Organizational Environment and Its Impact on Employee Performance

Organizational environment is one of the important features of an organization that motivates the employees to actively participate in the organizational function (Abbenbroek, Duffield and Elliott 2014). An organization consists of some key components that plays key role in the growth of the organization, such as- organizational leaders, management, employees, organizational strategies and policies and organizational environment. Organizational environment plays significant role in the employee’s performance. The organizational management must provide healthy environment to the employees so they can freely participate in the organizational development.  Organizational environment is made up of organizational values and behavior that provide a unique and enthusiastic environment within an organization that shapes the behavior and performance of the employees. According to some studies, the organizational management must provide healthy and peaceful environment within an organization to enhance the growth of the organization. Organizational leaders must realize that employees are the one of the pillar of the organizational structure and design their organizational structure according to the requirement of the employees to match their satisfaction level. The organizational environment is highly dependent on the organizational structure and strategy and leadership. There are several types of organizational structure, such as- Autocratic structure, bureaucratic structure.

In autocratic organizational structure, the organizational management does not allow employees to participate in the organizational decision making process. Such type of organizational structure is based on leaders. They are responsible for all the decisions of the organization. Thus, employees are not allowed to show their creativity. They are asked to behave as per the organization rules and regulations.

In bureaucratic organizational structure, leaders allow their subordinates to participate in the organizational decision making process. They take active part in establishing organizational structure. Although, final decision is always taken by the leaders, employees get enough opportunity to show their creativity and it influences the growth of the organization as such type of decision making process may generate many creative ideas for the organization. The key feature of this type of organization is the communication. Organizational leaders maintain interactive relation with their subordinates which helps the organizational management to involve their staff members in the organizational structure and it provides a sense of importance among the employees and they contribute for the better future of the organization. In bureaucratic organizations, employers ensure an active and friendly atmosphere for the organizational employees, so they can share their opinion about the organizational structure and organizational strategies (Arayesh et al. 2017).

The bureaucratic organizations are considered as the most successful organizational structure than autocratic organizational structure. In bureaucratic organizations employers can easily include their employees in the change management process of the organization by communicating with them. It helps the employees to adopt the new changes and design their performance accordingly. It builds a transparent and healthy relation between the organizational employees and management. It stimulates the organizational development.

According to many analysts, to ensure a bright future for the organization the organizational management must maintain an environment within the organization that increases the dedication level of the employees and they can enhance the organizational profit margin (Butt et al. 2015). It will be beneficial for the organizational management to achieve the long-term goal. In this competitive era, every business organizations are trying achieve the leading position in the industry by incorporating various innovative and unique strategies in their organizational rule book. All the business organizations are giving tough competition to each other. Organizational environment is one of the most essential factors that one organizational management must consider to avoid any kind of future risk, such as- financial crisis, labor crisis, lock out, strike and so on (Denison, Nieminen and Kotrba 2014).

Types of Organizational Structure: Autocratic vs. Bureaucratic

Communication is one of the key elements of the organizational atmosphere. In order to ensure a peaceful environment in the organization the organizational management must often communicate with their subordinates. The leaders of an organization can conduct various group discussions to provide a platform to the employees where they can share their opinions and suggestions. It will maintain organizational harmony and transparency as well as it will improve the organizational performance and help the organizational management to increase the profit margin. It will help the organizational management to battle against other rival companies. Modern business organizations can use effective modern communication tools, such as- intranet, podcasts, blog to interact with the employees (Dubey et al. 2017).

Thus, it can be stated the environment plays major role in the organizational growth and employee’s performance. The organizational management must provide friendly and peaceful environment in the organization where the organizational employees can present their creativity and employers motivates their subordinates to give their best performance and work together. The organizational leaders must show their subordinates the right direction to achieve their goal and they must provide an atmosphere to the employees that can shape the behavior of the employees in an appropriate manner and increase the commitment level of the employees towards the organization. The organizational management must ensure that employees are in good terms with each other. At the same time they must provide a clear idea about the organizational vision and mission to the employees to stimulate organizational as well as employee’s performance. An exemplary example of such organization is Apple. Apple is one of the leading IT Company of the world that offers wide range of i-Phone, smart phones, TV, laptop and so on. The founder of Apple Steve Jobs used to believe in bureaucratic leadership. The organization always follows the path of the Steve Jobs. They always involve their engineers, designers in the organizational decisions and encourage them to show their creativity which influence their designers too think out of the box. This has helped Apple to bring revolution in the i-phone industry. The designs of the Apple phone are unique and innovative from other brands and it works as a USP for the brand (apple.com, 2017).

‘You can’t manage what you can’t measure’- this is one of the remarkable quote stated by Peter Drucker. According to the author, every business organization must monitor their performance and measure their success. Otherwise they will not be able to improve their organizational structure. It is important for every business organization to monitor the growth of the organizational performance and employee performance so they can identify their flaws and rectify the mistakes so they can improve the organizational performance (Hartnell et al. 2016).

According to many reports, measuring the organizational progress plays vital role in the organizational development. The measurement of the organizational progress refers to the measurement of the result of the organization to achieve a specific goal. It is an integral part of the organizational strategy. In order to achieve the organizational target the organizational strategy is established by the organizational management. Organizational strategy helps the organization to walk towards the right direction. By measuring the organizational progress, the organizational management can observe the impact of the organizational strategy and how it can be beneficial to achieve the long-term goal (Hogan and Coote 2014).

Importance of Organizational Environment for Growth and Risk Management

The employers can observe how their employees are performing and how powerful their organizational strategy to battle against their rival companies. Measurement provides an useful vivid concept for conducting annual review of the performance of the employees and the organizational management.

 By measuring the organizational leaders can easily identify their performance quality of their employees. They can easily understand the flaws and weak points of the employees. It helps the organizational management to provide required remedy to the employees to motivate them to give their best performance. Thus, the employees can easily use the opportunity and shape their performance accordingly (Hustinx 2014).

By identify the effectiveness of the employees the organizational management will be able to identify the organization growth in the industry and to what extend the organization has affected the buying behavior of the employees. At the same time, the organizational management can identify the best practices for the organization that can stimulate the growth of the organization (Jalal 2017).

By using some efficient measurement tools, the organizational management can easily monitor the organizational performance, such as- profit margin of the organization, the number of sale of the organizational product or service, the market share of the organization, customer feedback.

By measuring the profit margin of the organization the organizational leader of every business organization can easily understand the growth of the organization. This is considered as the most useful measuring tool for every business organization. The organizational management can easily identify the affect of the organizational performance on the buying behavior of the loyal consumers of the organization (Karyotakis and Moustakis 2016).

By monitoring the sales ratio of the organization, the management of any business organization can easily understand the impact of the organizational strategy on the organizational performance.

The increment in the market share can show that the organization is in the right path to achieve the success. It is often evident that many leading business organization has owned a huge number of market share in a particular industry. The growth in the market share is one of the major tools to show the impact of the organizational performance. It will help the management to monitor the organizational progress.

Customer feedback is one of the important tools that all the leading business organizations use to identify the effect of the organizational performance. Customers are the key element of the business organization. The primary objective of the business organization is to provide quality product or service to the potential consumers. By gaining feedback of the consumers the organizational management can easily understand whether they are in the right path or not. There are many tolls that can be used to obtain the feedback of the consumers. By using these tools the organizational management of every business organization can obtain the feedback of the consumers and design their organizational structure according to the need of the consumers (Kasemsap 2017).

As per earlier discussion, every business organization can easily measure their success and identify their flaws and easily rectify their mistakes. Otherwise, the organization may face various difficulties. Along with the previously mentioned quote, Peter Ducker has stated that if someone cannot measure his or her success, he or she will not be able to improve it. Thus, it can be stated that without measuring the success of the organization, the organizational management will not be able to improve their organizational structure to provide better performance and reach to the large scale consumers. Without measuring the organizational growth the organizational leaders will not be able to identify the loopholes that the organizational structure possesses (Manojlovich and Ketefian 2016).

Measuring Organizational Progress

There are many leading business organizations that often conduct various market researches and obtain the feedback of the loyal consumers to measure the organizational progress. Dominos, is one of the renowned fast food chain of the world, it is famous for its wide range of the food products, such as- Pizza, cakes, burgers, garlic bread and so on. The organizational management of Dominos often uses various modern tools to obtain the feedback from the food lovers. They use these feedbacks for the betterment of the organizational performance. This has influenced the organizational performance and helped the organization to put a remarkable footprint in the fast food industry of the world (dominos.com.au, 2017).

The structure of the business organization has been transformed in past few years. Every business organization is being designed in an innovative and unique manner to battle against the rival organizations. In initial days business organizations were mainly autocratic leadership based. The leaders were as the central point of the organization. They were responsible for all the organizational leaders. In this type of organizational structure the employees used to work as a tool to achieve the organizational goal. They were not allowed in the organizational decision making process. The organizational structure was designed in conservative manner. It was not flexible and unable to adopt any new change that can be beneficial for the growth of the organization (Schneider 2016).

The organizational management of various business organizations has changed the organizational structure. The rapid growth of several competitive business organizations has increased the competitive environment in the market. Every business organizations are now a days giving tough competition to each other. This has led the organizational leaders to construct their organizational structure in such a manner so they can beat their rival companies. The structure of the business organizations are now a days are more flexible than earlier, so the organizations can easily adopt the new and positive changes to stimulate the growth of the organization. It is often evident, leading business organizations are embracing new techniques to achieve the organizational goal. In recent time, the primary objective of the business organizations is to provide quality and efficient service to the consumers. The preference and requirement of the consumers have changed in past few years. The consumers are now a days look for the quality products along with the brand. They are not ready to compromise on the product quality while they are paying the price. They have many other options that can provide quality products in an affordable price. Thus every business organizations are trying to adapt new and efficient changes so they can beat other brands and match the satisfaction level of the consumers (Schneider e al. 2013).

Earlier business organizations are mainly based on the leaders. However, the organizations have been changed into team and service oriented structure. The organizational leaders are now a  days treat their subordinates as their team members and encourage them to share their views over any issues that can be beneficial for the organizational development. The organizational management now involve their employees in the decision making process of the organization. They provide a healthy and friendly atmosphere to the employees so they can actively play their role and can stimulate the organizational growth. The organizational management now ensures that all the employees are in good terms with each other and they are looking towards the same direction. Otherwise the organization may face various difficulties and organizational turmoil. The success of the organization is highly dependent on the performance of the team. The organizational management are now a days make sure that all the employees are working together to achieve the common goal.

Significance of Measuring Organizational Progress

In recent time, the organizational leaders make sure that all the employees are aware of their role and responsibility. Organizational management provides vivid idea about the organizational mission and strategy, so they can contribute their performance to achieve the organizational goal. The primary objective of the organizations now a days provide quality service to the consumers and earn huge profit. They design their organizational structure in the service oriented manner. They include all the efficient strategies that can influence the growth of the organization (Williams and Glisson 2014). They use all required techniques that can improve the organizational performance.  Techniques are as follows:

The organizational management use strategic communication to maintain effective communication within and outside the organization. They maintain healthy and interactive relation with the employees. They use communication strategy as their public relation officer and promote their brand name among the potential consumers.

The organizational management of various business leading organizations are now incorporating modern technologies that can improve the product or service quality of the organization. The advancement of modern technology has changed the organizational structure. It has given a wide opportunity to the business organizations to reach to the maximum number of consumers. Every business organizations are using this opportunity to enhance their profit margin (Zhu and Engels 2014).

The organizational management is now a days ensure that a healthy and friendly atmosphere is maintained within the organization and the relation between the employees and the organizational leaders and among the employees are is healthy and interactive. It motivates the employees to give their best performance. They provide various facilities to the employees to increase their dedication level towards the organization, such as- leaves, monetary support and so on.

An exemplary example of the organization such type of organization that has been designed in modern format and has put a significant impact on the industry is Starbucks. The organization is known for its atmosphere. The organization has recently faced massive crisis due to the organizational turmoil. The organizational leaders have taken a notable initiative during this turbulence. They have maintained a transparent and interactive relation with the employees, as they are the key element of the business organization. This has helped the employers to overcome the situation and maintain the reputation in the society. Due to the transparency level that has been maintained by the organizational authority the organization has easily earned the faith of the employees which has influenced the growth of the organization (starbucks.com.au, 2017).

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