Goal Congruence in Organizations - Research Paper Example

Inconsistency in Measures of Evaluation and Motivation to Achieve Goal Congruence Name Tutor Course Date Inconsistency in Measures of Evaluation and Motivation to Achieve Goal Congruence Introduction Organizations employ processes to conduct performance evaluation of current performance and to motivate future improvement of the performance. However, application of these measures vary from one firm to another where some organizations choose to employ similar measures for both current and future performance while others institute separate measures. According to Miner (2007), goal congruence in organizations is vital so as to attain expected performance. Organizations integrate several goals from different departments and individuals which are aligned aiming at attainment of a common set mission. A balance must be stricken between goals of the organization and goals of its employees. Simons (1985) suggests that congruence will be attained by the organization if similar processes are applied in evaluation of performance and to motivate organization functions to improve future performance. Pursuing a research to understand the existence of inconsistency in measures or evaluation and motivation is important since goal congruence is a major contributor to organization performance that affects general national economy Background Many organizations have differentiated their processes such that methods employed in evaluation are not the same as that applied in motivation as suggested by Simons (1985). According to Simons (1985), for firms together with their employees to realize goal congruence, they must employ similar measures in evaluation of organizations’ current performance and motivation of future improvement. Performance management involves efficient and effective attainment of organizational goals. Organizational systems and procedures implemented by organizations has been known and displayed by researchers to influence alignment of employees, resources and organizational systems with organization main concerns and its policies. Although many studies have been conducted on issues concerning organizational culture and how it affects performance or the organization, processes and means of methodologies utilized has not been addressed by the literature. Although a number of researches have been conducted concerning performance and goal congruence, little has been illustrated concerning reasons for inconsistency where organizations use distinct processes for evaluating performance and improving future performance while others use similar procedures. Proposed research questions 1. Why do some organizations employ different methodologies in evaluation of current performance and motivation of future performance improvement? 2. What other ways can firms using different performance methods for evaluation and improving performance attain goal congruence? Methodology The nature of this particular study requires analysis of primary individual opinions from parties directly affected in an organizational setting. This promotes the need to adopt quantitative methodologies. However, the study is not distinctively limited to quantitative techniques since literature review which is a qualitative methodology is also employed to generate relevant data that is important for the study. According to Balnaves and Caputi (2001), quantitative research includes designs, techniques and measures that produce discreet numerical or quantifiable data. In this case, quantitative study involved administration of surveys questionnaire which provide an opportunity to investigate the opinions of employees at different hierarchy and identify any differences or agreeing aspects of the perspectives. Quantitative method is most appropriate for the study by view of the objectives involved, that is, in this case, the study involves several objectives, which of these are better assessed using quantitative methods. Creswell (2005) states that, quantitative methods supplement qualitative method by providing the data needed to test hypotheses. Using both methods help to avoid any kind of bias involved in both research methods by using each method to check the other. Surveys or questionnaires address personal perspectives of organization functions who are directly working in the departments of interest to the research. Literature review Goal congruence Performance measures can be ranked in the order of their value by distinguishing aspects of congruence and incongruence related to them. According to Epstein(2010), goal congruence is vital especially in targeting performance among agents. Simons (1985) states that, executives, line managers and subordinates need to focus on a common goal shared in all departments so as to attain great performance. He states that, performance of accounting systems is mainly judged on the basis of goal sharing. Most agents also consider that the alignment of personal goals of executives and juniors, company and group goals leads to effective goal attainment and improved performance. Agent relations between an agent and a principle are the main target of goal congruence considering that both short term and long-term profitability is to be attained. Managers in an organization should decide on ways of dividing attention to all organization’s functions like customer service and cost control. Attaining goal congruence in evaluation of current performance measures and motivation of future performance improvement involves, having a common system for evaluation of the organization performance and encouraging improvement of performance (Drury, 2006). In consistency in performance management measures Organization departmental division and classification of responsibilities is likely to be a major reason why most firms argue that there is need to use separate measures in performance evaluation and motivation of future performance improvement. According to Moynihan (2008), personnel development department can be responsible for ensuring that improvement of future performance is motivated within the organization while evaluation department can be responsible for evaluation of performance. So as to improve reliability and efficiency, most firms consider separating their measures for performance evaluation and motivation to improve future performance. Utilizing similar measures might require that a single department performs both functions. This procedure is likely to compromise reliability and efficiency in terms of measuring performance. Personal development department plan Development objectives Success criteria Actions Implementation Target date for achievement Actual date of achieving Database management skills Ability to handle loads of data within a short time Data management training Management of data at the warehouse - - Team leadership skills Ability to bring different workers together and achieve the best in them Team leadership training sessions Working on a teamwork project Customer handling skills Ability to increase customer base through quality service to customers Training on sales Carrying out sales outside the company The department is responsible fororganizing trainings of workers to acquire the skills so as to achieve the development plan. Trainings on data management, team work and sales are also conducted to ensure that future performance and firm’s continuity is assured. In addition, workers shall participation of workers is another measure to motivate performance improvement where staff participate in group projects which are facilitated by the management. Workers’ interaction forums also allowsthem to have sessions with each other so as to exchange their acquired skills and to boost the workers that still have problems with developing the skills properly. In this department, auditing and performance appraisal are the main measures of action plans where a review of results is done for the change implemented and is the succession plan is working. The organization uses the audit approach to ensure that it is providing all the required services. An assessment process is provided for assessing staff welfare. Assessment of staff welfare ensures that the needs of workers are satisfied. Since employee retaining is among the company’s main goals, it aims at measuring if this is attained. Problem centered approach is used to find the cause of performance related problems within the company. In addition focusing entirely on ensuring provision and creation a healthy workforce is vital. Calculation of the cost of service should be done soundly and assessment of services should be done periodically (Articlesbase, 2009). Alternative ways for attaining goal congruence Strategic management also ensures that goal congruence is attained by focusing on key players of performance who are the employees. Firms that employ different measures in evaluation and motivation of performance improvement in the future can equally attain goal congruence. Employees or staffs are the major factors that influence performance of an organization. Efficiency in execution of duties and responsibilities ensure that expected performance in the organization is maintained at high levels. Strategic management of human resources ensures that efficiency is attained without having to employ similar measures for evaluation of performance and improvement of future performance. For strategic HRM to prevail, the traditional centralized control of personnel functions in the organization must be transformed into strategic human resource management. This includes changing aspects of managing people within the organization and diversification of roles. According to McDermott et al (2013), the HR alters its framework by transferring duties involved in human resource from human resource managers to line managers. An organization can allocate performance evaluation to a different department that performance improvement and attain goal congruence. Bratton (2011) states that, strategic human resource management involves improving the performance or a business organization and developing the cultures of an organization through connecting human resource function including its policies and practices with organization’s strategic goals and objectives. This can be illustrated in a diagram below: Baker &Kiymaz (2011) state that, organizations have a main objective to create value for organization’s stakeholders through their human resource departments and involvement in decision making processes such as employee acquisitions. Better assessment by results supporting this objective within the organization’s function will help achieve the objective. This is provided through transformation of the Human Resource function of the company that requires strategic management. Importance of research questions The research question is worth exploring since it concerns organizations and industries in national economy that affects its future and the global economy. Industrialization is likely to be boosted to higher levelsthrough improved organizational efficiency if this research is successful. If other methods of attaining goal congruence are communicated by this research, many organizations will get to benefit from the alternatives and diversify their performance management measures. Every firm has its own reasons for not using similar measures of performance evaluation and performance improvement. Identification of reasons why some firms employ different will help other firms to bench mark their systems and application of the same to their organization functions. Such firms can also employ alternative measures in case common measures for performance management do not go well with their organization. It is also an interesting topic to explore since it gives insight on the performance management aspects within organizations therefore providing a better understanding of what efficiency in organization performance really is. Management in industrial relations and the human resource sector will also be improved to provide a basis for contracting between employers and their employees through relation of the labor market. Conclusion Goal congruence enhances relations in an organization therefore contributing to better industrial relations. It is also important that other ways of attaining goal congruence are identified for firms that use different methodologies in performance evaluation and motivating improvement of future performance. It is evident that many firms deviate from the norm by considering separate measures. However, such firms can also be a bale to attain goal congruence even while applying their own strategies and procedures. Departmental division and division of roles and responsibilities is evidently a major drawback for firms to adhere to standards of congruence. Bibliography Miner, J. B. (2007, Organizational behavior: 4. Armonk,: M.E. Sharpe, N.Y. Moynihan, D. P 2008, The dynamics of performance management constructing information and reform, Georgetown University Washington, D.C. Press.http://public.eblib.com/EBLPublic/PublicView.do?ptiID=547813. Workshop on performance measurement and management control, Epstein, M. J., Manzoni, J. F., & Davila, A 2010, Performance measurement and management control: innovative concepts and practices. Bingley, Emerald. Drury, C 2006, Management accounting for business, Thomson Learning, London. Lawler, E. E., Boudreau, J. W., & University of Southern California, 2009, Achieving excellence in human resources management: An assessment of human resource functions, Stanford Business Books. Stanford, Calif. Creswell, J. 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(2001). Introduction to quantitative research methods: an investigative approach, SAGE, London. Read More