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How to manage Employment Relationship

Abstract
This report seeks to draw a relationship between the management theories which significantly contributed to the subject of management. I will further draw a relationship with how they contribute significantly to the individual performance as the primary driving force for motivation. Secondly, I identify the characteristics of effective performance management system and how Elton Mayo’s theory resonates with my management style. The report concludes with the discussion on coaching and mentorship as well as the most important characteristics of coaching.
Key words: Performance Management System, Employee Motivation, Performance Appraisal, Performance Reporting, Coaching, Mentorship, Employee Performance
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Introduction
Looking at performance from across the organization’s value chain and from various functional heads of the organization gives one a full perspective on what the organization expects from their workforce. Stiffler (2006) contrasts the expectations from all functional heads driven primarily from their role and what it expects. He states that from the chief financial officer and finance managers’ point of view, performance management is about understanding the financial performance of the organization and gaining insight into how the organization’s different entities, (such as business units, divisions, and departments) are performing. Stiffler (2006) further points out that the orientation of the CFO is towards
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measuring the performance of organizational entities and not that of individuals. The Sales executive, according to Stiffler, performance management is about sales force effectiveness, ability for each salesperson to sell more in order to increase overall revenue. Main concern of the sales executive is setting the quotas, managing opportunities and ensuring that the sales people build a healthy pipeline for future business. On the other hand, the human resources executive, Stiffler (2006) points out that performance management is about measuring the performance of the individuals who make up the workforce. While the traditional perspective on performance management view it as conducting performance appraisals, the more progressive view thinks about performance management as a way to improve workforce productivity by hiring the right people, evaluating individual competencies and values and making sure that compensation is in line with the market lines as well as providing opportunities for growth and development through training. (Stiffler, 2006).
Spend some time researching the above theorists and then choose the theory you find most relevant for developing your personal management style
The early management theories primarily centered around the motivation of people and behavior, drive our orientation around the world of work. Maslow’s Hierarchy of needs dating back to the 1940’s and 50’s, states that people are motivated to achieve certain needs and that some needs take precedence over others. Essentially, Maslow argued that before the next level of needs are met, the basic needs must be satisfied. McLeod (2018), in his article on Maslow’s Hierarchy, he demonstrates the hierarchy of needs as having five-tier model of human needs often depicted in a pyramid. These include: i) Physiological needs – namely food, water, warmth, rest; ii) Safety needs – security safety; iii) Belongingness and love needs – intimate relationships, friendships; iv) Esteem needs – prestige and feeling of accomplishment; v) Self-actualization – achieving one’s full potential including creative activities.
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Managementstudyguide.com (n.d.) outlined the Herzberg’s Two- Factor Theory of motivation by Frederick Herzberg, a behavioral scientist in the late 1950’s. Hertzberg theory proposed two-factors, that is, th job factors which result in satisfaction while there are other job factors which prevent dissatisfaction. These are classified into Hygiene factors, which are essential to ensure that employees don’t get dissatisfied however, in a long run, would not lead to positive satisfaction; and Motivational factors, which yield positive satisfaction. They however, motivate employees for superior performance and are inherent in work such as recognition and rewards, sense of achievement, growth prospects, responsibility and meaning to work. Dininni (2017), indicated that Elton Mayo’s contribution to the management theory helped paved the way for modern human relations management methods based on the Hawthorne experiments. Mayo’s theory developed from him observing employees under varying environmental conditions and concluded that employees are motivated far more by relational factors such as attention and camaraderie than by monetary rewards or environmental factors such as lighting, humidity. This, Dininni (2017) states that it is demonstrated by a matrix, which illustrate the likelihood of a given team to succeed based on groups norms and group cohesiveness. In 1960, Douglas McGregor formulated Theory X and Theory Y according to managementstudyguide.com. (n.d.) and it states that McGregor suggested two aspects of human behavior at work, being Theory X the negative perspective and Theory Y, the positive perspective. Theory X assumes that employees are intrinsically lazy and try to escape work whenever possible and Theory Y assumes that employees are inherently motivated to work and will do anything in their power, both physically and mentally to do their work.
I personally associate with Elton Mayo’s management theory. I believe in harmonious teams and harmonious relationships. I thrive in a high norm and high cohesiveness working environment. This motivates me to deliver superior results. As a leader, I am a great motivator and build strong teams
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which perform consistently high standards. Given my positive influence on people and having a powerful vision, people are always drawn to my leadership abilities. The team spirit extends to a support structure beyond work. This is what makes my teams bond and committed to the objectives of the overall team. Notwithstanding the fact that other management theories have a place in motivating individual performance.
Identify the characteristics of an effective Performance Management System and explain how the theory that you find most relevant deals with those characteristics. Discuss how your management style jives with an effective Performance Management System.
In order to achieve an effective Performance Management System, the following key components are critical. Stiffler (2006) identifies five components: i) Alignment of the objectives, resources, and budgets of the different parts of the organization and the goals opportunities, and quotas of individuals; ii) Measure organizational and individual performance; iii) Reward individuals for performance; iv) Report organizational and individual performance; v) Analyze organizational and individual strategy execution using models and analytics.
Mayo’s theory, promotes team cohesion and strong human relations in teams. Central to this is the element of alignment. If the various divisions in the organization are fully aligned, that is, working towards the same vision and objectives of the organization, harmony across the organization is achieved and thus, superior performance is inevitable. Dininni (2017) states that groups with high norms and high cohesiveness have the greatest positive impact and that Mayo’s theory predicts, since group members encourage one another to excel, high levels of success. In this case, characteristics of effective performance management system outlined above become an administrative support rather than core to
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the DNA of the team’s success. They enable alignment and continuous monitoring to ensure that the team stay on course.
Finally, discuss what you believe to be the most important characteristics of an effective coach or mentor and why you believe these characteristics to be the most critical. Discuss how these characteristics are supported in the literature.
Coaching and mentorship can be the most powerful and effective means of improving individual performance if executed well and efficiently. Managers who believe in this approach to employee performance improvement and development, often attain remarkable outcomes and build lasting working relationships, including high retention levels. Beardwell & Holden (1994) quoted in their book on Human Management Resources, Torrington et al. (1994:432) as defining coaching as “improving the performance of somebody who is already competent rather than establishing competence in the first place.” And Mentoring is reported by Beardwell & Holden (1994) as emphasizing on relationships rather than activities and that it is not usually between the employee and a boss. It can exist between a young employee and older manager in the workplace.
For coaching to be effective, the coach should be willing to impart knowledge, share tasks and assignments with the protégé. Shadowing and support to the individual are paramount for the success of the coaching program. Continuous feedback and honest and constructive criticism is crucial for the developmental objectives of the individual. Whilst a mentorship allows for the protégé to present complex business issues, he or she equally tap on the mentor’s wisdom and knowledge in dealing with multiplicity of organizational issues. (Beardwell & Holden (1994).
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Concluding Remarks
I have demonstrated throughout the report how involved performance management is. The various management theories have aided the discussion in linking individual and team’s performance to psychology and behavioral science. People are all motivated to work to fulfil various needs and may be at different stages in their fulfillment of their needs, whilst they may be influenced by different hygiene factors as well. It is highly important for managers to take these aspects into account when leading and managing individuals and teams. Coaching and mentorship programs are normally informal but I would highly recommend human resources executives to embed them in their talent management strategy and human resource value proposition. Coaching not only creates a safe climate of learning but can contribute significantly to the organization’s retention of talent, and ultimately saving the organization costs associated with losing top talent.
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References
Beardwell, I., & Holden, L. (1994). Human Resource Management. A Contemporary Perspective.
2nd Edition. Financial Times Management, London.
Dininni, J. (2017). Management Theory of Elton Mayo
https://www.business.com/articles/management-theory-of-elton-mayo/
Managementstudyguide.com. (n.d.). Herzerg’s Two-Factor Theory of Motivation. Retrieved from
https://managementstudyguide.com/herzbergs-theory-motivation.htm
Managementstudyguide.com. (n.d.). Theory X and Theory Y. Retrieved from
https://managementstudyguide.com/theory-x-y-motivation.htm
McLeod, S. (2018). Maslow’s Hierarchy of Needs. Retrieved from
https://www.simplypsychology.org/simplypsychology.org-Maslows-Hierarchy-of-Needs.pdf
Stiffler, M. (2006). Performance. Creating the Performance-Driven Organization.
Wiley & Sons, Inc., Hoboken, New Jersey.

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