ORGANIZATIONAL PERFORMANCE WITH EMPLOYEE: INTRODUCTION

INTRODUCTION

The Indian information technology (IT) industry has played a key role in putting India on the global map. The IT industry, alone, has played a pivotal role in placing India on the world map as a major knowledge-based economy and outsourcing hub. The IT segment has been the second largest segment in the Indian IT sector and in growth, the second fastest. The growth of the segment for the next five years is expected to be driven by a shift in the service mix towards higher value services like business analytics, knowledge process outsourcing (KPO) including legal services, etc. India is a preferred destination for companies looking to offshore their IT and back-office functions. It also retains its low-cost advantage and is a financially attractive location when viewed in combination with the business environment it offers and the availability of skilled people. Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. India’s second and third largest software companies are head-quartered in Bangalore, as are many of the global SEI-CMM Level 5 Companies. Education

Organizational Performance is a process which measures the implementation of the organization’s strategy. It is also a management tool to plan, monitor, and measure and review performance of indicators to ensure efficiency, effectiveness and impact of service delivery by the organization. The performance of an organization is integrally linked to that of staff. It is therefore important to link organizational performance to individual performance and to manage both at the same time, but separately. Organizational performance measures can vary by industry or organization but generally include financial performance, product market performance, customer service, and societal responsibility. Organizational performance is probably the most widely used dependent variable in organizational research today yet at the same time it remains one of the most vague and loosely defined constructs. According to Katz and Kahn (1966) dryly commented that, “The existence of the problem of developing satisfactory criteria of organizational performance is clear enough; its solution is much less obvious”.

Performance as an innate drive of an organization is so prominent, that the analysis of performance has been christened an “enduring theme” (March & Sutton, 1997). Nearly every study of organization makes at least some reference to the phenomenon (Yuchtman & Seashore, 1967). The attention to organizational performance may be partially explained by the findings of Ouchi and McGuire’s (1975) study. Their research suggested that managers’ feel a need to provide superiors with legitimate evidence of their management skill and that performance measures can provide the evidence they seek.

There are also ongoing debates about how to measure corporate performance among corporations. Davenport and Harris, authors of Competing on Analytics (2007), suggest that organizations will increasingly use data as a competitive advantage. They argue that the frontier for using data is not just in measurement but also in identifying the most profitable customers, determining the right price, accelerating product innovation, optimizing supply chains, and identifying the true drivers of financial performance. More high-performance studies are likely to emerge in the future, partly because the business environment continues to shift and partly because the science of analysis continues to improve.

Attitude is one of the most distinctive factors that make people differ from one another and allows people to be unique in their own way. Each person may possess many opposing attitudes which may tell a different story of the person’s behavior at a certain time. There is lot of theory, history and interesting facts concerning attitude not only as a single concept but in relation to behavior as well. Attitudes tend to persist unless something is done to change them. They can fall anywhere along a continuum from very favorable to unfavorable. Attitudes are directed towards some object about which a person has feelings (affect) and beliefs. The attitude and behavior of the employees play a significant role in the process of development. Employee’s job related attitudes create an effective impact on organization’s behavior. The competitive scenario is in need of employees who can positively react to the healthy performance for the organization. Attitude is a powerful tool which affects the behavior of an individual. The knowledge of employee attitudes can be helpful to managers in attempting to predict the employee behavior. Employee attitudes and behaviors are usually related either one way or another, so when an employee has a negative perspective of their job, or a supervisor, or the organization as a whole-then they are less likely to care about their job performance, disregard their supervisor or try to cause problems with them, or not consider anything that would benefit the company as a whole-just worry about doing just enough in their job and get paid. Employee behavior and attitude are of particular relevance with respect to customer satisfaction. In the literature is in other words often stated that a happy worker is a productive worker. Although Paauwe and Richardson (1997) recognized that employee attitude and behavior play a significant role in explaining the function of employee perceptions as a key construct in explaining the link between organizational performance and employee attitude and behavior. However, if an individual likes their job-they will take pride in doing it correctly, if they like their supervisor-they are more likely to communicate and participate with them, and if they value the organization as a whole-they tend to look for ways to improve the company as a whole, even when they don’t have too.

A person can have thousands of attitudes, but organizational behavior focuses on a very limited number of work-related attitudes. These work-related attitudes tap positive or negative evaluations that employees hold about aspects of their work environment. Most of the research in organization behavior has been concerned with three attitudes: job satisfaction, job involvement, and organizational commitment. In an organization, manager of today’s knowledge workers often rely on job satisfaction to keep motivation and enthusiasm for the organization high performance. Organizations don’t want to lose talented highly skilled workers. In addition most managers care about their employees and simply want them to feel good about their work and almost everyone prefers being around people who have positive attitudes.

Attitude alone do not influence behavior but these acts with other factors in the individual influencing behavior, such as personality, perception, motivation, etc. Further, attitudes are also affected by the individual dimension as well as the objects, persons, and ideas. Attitudes have been through as serving four functions and there by influencing the behavior. These are instrumental, ego defensive, value orientation and knowledge.

1. Instrumental: Attitudes serve as a means to reach a desired goal or to avoid an undesired one. Instrumental attitude are aroused by the activation of a need or cues that are associated with the attitude object and arouse favorable or unfavorable feelings.

2. Ego-Defensive: The ego-defensive functions of attitude acknowledge the importance of psychological thought. Attitude may be acquired by facing threats in the external world or becoming aware of his own unacceptable impulses.

3. Value Orientation: The value-orientation function takes in to account attitudes that are held because they express a person’s self-image, or by cues that engage the person’s values and make them salient to him.

4. Knowledge: The knowledge function of attitude is based on a person’s need to maintain a stable, organized and meaningful structure of the world.

Several studies examine the relationship between employee attitudes and performance outcomes across the multiple worksites of a large firm. Presumably, the shared experiences that would create a common group attitude would more likely occur within individual establishments where the employees work at the same location with the same manager or supervisor. In the first of these studies, Katz, Kochan and Goreville (1983) study General Motors plants during the 1970s and find that managers and supervisors’ assessments of the state of labor- management relations in the plants were positively correlated with the plants’ product quality and labor efficiency. Bartel (2004) studies 160 branches of a Canadian bank and finds that branch performance is higher when employees are satisfied with performance evaluation procedures, feedback, and recognition at the branch; further, improvements in these attitudes within a branch predict improvements in performance. The research strategy is to study the effects of a “group attitude” at individual workplaces within a firm that operates multiple work sites to produce similar services and products under the same company-wide human resource policies.

In spite of the arguments for expecting a stronger relationship between attitudes and performance on a group level than on an individual level (especially in service organizations), there has been relatively little empirical work that systematically measures the satisfaction performance relationship at the level of the work unit.