Impact of Workplace Environment on Employee Performance
Employees are very important assets in an organization. A good organization is one which takes care of its employees.
This is often done by paying attention to their workplace environment. This is because the employees spend substantial
part of the time of their lives at the workplace while carrying out their work. Hence, workplace environment influences
their cognitive and emotional states, concentration, behaviour, actions, and abilities. It plays an important role in the
employees’ engagement as well as in their performance. In fact, workplace environment has a big contribution for the
organization in maintaining a high level of employees’ productivity and hence the organizational productivity.
Workplace environment can be anything which exists around the employees where they work and which affect how they
carry out their work. It consists of both external and internal conditions which can influence the working spirit and hence,
reflect in their performance at work. There exists a strong interaction between employees’ performance and physical
workplace environment. The physical environment at work is critical to employees’ performance, satisfaction, social
relations and health. The environmental conditions at the workplace are important factors which has an influence on the
employees’ morale and job satisfaction and hence their performance.
Workplace environment and productivity are often perceived as two opposites by the managements in some of the
organizations. This is because, the managements of such organizations consider workplace environment as an extra,
resource-consuming, nonproductive activity, which they dislike because of the lack of production stemming from it. They
believe that the productivity enhancement of the employees can be achieved by enhancing the employees’ skills. Such
managements are ignorant of the fact that majority of the productivity problems reside in the workplace environment in
which the employees operate. These managements are not aware that the lower productivity and unable to fulfill the
urge to increase productivity is because of the malfunctioning of workplace environment. The type of work environment
in which employees operate determines the way how they perform. Effective workplace environment raises the bar of
what is expected from the employees without necessarily giving them extra means or resources to handle this.
Employees’ productivity is the heart and soul of any organization. The success of the organization is very much
dependent on how its employees perform at the workplace. Employees who put forth extra effort often make a big
difference in organizational performance. Increasing the employees’ productivity is one of the most critical goals of an
organization. Workplace environment influences the employees’ behaviour at work. In fact, employees’ surroundings and
the workplace environment impact most the working efficiency of the employees.
The workplace environment is the employees immediate surrounding where he performs his work. Employees’
workplace environment is a key determinant of the quality of their work and their level of productivity. Improper
surroundings introduce hazards which make the workplace environment unsafe and impede the productivity rate of the
employee. Hence, the workplace needs an environment in which the employee can carry out his work without any
hindrance. An effective workplace is required to have an environment where the expected results can be achieved
comfortably. Physical environment affect how employees in an organization interact, perform tasks, and are led. Physical
environment as an aspect of the work environment has a direct effect on the human sense and it delicately changes
interpersonal interactions and thus productivity. This is so because the characteristics of the workplace have
consequences regarding productivity and satisfaction level. The workplace environment is the most critical factor for the
employees to perform.
The physical aspects of a workplace environment have a direct impact on the employees’ productivity, performance,
health and safety, comfort, concentration, job satisfaction, and morale. A proper, helpful, conducive workplace
environment brings improvements to the employees’ physical and mental capabilities in performing their daily routine.
An improper and unfavourable workplace environment leads to work stress. It also causes errors being committed by the
employees. Also, unfavourable workplace environment, results into under-utilization of the capabilities available with the
employees. It also induces work related stress in the employees. Important factors in the workplace environment include
building design and age, workplace layout, cleanliness, workstation set-up, equipment design and quality, space,
temperature, ventilation, lighting, noise, vibration, radiation, and air quality etc. (Fig 1).
Fig 1 Factors of workplace environment influencing employees’ performance
Employees are driven into job engagement using acceptable physical working environment. A physical conducive
workplace environment which is comfortable, flexible and aesthetic to the employee encourages their mobility,
concentration, sensory and physical connection to work roles and foster employees’ engagement. It enhances the physical
and mental well-being of the employees. It not only provides support for the development and maintenance of their
working capacity but also enhances it. This happens since the work environment affects one’s cognitive, emotional and
physical well-being. A properly designed user-friendly physical workplace environment is central to employee engagement
and consequently organizational success.
Noise is one of the leading causes of employees’ distraction, leading to reduced productivity, serious inaccuracies, and
increased job-related stress. High noise level at workplace reduces employees’ productivity, and increase errors. Also, the
employees’ productivity improves with the availability of natural light and good ventilation at the workplace.
Effective workplace communication is another key factor to improve workplace environment. An organization which
communicates throughout the workplace in an effective manner is more likely to avoid problems with completing the
daily procedures, and is less likely to have a problem with improper occurrences. Such an organization generates a
stronger morale and a more positive attitude of employees towards work. When employees communicate effectively with
each other, productivity of the employees increases since the effective communication means less complains and more
work getting done. It removes confusion and frees up wasted time which would have been otherwise spent on explanation
or argument. It makes workplace more enjoyable, less anxiety among co-workers which in turn means positive attitude
towards work and increased productivity. Besides, another aspect of communication which affects productivity is noise
level. Noise has negative influence on communication, frustration levels increase while productivity decreases in relation
to persistence and loudness of noise. A reason given for this is that spoken communication becomes progressively more
difficult as noise levels increase.
Workplace environment has an effect on the ‘ergonomics’ which can be defined as the science of designing to fit the
employee, rather than physically forcing the employee’s body to fit the job. It also can be considered as physical and
mental capabilities which it limits in the employee as he interacts with tools, equipment, work methods, tasks and the
workplace environment. If the ergonomics issues are not addressed then the employees act on a subconscious level,
adapting their behaviour to lighten the pain thus affect their performance and reduce productivity. The work stress in the
employees increases. Work stress is defined as the harmful physical and emotional responses which occur when job
requirement do not match the employees’ capabilities, resources, and needs. The increase in the work stress is caused by
the work design and workplace environment.
The issues related to the ergonomics at the workplace deals with the human body’s responses to physical and physiological
stress. Employees experience stress if they perceive negatively towards their workplace environment. The stress slows
down the responses of the employees and hence affects their work efficiency. Stress generated at the workplace can
affect the employees’ productivity, morale and motivation which in turn reflect in the performance and the productivity
of the employees.
The factors connected with ergonomics contributing to the reduction in work stress include, (i) availability of
things at a place which is easy to access, (ii) working in an environment which is comfortable, (iii) availability of an
environment which promotes reduction in use of an excessive force, (iv) the available work environment facilitates
working at proper heights and in good postures, (v) availability of working environment which minimizes fatigue, (vi)
availability of working place which is clean, clear and which facilitates easy movement, (vii) availability of working
environment which is comfortable and which enhances clarity and understanding, and (viii) availability of systematic
working methods at the workplace resulting into improved work organization.
‘Seven S’ (7S) methodology is adopted in some of the organizations for the improvement of the workplace
environment (Fig 2). This is carried out by eliminating or reducing the waste, inconsistency, and physical strain. The
implementation of 7S methodology consists of seven phases namely (i) sort, (ii) set in order, (iii) shine, (iv ) standardize,
(v) sustain or self-discipline, (vi) safety, and (vii) spirit or team spirit. Each phase of 7S methodology continuously improves
the performance of the organization by eliminating wastages of searching, waiting, transportation, motion, and work in
progress inventory etc. The 7S methodology makes the working environment clean and safe which improves the morale
of the employees and hence has a positive effect on their performance. The improvement is in the quantitative form as
well as in the qualitative form. The quantifiable variables are searching, movement, and waiting time, cycle time, lead
time, production rate, productivity, and quality etc. while the qualitative variables are working environment,
communication, and morale etc.
Productivity in the Workplace: How Does Communication Affect it?
Effective communication is pivotal in increasing productivity because it directly influences the behavior of the staff and
the way they perform. Efficient communication which includes clear instructions, fast message delivery, and proper
explanation, is the key factor to solid cooperation between managers and employees. It plays an eminent role in getting
things done which ultimately increases the department’s productivity. From today’s article you will learn, how exactly
does communication affect productivity in the workplace. Have a nice read!
Poor communication can affect work production because the staff might not receive adequate information to complete a
task assigned to them. It may start a whole destructive chain of events because if an employee forgets to mention
important information, it will result in delaying the completion of a project or in errors/bugs that will jeopardize the
implementation.
That is why it is essential that you practice communicating with your staff. It will improve understanding and, in the result,
will elevate productivity and efficiency. This will strengthen your organization both internally and externally.
Productivity In The Workplace
Communication is only effective when the receiver understands the message conveyed just as the sender wanted to. The
receiver can confirm this by letting the sender know that the message was received through the right medium and on
time.
A study performed by Watson Wyatt found that businesses that used to communicate with their staff were likely to have
lower levels of labor turnover. If an organization fails to complete a project within its original time frame it can cost them
a lot of money and their reputation.
This is why communication is inter-linked with time management as it helps project teams to complete their task and
deliver it on-time.
How Does Job Motivation Affect Performance?
Latest NewsMotivation Jul 28, 2015
One of the most important elements that drives us to achieve is motivation, and motivational speakers know this
all too well. Without it, our ability to get going, to stay focused and to keep on pushing ourselves even in the face of
challenges is hampered. On the job, this motivation is essential for our performance and without it our professional goals
and targets will not be achieved. The article answers the question: how does motivation affect job performance?
HOW DOES MOTIVATION AFFECT JOB PERFORMANCE?
MOTIVATION IS IMPORTANT TO AN INDIVIDUAL AND A BUSINESS
When we take into consideration the performance of a business, it cannot be looked at in isolation from its
employees. They are arguably the biggest assets a business owns and the manner in which staff performs on the job has
a significant impact on the results and success of a business.
Motivation is important to a business and its employees. It helps an individual achieve personal goals. A motivated
individual will have greater job satisfaction, heightened performance and a willingness to succeed. This is enjoyed by the
wider team and the overall organisation.
Employee motivation however, is a common concern for many managers. Unmotivated employees typically spend
little or no effort completing required work, often do the bare minimum without a desire to deliver quality outcomes and
regularly avoid workplace functions or gatherings. Without any spark of creativity, they are less motivated to perform.
The tricky part of motivation is that every employee has a different trigger that will get them inspired and
employers need to work hard to identify ways to motivate each person based on their personal wants and needs.
THE POWER OF EMPOWERMENT
When an employee is empowered, they are able to take control of and be influential in a particular situation.
Empowerment is powerful. It offers that freedom to make decisions and take ownership of the good, and the not so good,
outcomes and can only come from someone who is motivated. An employee that desires to have their voice heard, who
wants to contribute in a pivotal role and who seeks results, will thrive with empowerment.
MOTIVATION IS CONTAGIOUS
When management fail to deal with performance concerns or turn a blind eye to problems in the workplace, this
can be a huge motivation killer. By not establishing standards and allowing poor performance to be left unaddressed, the
negative implications can very quickly deter those who would typically shine. Motivation is contagious and if the wrong
message is being sent from senior leaders, it can have a detrimental impact on job performance.
Looking at this from a more positive slant however, the results and success a team of motivated employees can
be looked upon with much desire and can be a drawcard for someone who is seeking that extra inspiration. Surrounding
yourself with positive, successful believers is essential.
IDENTIFYING HIGHLY MOTIVATED EMPLOYEES
A motivated employee will always look for a better way to tackle a job. They will always look to streamline a
process, eliminate waste, automate tasks and overall produce a more efficient result. It’s in their bones to be quality
orientated. It’s in their DNA to work productively.From a business perspective this is paramount. On the job performance
is enhanced and goals are more readily achieved. As a bonus too, higher quality output, typically via an improved and
speedier process, results in lower costs.
ORGANISATIONAL GOALS MET WITH HIGH PERFORMERS
You’d have to agree that one of the main goals of a business is to make money. You’d also have to agree that
without a team of employees who work to achieve the established goals, that profit will never be attained to levels desired.
So it is clear that employers have a big role to play when it comes to influencing the job performance of staff if success is
to be achieved.
High performers that are highly motivated bring with them a positive attitude and interest in their outcomes.
Whilst there is definitely a requirement for the individual to want to perform and want to be motivated, there are also
many ways that management can address those who are demotivated and, more importantly, tackle motivation before it
becomes an issue. Keeping motivation high can be a challenge depending on the mix of employees and the requirement
to stay on top of what each of their individual triggers are, but the results far outweigh the effort.
THE IMPORTANCE OF INFLUENCE
Without motivation, a person’s desire to achieve a goal is minimal. Even if an employee is equipped with the right
tools, skills and training to perform the tasks required of them correctly, the only thing stopping them from doing so is
their motivation. If you don’t address the issue of motivation straight away, negative feelings soon develop into a spiral of
negative behaviours. This not only reduces the productivity of the individual and starts to affect the rest of the team, but
in the worst case it may result in that individual receiving a termination letter, which is the worst possible outcome for
everyone. Whatever it may be that’s causing them to loose focus, whether it is an external pressure, a personality conflict
or a lack of understanding of how their work fits into the bigger picture, addressing it is and staff need to be provided with
a range of opportunities that will inspire them and give them the chance to take the reigns and run with a job.
Influencing Employee Performance and Motivation
How do companies use rewards strategies to influence employee performance and motivation?
Both performance management and rewards systems are key levers that can be used to motivate and drive
individual and group performance … which leads to overall organizational performance, productivity, and growth.
Performance and rewards systems are also “cultural” in that they provide a glimpse into the way a company manages the
performance (or nonperformance) of its employees, and to what extent they are willing to differentiate and reward for
that performance. There has been a great deal of discussion over the years to identify best practices in the ways we
differentiate and reward employees, which will also drive employee performance and motivation.
Before we can talk about best practices and findings in rewards and motivation systems, we must first define the
terms. Rewards systems are the framework that an organization (generally via human resources) creates and manages to
ensure that employee performance is reciprocated with some sort of reward (e.g., monetary or other extrinsic) that will
drive and motivate the employee to continue to perform for the organization. Rewards programs consist primarily of
compensation programs and policies, but can also include employee benefits and other extrinsic rewards that fulfill
employee needs.
Within human resource management, the primary focus of a rewards program in an organization is to successfully
implement a compensation system. Most organizations strive to implement a pay-for-performance compensation
program that offers competitive pay in the marketplace and allows differentiation of compensation based on employee
performance. Pay for performance begins with a philosophy that an organization adopts that states that they seek to
reward the best-performing employees to enhance business performance and take care of those who can have the
greatest impact.
In the 2011 SHRM article by Stephen Miller, entitled “Study: Pay for Performance Pays Off,” Miller says that
companies’ top four drivers for moving to a pay-for-performance strategy are to:
Recognize and reward high performers (46.9%)
Increase the likelihood of achieving corporate goals (32.5%)
Improve productivity (7.8%)
Move away from an entitlement culture (7.8%)
The study also showed that the drivers differed depending on whether the company was high performing or lower
performing.
Stephen Miller, “Study: Pay for Performance Pays Off”, Society for Human Resource Management, 2011.
Almost half of high-performing organizations indicated that recognizing and rewarding top performers was the
main driver of their pay-for-performance strategy, making it number one on the list of primary drivers. Lower-performing
organizations did not appear to be as sure about the drivers behind their strategy. The number one driver among this
group was achieving corporate goals. It appears that those top-performing organizations that implement a pay-forperformance strategy truly believe in the idea of differentiating among different levels of performance.
According to the 2015 World at Work “Compensation Programs and Practices Report,” pay for performance
continues to thrive with better than 7 in 10 (72%) companies saying that they directly tie pay increases to job performance,
and two-thirds (67%) indicating increases for top performers are at least 1.5 times the increase for average performers.
In addition, the results of the survey seem to indicate that employees’ understanding of the organization’s compensation
philosophy improves when there is higher differentiation in increases between average and top performers. The greater
differentiation of increases is more visible and drives home the point that the company is serious about pay for
performance.
2015 World at Work “Compensation Programs and Practices Report”
A pay-for-performance program may have many components, and the human resources organization has the
challenge of designing, analyzing, communicating, and managing the different components to ensure that the philosophy
and the practices themselves are being carried out appropriately and legally. Human resource management’s role in
establishing pay for performance is that HR must engage business leadership to establish the following elements of the
framework:
Define the organization’s pay philosophy. Leadership needs to agree that they will promote a culture that rewards
employees for strong performance.
Review the financial impacts of creating pay-for-performance changes. How much differentiation of performance
will we have? What is the cost of doing this?
Identify any gaps that exist in the current processes. If any of the current human resources and compensation
policies conflict with pay for performance, they should be reviewed and changed. Examples may lie in the performance
management process, the merit increase process, and the short-term and long-term bonus processes. If the performance
management process has gaps, these should be corrected before pay for performance is implemented; otherwise this will
generate more distrust in the system. The salary structure should also be benchmarked with market data to ensure that
the organization is compensating according to where it wishes to be in the marketplace.
Update compensation processes with new pay for-performance elements. This includes the design of a merit
matrix that ties employee annual pay increases to performance. Other areas of focus should be the design of a short-term
bonus matrix and a long-term bonus pay-for-performance strategy. In other words, how does performance drive the
bonus payouts? What is the differential (or multiplier) for each level?
Communicate and train managers and employees on the pay for-performance philosophy and process changes.
Explain the changes in the context of the overall culture of the organization. This is a long-term investment in talent and
performance.
Human resource management professionals play a key role in the rewards processes, and employee
compensation is only one piece (although a key piece!) of the “total rewards” pie. World at Work defines total rewards as
a “dynamic relationship between employers and employees.” World at Work also defines a total rewards strategy as the
six elements of total rewards that “collectively define an organization’s strategy to attract, motivate, retain and engage
employees.” These six elements include:
Compensation—Pay provided by an employer to its employees for services rendered (i.e., time, effort, and skill).
This includes both fixed and variable pay tied to performance levels.
Benefits—Programs an employer uses to supplement the cash compensation employees receive. These health,
income protection, savings, and retirement programs provide security for employees and their families.
Work-life effectiveness—A specific set of organizational practices, policies, and programs, plus a philosophy that
actively supports efforts to help employees achieve success at both work and home.
Recognition—Formal or informal programs that acknowledge or give special attention to employee actions,
efforts, behavior, or performance and support business strategy by reinforcing behaviors (e.g., extraordinary
accomplishments) that contribute to organizational success.
Performance management—The alignment of organizational, team, and individual efforts toward the
achievement of business goals and organizational success. Performance management includes establishing expectations,
skill demonstration, assessment, feedback, and continuous improvement.
Talent development—Provides the opportunity and tools for employees to advance their skills and competencies
in both their short- and long-term careers.
The Influence of Leadership Styles on Individual Performance
If leadership didn't affect individual performance there would be no need for managers or supervisors. While
some managers -- such as those who berate or harass employees -- are loathed by all staff, most leadership styles are
effective with some employees and less effective with others. Consequently, it's a good idea to pair employees with
managers whose styles complement -- rather than inhibit -- their work.
Motivation
Some people don't need external motivation to get to work. These people can thrive even with an absent or
negligent manager, and require managers who give them space to establish their own schedules. Employees who are
unproductive, lazy or who need external rewards to become motivated, by contrast, may do well with authoritarian
managers who set specific schedules and check in frequently.
Efficiency
Managers can either hinder or increase efficiency, and there's no single "best" style for improving efficiency.
Managers who tend to check everything with a fine-toothed comb will be most efficient when they're paired with workers
who work quickly; they can slow your employee down and reduce the rate of mistakes. Employees who work slowly,
however, will do best with managers who encourage speed and who put pressure on employees to keep up the pace -- so
long as the pressure is not overwhelming or punitive.
Job Satisfaction
A good leader can inspire a worker to achieve her best at work everyday, while a terrible manager can quickly
cause an employee to despise her job. Workers who are satisfied with their jobs work harder and miss fewer days at work,
making job satisfaction a key goal in any workplace. Employees generally feel better abut work when their managers are
respectful and encourage them to express their views. For example, a 2001 study on teacher job satisfaction published in
the "Journal of Leadership for Effective and Equitable Organizations" found that teachers were more satisfied with their
jobs when principals adopted a participatory rather than autocratic leadership style.
Creativity
Management style can either inhibit or expand a worker's creativity. Workers who have a history of developing
creative ideas upon which they do not follow through may do better with managers who encourage practical task
completion. If you need your workers to display strong creative skills, authoritarian managers can be a disaster because
they prevent workers from thinking outside the box. Instead, democratic or collaborative leaders can give your employees
the space they need to develop ideas and the assistance they need to implement them. Visionary leaders can also play a
role in developing creativity, particularly when an organization is ready to change its direction or mission.
A manager's leadership style creates the climate within which employees work and influences the attitude and
performance of his team. A manager will have a preferred style, but this will not be appropriate in every situation. To be
effective, managers must learn to adapt their leadership style to the circumstances and in response to the employees they
manage. This is known as situational or contingency leadership.
Leadership Styles
A manager's leadership style consists of the traits and behaviors he displays when leading and managing
employees. In 1939, Kurt Lewin, Ronald Lipitt and Ralph White identified three predominant leadership styles:
authoritarian, democratic and laissez faire. Over the years, other researchers have developed these definitions. In an
article published in the "Harvard Business Review" in 2000, Daniel Goleman identified six leadership styles: coercive,
authoritative, affiliative, democratic, pacesetting and coaching. Goleman likened these six leadership styles to golf clubs,
with managers able to choose the style best suited to the situation.
Coercive and Authoritative
Managers with a coercive leadership style exert tight control over employees and rely on the threat of negative
consequences to ensure compliance. This style of management can be successful in crisis situations. However, coercive
leadership is not effective in the long term because it can create a negative atmosphere by demotivating capable
employees and damaging morale. A manager who employs an authoritative style persuades employees to perform by
promoting his vision for the organization. This style engages employees during periods of organizational change and
results in the most positive work environment. However, authoritative managers must respect their employees' skills and
experience, otherwise they can appear overbearing.
Affiliative and Democratic
An affiliative style emphasizes harmonious interactions and can be useful if a manager needs to encourage a group
to work together or heal rifts in a dysfunctional team. However, it is not effective if a manager needs to deal with
inadequate performance or crisis situations that require clear direction and control. Democratic managers involve their
employees in decision-making and encourage them to collaborate. This motivates capable employees because it
encourages them to apply their skills and expertise. A democratic style is unlikely to be effective with employees who lack
competence or require close supervision.
Pacesetting and Coaching
Managers who lead by example have a pacesetting style, which can work well when an organization has to adapt
and move quickly. Pacesetters set high standards and are apprehensive about delegating. A pacesetter can overwhelm his
team with demands for unachievable excellence, resulting in a drop in morale. A manager adopting a coaching style of
leadership helps employees identify their strengths and weaknesses. He encourages employees to set and attain goals,
providing regular feedback to assist them to improve their performance. This style works well with employees who
acknowledge the discrepancies in their performance and wish to improve. A coaching approach is not effective in a crisis
or with employees who do not recognize that they need to improve.
The Effects of Leadership Styles on the Organization
Hierarchical Leadership Vs. Non-Hierarchical Leadership
Leadership style impacts the organization by affecting employee morale, productivity, decision-making speed, and
metrics. Successful leaders carefully analyze problems, assess the skill level of subordinates, consider alternatives, and
make an informed choice. By choosing the most appropriate leadership style for the situation, an effective leader provides
a lasting impact.
Employee Morale
Using the commanding leadership style, leaders establish a clear distinction between subordinates and superiors.
Autocratic leaders commonly make decisions without input from workers. This typically leads to low employee morale. It
also tends to result in increased employee absenteeism and decreased employee retention. While leaders succeed when
using this style in a crisis, such as a natural disaster, use of this leadership generally results in poor long-term results. When
leaders use a coaching style instead, subordinates feel safer and encouraged to focus on their own development, which
ultimately helps the company for the long term by increasing employee morale, retention and satisfaction.
Productivity
Using the participative leadership style, a leader engages with employees to figure out the best way to accomplish the
company’s strategic goals. This type of leader recognizes that those working closest to problems usually have the best
insight for recommending process improvements that lead to productivity gains. This includes decreased errors, minimized
waste, and increased customer satisfaction. Participative leaders run team-building exercises to promote cultural
awareness and diversity, which can improve productivity by allowing the team to recognize each other’s strengths and
value.
Decision Making
When leaders use the democratic leadership style, they accept input from their subordinates to make key decisions. They
encourage feedback and suggestions from everyone, at every level of the company. This process takes a while, so even
though employees feel more empowered, decisions can take a considerable length of time. When leaders use the laissezfaire leadership style, they delegate all responsibility to their subordinates. If the team has considerable experience, its
members can make their own decisions quickly and this works out well. If the team lacks the skills and knowledge to make
appropriate decisions, chaos usually ensues.
Metrics
An effective leader sets a clear direction, communicates the goal, and ensures that subordinates align their own objectives
to the strategic plan. This leads to long-term profitability and growth. For example, to ensure high rates of customer
satisfaction, a successful leader encourages subordinates to eliminate any processes that don’t ultimately benefit the
consumer. This helps focus the entire company on gathering comprehensive requirements from sponsors and
stakeholders, prioritizing work with the greatest impact, and optimizing processes so the company makes money. When
leaders don’t establish clear priorities, subordinates focus on different metrics. This often causes conflicts between
departments and results in a dysfunctional company.
How Does Leadership Strategy Motivate & Inspire Employees?
Effective leaders influence their organization’s effectiveness by motivating and inspiring the workforce. Committed and
loyal employees expect their leaders provide a clear vision of the company’s strategic direction. They also want to see
consistency in decisions made in response to problems or issues. Clear, concise communication from leaders on a regular
basis ensures that all employees know what to do. With this type of structure, leaders enable organizational effectiveness,
productivity and profitability.
Motivation
Using a charismatic leadership style, an effective leader motivates his workforce to accomplish job tasks by giving
inspirational speeches that describe the company vision in vivid detail. This motivates the employees to work hard to
achieve the goals. When the leader shows a personal commitment to hard work and innovative approaches to problem
solving, employees typically value these things too. Leaders provide incentives to employees, such as bonuses and other
financial rewards, to increase production.
Team Building
Successful leaders recognize that to function well, team members need to collaborate effectively. They conduct teambuilding exercises and ensure that each member feels their contribution to the team is valued. When teams are dispersed
instead of working in the same location, leaders need to take extra steps to ensure that the virtual team communicates
clearly. For example, using all the features of web-based conferencing software and webcams, such as surveys and polls,
the leader can conduct virtual meetings that enhance interaction. This leads to organizational effectiveness.
Change
Changes in technology, executive leadership and market conditions can affect employee productivity. An effective leader
minimizes distractions for his employees and helps them manage transitions to new working conditions. For example,
when an organization installs a new software package to handle accounting transactions, the leader ensures that all
employees who will use the system get the training they need in advance of the implementation. That way, when the
system goes live, everyone is ready. Additionally, effective leaders ask for feedback from subordinates on organizational
issues. When employees feel like they are part of the decision-making process, they tend to adapt to changes more quickly.
Mentoring
An effective leader mentors subordinates to help them develop their own leadership skills. He provides workshops in
presentation skills, negotiation, business acumen, project management and other leadership competencies so that when
the time comes, these subordinates can take over for departing leaders. Leaders contribute to long-term organizational
effectiveness through succession planning, helping employees maintain a healthy work and life balance and exemplifying
high standards of ethical behavior.
How Technology Affects Job Performance
Technological advances have the ability to impact how individuals go about their daily lives. This includes how they
complete tasks around the home and at work. For small businesses, the introduction and use of new technology can help
streamline processes and increase worker productivity if managed properly.
Communications
Technology related to communications can help employees perform their jobs to the best of their ability. For employees
with the ability to grasp new technology, it can speed up their productivity. New technologies, such as instant messaging,
can help employees communicate in a more efficient manner and get answers and help immediately. This allows them to
solve problems and address issues in the workplace instantaneously. Communications technology can also have a positive
impact on the relationships between employees and suppliers or customers by improving response times to questions,
comments and concerns.
Employee Workload
Technology that helps automate processes will help reduce the workload for employees, freeing them up to work on other
projects and assignments. New computer programs and software packages can help collect and analyze data that would
normally go unused or would take employees a good deal of time to extrapolate. New technology can also be used to help
improve work processes and in turn increase productivity for both the employee and the business.
Accommodations
Disabled workers are perhaps the largest sector of the workforce that can benefit from technological advances. With new
technology, doors open for disabled workers who previously may have lacked the ability to work a specific job due to the
inability of an employer to provide accommodations. In addition, technology can help increase the productivity of disabled
individuals who are already employed. Technology, such as touchscreen computers, can help employees more easily
access and operate common office equipment.
Considerations
The ability to keep up and use technology to your advantage requires the ability to identify possible uses for each
technological advance. Some technological advances may prove cost-prohibitive for some small businesses. In addition,
business owners must evaluate the potential benefits of each new technology. This evaluation should shine some light on
the possible benefits it will provide to both employees and the company.
How Does Technology Affect the Work Environment Today?
Throughout history, technology has consistently changed the way workers across every industry do their jobs. From the
industrial age to modern day, technology has improved working conditions. Its impact on the work environment has
streamlined tedious and environmentally wasteful processes, expedited access to work while exponentially increasing
productivity and made working from anywhere easier than ever.
Speed and Efficiency
Workers today are more productive than they’ve ever been. The impact of technology on work, both in manufacturing
and in communication, has exponentially increased the rate of production and speed at which business occurs.
Technology in the workplace has helped workers become more efficient than ever before. What used to take hours now
can take minutes. Messages can be sent instantly to colleagues or clients across the world. Payments or proposals can be
transferred almost immediately.
Working Together Made Easier
Team coordination has never been easier. Thanks to online communication tools, technology enables us to work more
closely in some ways even as we work remotely. Collaboration is also simpler to achieve – even when colleagues are not
physically in the same place: Teams can hold meetings remotely with video-conferencing technology and work on the
same shared documents at once with cloud-based file-sharing tools like Google Drive.
Companies can use workplace management tools like Basecamp to track their team’s progress on specific projects, and
use customer-relationship tools like Salesforce to track conversations with leads and funnel sales all in one place. You can
even automate follow-ups or entire customer-service conversations using simple AI messaging tools.
Technology Is Changing Office Culture
Everyone knows the stereotype of technology in the workplace leading to the trendy Silicon Valley-style open office space
with video games and beer on tap. While open offices might be a trend, the idea of creating a stronger company culture
to lure in-demand workers is not going away anytime soon.
Since technology in the workplace has made it both possible and practical to work remotely, companies have needed to
create incentives to keep workers happy and drawn to the office. Otherwise, why have an office at all?
Besides open offices, companies like WeWork have popularized co-working spaces as places where freelancers can have
a place to work when they have no designated office space. Co-working spaces offer telecommuters and freelancers
working different jobs a communal office environment so they can feel like they have a home-base to work from.
No More Need to Live Where You Work
The biggest impact of technology in the workplace is the actual workplace itself. While most jobs still require you to clockin and work onsite, there are plenty of open positions for telecommuters looking to work remotely at similar companies
all over the country.
The ease of working remotely today is all because of technology and tools to help better communicate and collaborate as
a team online. The same technology has changed both where job-seekers look for work and where hiring managers find
talented candidates.
You are no longer limited to looking for jobs in your area. You can go to the internet, use any number of job-seeking sites
and find remote jobs or positions available to freelancers from anywhere. Companies can hire qualified candidates half a
world away if they choose to, though most still try to limit the ratio of remote employees and contractors to full-time
ones.
Working With Technology In the Gig Economy
Another impact of technology in the workplace is the ease of working consistently as a freelancer in what’s known as the
gig economy. Powered by a plethora of apps that apply the “Uber-for-X” business model across multiple industries, it’s
now easier than ever to access project-based work with the flexibility to work your own hours.
Gigging, the process of jumping from job to job or taking on multiple freelance jobs at one time, is growing in popularity,
with some estimations predicting the gig economy will grow to over 40 percent of the workforce by 2020. This has big
implications for all workers and employers.
In particular, the gig economy changes extend to small business owners, too. You can now hire contractors on a job-tojob basis with the touch of a few buttons and pay them entirely online with a third-party payroll platform like Gusto. This
makes starting and managing a small business easier in some ways, but harder in others, like controlling accountability or
the availability of your workers.
Technology Creating Growing Pains
While things have gotten more streamlined and automated thanks to technology, the impact of it on the work
environment has also created some problems. There’s a learning curve to implementing new processes.
Separating workers by screens creates miscommunication. Being glued to your email disrupts productivity. Automated
voicemails can make customers upset.
For some, the old way is still better: Get everyone in a room and talk it out. Brainstorm ideas with pen and paper. Print
out a document and physically mark up any changes. But as a whole, technology has sped up workplaces and connected
people and businesses more efficiently than ever before.
Difficulty Detaching From Work
Even with the greater flexibility allowed by working from home or freelancing in the gig economy, in some cases workers
are working longer hours, well beyond their work day, over the weekend or even while sick.
Because you can work from anywhere at any time, your work often takes longer to get done. If you work from home, it
may feel like you never really leave the office. Holding a computer in your pocket that is constantly connected to your
work email can make it feel impossible to ever truly be off the clock. Flashing, buzzing and “pinging” notifications
consistently draw workers back to their jobs.
This mentality doesn’t result in better work; in fact, it leads to burnout, lack of sleep and even mild depression. When
workers can’t disconnect, it affects their performance, as the stress from always being in work mode diminishes their
results. Just like your body needs sleep to function properly, you need breaks to do your best work.
The Downsides of Efficiency and Productivity
Even as productivity increases exponentially, wages aren’t keeping up. Expectations to continue to produce at the same
pace remain. This can cause employees to feel constantly behind, even while their work is improving with the help of
advanced technology. They may feel as if technology is changing everything around them, while they stay the same.
This is creating an anxiety about the workplace of the future, and whether or not there will still be jobs for workers who
might one day be replaced by technology. Certain positions are already disappearing. Whole departments can be
downsized to a single person who manages a piece of software. Entire career paths have the potential to become obsolete.
Using Technology to Encourage Healthier Habits
While technology in office environments has fundamentally changed them, it's possible not every change is permanent.
Workplaces have an opportunity to dial back the negative changes that technology has brought. Some may prioritize
changing the factors that lead to stress, lack of sleep or depression.
Forward-thinking companies might consider the gains in efficiency from technology as a reason to slow down, as opposed
to hurry up. Companies can even use technology to encourage healthy habits and discourage negative ones. With
intention and focus, they can design workplaces and processes to encourage taking breaks and limiting time spent
answering emails outside of office hours. Workers might one day receive notifications telling them to take a break instead
of asking them to handle more work-related demands.
This is how competition affects your brain, motivation, and productivity
Competition can increase motivation, improve productivity and performance, and provide accountability and validation.
Here’s how you can use competition to boost your team’s performance.
This is how competition affects your brain, motivation, and productivity
“Competition at its base is what has driven us as a species to survive. It drives biological and psychological evolution,” says
Craig Dike, clinical psychologist and assistant clinical director of Doctor on Demand. Competition can be a form of extrinsic
motivation, such as the weekend getaway prize, doing something because of the promise of an external reward; or it can
be a form of intrinsic motivation, an achievement of a personal goal.
Whether internal or external, competition can increase motivation, improve productivity and performance, and provide
accountability and validation. Here’s how you can use competition to boost your team’s performance.
THE RIVAL EFFECT
Simply being involved in a competition may not be enough to increase your productivity and motivation. Jillene Grover
Seiver, PhD, professor of psychology, says you need a rival. In 2016, Seiver conducted a study of professional archers to
demonstrate the benefits of having a rival present in a competitive sport.
Archers whose main rival was present at the event scored significantly higher than when their main competitor wasn’t
present. Siever found that the very fact that the archers were in a competition wasn’t what made them perform better as
much as it was the fact that someone they perceived as similar to themselves was also competing.
In a work environment, managers who place employees who are similar in skills and talents against each other in a
competition may experience this same boost in motivation and performance. “When we see someone else just like us
being able to complete a task and gain the recognition we seek, we up our game to achieve these outcomes for ourselves,”
she says.
SMALL COMPETITIONS ARE MORE MOTIVATING
If you want to get the most benefit from a competition, small teams may be the best way to go. A 2009 study by Stephen
Garcia and Avishalom shows competition is most motivating when there are fewer players. The researchers asked students
to compete a short quiz and told them the top 20% who completed it fastest and most accurately would receive $5. One
group was told they were competing against 10 other students, while the other group was told they were competing with
100 other students.
The result? Participants in the smaller group completed the quiz faster than participants in the large group. When the
competition is smaller, we feel our chances of coming out on top are higher, so we are more motivated to try harder.
ACTIVATING THE BRAIN’S REWARD CENTERS
Winning a competition activates the reward centers in your brain and produces a rush of dopamine (the feel-good
hormone) in the hypothalamus, the pleasure center of the brain. Once you experience this rush, you’re motivated to
experience it again and again, leading you to want to be part of a competition.
This all works great for those who come out on top, but Seiver says people who have failed in prior competitive situations
are more likely to find competition punishing and will try to avoid competition.
The brain’s reward centers can be activated simply doing a difficult task. “Stimulation and learning are helpful for brain
growth and overall adaptation,” says Dike. For those who don’t enjoy competition, challenges may be a great way to
experience the same brain-boosting effects of a competitive environment, without all the negative emotions that can
come from competition.
KEEPING COMPETITIONS FRIENDLY
While a competition can be a great way to boost motivation and productivity, in a work environment, competition can
have the negative effects of undermining team cohesiveness and foster negative feelings among coworkers. But that
doesn’t mean you can’t have some friendly competition. Dike says you can still reap the rewards of competition (including
activating the reward centers of the brain) by introducing non-work-related friendly competitions such as a potluck with
anonymous voting for the best dish.
These lighthearted, unrelated to work performance competitions are a great way to inject some element of competition
into the workplace without making it about work, avoiding any resentment building up between coworkers or
competitors.
Competition is a key factor in driving performance improvements across a range of firm activities including reductions in
costs, increasing the levels of productivity, promoting entrepreneurial efforts, fostering innovation, driving better
management practices, and exercising strategic managerial decisions.
KEY TAKEAWAYS
Key Points
Internal stakeholders are individuals or groups who are directly and/or financially involved in the operational process.
External stakeholders are indirectly influenced by the organization ‘s operations.
Employees and managers are internal stakeholders impacted by organizational strategy and success, with some influence
on the organization’s decisions.
Owners have a larger impact on organizational management, and take a larger amount of accountability compared to
managers and employees.
Key Terms
stakeholders: People or organizations with a legitimate interest in a given situation, action, or enterprise.
Stakeholder Theory
Organizational management is largely influenced by the opinions and perspectives of internal and external stakeholders.
A stakeholder is any group, individual, or community that is impacted by the operations of the organization, and therefore
must be granted a voice in how the organization functions. External stakeholders have no financial stake in the
organization, but are indirectly influenced by the organization’s operations.
Internal Stakeholders
Internal stakeholders are individuals or groups who are directly and/or financially involved in the operational process. This
includes employees, owners, and managers. Each of these groups is potentially rewarded directly for the success of the
firm.
Employees
Employees are primary internal stakeholders. Employees have significant financial and time investments in the
organization, and play a defining role in the strategy, tactics, and operations the organization carries out. Well run
organizations take into account employee opinions, concerns, and values in shaping the strategy, vision, and mission of
the firm.
Managers
Managers play a substantial role in determining the strategy of the organization, and a significant voice in operational
decisions. Managers are also accountable for the decisions made, and act as a point of contact between shareholders, the
board of directors, and the organization itself.
Owners
Owners (who in publicly traded organizations can include shareholders) are the individuals who hold significant shares of
the firm. Owners are liable for the impacts the organization has, and have a significant role in strategy. Owners often
make substantial decisions regarding both internal and external stakeholders.
Relationship between labor relations and employee work performance Mark Wooden et al. (2001) proposed that the
promotion of enterprise's performance depends on innovation, physical capital investment, human capital investment,
commitment to work and work practices. The stand or fall of labor relations will exert direct or indirect influence
on these factors, thus making the enterprise performance change. The enterprise performance mechanism model of
cooperation between labor and capital expounds the influence of labor relations cooperation on enterprise
performance from four aspects. Firstly, powerful unions effectively exert influence on the significant matters that
involve the vital interests of the employees such as wages, working conditions and job security, which is conducive to
improve the employee's job satisfaction and the degree of efforts. Secondly, the promotion of enterprise's performance
Advances in Social Science, Education and Humanities Research, volume 4161540
depends on employees' work ability and the improvement of technology innovation. Appropriate training system and the
sources of funds are determined by the negotiation between the unions and the management so as to supervise the
management to provide practical training program, which can significantly improve the business operation skills of
employees. At the same time, the implementation of the policy encouraging employees to participate is undoubtedly
of great significance to improve the innovative capability of employees. Besides, the improvement of the labor relations
have made it possible to involve staff in enterprise management and decision-making, which can meet their needs
of diversified and challenging employees works, arouse their working enthusiasm, improve their working initiative,
and promote the cooperation of both sides. Finally, once the situation of labor cooperation between the labor and the
management, employers will be stimulated to increase physical investment, expand the scale of production, and
make the enterprise enter benign loop trajectory.
Firstly, as for the degree of the effects of the balance between labor relations and employee work performance, the
labor contract was found to be positively related to employee work performance. The treatment of disputes was found
to be positively related to employee work performance. On the other hand, the labor rights had no effects on employee
work performance. As a result, we can know labor contract and treatment of disputes have significantly positive effects
on employee work performance. Secondly, as for whether or not emotional factors would positively moderate relationship
between labor relations and employee work performance; it was found that management concerns have positively
moderate effects between treatment of disputes and employee work performance. On the other hand, management
concerns have no positively moderate effects between labor rights and employee work performance. Management
concerns have no positively moderate effects between labor contract and employee work performance. The employee
confidence & satisfaction also have no positively moderate effects between labor relations and employee work
performance. Finally, we proposed the following suggestions, aiming at how to build harmonious labor relations and
improve job performance. The enterprises should perfect the operating mechanism of labor relations based on
employee rights and interests, including enhancing management of labor contracts, setting up enterprise labor dispute
handling mechanism, establishing and improving employee participation measures. In addition, the enterprises should
pay attention to the staffs career development and growth, strengthen staff s actual ability to work, and offer
environmental foundation and power for improving job performance through harmonious atmospheres and incentive
mechanism.
The 7 Top Benefits of Great Labor Relations
Labor relations can make or break an organization. Great labor relations will make a business successful in the long run. A
good understanding between employees and employers is important to reduce industrial disputes.
A positive relationship between employers and employees leads to higher motivation and employee engagement. When
employees are happy, they are more productive. They will put more effort into their work. This translates into satisfied
customers and more revenue.
While developing and maintaining good labor relations can be challenging in most workplaces, healthy relationships
among workers are beneficial not only to the individuals but to the entire organization.
Managers should set a good example when it comes to labor relations. When managers have a good working relationship
with their employees, it will help establish a culture that encourages great labor relations.
The purpose of great labor relations is to establish and strengthen the employee and employer relationship. This can be
achieved by measuring employee satisfaction, identifying and resolving workplace issues, and providing input and support
to the performance management system of the company.
The most successful organizations around the world are those that pay attention to labor management. It is important to
create an environment where the employees can use their skills to the fullest. It is only when employees feel that their
contribution is valued and respected that such an environment is created.
If the workers don’t get any recognition for their efforts, they are much more likely to become disillusioned. Organizations
that invest in good labor relations, however, can witness numerous benefits.
1. Growth and Development
A harmonious relationship between employees and employers contributes to economic growth and development. This
leads to an increase in efficiency. Greater efficiency, in turn, leads to higher productivity and growth.
It is important to keep the employees motivated if organizations want to get the best from them. Workers lacking in
motivation will reduce productivity in a workplace.
When employees have a positive relationship with their managers, they will work more efficiently. They will put their best
efforts (not the minimum effort) to ensure the success of the project.
Organizations that have harmonious relationships will be able to ensure continuity of production. Proper use of resources
ensures maximum production. Employees will be motivated to work hard, and this will help the organization grow.
2. Reduction in Turnover
Labor relations is the backbone of any business. Poor labor relations will affect productivity and result in high employee
turnover. It is only when employees feel valued that they will use their skills and experience to the fullest to contribute to
the growth of the company.
Organizations that have good labor relations provide higher wages and other attractive benefits. It is often in the best
interest of the employee to stay with such an organization. Even if the employee is not 100% satisfied with their company,
employees are less keen to suddenly abandon a company for another when they are happy with their work environment.
A pleasant work environment improves employee morale and motivation.
Most employees who work in companies are in the high retention risk category. The critical skills that they possess help
the company progress and the cost of replacing a skilled employee can be extremely high.
Employees are less likely to leave an organization, however, if those skills are recognized and rewarded.
It is the responsibility of the company to create an engaging work environment. This will make the employees feel valued.
The cost of recruitment, hiring, and training will come down with lower employee turnover.
3. Employees have Extensive Knowledge of Company Practices
The reduction in turnover ensures that employees stay with a company for longer. This enables them to gain extensive
knowledge of company policies, practices, and processes.
Employees with substantial institutional knowledge are an excellent resource. They are highly skilled, very efficient, and
can provide training for new employees.
Most companies find it hard to replace experienced employees. This is especially true in industries that rely on employees
with highly specialized skills.
4. Enhanced Motivation
Disengaged employees can cost organizations millions of dollars in lost productivity. Companies that have engaged
workers experience higher productivity.
Organizations need to ensure that their workers feel empowered and appreciated. Good employee relations increase
morale and motivation.
5. Increase in Revenue
Great labor relations will have a positive impact on the growth and revenue of a company. The benefits of a happier,
healthier work environment are not only felt within the business, but by the customer or end-user, too. More engaged
and motivated employees tends to result in greater customer satisfaction, better products and services, which also tends
to point to an increase in sales.
6. Conflict Reduction
Workplace issues and conflicts are common. Conflicts are inevitable in any organization. These can range from complaints
about discriminatory employment practices to working conditions.
Conflicts at the workplace will have an adverse impact on the productivity of a company. It is likely to contribute to an
environment of distrust between employees and employers and this can affect efficiency.
Investigating, meditating, and resolving employee complaints will help in creating a good work environment. When the
work environment is pleasant and efficient, it will reduce conflict in the workplace. Conflict reduction will help employees
concentrate on their work. This will increase productivity.
Resolving conflicts becomes easier when managers work on fostering relationships with employees so that they are on
the same page. Organizations that have fewer conflicts have higher morale. Employees will be motivated to give their
best.
Employee turnover also slows down when there is less conflict in the workplace. The work environment becomes stable
and happy and this will improve the overall work culture of the organization.
7. Employee Loyalty
When a pleasant and productive work environment is created, it will have an effect on the loyalty of the employee. The
work environment will encourage a loyal workforce. Companies that have such a workforce will be able to improve
employee retention.
Organizations that have a good employee relationship at the workplace will be able to boost efficiency. Strong labor
relations will go a long way in increasing the productivity of an organization. Increase in productivity will result in an
increase in income and profits.
The most valuable asset of a company is its employees. The success of the company will depend on how they work. If they
are engaged and motivated, they will strive to meet the expectations of the company. A strong employee and employer
relationship will benefit the employee and the organization as a whole.
Great labor relations are the key to success for any company. Regardless of the size and number of employees, all
businesses need to pay attention to labor relations. This will help them achieve success. Labor relations is important, as
the success of an organization is highly dependent on the engagement and productivity of the workforce.
Investing in labor relations is as important as investing in any other business practice. Well-managed labor relations will
help deal with the challenges and changing of any business environment.