Answer to Question #293370 in Management for Noora Redha

Question

1.     Identify an organization that you believe is high performing and one you believe is low performing. Give five reasons why you think the performance levels of the two organizations differ so much. Explain your reasons to the class.

Answer 1

A high-performance organization is one that produces products and behaviors that exceed expectations and goals in comparison to other similar businesses in the market. A low-performance organization is one that struggles to even meet those goals, and when they do, the products and behaviors are sub-par at best. Below are some reasons why company A which is a high performing organization differs so much from company B which is a low performing organization.

Company A

An organization is said to be effective when it achieves the expected output as by the management. An effective organization earns profit for investors, offers satisfactory service to clients and has a potential for growth and development. There are numerous factors which determine successful performance of work in organizations. 

• Vision- The most important factor in successful work in companies is the existence of a clear, vivid, and compelling vision of exactly where the organization is headed. A vision that tells employees throughout the organization why they are coming to work, what they are working towards, and how it will look and feel once they achieve the vision.
• Communication and Clarification- A critical step for ensuring the impact of the vision is through constant and consistent communication of the vision throughout the organization.
• Implementation- Ideas on their own are not worth much unless they are brought to execution. Vision, strategy, and planning are all wonderful only if they are practiced by people that impact the bottom line by affecting the quality of products or services. Management of successful companies pays attention to the plan. They use it on an almost daily basis as a benchmark to guide them forward toward their vision. 
• Employees Training and Development- Employee development is something that most people imagine as intrusive all-day group training sessions. Employee development can manifest itself in many forms of training, evaluations, educational programs, and even feedback. If executed correctly, the effects of training on employee performance can often encourage growth within the worker and the organization itself.
• Competitive Pay-Scale- High competitive pay levels maintain and enhance work performance because pay is one of the factors that encourages employee to perform well which is ultimate goal of management expectations. 

Company B

Companies may perform poorly for a variety of specific reasons;

• Unclear Goals- Without defined and communicated goals, it is hard for the departments and employees to carry out consistent and quality work that attracts clients and customers and generates earnings. 
• Poor Strategy and Execution- Companies often struggle to execute strategy because of the difficulty in creating change in an organization. If front line leaders don't understand their roles in strategy and execution, it is difficult to get employees to break out of traditional roles and habits.
• Talent and Resource Deficiency- Some companies simply don't attract or retain the talent and resources necessary to keep up with competitors. A technology solutions provider that doesn't get or keep the top developers in the industry will often struggle to achieve results equal to competitors with better talent. 
• Poor Marketing and Communication- A company's performance can be inhibited by a lack of commitment to or ineffective marketing and communication.
• Employment conditions-  Insufficient remuneration, excessive workloads/working hours, work/life balance issues can lead to poor performance of employees and eventually poor performance of the organization.