Organizational Development Overall Success Term Paper

Pages: 6 (1673 words)  ·  Bibliography Sources: 0  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

Organizational Development

Overall success of an organization is a product of a variety of sources. According to Eric Krell, a writer for the Society for Human Resource Development, one of the greatest of these influences is the perception of senior management by all levels of employees and the subsequent level of trust between them (2006). This paper will discuss the correlations between organizational productivity and employee perception of senior management based on Mr. Krell's article and how it relates to trust and organizational performance.

Major Thesis

When senior management make themselves known to all levels of employees, they begin to knock on the door of trust. Communication of an employee's well-being will further open that door which leads to a greater overall bottom line for the company. Whereas management may believe they have a high level of integrity with their staff, many companies steep levels of turnover speak otherwise. With an emphasis on issues that personally affect an employee's well-being, management will find a great deal of increased productivity and employee-management trust.

Supporting Arguments

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There are so many reasons for upper-level management to pay attention and respond to all levels of employee needs. Firstly, it has been shown that the financial bottom line of an organization moves along the same line as the level of trust that employees have in upper management. Secondly, the more trust that employees have in senior management the higher their production and loyalty towards the organization. Thirdly, valuing employee input and empowering all levels of employees shows a great positive outcome for senior managers. Krell's article findings were based on a 2005 Watson Wyatt Wordwide Study.

Term Paper on Organizational Development Overall Success of an Organization Assignment

Based on that very study, it was reported that organizations that report a high level of trust between employees and top-level management exhibit two times the financial returns than companies who report low levels of trust. Such findings are beneficial to pay attention to in order to improve the organization's performance. In addition, when employees are more self-committed to the organization, companies have reported up to six times the returns than those of low-committed employees. Upper level management can communicate this by being visible and often having open discussions about the following main areas of most concern to their employees: compensation incentives and bonuses, career advancement opportunities, health coverage and retirement benefits, and training and career development.

Krell reported that Michelle Roccia, VP of Human Resources for a company called Authoria, reinforces the mandate of trust between employees and senior management. She stated that without that trust, the company develops a negative culture. "You'll notice it in low productivity because employees, even management, are spending too much time talking behind each other's backs'." She adds that such lack of trust also manifests itself in a high employee turnover rate, a serious issue for any Human Resources Department. Such an atmosphere is highly toxic for the culture of an organization. A gossipy organization is a non-trusting organization because everyone always thinks that someone is talking about them behind their back. Such distrust present in organizations exists between all levels of employees, not just solely with distrust with upper management.

When senior management allows the voice of all employees to be heard, the effects are positive for the organization. Getting employees involved in the running of the organization from the top to the bottom will result in higher loyalty and respect for the organization. The key is that not only do the employees have to be heard, but they also have to see that senior management is following though with their suggestions. As partner Reina from Chagnon & Reina Associates Inc. stated, "The only thing that builds trust is the way that we behave.'" Whereas the implementation of designing an organization which values employee input, the benefits will reign for so much longer. The Greenville Hospital System was reported by Krell that employees had had input into the designing of the facility and had found some design errors in the process. "Left unchecked, those design issues would have hampered productivity." Such involvement creates a true aura of trust between management and employees since there is a clear determination of management to value them and their input.

Conclusions

The relevance of this topic is immense for organizations. To heed or not to heed the advice given to upper-level management about the importance of the cultivation of a culture of trust is a major difference between extreme success and just mediocre performance. The understood availability of senior managers is limited, and it takes a direct effort to ensure communication and socialization with employees. However, the long run benefits are unlimited for all parties involved - employees, management, and the organization itself.

There are many ways in which management could try to implement the seeds which grow into trusting relations among all levels of employees. Firstly, management needs to recognize the professional abilities with praise and growth opportunities to instill a sense of nurturing with the employees. When the employees feel that their true interests are at heart, management will have a much nicer time dealing with the employees as well as viewing the bottom line of the organization. When an employee feels nurtured and cared about, he or she has more concern for how their particular involvement affects the company, resulting in much higher productivity and performance. Management can do this by ensuring open communication and truly taking the input of all staff into consideration when making decisions that affect the whole organization.

Ensuring that employees feel like a true and needed part of the organization will also cultivate a trust atmosphere necessary for organizational success. Communicating organizational goals with all employees shows the culture of involvement and empowerment. Trust is a natural result of showing concern for what is important to someone.

Management needs to also be sure to consistently and constantly analyze their own actions and ensure that they are in line with the goals being communicated to employees. They need to be sure that they also "practice what they preach" and show actions consistent with their own expectations. When upper level management keeps themselves on a human level with the rest of the staff, it builds trust between them and the employees.

Analysis

The points given in Krell's article are extremely convincing. However, the fact that he based his entire article on one study is a major weakness to his arguments. Whereas the points are strong, they would be even more profound if they were accompanied by additional author's conclusions. A greater bibliography of sources would lend a greater validity to the article.

The data stated in the article is not backed by any particular empirical research. The integrity of the statements, therefore, become somewhat less believable. A scientific and controlled study of employee trust should be conducted using a variety of background research as well as a true variety of organizations. Only then can statements perhaps be able to be generalized to all organizations.

The article is profound yet simple. The answer seems to be so simple - get upper management involved in lower levels of employees daily functions and get lower levels of employees involved in all levels of the organization. Yet the implementation and creation of such an atmosphere is difficult to make happen, especially in already established organizations. However, with well thought out strategies to improve employee trust, such an ideal workplace could materialize. The article is well-written and enjoyable to read and delivers a powerful message.

Application

Within the educational system, the senior management is considered to be Superintendents and the Board of Education. Middle level management is the Principals of the schools and lower level management is the Department Chairs of the individual departments. The culture that runs through a school district between all levels of management makes a grand difference of the functioning… [END OF PREVIEW] . . . READ MORE

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