Question

"Models of Organizational Performance" Please respond to the following:

Choose two models of organizational performance and compare and contrast them by evaluating their differences and similarities.

From the first e-Activity, suggest ways performance measurements might be used by a company or an organization to evaluate its customer satisfaction.

From the second e-Activity, provide at least two examples of quality indicators that the company may opt to measure and defend its cause-and-effect linkage between the key measures of performance

Strayer U.

Answer 1

Expectancy theory: This theory underlies the concept of performance management as it is believed that performance is influenced by the expectations concerning future events , This theory is based on the hypothesis that individuals adjust their behavior in the organization on the basis of anticipated satisfaction of valued goals set by them. The individuals modify their behavior in such a way which is most likely to lead them to attain these goals.

Properties of Expectancy theory

Expectancy this property helps individuals in determining if they have the required skill sets for accomplishing a work accurately. determined by individual belief that performance of a specific type of behaviour will certainly help the individual in attaining desired performance goals. , However, when performance goals are beyond the achievement, the corresponding motivation also declines.

Instrumentality is connected with the process of rewarding for desired performance outcome. Thus, individuals are motivated to perform works that would provide greater rewards after successful accomplishment. However, when the instrumentality or reward for a number of organisational performances is same, motivation to perform different kinds of work declines.

Valence is the significance of the reward individuals get for exhibiting desired performances. Thus, individuals evaluate the rewards given to them for performance based on various aspects. This includes differential needs, values, goals and sources of motivation.

Goal Setting Theory :

This hypothesis suggests that the individual goals established by an employee play an important role in motivating him for superior performance. This is because the employees keep following their goals. If these goals are not achieved, they either improve their performance or modify the goals and make them more realistic. In case the performance improves it will result in achievement of the performance management system aims .

Properties of goal setting theory

Clarity of goal a clear and measurable goal .
Challenge motivating the employee and organisation to strive for positive goal achievements.
Commitment makes individuals or organisations to put on deliberate efforts in meeting goals. Furthermore, it also helps goals to become more achievable.
Feedback provides information on the progress towards achieving goals. Individuals and organisations can adjust goal setting according to the feedbacks.
Task complexity makes the achieving of goals easier by laying down process and steps. Goal setting can be achieved by applying all the principle stringently and ensuring that all goals account for the principles.

To measure Quality in goal setting theory organization must have to put forward goal based on quality   and then derive KPI based on customer satisfaction and at last track and analyse it against goal. Eg an Airline to included on time performance factor say 99 percent OTP in his goal statement and then monitor OTP values as a measure of Quality . Or can set customers complain per 1000 flight as a measure to monitor service quality.