Organizational Joint Consultative Machinery as Job instruction and Communicat...
Efficiency of employee
1. INCREASING THE EMPLOYEES' EFFICIENCY IN
THE SALES DEPARTMENT
Davron Abdusattarov
2015
The purpose of this paper is to measure the factors that affect employee efficiency
and examining the relationship between organizational effectiveness and employee
performance.
A model was designed based on the literature, linking factors of employee
effectiveness with employee motivation and organizational effectiveness. Three hypotheses
were build based on the literature and the model and tested by a questionnaire.
The literature and various studies concluded that the factors as the strength
motivation and recognition have positive effect on employee motivation. The success of
employee’s training and development has also positive effect on the efficiency of the
employees. Also there exists a positive relationship between employee effectiveness and
organizational environment. The more an employee is motivated to task accomplishment
the higher will the organizational performance and success.
The research focuses on the practice and observation of three central factors, as
motivation and compensation, training and organizational environment that leads to
employee’s effectiveness. The organizations should design their rules, policies and
organizational structures that give space to the employee to work well and appreciate them
on their tasks' fulfillment and achievements.
1. INTRODUCTION
Strategic planning is urged to determine models
of the actions intended for goal achievement. Today
very sharply, there is an urgency and need of
development of strategy. Not very long ago it was
absent in many countries and industries, the markets
were protected and dominating line items on them
2. were accurately determined (Ritson, 2010: 17).
Process of forming of a strategy includes lots of the factors which are capable of having a
direct or indirect impact on entity development. Effective utilization of human resources brings out
a positive employee outcome, which has direct implication for organizational effectiveness
(Dhammika, 2005: 7).
Unexpected actions of competitors, needs to the attraction of the equity, absorption by one
company or others, the growth of competition in the market, acceleration of occurring changes,
emergence of new requests of consumers, and some other reasons which resulted in the need for
strategic planning, managements and visions. Strategic management arose not only as a reaction to
sharply increased dynamism of environment, but also as need of search of compromises in case of
adoption of multi-purpose decisions. Principles of Strategic Management provide a comprehensive
and accessible treatment of the key principles and practices of the strategic management process. It
covers the whole of the strategic management process including strategic analysis, formulation,
choice and implementation (Morden, 2007: 46).
In today's strategic management, motivation in organizations plays a main role in the
relationship between emotional intelligence and communication effectiveness (Jorfi, 2011:58).
Effective strategic alignment has a positive effect on the motivation of managers and employees in
organizations. In research of Hassan Jofri (2011: 56), two specific things were mentioned. "First of
all, there is not any study on the relationship between emotional intelligence, communication
effectiveness, and motivation together. Secondly there is no study taking the motivation as a
moderating variable on the relationship between emotional intelligence and communication
effectiveness".
The results have shown that there was a significant and positive relationship between strategic
management and strategic behavior, strategic management and strategic alignment, strategic
alignment and motivation, strategic behavior and emotional intelligence. Moreover it was also
determined that there were relationship of the emotional intellingece and communication
effectiveness with moderating variable that is motivation. The research has been conducted at the
Educational Administrations and Agricultural Bank of Iran (Jofri, 2011: 60)
When a compensation management pattern featuring an industrial harmony is created to cater
the employees' needs and to aggregate centripetal forces, an enterprise is then competent to deliver
expected performance archived by fully utilized work force values within a more flexible
management system (Lai, 2007: 230). In his research, author showed that the improved corporation
culture is helpful to advance corporation’s adaptability and to guide the development of the
corporation which has huge influence on operation performance.
Personnel and condition involvement for success directly influence the financial performance
of business. According to Hynuk Sanchez and Benoоt Robert (2010) from a project portfolio
3. perspective, it is not enough to track the performance of a project in an isolated way. Portfolio
managers need to have tools that allow the understanding of the meaning of a project’s performance
when it is interconnected with the performance of other projects and linked with strategic
objectives. Moreover tools need to be used in a timely and effective fashion, with the intention of
perceiving trends and reacting as quickly as possible, giving priority to the most urgent and
important problems.
The research is based on the empirical study of “Beeline” – the mobile network operator of
Kyrgyzstan. The empirical analysis shows that different organizational climate has significant
difference on all aspects of management and operation performance, and on compensation
management. Finally, based on the results, some suggestions and references on the theoretical
development and strategic management of international corporations have been put forward. In this
regard, the main objective of this research is the development of an effective strategy for the
company which is directed on the achievement of leadership under highly developing competitions
in the field of telecommunication.
2. LITERATURE REVIEW
According to the problems the following variables should be described with the experience of
several authors.
2.a. Compensation Management
Compensation is an important factor affecting how and why people choose to work at one
organization over others. Employers must be competitive in order to hire, and keep their employees
at work, and reward performance (Matjis, 2008:416)
According to Anthony Bagshawe (2011: p.24), “money is purely a symbol, which represents
just a token or be changed for other things. Recognizing that money is the only representative of
other more important requirements, will lead the managers to focus on the real underlying needs
and motivations of their staff and so that they can be more effective in motivating them. There are
lots of researches on the relevance between compensation management and the operation
performances. For example, Richard D. Landsberg (2012: p. 18) has pointed that two approaches
which were mostly used to fulfill internal alignment are job-based and person-based internal
structures. Person-based systems categorizes the skills and competencies. These skills are valued by
the organization and they are individually achieved. Thomas Steenburgh and Michael Ahearne
(2012) have found that sales executives are always looking for indigenious ways to motivate their
teams. They generally stage grand kickoff meetings to announce new bonus programs. They
promise exotic trips to rainmakers. Moreover when business is slow down, they hold sales contests.
Another author, Jennifer Watkins (2008) has researched for 13 indicators that managers should
know about compensations, where all of compensation definition options require at least one type
4. of noncash benefit to be included in compensation, such as taxable fringe benefits, employer-paid
premiums on some life insurance, and nondeductible moving expenses etc Human resource
management teams should use compensation management tool to attract and retain talented people
so that unique human resource advantage can be maintained. Finally, the test for management of
either private or public organization therefore, “is to determine the valued needs and motivators that
will make an employee react accordingly to the organizational desires to increase productivity”
(Syed, 2012: p.85).
Moreover, pay must relate to the accomplishment of goals, the company mission, and vision.
Additionally, pay systems must help to create desired work culture. Paying an individual just for
his/her performance accomplishment will not help to develop team environment. Thus, the advisor
should assists in defining the work culture carefully and select benefits that contributes to the
success of that culture.
2.b. Organizational Climate
Organizational climate is theoretically and practically an important organizational factor as it
is a medium between interpersonal and working behavior immanent to organizational efficacy
(Bogdanovic, 2011: p.25). As for corporations’ regulations, except those stipulated clearly, the
efficient achievement of the organizational goals by staff performance depends on staff’s
understanding and feeling toward the organizational climate (Hsin-Hsi Lai, 2007: 234). This
research confirmed positive and significant correlation between the organizational climate and
organizational efficacy Croatian manufacturing companies and empirically confirms the hypothesis
on the positive and significant correlation of organizational climate and organizational efficacy.
Mathisen, Torsheim & Einarsen (2006: p.23) hold that organizational climate originates from
members of the organization under the same working environment.
Fred j. Thumin and Laurie j. Thumin (2011: p.45) have measured that if the term “climate”
is simply too deeply rooted in organizational research literature, we should at least take the position,
going forward, that climate is the most important single measure of the broader concept called
“culture”. And without measuring the aggregate perceptions of the stakeholder groups, it would be
difficult, probably impossible, to obtain a meaningful, realistic picture of an organizational culture.
Research article of Yuxin Liu and Jianwei Zhang (2010) showed that organizational climate
had a significant main effect on organizational effectiveness. According to the multiple regression
analysis it was found that educational level, specialty, leadership and communication climate could
effectively predict the "group performance". Besides the size of the enterprise, leadership climate,
salary climate and promotion climate have significant predicting effect on collective identity. And
the educational level, miens climate, promotion climate and development climate have also
significant predicting effect on group commitment.
The understandings and feelings towards organization have influences on the obtaining of
5. organizational goals. Therefore, organizational climate plays essentially important part in
corporation management. Managers can make use of organizational climate to grasp motivated
action, to improve organization of behavior pattern and to improve staff’s positive behavioral action
in order to obtain efficient organization goals.
2.c. Education and Training
The training of technical employees is not a new challenge, measuring the training for
effectiveness and efficiency remains a severe task. Today, the training function must focus on
sustainable competitive advantage by strategically aligning itself with overall corporate business
(Devaraj and Babu, 2004). According to Julie Pavelich (2011) “Having skills is important for
people, but only 15 percent of a business' success is due to technical skills. It’s mentioned that
according to the boss, the other 85 percent comes from good communication Each new employee
should have a mentor who will help them over the first several months in their department.
Spending time with employees and making them feeling better and important members of the team
is also important. "Good employees want to learn from each other—it's bonding. There is less front-
to-back conflict when you have employees who talk to each other" (Pavelich, 2011: p. 342).
Timm L. Kalen, Thomas M. Befley and Michel J. Maggard (1983) have mentioned that it’s
advantageous to pass the new employee though the training process as quickly as possible.
Personnel training is important when company’s competitive ability is established. After analysis of
modern attitudes towards personnel training efficiency evaluation, Asta Stankevičienė, Aušra
Liučvaitienė and Agnė Šimelytė (2009) were determined that there is no coherent personnel training
efficiency evaluation system. The personnel evaluation system should be used in organizations in
which the training is performed, and the system should be the basis of personnel training efficiency
evaluation. In this case, the training efficiency evaluation acquires the strategic importance.
The reason why the present research focuses on education and trainings is that as the
economy becomes increasingly knowledge intensive, sales people are tending to sell knowledge-
based solutions to customers (Bettencourt et al. 2002: p.45). Sharma, Levy, and Evanschitzky
(2007) reported that knowledge structure variables (declarative and procedural knowledge)
explained about 50 percent of the variance in sales person’s performance. Knowledge management
systems permit firms to collaborate more effectively; thus the crucial knowledge and information
locked in the heads of salespeople can be shared across the organization (Shoemaker, 2001: p.212).
Knowledge-based control systems may promote the generation and acceptance of new
knowledge because they encourage sales people to generate selling knowledge, and evaluate them
based on their sharing valuable knowledge with others (Matsuo, 2009: p.329)
6. 2e. The Research Model and Hypotheses
Based on previous researches, the reach model can be drawn by taking into account
organizational climate, compensation management and training as variables that will have in
depended impact on employees efficiency.
H1: Compensation management has a positive effect on the efficiency of the employees.
H2: Organizational climate has an impact to the efficiency of the employees.
H3: Education and training during working hours have positive impact on job performance
and efficiency of the employees.
3. METHOD
3.a. Sample or Participants
The sample of this study is composed of 55 employees from the “Business to Business”
Department of Beeline Company. The questionnaire contains several parts including the adapted
items related with employee outcomes.
3.b. Measurement Tool
The followings are given a description of the measurement tool used for employee outcomes.
During the sampling, we will use method of summered scales that is one of the oldest formats that
remains one of the most popular for the performance appraisal. (Bernardin and Russel, 1998:247)
It is expected from the participants to answer 25 items ranging from “1-never” and “5-
always”. Two items of the scale are stated below. “Level of compensation is fair in this company,
considering the level of compensation paid to employees for accomplishment of similar work in
other companies”, “I am convinced that I obtain fair rewards for carried-out obligations”
To measure the strong and weak sides of the performance, several questions were taken from
Minnesota Satisfaction Questionnaire (MSQ) (Furhham, 2005: 341). It measures the job satisfaction
with intrinsic, extrinsic aspects and the general satisfaction of the job. The intrinsic satisfaction is
related to how employees feel about the nature of their job task, while extrinsic satisfaction is
concerned about aspects that are external to the core task of the job. The working conditions,
supervision-human relations, the pay and the amount of work to do are the several items that will be
measured in questionnaire. “I get support from other departments in the company”, “I receive
Compensation management
Organizational climate
Education and training
Employees
satisfaction
7. regular and accurate feedback concerning my work performance.”
Any manager’s efficiency is influenced by his or her insight into what he or she does at work.
At In order to measure this factor some of the questions were used from “self-study questionnaire of
managers” (Minzberg, 1975). Ability utilization (the chance to do something that make use of my
abilities), Authority (I get an opportunity to do innovative things at work), Trainings (My business
unit provides training possibilities for successful accomplishment of the current job
responsibilities).
The responses to the structured close-ended questions will be rated in percentages. The
percentage of respondents for each alternative will be given and analyzed.
The results for each question will be displayed in the form of a percentage ratio to all
respondents' answers. After unloading of statistics on each question, we will try to develop
recommendations for each item.
4. RESULTS AND DISCUSSIONS
According to the literature, the degree of organizational climate, level of compensation and
educational system has positive effect to job satisfaction of employees.
Aligned with Linz and Semykina (2007), organizations that emphasized on autonomy and co
workers relationship will experience high employees’ job satisfaction. Autonomy received must
equal to extrinsic rewards offered to employees. Jonathan and Evan (2009) mentioned that
competitive advantage could be increased if employees are motivated extrinsically via providing
extrinsic rewards to increase their job satisfaction.
As mentioned previously, the job for the employee is not only a money source without paying
attention for the other work circumstances. Therefore, salary is not the base of happiness by
itself. Many literature reviews have been written about job satisfaction and its causes. But, none of
them has indicated to single factor that would increase the level of job satisfaction. It was rather a
combination of physical and psycho-social factors that should be enriched to certain level to
become visible and influence job satisfaction.
The research can be accomplished in terms of relationship among the trainings of employees
and job satisfaction. This study aims to investigate in measuring the training needs of the employees
by applying the tools which measures the factors which affects the competitive advantage.
Bettencourt (2002) mentioned that training and employee progress completely is linked with
managerial competitive advantage. A good chance of training motivates worker contribution and
promotes capabilities. In review, the present study shows that focus on training promote competitive
advantage in context of job satisfaction and performance, decrease non-attendance and lower
suspend intention.
The research shows that all hypothesis were proved through the analysis, according to the
indicator that were questioned.
8. 6. SUGGESTIONS
Satisfied employees play a crucial role in an organization's success, so the company must be
aware of the importance of employees' job satisfaction. It is recommended to monitor employees'
job satisfaction levels on an annual basis. The unit of analysis of the present research was the
individual employee. Future research may carry out analysis at group or organizational level in
order to make a comparative study and generalize the judgments of the current study.
This study provided support for the view that line managers and human resource practitioners
should be aware that different groups have different needs that can influence their job satisfaction
levels and different perceptions of the climate within the organization and that this impacts on their
behavior. One could speculate that organizations that understand their employees and are aware of
what they need create an environment in which employees can thrive and be creative and
productive – all characteristics of successful organizations.
Today’s study discovered association between the trainings its sub facets and competitive
advantage of an organization. However further studied can be extended towards the exploration of
relationship among the training and organizational loyalty with intervening variables. A
demographic study always demonstrates human behavior and expectations at different level. The
results of the present study indicate that there is a need to take into account changes in the job
satisfaction antecedent associated with experience and educational level.
The personnel evaluation system should be used in organizations in which the training is
performed, and the system should be the basis of personnel training efficiency evaluation. In this
case, the training efficiency evaluation acquires the strategic significance in the competitive
advantage formation.
Pay must relate to the accomplishment of goals, the company mission, and vision.
Additionally, pay systems must help create the work culture desired. Paying an individual for
his/her performance accomplishments alone will not help develop the team environment. Thus, the
advisor assists in carefully defining the work culture the prospect wants to create, aiming select
benefits at those contributing to the success of that culture.
Consulting and assisting in management of a compensation program with the correct
executive benefits is a dynamic process. Recommendations must be based upon knowledge of
business culture while staying attuned to the changing marketplace for talent and the environmental
landscape that affects compensation.
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