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Concept of Employee Performance
Employee performance is normally looked at in terms of outcomes. However, it can also
be looked at in terms of behavior (Armstrong 2000). (Crouse, 2005), stated that
employee's performance is measured against the performance standards set by the
organization. There are a number of measures that can be taken into consideration when
measuring performance for example using of productivity, efficiency, effectiveness,
quality and profitability measures (Crouse, 2005)as briefly explained hereafter.
Profitability is the ability to earn profits consistently over a period of time. It is
expressed as the ratio of gross profit to sales or return on capital employed (Wood &
Stangster 2002).
Efficiency and effectiveness- efficiency is the ability to produce the desired outcomes
by using as minimal resources as possible while effectiveness is the ability of employees
to meet the desired objectives or target (Stoner, 1996). Productivity is expressed as a
ratio of output to that of input (Fox, 2007). It is a measure of how the individual,
organization and industry converts input resources into goods and services. The measure
of how much output is produced per unit of resources employed (Lipsey 1989). Quality
is the characteristic of products or services that bear an ability to satisfy the stated or
implied needs (Mwaura, 1999). It is increasingly achieving better products and services
at a progressively more competitive price (Jain, 2005). As noted by (William, 2011), it
is the responsibility of the company managers to ensure that the organizations strive to
and thus achieve high performance levels. This therefore implies that managers have to
set the desired levels of performance for any periods in question. This they can do by for
example setting goals and standards against which individual performance can be
measured. Companies ensure that their employees are contributing to producing high
quality products and/or services through the process of employee performance
managemen.
This management process encourages employees to get involved in planning for the
company, and therefore participates by having a role in the entire process thus creating
motivation for high performance levels. It is important to note that performance
management includes activities that ensure that organizational goals are being
consistently met in an effective and efficient manner. Performance management can
focus on performance of the employees, a department, processes to build a product or
service, etc. Earlier research on productivity of workers has showed that employees who
are satisfied with their job will have higher job performance, and thus supreme job
retention, than those who are not happy with their jobs (Lauby, 2005). Further still,
Miner, (2007) document that employee performance is higher in happy and satisfied
workers and the management find it easy to motivate high performers to attain firm
targets. Effect of training on performance in the real world, organizational growth and
development is affected by a number of factors. In light with the present research during
the development of organizations, employee training plays a vital role in improving
performance as well as increasing productivity. This in turn leads to placing
organizations in the better positions to face competition and stay at the top. This
therefore implies an existence of a significant difference between the organizations that
train their employees and organizations that do not. Existing literature presents evidence
of an existence of obvious effects of training and development on employee
performance. Some studies have proceeded by looking at performance in terms of
employee performance in particular ( Msoroka, , 2013; Griffin, 2012) while others have
extended to a general outlook of organizational performance ( Schermerhorn, 2010;
Mukherjee, 2005). In one way or another, the two are related in the sense that employee
performance is a function of organizational performance since employee performance
influences general organizational performance. In relation to the above, Mwaura, (1999)
note that employee competencies change through effective training programs. It
therefore not only improves the overall performance of the employees to effectively
perform their current jobs but also enhances the knowledge, skills an attitude of the
workers necessary for the future job, thus contributing to superior organizational
performance. The branch of earlier research on training and employee performance has
discovered interesting findings regarding this relationship. Training has been proved
to generate performance improvement related benefits for the employee as well as for
the organization by positively influencing employee performance through the
development of employee knowledge, skills, ability, competencies and behavior (
(Müller, 2011; koonz, 1990; phalomano, 2003). Moreover, other studies for example
one by Swart et al. (2005) elaborate on training as a means of dealing with skill deficits
and performance gaps as a way of improving employee performance. According to
William, (2011), bridging the performance gap refers to implementing a relevant
training intervention for the sake of developing particular skills and abilities of the
employees and enhancing employee performance. He further elaborate the concept by
stating that training facilitate organization to recognize that its workers are not
performing well and a thus their knowledge, skills and attitudes needs to be molded
according to the firm needs. It is always so that employees possess a certain amount of
knowledge related to different jobs. However, it is important to note that this is not
enough and employees need to constantly adapt to new requirements of job
performance. In other words, organizations need to have continuous policies of training
and retaining of employees and thus not to wait for occurrences of skill and performance
gaps. According to (koonz, 1990), employee competencies change through effective
training programs. It not only improves the overall performance of the employees to
effectively perform the current job but also enhance the knowledge, skills and attitude of
the workers necessary for the future job, thus contributing to superior organizational
performance. Through training the employee competencies are developed and enable
them to implement the job related work efficiently, and achieve firm objectives in a
competitive manner.
Further still, dissatisfaction complaints, absenteeism and turnover can be greatly
reduced when employees are so well trained that can experience the direct satisfaction
associated with the sense of achievement and knowledge that they are developing their
inherent capabilities (Pareek, 2007).
The concept and meaning of motivation
Along with perception, personality, attitudes, and learning, motivation is a very
important part of understanding behaviour. Luthan (1998) asserts that motivation
should not be thought of as the only explanation of behaviour, since it interacts with
and acts in conjunction with other mediating processes and with the environment.
Luthan stress that, like the other cognitive process, motivation cannot be seen. All that
can be seen is behaviour, and this should not be equated with causes of behaviour.
While recognizing the central role of motivation, William Pride (2011) states that many
recent theories of organizational behaviour find it important for the field to re-
emphasize behaviour. Definitions of motivation abound. One thing these definitions
have in common is the inclusion of words such as "desire", "want", "wishes", "aim",
"goals", "needs", and" incentives". Luthan (1998) defines motivation as, “a process that
starts with a physiological deficiency or need that activates a behaviour or a drive that is
aimed at a goal incentive”. Therefore, the key to understanding the process of
motivation lies in the meaning of, and relationship among, needs, drives, and incentives.
Relative to this, Robbins, (2009) state that in a system sense, motivation consists of
these three interacting and interdependent elements, i.e., needs, drives, and incentives.
Managers and management researchers have long believe that organizational goals are
unattainable without the enduring commitment of members of the organizations.
Motivation is a human psychological characteristic that contributes to a person's degree
of commitment (Cummings, 1998).It includes the factors that cause, channel, and
sustain human behaviour in a particular committed direction. Griffin, (2012) goes on to
say that there are basic assumptions of motivation practices by managers which must be
understood. First, that motivation is commonly assumed to be a good thing. One cannot
feel very good about oneself if one is not motivated.
Second, motivation is one of several factors that go into a person's performance. Factors
such as ability, resources, and conditions under which one performs are also important.
Third, managers and researchers alike assume that motivation is in short supply and in
need of periodic replenishment. Fourth, motivation is a tool with which 5managers can
use in organizations. If managers know what drives the people working for them, they
can tailor job assignments and rewards to what makes these people “tick.” Motivation
can also be conceived of as whatever it takes to encourage workers to perform by
fulfilling or appealing to their needs. To Olajide (2000), “it is goal directed, and
therefore cannot be outside the goals of any organization whether public, private, or
nonprofit”, Strategies of Motivating Workers Bernard in Schermerhorn , (2010) accords
due recognition to the needs of workers saying that, "the ultimate test of organizational
success is its ability to create values sufficient to compensate for the burdens imposed
upon resources contributed." Bernard looks at workers in an organized endeavour,
putting in time and efforts for personal, economic, and non-economic satisfaction.
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