Organizational effectiveness reflects the degree to which an organization achieves its set goals and objectives with the available resources without straining its members. Organizational effectiveness factors in the effort of every individual in the organization. Mihelčič (2012) defines an organization as a group of people who have come together to work on a single goal or purpose. Each individual in an organization previously had personal goals they aspired to achieve. However, for an organization’s success, growth, and sustainability, these individuals agree to abandon personal goals or merge these goals to develop a common goal to pursue. Therefore, for an organization to be effective, every individual must work with the available resources, doing what they are best at to achieve the organizational goals.
Organization effectiveness is built on a solid foundation supported by the people, decision-making, systems, leaders, and corporate structure and culture. Effective organization show strength across all these areas. Trust, relationship building, and motivation are critical in achieving and sustaining organizational effectiveness. Ralph Waldo Emerson once stated, “Trust men, and they will be true to you; treat them greatly, and they will show themselves great” (Mccarthy & Truhon, 2016, p. 2). Emerson further noted that organizations need to build Trust to build the business relationship that will sustain the organization through the competitive environment. Whether intrinsic or extrinsic, motivation is paramount to getting the team to achieve high productivity. Relationship building, motivation, and Trust are foundational pillars that create and sustain organizational effectiveness.
Trust
Trust is one of the most important organizational pillars yet the most understudied in modern literature. Sapienza, Toldra‐Simats, and Zingales (2013) define Trust as the belief in one’s capability to perform a task or engage in a beneficial action. Trust, at an organizational context, has been explored as the belief measurable as a probability. Trust involves placing one in a position that projects them as capable of meeting a goal by completing a task. The importance of Trust in an organization is widely explored in literature. Sapienza, Toldra‐Simats, and Zingales (2013) note that the past decade has seen significant research focus on the role of Trust in economic activity. The effective operation of an organization relies on Trust. Organizations need long-term stability. This stability can only be achieved when an organization retains its members and allows every member to express their potential and perform what they are best at.
Research shows that Trust is critical to setting a learning environment in an organization (Guinot, Chiva, & Mallén, 2014). Lack of Trust in organizations has been associated with defensiveness on the part of employees. Employees cornered in an environment where they have to be accountable can resort to a defensive approach to account for their actions when they lack a system that they can trust. The culture of justifying and supporting every action with objective information hinders learning. Organizational learning forms a strong link between Trust and organizational performance. Trust promotes relationship building which is essential for employee engagement. Trust motivates employees to exploit their unidentified potential and take risks that can benefit organizational growth and success.
Relationship Building
An organization is a group of humans working on a defined goal. Relationship in the organization affects every aspect of these individuals. Research shows that relationship in the organization assumes the same role it does in daily human lives (Mihelčič, 2012). In essence, good relationship in the organization improves physical and psychological health. Employees’ behavior in the organization reflects their relationship and interaction with the leaders and colleagues. Good relationships are vital for sustainable organizational learning. Relationships in the organization are built the organizational environment is safe and founded on Trust. People need to feel a strong sense of psychological safety which comes from the Trust they have in the leadership and other people they interact with in person. The quality of communication an organization possesses reflects its relationship with its employees. Lee (2017) notes that the quality relationship between an organization and its employees positively impacts employees’ behaviors. A healthy relationship establishes a healthy working environment employees need to be productive. Organizations that barely focus on relationship building are likely to register frequent disruptive behaviors from employees.
Disruptive behavior may manifest in the forms of failure to take or follow instructions, employees not adhering to the communication channel within organizations, or employees not being able to create and maintain teamwork. Relationship building in an organization extends beyond the nuance of person-to-person relationships (Lee, 2017). In this context, organizations work towards creating a healthy internal environment to sustain a healthy external environment for effective operations. An organization’s public relationship with surrounding communities also affects its relationship with other organizations. Lee (2017) states that a healthy relationship fosters loyalty and increases the chances of retaining more employees. Relationship-building models a positive behavior culture that empowers employees to meet the organization’s expectations. Organizational leaders and managers are tasked with driving employee engagement. The achievement of this task often relies on the relationship top leaders have among themselves and between them and junior employees. The manager-employee relationship can have a positive or negative impact on employee engagement. Organizations depend on a positive impact from their relationship with their employees to survive through the volatile business environment.
Motivation
Motivation gives individuals the reason to perform a task or remain in a particular place. Motivation begets commitment. Varma (2018) asserts that motivation empowers employees to adopt [t a committed approach toward organizational objectives. Human resources determine the level of motivation employees gain from the company. Motivation can manifest as intrinsic or extrinsic motivation. Intrinsic motivation comes from the inherent satisfaction one derives from performing a task or taking up a challenge. Intrinsically motivated employees perform their duty because of the self-growth and fulfillment it brings to them. On the other hand, extrinsic motivation comes from external incentives like rewards and recognition for good performance and goals achieved. Both forms of motivation are critical to performing personal or professional responsibilities. Employees need to be extrinsically motivated through recognition and rewards. The organizational environments are sometimes quite hostile.
Varma (2018) notes that motivation provides a light spectrum from which employees view an organization. The current organization accommodates a diverse community of employees. Employees can exhibit negative and positive attitudes, which are equally contagious to the company. A corporate culture that fosters motivation is characterized by open communication, employee training, and development, recognizing and rewarding employees for hard work, and promoting acceptance and tolerance. Organization and also achieve motivation by promoting transparency, regularly conducting 0ne-on-one meetings with employees, valuing employees’ work-life balance, and involving employees in decision-making. An inclusive organizational culture gives employees a sense of safety, motivating them to achieve greater organizational outcomes. Employees need to be motivated extrinsically to strengthen their intrinsic source of motivation. Constant motivational efforts also remind employees of some factors that attract them to the organization.
Case Study Analysis
Ann and Charles intend to introduce a new organizational structure. Effective management of this proposed change is necessary to achieve the predetermined expectations. Effective change management depends on how well the organization builds a relationship with its employees. The first noted relationship-building issue is a lack of Trust. Ann and Charles believe three out of the seven managers will not buy into their idea. The president and CIO do not trust the managers’ ability to participate in the change initiative successfully. Trust is the belief in one’s capability to perform a task or engage in a beneficial action (Mccarthy & Truhon, 2016). The proposed change already has a majority of support. Four of the managers are expected to buy into and support this idea. The top management needs to win the Trust of the remaining managers because they will be responsible for ensuring that the new structure takes shape. The first step to earning the Trust of the managers is by convincing the managers of the need for change. Regular and effective communication is paramount to establishing Trust and a solid working foundation for the company’s leaders.
A second issue emerging from the case study is the lack of employee engagement. The CIO and president intend to institute a change that affects the entire organization. However, Ann is only concerned about the perception of the other three managers. None of the leaders talks about the role of the employees in the proposed change Change cannot occur without people. The new structure can seem threatening to other employees with various leadership positions. Change resistance is expected if the intended change is not adequately sold to the employees. The degree to which an organization involves its employees in decision-making reflects its relationship with its employees (Lee, 2017). Employees are motivated to pursue organizational goals and provide a supportive environment for change to thrive when they are involved in decision-making. Ineffective communication between the employees and top leaders threatened the success of the proposed organization’s structural changes. Poor communication may result in disruptive behaviors, which may suffocate uinformation movement across the organizational ladder. The lack of diversity in the organization has been a significant threat to relationship management. Innovative and successful companies are diverse. Diversity enables organizations to tap talents from different regions. JIS lacked diversity, as seen in Anna’s efforts to introduce a new organizational structure that diversifies across different regions. The company can leverage diversity to build a strong public portfolio that will strengthen its relationship with other organizations. Diversity will also help the company establish Trust as each person brings in strength that can be used in different areas.
Leadership and Management Strategies
Adopt an inclusive corporate Culture
Diversity and inclusion are two intertwined facets of an organization. An inclusive organizational culture fosters collaboration because of the high workforce integration. An inclusive organizational culture is simple to achieve because it begins by involving the employees in corporate decision-making (Mazur, 2014). The decision-making at Jackson Spice Ingredient only rests in the hands of the top leadership. The employees are not involved in the decision-making process. The relationship between the leaders and employees seems strenuous. An inclusive corporate culture honors the differences and similarities within the individuals. This culture will also help the CIO, and the president understands that it is appropriate for the three managers to dissent in opinion, as their dissenting opinion can also be used to highlight some of the issues employees might be facing that are not addressed or reflected in the proposed changes. An inclusive organizational culture fosters motivation and Trust because it increases engagement between the organization and employees. Relationship building begins with Trust, and motivation strengthens this relationship through loyalty. Increased engagement between employees and organizational leaders will also help the leaders and managers sample employees’ opinions on the proposed change and respond to possible resistance to change to streamline the implementation.
Strengthening the Communication
Effective communication is fundamental to change management. The communication at JSI seems single-faced, with much interaction done at the top organizational structure. Effective communication is two-way and fosters openness. The quality of communication adopted can also help build strong internal and external relationships in the organization (Hargie, 2016). Open and effective communication is reflected in employees’ freedom to be honest, respectful, responsive, and candid. Effective communication will help the company align its goals, capture shared interests, develop reward systems, and engage stakeholders in the proposed changes.
Analysis of the Strategies
Inclusive Organizational Culture
The organizational culture reflects the type of leadership on which the organization is founded. A strong and positive organizational culture sets a conducive work environment. Employees need a conducive work environment to explore and exploit their potential. Tedla (2016) found that a positive organizational culture correlates to super-financial performance. Super financial performance shows that the organizational leaders have set well-defined goals ad appropriately outlined ways to achieve these goals. One of the strengths of an inclusive organizational culture is that it allows all employees to participate in corporate decision-making. Employees are in a better place to take care of clients’ needs when they can actively participate in identifying these needs. An inclusive culture at Jackson Spice Ingredients will foster inclusivity in decision-making and strengthen junior employees’ Trust in senior employees and management. An inclusive culture motivates employees to work on and meet organizational goals. Employees feel part of the system, hence committing to their responsibilities. The management and leadership are often motivated to pursue change and support organizational initiatives that can bring positive change. A performing organization is an organization achieving its mission and vision.
Strong communication System
Effective communication has been associated with a range of benefits. These benefits include better workplace relationships, change acceptance, reduced industrial unrest, and reduced cost. Research shows that effective communication is the most valued aspect of employees in an organization (Hargie, 2016). Effective communication steers organizational mission and vision by championing organizational success. Highly performing organizations base their success on the capacity of the employees and all stakeholders in the organization to come together to meet a particular goal. Stakeholders can only work together and pursue a common goal when they are joined through an effective communication channel.
Conclusion
Trust, motivation and relationship building are fundamental components of organizational effectiveness. Organizations that invest in relationship building strengthen employee trust and organizational leadership. Motivation is the driving force that thrusts organizations to success because it empowers employees to exploit their potential. The relationship between Jackson Spice Ingredients’ senior management seems to be marred by a lack of adequate Trust in the potential of the management. The company’s relationship with its junior employees also seems strained as the employees are entirely left out of the decision-making. The company’s leadership should focus on introducing and nurturing an inclusive organizational culture and effective communication to improve organizational effectiveness.
References
Guinot, J., Chiva, R., & Mallén, F. (2014). Organizational Trust and performance: Is organizational learning capability a missing link? Journal of Management & Organization. doi:10.1017/jmo.2014.3
Hargie, O. (2016). The Importance of Communication for Organisational Effectiveness. Psicologia do Trabalho e das Organizações: Contributos. doi:10.17990/Axi/2016_9789726972556_015
Lee, Y. (2017). Exploring the impacts of relationships on employees’ communicative behaviors during issue periods based on employee position. Corporate Communications An International Journal. doi:10.1108/CCIJ-03-2017-0022
Mazur, B. (2014). Building diverse and inclusive organizational culture-best practices: A case study of Cisco Co. Journal of Intercultural Management. doi:10.2478/joim-2014-0043
Mccarthy, V., & Truhon, S. (2016). A Primer on Organizational Trust: How Trust influences organizational effectiveness and efficiency, and how leaders can build employee-employer relationships based on authentic Trust. doi:10.13140/RG.2.1.1785.5768
Mihelčič, M. (2012). An Extension of Lipovec’s Definition of Organisation and the Most Relevant Goal-Oriented Relationships. Dynamic Relationships Management Journal. doi:10.17708/DRMJ.2012.v01n01a02
Sapienza, P., Toldra‐Simats, A., & Zingales, L. (2013). Understanding Trust. The Economic Journal. doi:10.1111/ecoj.12036
Tedla, T. B. (2016). The Impact of Organizational Culture on Corporate Performance. Walden Dissertations and Doctoral Studies. Retrieved from https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=3612&context=dissertations
Varma, C. (2018). Importance of Employee Motivation and Job Satisfaction for Organizational Performance. Retrieved from https://www.researchgate.net/publication/329698335_IMPORTANCE_OF_EMPLOYEE_MOTIVATION_JOB_SATISFACTION_FOR_ORGANIZATIONAL_PERFORMANCE
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