, 5, X)
- Hiring new employees is attributable to existing expertise about industrial products and services (1,2, 3, 4, 5, X)
- Current organization provide effective trainings to employees regarding new skills development (1,2, 3, 4, 5, X)
Please indicate which kind of services and innovation is implemented in your organization.
- New services and products in our organization are like first-market (1,2, 3, 4, 5, X)
- We focus on new methods of employee’s training and development (1,2, 3, 4, 5, X)
- we improve old products continually to enhance quality of new products (1,2, 3, 4, 5, X)
- We compete market and manage to cope the market demands by developing new products (1,2, 3, 4, 5, X)
- New products play significant role to lift us up against competitors (1,2, 3, 4, 5, X)
- Organizational performance
|Our relations with suppliers are unstable and poor
||(1,2, 3, 4, 5, X)
||We believe in maintaining strategic partnership with our suppliers
|We do not focus on suppliers’ research and development and do not involve them
||(1,2, 3, 4, 5, X)
||We involve them in all research and development processes
|Trust level in workers is weak
||(1,2, 3, 4, 5, X)
||The trust level in workers is high
|Productivity of employees is less than average level in industry
||(1,2, 3, 4, 5, X)
||Productivity level is much higher than the average of industry
|Absenteeism in this organization is high
||(1,2, 3, 4, 5, X)
||Absenteeism in this organization is low
- Name of organization
- Average number of employees:
- 400 and above
- Function in organization
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It is a personality shows how sociable a person is, and how decisive they are, or whether they are more into positive emotions or not.
It is a personality which shows how much sympathy one might have with others, and also how cooperative the person is.