Management/PEOPLE MANAGEMENT term paper 42180

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Abstract

When considered intuitively, it is clear that people management must have a significant impact on the outcome of a given business�s efforts. However, how this impact is made and what it is is often left open to question. The purpose of this study is to analyze people management within the scope of business management in general and to outline the link and the impacts of people management to a business, its success or failure. This study investigated the specific impact of people management on the success of the organization through performance management using a survey methodology that looked at a number of organizational and people management factors, including leadership skills, performance management and evaluation, compensation management, organizational structure and corporate culture.

Table of Contents

Page

Abstract 2

Table of Contents Page 3

CHAPTER 1: INTRODUCTION 4

1.1 People management defined 7

CHAPTER 2: LITERATURE REVIEW 10

2.1 Leadership People and Performance Management 10

2.2 Performance Management 17

2.3 Transformational Management and Change 26

2.4 Organizational Culture and People Management 32

CHAPTER 3: RESEARCH METHODOLOGY 36

3.1 Data Description 40

CHAPTER 4: RESULTS AND DISCUSSION 43

4.1 Variable Measurements 43

4.2 Discussion 48

CHAPTER 5: CONCLUSION 51

Works Cited 53

CHAPTER 1: INTRODUCTION

It seems self-evident that people management would have a critical impact on business success. A business�s entire operations are built on the people doing them, and their abilities and enthusiasm have everything to do with the success of these operations. From the production floor to the executive offices, the performance of individual employees impacts the company�s overall performance. However, employees cannot be expected to perform to the highest standard without competent management. Problems such as low employee morale, high turnover rates, and poor performance of job duties can result from inadequate people management. People management, which encompasses both formal performance evaluation and compensation strategies and informal leadership practices and techniques, is one of the determining factors in employee morale and the resulting work quality, as well as determining other factors such as workplace loyalty.

One major component of people management is leadership. On leadership�s effect on the organization, Goleman (3) remarked, �No matter what leaders set out to do � whether it�s creating strategy or mobilizing teams to action � their success depends on how they do it.� While there are many approaches to leadership, from Goleman�s basis of leadership in primal intelligence to Wren�s group dynamics view (Goethals and Sorensen 3), all hold in common that leadership is one of the most basic elements of successful people management.

The second major component of people management is that of performance evaluation and management, including both formal performance evaluation (annual or periodic reviews) and informal performance evaluation (offering of impromptu feedback during the working period). While performance evaluation is nominally a human resources function, front-line supervisory personnel have significant impact on the outcome of this process, because this is where the most effective processes, including goal setting and evaluation, are performed (Edwards, Scott and Raju). Performance management is also a component of compensation management, a third major determining factor of people management success.

Finally, no people management decisions, either those that lead to success or those that lead to failure, occur in a vacuum, but are instead happening within a context of organizational management that addresses concerns such as team interactions, inter-group interactions, formal organizational structure, knowledge transmission, and other factors surrounding the organization in which the individual manager and team member exist (Morgan 8). Thus, organizational factors that affect people management will also be considered.

However, people management practices in isolation are not enough to ensure the success of the firm or even of the management practice � the ideals that are embodied by the people management practice must be embedded in the corporate culture in order for them to be successful. This study is intended to explore the components of people management and corporate culture acceptance of these methods and their effects on business success, both direct and indirect.

Importance of the study

This study provides a practical reference for firms that want to improve their performance by increasing the effectiveness of their people management practices. People management is an area that most companies acknowledge is an important part of their success, but many companies do not understand ways of improving their people management practices. This will also provide guidelines for the individual manager who wishes to improve his or her own performance.

Hypotheses

In order to focus the outcome of the study, two hypotheses are presented. Through the literature review we have come up with two hypotheses which we set out to test. These hypotheses are as follows:

Hypothesis 1: There are people management methods that result in greater success for the firm that utilizes these methods.

Hypothesis 2: The effectiveness of a people management method depends on its acceptance within the corporate culture, as well as its performance in isolation.

1.1 PEOPLE MANAGEMENT DEFINED

The issue of �people management� is not clearly defined in the literature, with many conflicting definitions being used by different authors. This study will take a holistic view of people management, encompassing a number of areas of management that impact the performance, well-being and job satisfaction of the company�s employees. Components of people management that will be examined include:

1. Leadership activities and strategies

2. Performance evaluation

3. Compensation management

4. Inter-group communications and management

5. Organizational management

In essence, people management theory argues that if management implements a specified set of employment as well as work practices, it is going to lead to better performance (Boxall and Purcell 47-70). A lot of the practices such as teamwork, redesigned jobs, employee participation, teamwork as well as communication and information sharing - have been shown to improve performance, but not in a consistent manner (Appelbaum et al. 737-775). The strongest results have been obtained where models appear to approximate the real world of work and where measurement and sampling errors are reduced by using special-purpose surveys targeted at workplaces in specific (Appelbaum et al. 737-775). A common thread running through these studies is that people management contributes to high performance where workers are expected and encouraged to perform at a high standard. This occurs where HR and work organization practices provide workers with discretion or control over their work, where they are developed to work competently, and where they are supported and rewarded by management to work co-operatively with colleagues. Theory suggests three mechanisms - structural, motivational and cognitive - that lead to high performance. Structural alterations, for example, the creation of teams or introduction of a new reward system, may provide an initial rather than continuing improvement in performance. For continuous improvement, employees need to increase and sustain their motivation at a high level - a possibility that arises through perceptions and emotions related to greater work satisfaction and empowerment - and/or cognitive changes need to be introduced. These might include improved management communication and investment in formal training and/or on-the-job learning (Appelbaum et al. 737-775).

The last 2 decades have seen a significant shift in human resource management (HRM) research from an essentially micro-analytical approach to a new macro-strategic perspective. Other from the conventional administrative role, HRM has identified new roles in terms of employee champion, change agent and strategic partner. Over the years, there has been much speculation about the role of the HR in the organization going ahead. Authors and business gurus have made various predictions regarding the role, function as well as size of the HR department. HR responsibilities have typically come under fire as a result of its perceived unresponsiveness as well as administrative and not strategic focus along with the perception that they are cost centres and not star wealth creation centres they bring in the revenue. This is particularly clear when we consider issues like cost reduction as well as life cycle model which is evident in most organizations, these are discussed later.

Although there are various stakeholders in an organization, the chief strategic goal of any business is higher financial performance or maximization of wealth for the shareholders (Becker and Huselid, 53�101). Financial performance of an organization depends to a large extent on effective operational performance. The operational performance of an organization is a function of people, process and technology. People management has become a significant part of the line manager�s job and plays a crucial role in performance management.

CHAPTER 2: LITERATURE REVIEW

2.1 LEADERSHIP

A fundamental question that needs to be addressed in People Management is what style of leadership will facilitate the development of a culture that will engage all stakeholders in a performance management system. This function of leadership can be supported by and executed through a well-designed performance management system. Yukl writes,

"Leadership is a subject that has long excited interest among people. The term connotes images of powerful, dynamic individuals who command victorious armies, direct corporate empires from atop gleaming skyscrapers, or shape the course of nations." (1)

The definition of leadership is dependent on context and can be arbitrary and difficult to define. Morrison, Jones and Fuller define leadership as "...the ability to influence a group toward the achievement of its goals." (27) A more complex definition of leadership is "the pivotal force behind successful organizations and that to create vital and viable organizations leadership is necessary to help organizations develop a new vision of what they can be then mobilize the organizational change toward the new vision." (Bennis & Nanus 2) Lippitt adds a different perspective on the definition of leadership. She states,

"Leadership can be defined as getting people moving in a direction making a decision and supporting paths they typically wouldn't have selected." (19)

In Lippitt's definition, leadership is not just equated with positional power in an organization. She advocates the responsibility of leadership at all levels of the organization. In support of Lippitt's approach, Yukl defines leadership as,

�the process wherein an individual member of a group or organization influences the interpretation of events, the choice of objectives and strategies, the organization of work activities, the motivation of people to achieve the objectives, the maintenance of cooperative relationships, the development of skills and confidence by members, and the enlistment of support and cooperation from people outside the group or organization. (5)

The Forces Driving the Changes in Leadership

There are a number of social and economic forces driving changes in leadership. Bridges states "That much sought after, much maligned social entity, a job is vanishing like a species that has outlived its evolutionary time" (62). Second, demographic changes have created a more diverse society. Camevale and Stone state, 'Workers in an environment receptive to diversity are empowered to use their full capacity. As a result, they, their work, and the organization as a whole benefit from this." (24)

The third significant change is a shift from what was referred to as the baby-boomer generation to the gold collar worker. When demand for talent so outstrips supply, startling salaries, bonuses, and mimosas are just the beginning. - Work is not about paying the rent; it's about self-fulfilment (Munk 65). Stuller states, the need to cultivate and aggressively use those brains is evolving into a business religion." (30) This will become increasingly difficult as there is a growing shortage of skilled labour and it will require strong leadership skills to attract the best individuals to organizations (Lee 28). Once attracted to an organization it will also mean creating a culture where creativity, cooperation and resiliency are the operative words.

In summary, the forces driving change in leadership: job changes, diversity issues, increased demand for skilled labour, demographic changes and lack of strong leadership skills are significant and need to be addressed. It is no wonder it is difficult to define what is meant by leadership because the context is constantly changing and demanding new ways. An effective performance management system recognizes these changes and provides a framework for meeting the leadership challenges of a changing workforce.

Leadership versus Management

The differences and similarities between leadership and management continue to be debated in the literature which raises the question: Is performance management a leadership or managerial function? Yukl agrees that the limitations of looking at leadership and management as mutually exclusive would be providing an incomplete picture, and there is no purpose to be gained by doing so. To do so would create simplistic stereotypes to label people as a manager or a leader when both are needed to be successful. (5)

Covey believes that "�management and leadership are not mutually exclusive; in fact, it might be said that leadership is the highest component of management (246). He also relates leadership to right brain thinking and management to left brain thinking. The left brain deals with logic, words, parts and specifics, analysis, sequential thinking, and is time-bound. The right brain works more with emotions, pictures, relationships, synthesis, simultaneous and holistic thinking and is time free.

There is a declining need for the traditional manager. The traditional role of managers continually fails to meet the demands of today's leaders because functional experts are no longer required, the under utilization of the intellectual strengths of the worker is changing and because teams of subordinates are acquiring the skills that managers previously had the sole ownership over. There is no need to devalue the role of the skilled manager but what's called for now is a different kind of manager - more strategic, more collaborative, more facilitative, and more responsive to customers, employees, and organizational imperatives." (Zenger 48) This demand for a new kind of manager or leader as noted above is in keeping with the changes that are evolving with the newer approaches to performance management discussed earlier. It would appear that driving these changes is the transitions oncoming in the workforce that necessitate new ways of working to meet the needs of an evolving new kind of worker.

Whether leadership and management are distinctly different or exists as different points on a continuum of management to leadership, it is often difficult in the real work world to say where one begins and the other leaves off. Peter Drucker states:

And as for separating management from leadership, that is nonsense-as much nonsense as separating management from entrepreneurship. Those are part and parcel of the same job. They are different to be sure, but only as different as the right hand from the left or the nose from the mouth. They belong to the same body. (Cited in Galagan, 26)

The concept of management and leadership, whether distinct or on a continuum, both have their place in determining the success of a performance management system. Grote identifies six responsibilities in performance management. (24) The responsibilities for observing and documenting performance, updating and revising objectives and performance standards could be thought of as at the managerial end of the continuum. Motivating, coaching, providing developmental experiences and reinforcing behaviour could be thought of as at the leadership end of that continuum. It would be difficult to be definitive about where one starts and the other ends. However, from the foregoing, it would be reasonable to conclude that effective performance management requires that managers can move comfortably throughout the continuum of managerial and leadership behaviours with equal ease.

Leadership Theories and Performance Management

Situational Leadership theory provides a framework for considering the supervisor's role in the overall performance cycle. It attempts to explain a correlation between the time the leader spends on task related versus relationship related behaviour with employees and the readiness level of the direct reports to perform the work. The more confident and capable the direct report is to complete a task or function successfully, the less time the leader has to spend on task and relationship behaviour. As the direct report needs less guidance on the task, there is a period of time when the leader will need to spend more time on the relationship side of development. Eventually with a confident and capable individual, the leader will spend minimal time with the employee unless there is some intervening crisis that will dictate a return to a more supportive role for the leader. (Yukl 272-273) Yukl concludes that research on situational leadership finds very little support for the model because of a number of conceptual weaknesses. He states however,

"�the theory has made some positive contributions to our understanding of leadership in dyads. One contribution was an emphasis on flexible, adaptable leader behaviour." (272-273)

Covey's 'PIPC principle', balancing production with production capability, is similar to situational leadership theory, as they both share a triad of a leader, direct report(s) and the task or production. The PIPC principle is 'You always treat your employees exactly as you want them to treat your best customers." (58) To ensure organizational effectiveness, leaders in organizations need to influence the impact of intervening variables to help employees balance production with the production capability. Effective performance management systems provide a framework for the ongoing dialogue, planning and priority setting that are necessary if this production capability balance is to be achieved in the day to day activities of the organization.

Empowerment explains the groundwork needed to balance the issues of task and relationship to create a culture that supports the individual employee to become self-determined and accountable. The role of a leader is to create a culture that supports the individual employee to become self-determined and accountable within a performance management system. It is also very clear from the literature that the Alignment of an organization's culture with its business strategy, work processes and roles, and its human resources strategies, is critical to organizational success today." (Vestal, et al 341) The organization's performance management system can be a powerful tool for achieving this alignment.

Transformational leadership appears to have a powerful influence on job satisfaction both directly and indirectly through its influence on a person's intrinsic task motivation (empowerment). Transactional leadership, on the other hand, has no effect on empowerment; although it does have a direct effect on job satisfaction. Bass's suggestion that transformational leadership augments the effects of transactional leadership is also resoundingly clear. Passive management by exception is negatively related to job satisfaction and empowerment.

In summary there is no one leadership theory that will provide all the answers to designing, implementing and engaging employees in a performance management system. Theories about appropriate emphasis on task and relationship, flexible leadership behaviors, productivity and capability, empowerment and trust provide dues to what makes a leader successful. Yukl states, "A more promising alternative is to view leadership in terms of several distinct but interrelated influence processes at the dyadic, group and organizational level" (341). From the foregoing, while a diversity of views exists, it can be concluded that the forces for change from outside and within organizations are creating impacts. Workforces are changing in both diversity and in the expectations that are brought to the workplace, thus managers need to be able to move comfortably between transformational and transactional focuses. The culture and the performance management system selected as a result of this project will need to support this reality.

2.2 PERFORMANCE MANAGEMENT

Some forms of performance management and its precursor performance appraisal, have been in existence since the days of Frederick Taylor at the beginning of the century (Stephen & Roithmayr 232). 'It has been a staple of Human Resources research and practice for more than half a century, and the bane of HR professionals for roughly the same period." (Stephen & Roithmayr 329) Despite this longevity, many agree there is widespread dissatisfaction by both managers and employees alike with the processes and outcomes of many existing performance appraisal systems. (Clevand & Murphy 122)

Definition of Performance Appraisal Management

Performance appraisal has been viewed by many as a single event controlled by the supervisor. The evolving concept of performance management has taken on a systems approach with more input from the individual employee. Performance appraisal has often been defined as the procedure for collecting and interpreting data about the performance of individuals over time." Blair, Fordyce & Barney define performance management as "... a process by which employee performance within an organization is planned, managed, and evaluated." (18) They also emphasize the traditional approach is based on supervisor to subordinate communication that includes supervisory leadership, supervisory oversight, supervisory monitoring and supervisory judgments (18). More recently Stephen and Roiaimayr define performance management as a "...set of practices through which work is defined, reviewed and rewarded, and employee capabilities are developed" (229). They also advocate for a high degree of involvement and personal employee responsibility. This more recent definition adds employee development to the performance management framework.

Bevan and Thompson's literature review indicated a 'textbook' performance management system (PMS) includes the following: the organization has a shared vision of its objectives, or a mission statement, which it communicates to all its employees. The organization sets individual performance management targets which are related both to operating unit and wider organizational objectives it conducts a regular, formal review of progress towards these targets it uses the review process to identify training, development and reward outcomes it evaluates the effectiveness of the whole process and its contribution to overall organizational performance to allow changes and improvement to be made. (37)

Purposes of Performance Appraisal Management Systems

Douglas McGregor best wrote that performance appraisal programs are designed to meet three needs. First, they provide a mechanism for decisions about salaries, promotions, transfers, demotions and terminations. Secondly, they are a mechanism for informing an employee as to how he is doing in relation to the behaviour, attitude, skills and knowledge that are needed for the job. Thirdly, they are used as a mechanism for watching and counselling an employee. (McGregor. 89)

Cleveland & Murphy agree performance appraisals were used for administrative decisions such as salary management, promotion, and retention and dismissal. With the advent of management by objectives in the 1950's and 1960's, organizational planning was added to the list of rational for performance appraisals. Increasingly in recent years, performance appraisal and management systems are also being used for safeguarding organizations against discriminatory practices and for feedback and development of employees. (136) Cleveland & Murphy state:

�� organizational uses of performance appraisal can be grouped into: (1) between-person uses, including salary administration, promotion, retention, termination, recognition of individual performance, layoffs, and identification of poor performance. (2) within-person uses, including identification of individual training needs, performance feedback, determining transfers and assignments, and identifying individual strengths and weaknesses, and (3) systems maintenance uses, including use of appraisal for manpower planning, determining organizational training needs, evaluating goal achievement, assisting in goal identification, evaluating personnel system, reinforcing authority structure and developing organizational development needs.� (737)

The Bevan and Thompson study also found objective setting and formal appraisal were at the centre of a cycle that:

� Atypically results in two broad human resources outcomes affecting individual - what could be termed 'assessment' and 'coaching' activities. 'Assessment' concerns itself with aspects such as compensation, succession planning and disciplinary measures, whereas 'coaching' identifies means of improving performance through training and development or discussions about career potential and promotion opportunities. (37)

While the literature proposes there are many purposes for performance appraisals, it also clearly states "� when several uses are incompatible, or in conflict, attempts to use performance appraisal as an all-purpose tool may fail." (Cleveland & Murphy 138)

Haddock et al. also agrees that performance management systems with too many purposes increase the potential for failure of the whole system. Within the literature authors debate whether there is any measurable data to link the role of performance management with organizational effectiveness. Numerous authors talk about the importance of performance management to organizational success but there are still a lot of unanswered questions.

For example, performance management processes have been linked to financial performance. In a 1994 study, Hewitt Associates Ltd. found "Sales per employee were a third higher at companies with performance management processes than at companies without them. Operating income as a percentage of total assets was 45% greater at companies with performance management processes." (Stephen & Roithmayr 235)

In contrast, a UK study found no evidence to suggest that improved organizational performance in the private sector is associated with the operation of a formal performance management system." (Bevan & Thompson 37) Bevan and Thompson do acknowledge the findings may be a result of young performance management systems and or the pre-tax profit growth is an inappropriate measure. They state organizational effectiveness is affected by such a wide range of factors that trying to measure the effects of just one of them will never yield conclusive results." (38) They recommend further research studies in the area of the impact of performance management systems on organizational effectiveness.

Martin and Bartol discuss the reasons for this increase significance of performance reviews in relation to litigation. The advent of Human Rights Legislation and the downsizing of organizations have motivated employees to seek recourse from discharge decisions and the lack of promotional opportunities. They state "� employers generally have been able to mount more convincing arguments regarding the legitimacy of their actions when they are able to provide a series of performance appraisals that document the performance issues related to the case." (282) The performance appraisals, if done right, will also document areas where the employee was given feedback about improving their performance and what strategies were put in place to help the employee improve.

The Challenges of Performance Management Systems

Stephen and Roithmayr found that the reasons for lack of success with traditional performance management were not because of the theory and good intentions, but because of execution problems. These execution problems included the following:

1. The employee's objectives were set in a vacuum and not linked to the larger business context for the department, division or company;

2. Employee's objectives were not representative of the whole job;

3. Objectives were often kept a secret and not shared between individuals and teams to give people a better understanding of relationships, hand-offs, and overlaps;

4. Feedback, to the extent provided, was usually one way only, from manager to subordinate;

5. The key components of the process were not aligned to operate interdependently as a whole system; and

6. Development planning was at best secondary, and often forgotten. (p. 232)

Bevan and Thompson caution the general application of performance management systems from organization to organization. They state "There is almost an implicit assumption that the model can fit all situations. However, there are differences between highly centralized and decentralized organizations that are unionized and those that are not." (37) LaVan, Katz and Cariey's research study found 'Public sector union representation was significantly and negatively related to grievances involving performance evaluation, when compared to non-public sector unions." (439) Ng and Maki's research supports previous findings that concluded unionization leads to more formal management practices (132). Specifically in relation to performance management they write:

The evidence also indicates a decrease in the importance of the performance appraisal function in a union organization, since appraisal records are not considered important in pay, promotion, and layoff decisions in such an environment. This is not surprising, given trade unions' preference for using objective criteria (for example, seniority) in employment decisions. Implicit in this argument is that performance is not easily quantifiable and involves an element of subjectivity on the part of the evaluator. Union firms are, however, just as inclined as non-union firms to use performance appraisal records in developmental and disciplinary decisions. Trade unions' opposition to the use of performance records is therefore a qualified one. (133)

A final challenge is to recognize the performance management of people can't improve systems. Scholtes (cited in Lee), states, "� you can't improve the performance of a system by improving the performance of individuals. Above average, outstanding or even heroic efforts on the part of the individuals can't compensate for an inadequate and dysfunctional system." (46)

Performance Management Systems of the Future

HRM professionals need to move from a focus on 'doables' to deliverables and this includes performance management. Ulrich states that HR practices are organizational processes that can enhance individual competencies and organizational capabilities... When HR practices are aligned with the needs of internal and external customers, firms are more likely to succeed. HR departments must be held to a higher standard than they have been up until now. They must move their HR professionals beyond the roles of policy police and regulatory watchdogs to become partners, players, and pioneers in delivering value.

With the rapid increase in the Pace of change, performance appraisal strategies have not kept pace with the demands of new ways of working. Performance appraisals were developed in the traditional hierarchy that called for top-down decision making. The environment was stable, there were fewer employees for each supervisor to appraise, and there was time for planning and passing on directions. Today's environment calls for new paradigms. Stephen and Roithmayr state:

��performance management is about running the business. It is not a peripheral issue, but central to the everyday work of managers. Equally important, we will argue that we must shift from the traditional performance management focus of managing people- in effect, trying to gain some control over their activities to elicit suitable performance - to concentrating on managing the work context so that staff can be free to perform at their best.� (230)

Stephen and Roithmayr have developed a performance management model called The Peak Performance Model. This model helps managers to '�focus their energies on managing the context and conditions of work, so that employees can thrive in the performance partnership." (236)

The manager's role is to ensure that the employee knows what to do, is able to do it, wants to do it and is equipped to do it. These conditions are connected and interdependent and like the human body if one system is not working there is an impact on the other systems. The manager's role is one of support through feedback, coaching and communication. They also stress the importance of aligning the overall business direction with the day-to-day operations. Stephen and Roithmayr state, "The manager acknowledges that subordinates are fellow adults, worthy of trust and capable of high performance." (244)

Haddock et al. (146) have also developed a model to change from the traditional performance management approach. They are very clear it is not a tool for discipline, promotions and wage and salary decisions. Their model starts with the employee and manager meeting to plan the feedback session. During this meeting they determine what areas of the job they would like feedback on. The second phase is to gather data from customers and suppliers identify barriers and think about ways to eliminate or reduce the barriers as well as developing a learning plan. In the third phase the employee and manager meet and follow the agenda agreed on at the planning meeting.

Haddock et al. (146) have also abolished the formal rating system. In its place is a one-page form for summarizing the session's agenda, with room for both signatures. The form is then placed on the employee's file. The final phase of their model is an evaluation of the feedback session by the manager and the employee with the goal of improving the process for the next time. (147-148) They also state "The readiness of an organization is critical to successfully implement a change as radical as the model represents." (148)

Organizational readiness is critical to the success of any program. This is demonstrated through senior management's commitment to modelling appropriate behaviour and involving employees in the development of the process. The process must be communicated to the employees and a link to the organizational values established.

The performance management system must be aligned with all systems within the organization, especially those having a direct affect such as employee selection, manpower planning, strategic planning and training. Third, the organization needs to commit to a high level of training for both manager and employee alike in order to effectively benefit from the process. Managers also need training in coaching and interpersonal skills.

2.3 TRANSFORMATIONAL MANAGEMENT

Leadership in the organisational context has been defined as the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organisations of which they are members. Several variations on the definition appear in the management and leadership literature which also suggests different forms and styles of leadership. (Avolio 78)

One popular distinction is that between transformational and transactional leadership. Transformational leaders such as Dr Bernard Bass and others, tend to be visionary and to have a clear purpose or target Focusing on long-term goals, they seek overtly to achieve change and to transform the organisation (Anderson 129).

Transformational leaders are often charismatic and possess a collection of virtues and competences, including strong self-belief. Christopher Peterson and Martin Seligman elaborate on the virtues and behaviours of the authentic transformational leader identifying the six high virtues of: knowledge, courage, humanity, justice, temperance and transcendence. Building on this presentation, John Sosik identifies the habits of individual consideration, intellectual stimulation, inspirational motivation and idealised influence. These habits underscore the capacity of transformational leadership to shape, alter and elevate.

Transformational leadership is a leadership process which is very relevant for emerging economies and societies in transition. James Burns, a journalist, based on an extensive study of leaders of nations and large social movements across the world, identified transformational leadership as a construct.

He defined it as the engagement of one person, the leader, with others, the followers, in such a way that leaders and followers raise one another to higher levels of motivation and morality. Their purposes, which might have started out as separate, but related, become fused. He clarified this construct by contrasting it with what he described as transactional leadership (Spitzer 44).

Transactional leadership process occurs when one person takes the initiative in making with others for the purpose of an exchange of valued things. Each party to the bargain is conscious of the power resources and attitudes of the other. A leadership act takes place, but it is not one that binds leader and follower together in a mutual and continuing pursuit of a higher purpose (Anderson 25).

The distinguishing factor in the two leadership styles rests in the manner in which the leader-follower relationship is defined. A transformational leader has an engaging relationship whereas a transactional leader has one of exchange. Transactional leaders, therefore, have a give-and-take kind of expectation from their followers while transformational leaders share emotions and passions about a desirable future state with their followers. There have been many other studies following James Burn's.

There have been ongoing efforts to identify various behavioural aspects of transformational leadership so that training can be made possible. Review of literature suggests that transformation leadership training is a possibility. Isolation of a common list of key themes of transformational leadership experiences in various contexts encourages one to speculate there is a possibility of training in this important aspect of organisational change and management. Six major themes have been identified as being evident in any transformational leadership process.

These are creation of a shared vision, communicating the vision, building relationships, developing a supporting organisational culture, guiding implementation, and exhibiting character (Grosse 54).

It is observed that transformational leaders usually work through building relationships and have a strong urge for achievement. They are principles-centred, believe in and demonstrate honesty, integrity and trust - in other words, exhibit character. Further, they have expertise in their area of activity and are comfortable with the cultural, technical and political aspects of their environment. It appears that training tools can be developed to transfer learning from these observations.

Transformational leaders motivate effort by raising the awareness of followers to make them aspire to higher-order needs and values and by developing them to fulfil their aspirations. Transformational leaders rely upon end values to raise the standards that their followers use to make their decisions (Hemphill 15)

A leader displaying transformational behaviours may relate action on an issue to one's self-concept of doing the right thing, thereby making it personally relevant and motivating deeper thinking about the issue. By encouraging consideration for each individual's unique perspective, a leader displaying transformational behaviour also is likely to help create an environment in which group members feel comfortable presenting their ideas to others.

Transactional leadership is still a popular approach with many managers and a blend of transactional and transformational leadership can be found in most organisations (House 11). In the work of Dr Bass and others, there is in fact a stress on the thought that leaders are most effective when they operate a blend of transformational and transactional leadership, switching between the two as and when necessary. The central point here is that there is no one right way to lead or manage that suits all situations (Hemphill 138)

Although there is no universal view on what constitutes good leadership practice in a public organisation, those writing on the challenge put emphasis on a number of points:

1. Good public company leaders are enablers, bringing the best out of people and encouraging participation and contribution. A key part of this process is building trust and recognising the contributions that individuals have the power to make.

2. Effective public company leaders have or require credibility which may extend from a record of achievement and a reputation for competence. This may also relate to technical or organisational knowledge. A reputation for honesty and fair dealing may be critical in this regard.

3. Public company leaders should be forward-looking and have a thirst for progress. Good leaders should look to make a difference and search for opportunities to improve things. They are appreciative of what is currently working but are attuned to future needs and requirements.

As far as Private Company leadership goes, it is generally considered easier to go about. At the same time they also do many of the things public company leaders do such as

1. Good private company leaders inspire, attracting support through the power of their ideas and ability to communicate their vision. This does not mean that good leaders are always extrovert or charismatic but does suggest that they must enjoy the capability to communicate and to engage.

2. Good private company leaders also make decisions. Although a good and democratic leader invites other members of the team to contribute to the decision-making process (Humphreys 85).

Transformational leaders also may influence ethical behaviour by role modelling ethical behaviour and by articulating and stressing clear ethical guidelines for their followers to live up to. As noted by Cuilla, "transformational leadership has become almost synonymous with ethical leadership." (Northouse 64)

Let's look at this in the context of improving customer as well as employee engagement, since that's an area of deep interest to many. When we think about actions that may be taken in an organization in order to improve customer and employee engagement, two different kinds of intervention activities are necessary: transactional and transformational. Both activities are designed to create sustainable organizational change (House 16).

Transformational activities are designed to help you do things in new and better ways. Transformational activities -- whether they are driven at an enterprise level or at the workgroup level -- are interventions designed to fundamentally alter the structure or DNA or culture of the company (Morse 82).

Talent-based selection basically alters how you source talent and how you select and position people in a company. Implementing strengths-based development in your organization, for instance, is a fundamental change in how you view the nature of your employees. Transformational interventions on the strategic level would include altering corporate strategy, redefining your brand promise, or other things that fundamentally change your organization (Northouse 95).

Transformational leadership, an important aspect of change initiation and sustenance, is of significant importance to India in various aspects. Whether it is change in the functioning of key government agencies or in governance structures or in industry practices, transformational leadership will be an essential pre-requisite. The more we have such leaders the better. Hence, we have to develop capabilities to train such leaders in government as well as in the corporate sector. Transformation leadership, probably, is no longer happenstance. It can now be made to happen (Northouse 71).

Transformational leaders display Inspirational Motivation (IM) and promote Intellectual Stimulation (IS) and Individualized Consideration (IC). Transformational leaders raise the awareness of followers to make them aspire to higher-order needs and values and to develop them in order to fulfil their aspirations (Hemphill 44).

A transformational leader encourages group members to challenge and to reframe each other's ideas (IS) and also to show understanding and consideration for each other's opinions (IC). By clarifying the leader's expectations, these behaviours motivate participants to stimulate others and to express understanding and support for their ideas. Group members elaborate more when others force them out of their melds by challenging them and reframing their ideas. They also elaborate more when others display understanding and support for their ideas. Transformational activities can take much longer to bear fruit, since they are designed to fundamentally change the way you do business (Pawar 22).

At the end of the day, all businesses, no matter public or private look for the business rewards of the changes that are put in place. For instance, the way developing people's strengths pays off in terms of employee productivity and retention as well as in customer outcomes (Harris 36). Therefore, transformational changes are needed to improve the overall financial performance by effectively making the case for people management and executing it.

2.4 ORGANIZATIONAL CULTURE AND PEOPLE MANAGEMENT

According to Gilbert & Sneed, culture is one of four dimensions of an organization. The other three are structure, systems and people. Organizational culture is a "system of shared values and beliefs that produces norms of behaviour and establishes an organizational way of life." (155) Culture manifests itself through the beliefs, values, norms, stories and other symbols within an organization.

"Schein defines the culture of a group or organization as shared assumptions and beliefs about the world and their place in it, the nature of time and space, human nature, and human relationships." (Cited in Yukl 329)

A more detailed definition of culture is based on del Bueno and Vincent's work. They state:

Culture includes both implicit and the explicit contracts that include what is expected of members and the rewards or sanctions associated with compliance or non-compliance. Culture is a pattern of basic assumptions or behaviours that have worked in the past and are taught to new members as the correct way to perceive, to think, to feel, and to ad. (15)

Levels of a Culture

Schein (cited in Hackett. Lilford & Jordon) defines culture on three levels: basic assumptions, values and artefacts. Hackett et al. state:

The deepest and most difficult element of culture to change is basic assumptions - 'the correct way to do things around here'. Values are the next level and describe a sense of what ought to be within an organization. Finally, artefacts are overt beliefs and physical manifestations of culture, e.g. procedures; technology used; and size of offices which are the easiest to change. (100)

The established culture is communicated through myths, stories, rituals and ceremonies that reflect the values and beliefs about an organization. New employees are indoctrinated into the culture through the use of organizational metaphors. Metaphors can take on a militaristic, sports, anthropological, and mechanistic implications.

Three outside forces have been identified by Hackett et al. as significantly influencing the culture in organizations. They are customer requirements, the competitive environment and societal expectations. These authors believe that societal expectations may have the greatest effect within their study domain of healthcare. "Society increasingly expects doctors and clinical professionals to be competent, capable and caring." (Hackett et al 100) Stakeholders' involvement can play a major role in the formation and or changing of a culture. They can provide tools to focus on change and be a source of power to support the change. (Hackett et al. 100)

A Learning Organization Culture

Over the past decade an increasingly discussed topic in the literature on organizational culture and leadership is that of the learning organization, a term first made popular by Senge. It would be helpful to the project to explore a more specific type of culture, the learning culture and its relationship to the principles of a quality performance management system.

A learning organization values challenges, promotes flexibility, innovation and creativity, treats mistakes as stepping stones of development and encourages individuals to think. Dixon defines organizational learning as "...The intentional action of an organization to transform itself through both adaptive and innovative learning." (Cited in Calvert, Mobley, & Marshall) To move towards a learning organization, ways must be found to make learning more intentional and systematic. Calvert et al. state learning organizations learn:

� to use learning to reach their goals

� to help people value the effects of their learning on their organizations

� to avoid making the same mistakes again (and again)

� to share information in ways that prompt appropriate action

� to link individual performance with organizational performance

� to tie rewards to key measures of performance

� to take in a lot of environmental information at all times

� to create structures and procedures that support the learning process

� to foster ongoing and orderly dialogues

� to make it safe for people

From the review of the literature on a learning organization culture and the criteria for a successful performance management system, it becomes apparent there are a number of similarities between the two concepts. 60th refer to the importance of a common vision, awareness of and aligned systems, improved communication (dialogue), emphasis on learning and coaching and managers spending time managing the work environment versus the employee. It would seem that by creating a learning culture, a performance management system would prosper.

From descriptions in the literature it is clear that the concept of empowerment or self-governance and human potential is inherent in a learning organization and a quality performance management system. The goal of empowerment is to increase accountability and responsibility at ail levels of the organization. What has been very clear is that empowerment hasn't always worked for a number of reasons.

Developing trust in organizations is a major challenge because of all the changes downsizing and lack of promotions has created in today�s work environments. You cannot have empowerment without trust. Block states �Trust is almost universally built or destroyed on the basis of justice and integrity." (138)

The foundation of any successful organization is based on the values of trust, openness and honesty. (Kouzes & Posner, 1995) Empowerment in its self is not enough. The overworked and stressed individual who doesn't want to take on additional responsibilities may definitely resist any further concept of empowerment, interrelated and equally important is enablement. Bamer states 'Enabling people involves helping them develop the competencies they need to manage additional power and autonomy." (34)

CHAPTER 3: RESEARCH METHODOLOGY

The methodology chosen to conduct this study is that of a survey. According to Lancaster (70) the survey methodology is appropriate for this type of research because it allows for collection of data from a number of sources and quantitative analysis of the outcome of these sources. The use of a survey allows for a wide range of inputs from many companies, or many divisions of a single company, and may be used to specifically target the areas of interest. The survey is a lightweight study methodology that may be conducted quickly, making it ideal for preliminary research into an area.

Survey and questionnaire design

Questionnaire and survey measures are probably the most widely used research tools within the social sciences (Fife-Schaw 82). Their low cost, minimal resource requirements and potentially large sample-capturing abilities make them an attractive research method for academics and practitioners alike. However, the construction of questionnaire/ survey tools is not a straightforward undertaking and requires the researcher to consider multiple influences on the potential quality and quantity of data obtained. The types of response format available to the researcher developing a questionnaire tool, the issues of item construction and common wording problems, the formatting and layout of questionnaires, and the types of information a researcher can expect to obtain using these techniques.

Information obtained from questionnaires

Various types of information can be obtained via questionnaires, and are often combined in social science research. These types of information include: demographic/ descriptive data, behavioural data and attitudinal data.

Behavioural information

Fife-Schaw (54) discusses issues associated with behavioural self-report questions in some depth, highlighting the major problems of memory and social desirability as potential biases in these types of question. Clearly, respondents were given a reasonable memory of the area of interest if they are to answer a question accurately. However, even if their memory for the event or occurrence is good, they may not report its incidence accurately, if at all, if the area is sensitive, e. g. theft from work, recreational drug use. This type of bias extends beyond the reporting of undesirable acts.

Sudman and Bradburn (91) reported that social desirability bias leads to instances of over-reporting of desirable acts, such as punctuality, good performance, etc. Fife-Schaw (66) suggests that to tackle this problem, consistency checks may be included in a questionnaire measure, or the researcher could explain to respondents that their answers will be cross-checked against real data. Clearly, this is not possible if anonymity of respondents is to be guaranteed, but may be an option in certain settings. Attitudinal information: There are a wide variety of techniques that can be used by researchers to tap into respondents� attitudes. Among the most commonly used are 5- or 7point attitude scales, but others include open-ended questions, semantic differential scales, diagrammatic rating, or forced-choice questions.

Wording and other problems

When constructing a questionnaire measure, the wording of the questions is absolutely critical for ensuring comprehensibility and therefore the accuracy of response. There are a number of ways in which respondents can be left with an ambiguous or incomplete understanding of what you are asking. These are discussed below. Appropriate measures were installed to insure that they do not affect the accuracy of response of the survey.

Unfamiliar words

Technical or jargon words are unlikely to be understood by the respondent, unless specific to their profession/ organization. Ambiguous or imprecise words or concepts frequency response options provide a good example of ambiguity, e. g. in use of terms such as frequently, often, infrequently or never options such as these were qualified, perhaps with examples, or respondents will attempt to guess at their meaning. Imprecision can be seen in the varying definitions of certain words, e. g. dynamic, innovative, forward-thinking the more variable the definition of such words, the more error will be introduced into responses to the item.

Complicated wording

Questions which contain too many clauses or qualifications can be confusing. This can be detrimental to attitude questions, where a quick reaction is required from respondents, for example, �In general at work, would you say that you were relatively satisfied or content with your relationship with your immediate supervisor, that is, your line manager or boss?�

Double-barrelled questions

Questions that contain more than one concept were be avoided, e. g. �Are your parents British?�, or �Do you feel that the training programme was a good one and effective in teaching you new skills?� Such questions were be split into their component parts and presented separately.

Leading questions

Questions that begin with such phrases as �Would you agree that �� contain within them implicit value judgements that will almost certainly lead to biased responses. As far as possible, questions were neutrally worded. This is often difficult, but is particularly important with attitude questions to ensure that respondents do not try to select the �correct� or socially acceptable response. Questions with hidden assumptions were be avoided, for example the question �Promotion within this company is a real possibility if I put the work in� assumes that promotion is offered to all staff, this may not be the case if, for example, contract-based or part-time workers make up a significant proportion of the workforce. All of these issues were adequately addressed when designing the questionnaire.

3.1 DATA DESCRIPTION

The two hypotheses presented at the start of the paper were tested. Factors such as leadership skills, performance management, employee competence and evaluation, compensation management, organizational structure, teamwork, organizational commitment and corporate culture were investigated by employing an adequately designed questionnaire. The questionnaire and the process variables questionnaire were administered to employees and their managers/supervisors. It may be true that HR professionals have detailed information on HRM policies and practices of the company. At the same time, it has to be accepted that an HR policy becomes a practice only if it is implemented by the line people and its immediate beneficiaries would be employees. Huselid et al. (171) argue that HRM research has to take into account the effective practices rather than documented policies. Ideal respondents to measure the existence of an effective practice may be the beneficiaries of such practices, i.e. employees.

Prior to the administration of the survey, a thorough literature review was conducted in order to establish the state of the current research regarding the intersection between business success and people management. This literature review was conducted for two purposes. One, it offers a strong theoretical grounding and a guideline for what can be considered to be successful people management strategies. Two, it allowed the survey to be focused in order to provide original contributions.

Following the literature review, a questionnaire consisting of multiple questions intended to focus on the areas of interest in the study was crafted, along with a coding guide for use in analysis of the survey. This questionnaire focused on quantitative gathering of information, and relied on a number of question forms, including Likert-type scales and multiple choice questions. The questionnaire was distributed to management and staff in selected companies. Returned questionnaires were then analyzed using quantitative analysis techniques. These results were analyzed in the context of theoretical groundings and prior research in order to draw conclusions regarding the study questions and hypotheses posed.

The questionnaire was anonymous but asked whether respondents were a manager/supervisor or a non-manager/supervisor. Other demographics such as worksite, union affiliation, and length of service were considered but eliminated because the target group for the demographics was too small to ensure confidentiality would be maintained in some areas. The target group was also given the option of not ticking off the one demographic question. This created three groups of responders: managers/supervisor, non-manager/supervisor and an unknown group. The unknown group was the respondents that elected not to indicate whether they were a manager/supervisor or an employee. A comprehensive mail-out of the questionnaires (107 questionnaires) was made to managers and supervisors through the inter-regional mail system and included a return self-addressed return envelope with the researchers name and business address.

For the non-managerial/supervisory group (employees) a sample of employees was targeted to receive a questionnaire. The questionnaire was mailed to their home address, along with a stamped self-addressed return envelope. The questionnaire was mailed to their home address. The 181 recipients were selected to ensure adequate diversity in terms of geography and functions of those mailed the questionnaire. The percentage of potential recipients was determined by calculating the number of employees within each company over the total number of regional employees. Then based on the total number at each worksite the recipients were randomly selected. The response rate for employees was 19%.

Among the returned questionnaires, 22% did not indicate whether they were a manager/supervisor or an employee. Some of the respondents may not have wanted to indicate their status, it was presumed. The researcher was able to speculate that managers and employees each returned approximately 50% of the unknown group questionnaires. This was determined because of the method of return (postage stamp versus in-house mail). The overall return rate was 44% or 126 questionnaires out of 288 questionnaires.

CHAPTER 4: RESULTS AND DISCUSSION

4.1 VARIABLE MEASUREMENTS

The data in questions one and two was tabulated in the three groups: managers/supervisors, non-managerial/supervisors and the unknown group. These comments were transcribed by question into the summary of the comments.

In question one, 'Work Cultural Indication', there were two sections: preferred culture and existing culture. Each section had a rating scale of 1 (low) to 5 (high) for each work culture indicator statement. Initially the data was tabulated in each of the rating scales of 1 (low) to 5 (high). The researcher then summed up the scores from the rating categories of 4 and 5 in each section for each group and converted the data to a percentage for comparison between the groups. The researcher was then able to identify what the respondents believe is the difference between the preferred culture and the existing culture for each group.

In question two the respondents were asked to rate on a scale of 1 (nonessential) to 5 (essential) how important they thought each of eight components was to an effective performance management system. The data was compiled for each of the five ratings and summarized for each of the groups and converted to percentages for comparison between groups. Te results are summarized in the following two tables below.

Question 1: Preferred Culture versus Existing Culture

Wok Culture Indicator Importance of the preferred Work Culture: % rating of 4-5 The degree it exists in the company work culture: % rating of 4-5 The % gap between the two ratings

Unknown Employee Manager Unknown Employee Manager Unknown Employee Manager

A strong sense of needed with in the

organization 100 100 100 8 3 4 92 97 96

Employees and managers

like being together and care

about and support one

another 83 87 78 10 12 18 73 75 60

Quality performance is

valued and appreciated 98 100 98 20 6 28 78 94 70

A sincere and positive

approach is taken to giving

and receiving feedback

between managers and

employees 98 100 98 18 6 20 80 94 78

Managers and employees

share and demonstrate

mutual respect 93 97 96 13 15 22 80 82 74

Communication is honest, clear, open and timely. 98 100 98 10 9 18 88 91 80

Managers are

encouraged to support the

development of their

employees 95 97 98 25 6 22 70 91 76

Employees are encouraged to participate in the decision-making process within their work unit. 98 94 96 20 17 28 78 77 68

Flexibility and creativity in work practices is encouraged and recognized. 83 94 94 20 11 12 63 83 82

Managers need to understand the work they are called on to review.

90

94

92

30

9

26

60

85

66

The manager has been in their role long enough to be familiar with the employee�s performance. 90 86 90 44 23 35 46 63 55

Whenever a new manager comes into a unit, sufficient time is provided to become familiar with each employee's performance before they are called on to assess that performance. 97 91 92 26 19 28 71 72 64

Equipment/resources are available to do the job properly. 98 100 98 20 20 18 78 80 80

Question 2: Components of a Performance Management System

Components of an Effective Performance Management System % Non essential Components with a rating of 1 and 2 % Essential Components with a rating of 3, 4 and 5

Unknown Employee Manager Unknown Employee Manager

Each employee develops a performance plan at the beginning of the year and negotiates agreement with the manager 30 15 14 65 85 86

The manager assists the employee to ensure the performance plan is well aligned with the priorities of the work team and the larger organization as a whole. 23 6 8 79 94 90

The performance plan includes a personal development plan including professional development. 21 18 8 79 82 92

Several times during the year the manager and the employee meet to informally review the status of the performance plan 29 15 16 71 85 82

Managers need to manage the work environment to make sure the employees have the right resources to do the job effectively. 0 3 0 100 97 100

At the end of the year the employee prepares a report on the status of the performance plan 44 21 14 33 35 63

The manager and the employee meet to discuss the report and agree on a final assessment. 28 9 6 64 54 78

They agree on actions that need to be taken to further enhance performance 21 5 4 74 69 82

4.2 DISCUSSION

Trust

The single largest gap in the preferred versus existing culture was found in the statement dealing with trust. The average percentage gap between what respondents believe is important (100%) and what exists is 95%.

Communication

The second largest gap identified by the questionnaire is the need for honest, clear, open, and timely communication. Ninety-nine percent of the respondents rated the importance of communication a four or a five in a preferred culture while only 12% rated the degree it exists in the current culture as a four or five. The difference is an 88% gap between what the respondents believe is preferred and what currently exist in the culture at the time of the survey. There were also numerous comments made about the need for improved communication especially during times of change. Most communication nowadays is done through e-mail, which is okay sometimes/most times, but to actually talk to a manager personally would help develop better employer/employee relationships in our working (very stressful) environment these days.

Sincere and Positive Approach:

A third finding is that 99% of respondents believed a sincere and positive approach needs to be taken when giving and receiving feedback between managers and employees. Based on the respondent's feedback there is an average percentage gap of 86% between what exists and the preferred culture. Some of the written comments also expressed a need for a positive approach.

Valuing and Appreciating Quality Performance

The issue of valuing and appreciating quality performance (Question 1.3) provides a fourth major finding. Again all three respondent groups communicated a strong (99%) belief that valuing and appreciating quality performance is important in a PM system. While the gap between the preferred culture and the existing culture remains high at 81%, there is a 22% difference between what managers and employees agree currently exists. Twenty-eight percent of the managers rated the statement at a four or a five but only six percent of the employees rated the statement in the same way.

As can be seen, the difference between the preferred and the existing culture of organizations is very large and consistent across all 13 descriptive statements rated by all respondents in the unknown group. This difference in ratings was equally large for both managers and employees.

Mutual Respect

The fifth major finding is a desire for managers and employees alike to share and demonstrate a mutual respect for each other (Question 1.5). The gap between a preferred culture of mutual respect and the existing culture is 79%.

Employee Development

A sixth finding is the agreement between all respondent groups about the importance of managers encouraging employee development (Question 1.7). A 74% gap exists between what is at this time in their company and the preferred culture. This strong belief in employee development is further demonstrated in responses to Question 2.3, 'The performance plan includes a personal development plan'. Fifty-seven percent of respondents believe in a performance development plan but 27% saw this part as optional.

Equipment and Resources

Responses to Questions 1.1 3 and 2.5 provide a seventh notable finding. Ninety-nine percent of the respondents rated the importance of employees having the right equipment and resources available to do the job at a four or five level on the rating scale in a preferred culture (Question 1.13). They also rated the degree it exists in the culture at an average of 19%, leaving a gap of 79%. Also, 98% of the responses to Question 2.5, 'Managers need to manage the work environment to ensure the employees have the right resources to do their job effectively ,' were rated as essential.

CHAPTER 5: CONCLUSION

The trust level in the existing work culture is very low (95% gap) compared with what is rated as needed if a new performance management system is going to be introduced successfully. The lack of trust and respect (79% gap) can be expected to make it very difficult for employees and managers to establish a relationship that is sincere and positive (84% gap) and to communicate in an open, honest and timely way (86% gap). Dickinson believes the supervisor must be viewed as trustworthy and supportive for a PM system to be received favorably. (157) Sound people management requires that a goo work culture be adopted.

Senior management, in a new and unfamiliar position, might find it difficult to develop and maintain communication about the strategic direction with their direct reports and thus experience difficulties in ensuring employees performance expectations are aligned with the strategic direction. The literature review frequently pointed out the importance of a clear vision and strategic direction. (Gilbert & Sneed 155)

Morrison et al. state, "�the leader provides followers with a vision and a sense of mission and gains respect, trust, and confidence from followers. Inspirational leaders engage in confidence building of their subordinates, thereby influencing their ability to perform assignments and tasks successfully." (28)

The third key recommendation is to look for ways to resolve the middle manager's workload issues. If this is done they in turn can manage the work environment in a manner that ensures employees have the right resources to do their jobs effectively. Overworked and stressed individuals, including managers, will be reluctant and even resistant to taking on the additional responsibilities required with the introduction of a new performance management system. (Bamer 36) With a realistic workload, the leader can focus on the creation of a culture that supports empowerment and then ensures employees are able to meet their performance expectations.

The development of a communication strategy that meets the needs of all employees and includes a feedback loop from employees through to middle and senior management is critical to successful change management. In summary, effective people management requires a sound work culture that both employees and line-managers recognize and would like to see.

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