Updated: Nov 25, 2022
According to Gallup, 85% of employees are not engaged from their jobs. This global engagement pattern provides evidence that how performance is managed, and specifically how people are being developed, is misfiring.
Most of businesses today still rely on annual reviews to provide feedback and evaluate performance.
And yet the new workforce is looking for things like purpose, opportunities to develop, ongoing conversations, a coach rather than a boss, and a manager who leverages their strengths rather than obsessing over their weaknesses. They see work and life as interconnected, and they want their job to be a part of their identity.
Based on studies done at MIT, higher salary and bonuses are effective in driving better performance ONLY IF the task is mechanical and basic. If the task involves creativity, cognitive skills, decision-making, or higher-order thinking, higher pay results in lower performance. As a supervisor, you should pay employees enough that they are not focused on meeting basic needs and feel that they are being paid fairly. If you don’t pay people enough, they won’t be motivated.
To motivate employees who work beyond basic tasks, Daniel H. Pink defined the three main factors to increase performance and satisfaction:
Autonomy — Our desire to be self directed. It increases engagement over compliance.
Mastery — The urge to get better skills.
Purpose — The desire to do something that has meaning and is important. Businesses that only focus on profits without valuing purpose will end up with poor customer service and unhappy employees.
How does the organisation prioritise between shareholders, clients and employees?
Many traditional organisations focus on shareholders first, then clients, then employees. Some well-known tech companies, like LinkedIn, understand the importance to focus on employees first, who will then take care of the clients, which will drive value for shareholders.
Modern Organization means a boundaryless organization which are networking together and collaborating more than ever before.
They are well-suited for rapid innovation and therefore ideal for companies in the growing technology industry. Its main concept is to diversify its activities and connectivity as a result it can accept new challenges and can set a goal frequently. Modern style of management largely depends on soft skills – consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you.
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