Organizational Culture and Performance Essay

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Creating Word Class Performance in a Jaguar Assembly Plant

Multiple Cause Diagram

In the above multiple cause diagram, six feedback loops exist and they relate to the following sub-systems.

Planning

Customer Orders

Purchasing

Stores, and Production

The model indicates that the goal is matching the demand with production and is causal to seamless back-to-back activities in the areas of purchasing, production and planning. The diagram explores significant areas such as the impact changes in customer schedule has on production requirements. Customer schedule changes are difficult to determine precisely, especially as pertains to production due dates and material needs (Tomar, 2008).

The diagram below can be very helpful in identifying the factors driving a certain change event. It can be used to identify "cause chains" and help in the identification of key elements. While it is relatively simple, it indicates clearly why a change is taking place and in doing so it points the way forward as pertains to the needed features of a given system. It was also found to be useful in helping communicate forthcoming changes to workers and was the core for employees and management to hold discussions. The driving factors interacting with one another are displayed in the diagram and it helps identify factors that drive demands (Paton & Mccalman, 2008).

2. Closed Loop Control System

The main advantage enjoyed by a closed loop system is that it is able to lower the sensitivity of a system to outside disturbances, for instance, the door of the dryer being opened, and so making the system impose high levels of control since the controller compensates any changes that happens in the feedback system. The major characteristics of Closed-loop control are (Power Electronics, n.d.):

• Reducing errors by making adjustments to the systems input automatically

• Making an unstable system more stable

• Increasing or reducing the sensitivity of the system

• Enhancing the systems control against disturbances from outside

• Reducing the repeatability and reliability of performance

Knowledge of the basic systems of processes can help in setting up control systems and identifying as well as monitoring the disturbances. The most efficient way to rid a system of external disturbances is therefore reducing or minimizing the disturbances that reach the value system. This will help the system achieve stability. Disturbances reduce the efficiency or alter the purpose of output. Utilizing closed loop transfers help in the reduction or minimization of disturbances significantly (Ahmed & Hussain, 2014).

Essay

1. Organization Goals

Organizations are constituted by groups of individuals to help them achieve ends they cannot pursue and meet individually. By organizing strategy and effort, a group of people is able to achieve greater results than they would have otherwise attained (if they acted alone). Achieving the goals an organization leads to greater order in the organization and increased cooperation among the various parts and functional units within the organizational structure. All the structural parts of an organization are very important and need due consideration, if an organization is to register peak performance. There are several factors that influence how well an organization functions and these factors come from both the external and internal environment. For an organization to survive given these factors, an organization must continually adapt and become more efficient (Tran & Tian, 2013).

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The extent to which the workers in an organization are competitive and aggressive instead of solely being co-operative can affect performance. Employees can enter into health or unhealthy competitions among themselves. Where such competition leads to disunity, it impedes the primary aim of organizing effort to attain organizational goals. Organizational performance can be measured by how well an organization achieves the goals it sets. It is therefore necessary that performance be better if better results are to be gotten. An organization's culture can influence their performance. Culture plays a role in how employees behave and feel. Developing a strong and positive culture should be one of the foremost activities executives engage in. A positive culture helps employees develop positive attitudes, increases their self-confidence and enhances their commitment to the firm (Habib, et al., 2014).

One of the companies that have created a good culture and eco-system that promotes and reward performance is Jaguar. Some of the significant achievements Jaguar has made to this end include (JLR, 2013):

i. Investing in their people and ensuring that all decisions support sustainability.

ii. Showing leadership in ensuring sustainability in business practices and activities the world over.

iii. Advancing young people's knowledge by way of education partnerships.

Remuneration Methods

Performance Related Pay

A majority of empirical research on remuneration have mainly focused on outcomes achieved on the short-run as they run standardized tests. While these tests were able to show improvements in achievement in the short-term with increase in remuneration, there is dearth of sufficient data on how increase in investment in human capital affects performance in the long-term. Overall, available data shows that pay pegged on performance tends to enhance performance of workers (Liang, 2015). Many firms today, including Jaguar, offer pay that is completely or partly pegged on performance. This arrangement helps improve efficiency, reduce absenteeism and reduces turnovers as employees gain greater control of their rewards. The effect performance related pay has on productivity depends on the nature and design of the pay structure. Employees can be offered commissions, piece-rate pay or revenue/profit sharing schemes. This can be offered to groups of employees or to individual employees but it has been found that offering the same to individual employees yields even better results (Lucifora, 2015).

Research done on the civil service, education and health sectors showed that PRP schemes had positive effects on all the three. While the effects were all positive, the magnitude differed and this was expected given the variables in place. The research also brings to light why it is important to consider both organizational and economics-based literature when evaluating PRP in both the public and private sectors. The findings show, as expected, that the design of the PRP scheme has an effect on performance. The design should be done in such a way that it encourages efficiency and effectiveness and so improve performance in both volume and quality. Attention should also be given to how the workers perceive the scheme (Bajorek & Bevan, 2015).

Pay secrecy has adverse effects on individual task performance where pay for performance is the mode of operation, especially when the….....

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