Approaches to organisations
The governing body of an organisation, from the initial decision to create an organisation, needs to consider and decide what the motivation to engage in one’s business activities is to be. This motivation usually fits under either a product or process approach.
Product versus Process approach
A product approach focuses on the outcomes of the organisation. For example, a manufacturing organisation with the objective of maximizing profits via the sale of unit ‘x’, is most likely going to take a product approach: to produce and supply a tangible product as the basis of their purpose for existence.
A process approach focuses on the processes that an organisation engages in, in order to realise the purpose of the organisation. It is unlikely that a process orientated organisation would be motivated by maximizing profits alone. Examples of organisations with a process approach could be those developing science and technology.
Service organisations
However, a type of organisation that is likely to be both profit-orientated organisation and use a process approach is a service organisation. Services organisations provide some form of service as the basis for their purpose for existence. Examples of industries where service organisations are likely to exist are: hospitality, (commercial) education, age care and childcare.
My provision of service to a wide range of organisations
I have for a number of years operated a service organisation, providing business development training to international organisations. The range of industries that these organisations sit within are diverse. For example: manufacturing, hospitality, edu-tourism, commercial (government and private) post-compulsory education, training & ancillary services, higher education, natural therapies and retail industries.
The implications of these approaches on staff performance
In working with this diverse range of organisations, I have noted across most of these organisations that a similar phenomenon continues to arise. I have found consistently that when my services have been recruited under the broad banner of staff training, I soon realise that the issue of staff performance is actually only a surface manifestation of a more systemic issue. I generally find, as I engage with the organisation through the provision of the training, there is an underlying issue that causes staff to act in a certain manner that frustrates management. I have found in what I believe to be a non-coincidental number of instances that the staff’s poor performance and frustration is tied directly to the approach the stewards have decided upon initially, when they were establishing the organisation: their product approach with an accompanying autocratic management style.
As a result of my experience in service provision to this range of organisations, I have concluded that the initial approach organisations decide upon to position, structure and operate their company, has a natural flow on effect as to the way staff engage in the organisation, across the life of the organisation. A product approach with an accompanying autocratic management style may appear on the surface to enable the stewards and managers to achieve a degree of compliance with effective systems to realise the organisational objectives from the outset. However, I have consistently found the opposite to be true in the longer term. As the organisation matures, I have found that a product approach with an autocratic management style outgrows its usefulness in the first few years. This approach fails a healthy organisation work place, where seemingly motivated, empowered, high performing staff that were at one point in time inspired to share a vested interest in the vision of the organisation, lose their passion. I am cautious to say ‘lose their passion’ as I have cited many examples of staff where I would strongly suggest it is an archaic organisational approach and culture that has sucked the life out of the staff member; rather than (as I have heard so many times from stewards and managers) “the staff member has outgrown the organisation”. With the growing focus on organisational practice, the governing bodies of organisations have been put on notice to progress their approaches, and be more mindful of what they decide on to better direct the culture of the organisation into the future. Organisational governing bodies need to take responsibility and be proactive regarding their ongoing sustainability.
The following summary represents my observations of working with organisations that have employed either a product or process approach in directing their organisation. I acknowledge the sample is small – about thirty companies in total over a three (3) year period. However, I believe the data listed below lends itself to broad generalisations being direct link between an organisational approach and staff morale, engagement and contribution.
In general |
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Approach |
Product |
Process |
Focus of Practice |
The end result is the focus |
The work practice is the focus |
Style of practice |
Outcome orientated |
Emergent orientated |
Type of testing of the practice |
Evaluation |
Assessment |
Tools used to manage performance |
Summative approach |
Formative approach |
What is to be tested? |
The final product |
The process one went through to get to the final product |
What aspect is to be fedback? |
Feedback on one’s achievement of the final product – successful or unsuccessful |
Feedback on ones’ progress/process |
What mode of feedback is provided? |
Quantifiable |
Qualitative |
Once the objective has been realised, what is likely to occur? |
Achieve? Next goal?Not achieve?What’s next? |
Review of one’s process |
Result of holistic outcome analogy for the staff involved and the organisation overall |
moves onto the next goal |
the result usually encourages ongoing assessment of the process |
In terms of specific practice |
||
Management Practice |
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Approach |
Product |
Process |
the organisational management style |
Autocratic |
Participative |
Typical flow of information |
Top down directives |
multi-directional flow, withmulti-tiered collaboration |
Communication Style |
Dictatorial /Authoritative (irrespective of how it is delivered) |
Consultative/Participative |
Verbs describing the management communication style |
Tells, sells |
Consults, shares, delegates |
What this communication style telegraphs to subordinates |
No or condescending trust or confidence |
Substantial trust and confidence |
Result of communication style |
Encourages no discussion or generation of ideas and opinions within the organisation for solving issues with jobs |
Encourages freedom of discussion, and generation of ideas and opinions for constructive use |
Result of the particular management approach |
Staff tend to go to work for the pay |
Staff go to work to be involved with something |
Staff Morale |
Low staff morale with suspicion of any requests or activities related to staff |
High staff morale“we would turn up even if there was no pay” |
Tools used to manage performance reviews |
Summative approach |
Formative approach |
Staff view of their performance reviews and the way they organised and delivered |
Judgmental |
Aspirational |
Staff interpretation of appraisals |
Performance management is a process where they are told what they are not doing |
It is an opportunity to receive constructive feedback to develop their professional skills to become more professional |
Affect on staff’s willingness for Professional Development |
Staff are demotivated by extrinsic required professional development.Staff are only likely to engage in required professional development given their suspicion that the PD activity is tied to performance management |
Staff intrinsically engages in professional development, and embraces their organisational culture which actively promotes and facilitates professional development |
Affect on Service Organisations |
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Approach |
Product |
Process |
Result of the Management Approach |
As staff tend to go to work for the sole purpose of their pay, they are likely to make their own decisions regarding the level of service provision that they provide |
Staff go to work to be involved with something, and therefore are likely to be highly motivated in the level of service provision that they provide |
Alignment of staff actions with organisational goals |
Such service provision is likely to be tied with the individual staff’s motives and in conflict with the organisation’s goals |
Service provision is likely to be in harmony with the culture and philosophy of organisation |
Affect on staff’s willingness for Professional Development |
Staff engaged in professional development only in lip service given their suspicion such is tied to performance management. Any professional development is done only for their own motivation to better themselves and/or their qualifications to capture a better job in an alternative organisation |
Staff intrinsically engages in professional development, and embraces their organisational culture which actively promotes and facilitates professional development |
Staff view of organisational Professional Development activity |
The completion and/or achieving the minimal required overall grade is the focus, in order to ‘tick the box’ |
Staff are interested in the journey – experience and knowledge gained is the focus |
Results |
Staff get a competency grade |
Staff get feedback of their involvement and contribution in the organisation |
Benefit to staff |
Staff receive feedback on their achievement of the desired outcome – successful or unsuccessful |
Staff receive feedback on their progress in the organisation |
Holistic Outcome |
Staff receive some form of certification |
Staff receive detailed diagnostics of their progress in the organisation |
Holistic outcome analogy |
Staff retreat back to their roles, head down until the next directive arrives |
Staff see this process as part of an ongoing process for improved professional practice. This process encourages staff to reflect on their involvement and contribution |
With the growing focus on organisational practice and sustainable performance, governing bodies of organisations have been put on notice to progress their approaches and be more mindful of what they decide on to better direct the culture of the organisation. I believe the data listed above facilitates broad generalisations being made regarding the direct link between an organisational approach and staff morale, engagement and contribution. As organisational governing bodies report to their stakeholders, they need to be mindful of what the most effective approach regarding the direction and culture of the organisation is going to be for future sustainability.
References
Characteristics of a Leader image courtesy of Characteristics of Leaders Accessed 10th September 2013
Leadership image courtesy of Leadership Accessed 10th September, 2013.
Question mark image courtesy of: Cool Text Accessed 11th September, 2013.
Schön, Donald A. 1983. The reflective practitioner: how professionals think in action. Aldershot, England: Arena.
Society image courtesy of Development of society Accessed 10th September, 2013.
Vision blueprint image courtesy of: Vision Blueprint Accessed 10th September, 2013.
