Successful performance in work organisations

IMPORTANT FACTORS THAT DETERMINES SUCCESSFUL
PERFORMANCE IN WORK ORGANISATIONS

BY

ADELAKUN OLUWAFEMI.A

MBA 5C A4019368

University of Wales

December 2010

Successful performance in work organisations: Adelakun Oluwafemi .A
1 A4019368, MBA 5C

Table of Content

Page Number

1.0 Introduction …………………......................................................................

1.1 Scope ……………………………………………………………………….1

2.0 Effective management and successful performance……………….………2

2.0.1 Henry Fayol: Universality of management principles……………………..2

2.0.2 Peter Drucker: The management process…………………………………. 3

3.0 Leadership and Performance………………………………………………..4

3.0.1 Trait Theory of Leadership………………………………………………..4-5

3.0.2 Style Theory of Leadership………………………………………………. 5

4.0 Employee Management and Organisational Performance…………………6

4.1 Motivation……………………………………………………………….. .6-7

4.1.0 Maslow theory of motivation……………………………………………….7

4.1.1 Taylor’s theory of motivation …………………………………………… 7-8

4.2 Training and Development………………………………………………..9-10

5.0 MANGEMENT, Cornerstone for organisational effectiveness?................11-12

6.0 Conclusion………………………………………………………………..13-14

Bibliography……………………………………………………………… 15

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1.0 Introduction

Upon the attainment of organisations aim and objectives rest the success and ultimate survival of the
organisation. Every work organisation is concerned with being effective. There is however, a
multiplicity of variables that impinge upon the overall performance and success of the organisation.
The people resource, quality of management. Leadership and training and development are central to
the performance, development and effectiveness of the organisation (Mullins 2010)

Organisations effectiveness is often related to factors such as increasing profitability, improved
service system or obtaining the best result in significant areas of organisational activities.
Organisations must ensure that they meet satisfactorily or exceed the demands and requirements of
customers, and are adaptable to requirements, changes in the external environment and the demands
of the situation.

Successful performance of work organisation is dependent on organisations objectives and
competitive priorities, considering that organisations differ in so many ways as well as in style of
their management. However, common and essential to all organisations are some key elements.

This paper will focus on the following as factors to be considered for successful performance of
work organisations to include:

 Effective management

 Effective leadership

 People resource management (Motivation and Training)

1.1 Scope

To critically discuss the factors that are considered necessary in determining successful
performance of work organisations as well as obstacles to effective work performance and it attempt
to proffer solution on how to overcome these obstacles making references to practical case studies
and examples. This paper will focus on BOC Gases Nigeria plc and Zenith bank Nigeria plc where I
have worked in the past.

Also, this paper attempts to criticise and analyse the validity of the statement that ‘management is
the corner stone of organisational effectiveness, and the integrating activity that permeates every
facet of the operations of the organisation’

Both questions are discussed simultaneously.

2.0 Effective management and successful performance

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The term management has been described by many scholars, but common to them all; management
is being identified for accomplishment or getting work done through the performance contribution of
others. Management is concerned with making things happen and keeping work on schedule,
engaging in routine interactions to achieve planned actions. David Boddy (2008). Said effective
management requires management to have a clear understanding of what is being managed since we
live in a world of managed organisations an organisation is therefore, defined as a social
arrangement for achieving controlled performance towards goal that creates value.

Management is usually done through coordinating functions of planning, organising directing and
controlling. It is the responsibility of managers to manage, but organisations can achieve their aims
and objective only through the coordinated efforts of their members. This involves effective
management of people resource, which is a core function of leadership.

Although, many theories have been propounded on management, it is necessary identify their
relevance to modern day management.

2.0.1 Henry Fayol: Universality of management principles

Fayol’s principles reflect the functions of management as a matter of controlling material resources
and processes rather than people. His classical view on management and organisation were largely
concerned with efficiency I.e. doing things right He. identified five (5) principal functions of
management to include planning, organising, commanding, coordinating and controlling which is
today the concept of the universality of management principles. In other words, the idea that all
organisations could be structured and managed according to certain rational principles.

Although Fayol’s managerial functions may seem like a minor topic – and rather old fashioned - it is
a foundational model. The five functions are a helpful frame work for understanding management.
However, Fayol’s theory could be effective as a traditional approach for managers, but in modern
day management, it could however, be defective as his approach to management omitted the people
resource in terms of motivation and communication. Fayol assumes that employees will carry out
task when commanded to do so, regardless of whether or how far they may want to. In modern work
organisation, people resource are vital to success performance in organisations, hence, organisations
cannot afford to lose them, but need to develop strategies to retain their loyalty and commitment.

2.0.2 Peter Drucker: The management process

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He argued that a manger has one basic function – economic performance. He further said
management can only justify its existence and its authority by the economic result it produces which
is a measure of its effectiveness, even though as a consequence of its action, significant non-
economic results occur as well.
He added that Successful performance of management is often measured by its effectiveness, hence
effectiveness is doing the right things and it relates to obtaining best possible results in the important
areas of the organisation, optimising the use of resources, increasing profitability, and attainment of
the aims and objectives of the organisation.
Take for instance at BOC gases Nigeria plc, management is focused mainly on effectiveness and
efficiency which this support Henry Fayol’s view that management is all about efficiency and
druckers view on management effectiveness. Such that at Plant managers ensure that resources are
well utilised in production to avoid waste to achieve optimum results,, managers at BOC gases are
assessed based on their unit performance and productivity. Hence, this recognition that management
has given to efficiency, and effectiveness in Boc Gases has been a major determinant of its success
in timely delivery, and value to customers, and this is evident in its annual profitability. At BOC
gases management is centred on a lean production system that tends to eliminate waste and ensure
that resources are best utilised.

As vital is effective management to successful work performance, poor management in terms of
resource, material and people could be disastrous to the performance and profitability, hence
managers at all levels within the organisation must give attention to being efficient and effective. For
effective management, there is a need for managers to have a blend of and understanding different
approach to management and use it to their best advantage as this will aid the overall successful
performance in work organisations.

3.0 Leadership and Performance

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Leadership goes beyond management. Management involves getting things done using the resources
of the organisation, and the formal patterns and rules within the organisation. Leadership, on the
other hand, sometimes involves driving through changes and new initiatives, which may be
unpopular in some quarters (www.thetimes100.co.uk). There has been disagreement about the
definition of leadership, considering the complex interactions among leaders, the followers and the
situation. For example, some researchers define leadership in terms of personality and physical
traits, while others believe leadership is represented by a set of prescribed behaviour. In contrast,
other researchers define leadership in terms of power relationship between leaders and followers.
According to this perspective, leaders use power to influence followers’ behaviour. Leadership can
also be seen as an instrument of goal achievement, in other words leaders are individuals who help
others accomplish their goals (Robert and Angelo, 2007).

Effective leadership is highly crucial to work performance. Poor leadership result in poor
performance, hence; the manager need to understand the nature of leadership influence, factors that
determine relationships with other people and the effectiveness of the leadership relationship
because increasingly Leadership is seen as a central feature of an organisational performance.

Because of the importance of good leadership in especially in the changing nature of work
organisations, there is a considerable volume of theory and research covering it. It is however,
difficult to summarise such a body of research into a day to day management. This paper will be
examining a few approaches used to explain leadership.

3.0.1 Trait Theory of Leadership

According to Adair, a leader needs to exhibit certain attributes in order to effectively exercise their
leadership functions. The trait theory is based on analysing the personality characteristics or
preferences of successful leaders. Until 1950, the trait theory was of the prevailing belief that leaders
were born and not made, selected people were thought to posses in born traits that made them
successful leader, and this justifies the idea of a leader trait. The qualities approach focuses attention
on the individual in the job and not on the job. It suggests that attention is given to the selection of
leaders rather that training for leadership. (Mullins, 2010).

Robert (2007) believed that leadership traits were not innate, but could be developed through
experience and learning. He opined that traits play a central role in how we perceive leaders, and
ultimately impact on leadership effectiveness. He identified eight (8) positive traits that make a
leader effective including intelligence, self confidence, determination, honesty & integrity,
socialability, emotional intelligence, extraversion, conscientiousness. Managers at all level in Zenith
bank are expected to posses and exhibit some of these traits to make them better leaders. However,
in support of Kretneir view, executive Management at Zenith ensures that adequate trainings are

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given to manager’s and even subordinates (training them to become effective leaders and managers)
in developing these traits which were said to be found in leaders according to stogdills.

3.0.2 Style Theory of Leadership

This theory is of the opinion that there are a cluster of leadership behaviours that are used in
different situations. While there are many different styles, they mainly relate to the extent to which
the leader is focused primarily on task or performance (directive) behaviour or relationship/people
(supportive) behaviour. It is possible to identify a range of approaches to leading change in an
organisation, depending on the use of authority by the leader, and the amount of freedom given to
subordinates.
An authoritarian approach involves a leader making the decisions themselves and then telling
others what to do. A consultative approach involves talking to people who will be involved in a
decision, perhaps asking them for their views and ideas, and also informing them of any changes that
are likely to take place. A democratic/participative approach involves allowing participants to get
involved in decision-making - perhaps through a teamwork approach. Motivation and leadership
(Anon., 2009)

In Zenith bank, managers at all levels have adapted a mixture of leadership styles including
participative, authoritative style, coaching style of leadership depending on the business situations.,
but often times at the branch and zonal levels, a mixture of authoritative and participatory styles are
often employed.. Employees are often given voice in the decision making process. Such that
executive Management has created a fora in which employees can contribute to decision making
through the banks’ online decision making portal. When zenith was to migrate from its old software,
employees were consulted to give advice and suggestion as to what management can do to improve
on the existing software. Usually it has become the culture of zenith to hear the opinion of each
employee before decisions are taken, however, at the final decision process a representative from
each branch of zenith is invited to be physically present at the final decision session, though
executive management still has the final decision. Employee empowerment and participative
leadership have increased the bank’s market base. Employees are more committed and satisfied.
Participative management has help Zenith bank to develop employees to become leaders. Through
participative management, employees are encouraged to take part in decision-making, express their
ideas and to showcase their talents and skills.

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4.0 Employee Management and Organisational Performance.

Organisations are made up of individual members. The individual is a central feature of
organisational behaviour; often time’s employees or people as the case may be are often referred to
as resources, asset or capital. This is however, an instrumental approach implying a means to an end.
Human or people resource are clearly the most valuable asset of any organisation and a resource that
need to be carefully managed. It is people who make the organisation, without people, systems and
procedures and indeed organisation themselves are meaningless. As Austin points out, ‘exceptional
people management produces financial success, companies which look after their staff on average
out-perform the stock market by two or three times and there is no moral dilemma in either choosing
to make money or look after people’. If employees feel valued, they give more of themselves to be
more productive. Overriding considerations in managing people resource are motivation, training
and development,

4.1 Motivation

The relationship between the organisation and its members is influenced by what motivates them to
work and the reward derived from it. The nature of work organisations, style of leadership, the
design and content of jobs can have a significant effect on the satisfaction of the staff and their level
of performance. Motivation may be stimulated from personal interest such as keeping safe or from
external factors, praise and reward. Different theories have been developed in motivating employees.
In all the theories examined in this paper, Wages and salary or remuneration as the case may be is
considered a primary motivator. Other motivating factors include; performance recognition, a sense
of achievement, responsibility and empowerment, opportunity for career development, a sense of
challenge and enjoyment. A motivated workforce will work harder and achieve greater output in less
time, therefore reducing labour costs. It requires less supervision and demonstrates pride in its work,
making a greater impact on the customer. (Mullins 2010; Marc 2006)

However, unmotivated work force will be the opposite, being dissatisfied with their job functions in
the work environment. This can negatively affect both the quality of the work as well as how
efficiently employees carry out their duties and responsibilities and the overall performance of work
organisation. It can also this can lead to frustration and conflict. Thus, for an effective performance,
the manager needs to know how best to elicit the cooperation of staff and direct their efforts to
achieving the goals and objectives of the organisations. Employees need to be motivated to gain
their commitment and the likelihood of them behaving in the best interest of the organisation will be
guaranteed.

Johnson Idowu, the MD of BOC gases Nigeria while delivering a lecture in 2009, ‘said the
achievement rate in performance and profitability is owed to employees. This shows the importance

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and value attached to employees in Boc gases. It has found that by valuing employees, providing
realistic goals and a stimulating environment for them to work in, it increases employees’ motivation
and commitment. At BOC gases, staffs are well motivated and as such work together in teams to
achieve individual and teams objectives’. This means that, they focuses on customers, treats people
fairly and is determined and devoted to receiving feedback from others.

4.1.0 Maslow theory of motivation

Abraham Maslow argued that individuals are motivated by five (5) essential needs. He developed a
pyramid called the ‘hierarchy of needs’ to demonstrate the human needs: At the bottom of the
pyramid are basic needs (Physiological), those that motivate people to work – food and shelter. Boc
provides a conducive working environment, regular monthly pay and essential facilities such as a
restaurant, a clinic on office premises. Once these needs are met through wages and salaries,
individuals want safety and security. For example, admirable job conditions. BOC provides the
security of job employment as well as pension and sickness schemes and the option to join a union
to give people a sense of belonging. It ensures health and safety in the workplace. Social needs refer
to the need to belong (Love), to be part of a group. BOC promotes team and group working at
various levels. The company ‘Steering Wheel’ assesses individual and group work and enables both
plant and administrative staff to work as a team.
Self-esteem may arise from a promotion. Boc gases lay emphasis on self-respect and respect for
others and recognition for hard work, self assessment. BOC has a cyclical (360 degree) feedback and
appraisal system that helps to recognise individuals’ contributions and importance and celebrate
achievement. Right at the top is Self-fulfilment- the area for creativity, challenge and interest. Boc
offer Personal Development Plans, recognition of skills and talents, opportunity for promotion and
career development programmes. Maslow suggested that achieving one level motivates us to achieve
the next. (Robert and Angelo, 2007).

4.1.1 Taylor’s theory of motivation
In 1911, the engineer Frederick Taylor published one of the earliest motivational theories. He opined
that workers will be motivated by obtaining the highest possible wages through working in the most
efficient and productive way. Performance was limited by physiological fatigue. For Taylor,
motivation was a comparatively simple issue – such that what workers want from their employers
more than anything else was high wages. However, these categories of employee are usually
productive, but little or no opportunity was given for employees to think for themselves, or to be
creative in what they did. Increasingly motivation is based on values rather than purely a financial
reward. Staff remuneration at BOC Gases Nigeria plc has some similarities to Taylor’s theory. Its
financial reward packages are highly motivating At Boc employees are given more than just basic
pay increases. It provides Pension scheme providing equal contributions from the company,
Employee discount card, Christmas or pay slip vouchers, and free healthcare for all staff, holiday

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bonuses (Easter and Christmas bonus). Other non-financial factors include: staff training to improve
personal skills, timely promotion.

Management at BOC gases understands that there are factors other than money which motivate
people in both their personal and working lives. Employees are more motivated when their employer
creates a pleasant working environment, where they feel valued, generally through increased
communication and asking for their opinions. Annually, staff at BOC is invited to take part in a staff
satisfaction survey which gives them the opportunity to express their views on almost every aspect
of their job.
Some of the benefits available to BOC employees include career breaks between 1 to 4 years to
which they can return if they wish to, a 40 day study vacation as well as its award winning
retirement savings scheme.

4.2 Training and Development

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Training is an activity designed to improve the competence and ability of individuals in order to
enable an organisation to meet its objectives. Development is said to be activities designed to
further the personal needs of individuals. Mullins (2010, pp. 503 -504.) says that ‘Training is
essential to improve knowledge, skills and to change attitude. It is necessary to ensure an adequate
supply of staff that is technically and socially competent and capable of career advancement into
specialist department or leadership positions’.

Although the potential benefits of training may appear obvious, it does not necessarily follow that
training, per se, will lead to improved performance. There has to be an appropriate training culture
which has to be relevant to the need and requirement of the organisation. Continuous training
therefore, is a key element of improved organisational performance and the need for a continual
process of staff development. Training and development is one tool Managent often uses to ensure
effective performance in work places and usually the responsibility of human resources department

BOC believes that a critical factor of successful performance has been recognition for training need
and development. BOC gases developed a flexible and structured approach to training and
development, which adapts to individual employee needs. This allows employees identified as
having the potential and desire to do a bigger or different role to take part in training to develop their
skills and leadership capability. BOC provides a wide range of safety training workshops and
courses to support the safety needs of business and employees. Training courses include on the job
training as well as off the job training. On the job training include safety training with gas cylinders,
refrigerants, laboratory gases, cellar safety, cryogenic gases and healthcare. All employees in Boc
has access not just to the training they need to do their job well but also to leadership training to
grow within the company. BOC gases offer strategic career planning to help staff increase their
sense of ownership in the company, to become more organised, productive and flexible as well as
being capable of meeting the needs of internal and external customers. New skills and abilities in
areas such as decision-making is developed which makes them more effective. Employees are
usually sent oversees for on the job training and conferences

Also, a significant factor of zenith success today lies in its massive investment in training and
developing its workforce. It employs University graduates and give them adequate training on the
job and off the job. Zenith bank‘s orientation programme provides graduate trainees (new recruits)
with a comprehensive induction session which usually last for about 6 weeks. New Recruits will
usually resume into the orientation programme where they are formally welcomed into the Zenith
Family and the cultures and values of the Bank gradually imparted into them in a warm and cordial
environment before they go off to their various departments and branches. With a rapid training
schedule, they are able to develop to their first level management position whilst working as a Team
Leader in any of zenith branches. Zenith takes staff training and development as a key priority,

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considering the nature of industry it operates. Front line officers, supervisors, and managers at all
level are being trained continuously to keep abreast of trend and new development in the industry
and this has been the strength of its success and outstanding performance over the years, and a
strong competitive advantage. A recent study by the bankers association of Nigeria revealed that
zenith bankers have a wide understanding of the banking market in Nigeria which ranked it first in
the industry.

5.0 MANGEMENT, Cornerstone for organisational effectiveness?

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Corner stone has been defined by the concise oxford English dictionary as an important feature
upon which something is based. Hence, it is correct to say that management involves creating a
frame work for integrating of all activities within work organisations; this is because management is
saddled with the responsibility to coordinate and manage resources in achieving organisational
goals. Management is regarded as relating to people working within a structured organisation and
prescribed rules. However, it is not conclusive to say that management is the cornerstone of
organisational effectiveness. In modern day organisation, effective management still contribute to
effectiveness, but cannot form a standalone basis upon which organisations achieve effectiveness.
Traditionally, management is focused on control and commanding such that employees carry out
task when commanded or instructed to do so regardless of whether or how far they want to do it
What makes organisation to be effective is a multiplicity of factors and not a single factor, as
organisations focuses more on sustaining their performance and effectiveness through good
leadership & corporate governance, innovation as well as technology advancement. In today’s nature
of work organisations, there is been a shift from the conventional management approach of control
of the work force towards an environment of coaching, support, self-directed teams and
empowerment.. This places an ever growing importance on leadership. Leadership today is
increasingly associated not with command and control, but with the concept of team work, getting
along with other people, inspiration and creating a vision with which others can identify . Leaders
are focused on moving people and organisations forward by increasing the competency of
employees and the cooperation of teams in order to improve the organisation. Effective leaders
create an environment that encourages the development of skills, learning and openness so that
employees can participate in the deployment of financial and human resource. A major report from
the advanced institute of management research refers to the dual role of leadership. Leaders both
motivate employees and design effective organisation to enable employees performs effectively.

Lou Gerstener, former CEO of IBM and Larry Bossidy former CEO of Allied signals, endorsed this
conclusion noting that: organisational effectiveness and success requires a combination of effective
leadership and management. This in turn, leads to the realisation that today’s leaders need to be
effective at both leading and managing. (Robert and Angelo, 2007).

In only fifteen short years of operation, Zenith Bank has attained heights which took first generation
banks over seventy-five years to accomplish. The bank’s success and accomplishments have been
traced to its unique and excellent leadership style anchored on strong management principles and
structures.

Also, the relevance of science and technology has a significant contribution in the case of
organisations effectiveness. Zenith bank relies heavily on information technology in gaining
competitive advantage. It uses the best banking software in Nigeria which guarantees customer a
maximum turn around time of five (5) minutes in the banking hall. In a recent survey commissioned

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by PricewaterhouseCoopers in conjunction with Business Day Newspaper, Zenith bank was awarded
the most respected bank in Nigeria. The Zenith brand has powered ahead of competition also on
account of its huge investment in Information Communication Technology (ICT), a fact attested to
by the Web Jurist award which rated Zenith Bank as the bank with the best website in Nigeria. Also,
Zenith Bank was last month named Bank of the Year by Bankers magazine, a subsidiary of
influential Financial Times of London.

Also, Innovation and improvement has increased organisations competitiveness and effectiveness in
the market, and thus affects their performance. Zenith Bank has pioneered several e-products and
services to satisfy the yearnings of its teeming customers. Such products include Zmobile, a service
which allows customers transact their banking businesses using their mobile phones. Alertz, a
message alert system which enables customers monitor all transactions on their accounts via short
text messages delivered to their mobile phones.

A careful analysis of Zenith bank Nigeria plc, shows that the bank’s success and accomplishments
have been traced to its unique and excellent leadership style anchored on strong management
principles and structures, Innovative abilities, and technological advancements as well as human
capital development. For Zenith Bank excellent service delivery, development of human capital
employee satisfaction, professionalism and corporate governance have provided the grounds for
consistently high returns to stakeholders.

We can therefore say that management only is not the cornerstone for organisational effectiveness,
but a multiplicity of factors as identified.

6.0 Conclusion

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In today’s business and work organisations, effective leadership and good management plays a vital
role in addressing challenging situations that may arise due to uncertainties. The role of the leader is
to help to create the teamwork structures and to encourage the teams to take responsibility for
decision-making. Each of these approaches will be used in different settings. The key is to use the
right approach in the right setting. In many situations, the consultative and democratic approaches
will be more motivating as we see in the case of Zenith bank Nigeria plc, because managers at all
level places more responsibility in ground level employees, encouraging them to feel involved.
When employees are involved in decision making, they are far more likely to 'take ownership' of the
initiative and be more committed

There has been much research on motivation. Employee motivation is a fundamental task for
managers as early motivational theory such as that of Taylor suggested that pay motivated workers
improves production. However, businesses now need employees to have greater motivation and have
a stake in the company for which they work. Maslow and Herzberg demonstrated that employees are
motivated by many different factors. At Boc gases employees are provided opportunities to take a
share and a greater interest in their own employment. Since every employee is an individual with
different needs and aspirations, the process of reviews and personal development plans allows
recognition of their abilities and achievement, as well as potential development. This benefits the
individual by providing career progression. It also benefits BOC gases by ensuring the business can
deliver high levels of customer service through its skilled employees. (BOC Gases, Annual report).

Continuous training and development of employees is an essential element for continuing growth in
zenith bank and BOC gases both companies requires employees who are committed and flexible in
order to aid its expansion of the business. The expansion of zenith relies on retaining existing
customers and acquiring new ones. All customers need to be confident and happy in zenith. This
relies on committed and flexible employees delivering the highest standards of service to meet
Zenith’s goals and objectives. Zenith’s structured approach to training and developing its existing
and new employees provides a strong foundation for its continuing growth and a basis for its
competitiveness and effectiveness.

Hence poor leadership and management, internal inefficiency, complex environments, conflicting
goals ,employee dissatisfaction, lack of employee involvement as well as flawed communication
posses threat and uncertainties to organisational performance and effectiveness. Organisations
therefore, must pay attention to these factors by ensuring flexibility, create good communication
system and maintain a healthy relationship with stakeholders and employees to perform
successfully.

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Drawing from the fact that organisational effectiveness is based on a multiplicity of factors, it is
therefore logical to conclude that effective leadership and management, innovative capabilities,
technological advancement, employee satisfaction and human capital development form a base for
organisational effectiveness and central factors for successful performance in work organisation.

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BOC Gases, 2009. Chairman’s statement, Annual report, 2008-2009. Nigeria: BOC gases.

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BOC Gases, (n.d.). Safety training manual. [Online] available at: www.bocng.com.

Cole, G.A., 1990. Management theory and practice. 3rd ed. New York: Palgrave Company

David, B., 2008. Management: an introduction. 4th ed. London: Prentice hall.

Edgar, H.S., 2004. Organisational culture and leadership. 3rd ed. USA: Jossey Bass.

Heinz, W.and Harold, K., 2001. Management: a global perspective. 10th ed. New Delhi: Tata
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Johnson, I., 2009, Evaluating productivity and performance in Boc Gases. [Lecture]. April 2009.
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Motivation and leadership, (n.d.).Business Studies Theory. Retrieved from: www.thetimes100.co.uk.

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Mullins, J., 2008. Essentials of organisational Behaviour. 2nd ed. London: Prentice hall

Ray, F. et al., 2008. Organisational behaviour. 3rd ed. West Sussex: Willey and sons limited

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