1.0 Introduction and Background information
Leaders, either in small or large organizations, naturally want their organization’s business strategy to be understood and accepted by their employees (Galunic and Hermreck, 2012). For most people, this is essential as it ensures that daily decisions made by workers, as well as their behaviours supports the competitive intension of the company. What many business leaders have come to term as “embeddedness” is essential especially when employees cannot simply be told what to, a concept that has increasingly grown in the modern business environment (Galunic and Hermreck, 2012).
The impact of employee performance on business strategy of an organization is one of the reasons why many companies hold “town hall meetings” while other executives write e-mails that are companywide (Dawson, 2011). Many leaders want to make their employees get the business strategy for the organization. Concerned with how companies encourage their employees’ engagement, Heathfield (2012) provides that the performance of employees is a powerful factor when it comes to business success.
Employees who are more engaged becomes more productive, customer focused, as well as help the company to generate more profits. Employee engagement is required if companies want to succeed in their respective industries. The performance of employees, which depicts their engagement, is not one of human resource initiatives, which most managers are made aware of once in a year. Employee performance is a key initiative that drives the achievement of an organization, as well as its continuous improvement (Heathfield, 2012).
Moreover, employee performance is regarded as the outcome from how an organization interacts with people in order to drive its business results. Currently, most organization’s business strategies are based on a number of factors including globalization, investment demands, changing customer needs, and the ever increasing product-market competition. Therefore, to continuously compete successfully in the business environment; organizations need to improve their performance by ensuring that their employees perform accordingly.
1.1 Research Question
While most businesses rely on cost reductions, product innovation and quality improvement, productivity and product speed to the market, negative performance from employees can hinder the success of the organization even when these factors are well implemented. Therefore, it is essential to recognize the people who make up the organization. Considering this, the proposed research aims at investigating employee performance and its effect on organisation’s business strategy. Does employee performance affect the success of an organisation’s business strategy?
1.2 Overall Aim
Although a lot of research has already been carried out on employee performance and its impact of business strategy, only a few studies have used practical data to produce results. The overall aim of this research is to use practical information to find out how employee performance influences the success of a business strategy.
1.2 Specific Research Objectives
While most people blame the failure of a business strategy to how it has been executed, it is essential to consider how employees’ performance affects the strategy. The objectives for the proposal research are:
- For organizations that have managed to successfully implement their business strategy, the proposed research aims at finding the method these organizations have used to increase the performance of their employees.
- For organizations that have failed to successfully implement their business strategy, the proposal research aims at finding what the organization lacks as far as their employee performance is concerned.
1.3 Research Hypothesis
It has been hypothesized that, considering the role of employees in an organization, their performance is essential and should, therefore, be considered when the organization is formulating its business strategy. When employees’ performance is negative, then it is likely that the business strategy for the organization will not be successful. Positive employee performance, on the other hand, will always ensure that the business strategy is successful.
2.0 REVIEW OF RELEVANT LITERATURE
In a study to evaluate the impact of strategic human resource management on the performance of an organization, Caliskan (2010) argues that, the economic environment is rapidly changing, with most of the changes being caused by phenomena such as globalization, changing customer and investor demands. Because of these changes, many organizations are forced to implement successful business strategies. However, while reducing costs, innovating products and improving product quality have helped most companies to successfully implement their business strategy, employee performance has also proved to be an essential component.
The same concept is true according to Li, Guohui & Eppler (2008, p.3) who argue that, while formulating a business strategy that is consistent is difficult, making the strategy yield positive results is even more difficult. In their study, Li, Guohui & Eppler (2008, p.3) provide that, employee performance is one of the myriad of factors that can potentially influence the success of a business strategy. Compared to strategy formulation, strategy implementation is seen as a craft and not science, with its history being described as fragmented and not eclectic.
Regarding the effectiveness of organizations’ business strategy, Schroeder-Saulnier (2012, p.2) views an exceptional workforce as a necessity in today’s changing business environment. Schroeder-Saulnier (2012, p.2) argues that, success in today’s competitive global economy needs a clear vision of where a company needs to go, the strategy that will take it there and the factors that can affect this strategy. For a company to succeed in its business environment, it needs to apply similar rigor in developing an employment performance strategy as it does in creating its business strategy (Schroeder-Saulnier, 2008, p.101).
For Galunic and Hermreck (2012) to understand how employees’ employee performance in organization helps them to get the organization’s business strategy, they analyzed more than 60,000 responses to employee satisfaction survey, which was conducted by an international company that owns more than 200 operating companies. In their results, Galunic and Hermreck (2012) anticipated that, high level employees, or employees that performed effectively helped their companies to achieve success when their strategy is used.
Schroeder-Saulnier (2012) provides that, company employees are an essential asset, and it needs to be aggressively managed. In this study, Schroeder-Saulnier (2012) compares employee to an organizational asset that need fine tuning just like any other asset owned by an organization. Schroeder-Saulnier (2012) argument is that, without performing employees, everything else will fail. In their literature review, Li, Gaohui and Eppler (2008) concluded that, since the last twenty-four years, there have been nine critical factors for strategy implementation. Out of these factors, employee performance is considered one of the most essential factors that companies need to consider when implementing their strategy.
In his study Caliskan(2010, p.110) came up with the assumption that, underpinning human resource practices help organizations to increase the performance of their employees. In this study, Caliskan (2010, p.110) provides that the relationship between human resource and employee performance is essential and can be used to determine the performance of the company’s business strategy. While the performance of other stakeholders is also essential, the main strategic goal of any business is achieved when employee performance is achieved.
Considering these studies, it is essential to note that both secondary and primary data has featured. To achieve proper results, most researchers have implemented various assumptions and used data from a number of companies. Also, since there are no new research methods, the proposed research aims at using the same methods that have been employed by other researcher.
2.1 Contributions
When we read the performance reviews produced by most companies, we are convinced that majority of organisations are doing well. In one business, Koning (2004) observed that 95% of all employees exceeded the expectations of their managers. In another organisation, Koning (2004) observed that, most employees with few exceptions received end year bonuses. However, and as Koning (2004) provides, these organisations are performing poorly in their markets. Their market shares have declined; service quality deteriorated, and is running on a high budget.
Unfortunately, these scenarios cannot be exceptional. With most performance management systems coming with significant flaws and fail to deliver it are essential to point out where most problems are. The main reason for conducting this research is to evaluate companies’ success, and how this success is influenced by employee performance. Engaging employees in the company’s business strategy is one way to improve their performance level. This research evaluates the possibility of this outcome. This project is expected to evaluate four companies; two high performing ones and two least performing ones, and evaluate the employee performance of these companies. For the companies with a higher performance rate, this research is expected to evaluate the techniques they use to improve the performance of their employees.
3.0 RESEARCH METHODOLOGY
The use of statistics and drawing conclusions from them has been used in various fields. However, while research methods have been used for years, their validity is essential. Therefore, one’s choice of a research method need to ascertain that validity is included as the key concept. To gather required information, the proposed study will include several concepts in its research methodology. These include the following.
3.1 Use of both qualitative and quantitative research methods
Statistics provide essential information, and has been employed since the beginning of research studies. However, when considering employee performance and its impact of organization’s business strategy, statistics alone is inadequate. It is essential involve qualitative methods, which uses less statistical data and more opinion-based information. It is important to acquire the meaning, describe and understand experiences, ideas and values of a company from an employee’s perspective. To acquire this information, the proposed research will use interviews, which will be directed towards managerial personnel and supervisors in selected companies.
Interviews have been used in many quantitative researches. According to research, this method is widely used because of its ethnography, which involves in-depth data gathering and other factors that undoubtedly contribute to widespread use of interviews in research (Interview in Qualitative Research, n.d., p.312). The aim of this research is implement focus groups or group interviewing, which will enable the interviewer to gain information from high level employees from selected companies. To gather quantitative information, the proposed research will employ questionnaires.
This study intends to gather information from more than 300 employees, which cannot be accomplished by interviews. According to Adejimi, Oyediran and Ogunsanmi (2010, p.49), questionnaire as a data collection tool has gained popularity in both scientific research and other research projects. Because of its ability to gather a large amount of information in a flexible and efficient way, the proposed research aims at making it its main quantitative research method. However, this method will be used to collect information from lower level employees from selected companies.
3.2 Sample
Four selected companies from top industries; two highly performing companies in the market and two companies with low performance in the market will be used as the sample. While acquiring information from a single company will provide results that can prove the validity of the research hypothesis, more than one company provides valid information. The two industries used in the proposed research are mobile phone industry and automobile industry. By the year 2018, the mobile phone industry has predicted a possible 4 billion subscribers (Agence France Presse, 2013). While this growth is expected to occur due to the nature and status of the current mobile phone industry, employee performance is expected to ensure that the strategy used by mobile phone companies is well implemented to achieve this growth.
However, while this comes as good news, researchers have also argued that the mobile phone market is still slow (Scott, 2012). Despite its continuing boom in smartphone sales, it is true to point out that some mobile phone companies are yet to get their strategy. For this study, Apple, which is known for its iPhones will feature as the highly performing company while Nokia, which was once the mobile phone leader is considered as the worst performing company in the US (Wood, 2011). Even with its new Lumia phones, Nokia has not been able to crack the US market (Goldman, 2010). Some of the reasons to this are embedded in its employee performance.
Regarding the automobile industry, BMW will be used as the top performing company in the automobile industry while Cadillac will feature as the worst performing company in the automobile industry. Despite its popularity in the US, Cadillac has failed to introduce its products in other parts of the world especially Europe (Daily Mail, 2013). At the same time, BWM has managed to sell its products in the US successfully (Campbell, 2012).
3.3 Research Timetable
The schedule for the proposed project is shown in table 1.
Non-working days constitutes both weekends and holidays. Also, note that, some activities are overlapping, which is because of their insignificance to the project. Data collection and disseminations takes longer time to incorporate validity and accuracy of information.
4.0 EXPECTED CONCLUSION
Based on assumptions and results produced from the proposed research, it is essential to conclude that the success of a company’s business strategy is highly influenced by employee performance. Negative performance will hinder a company’s performance preventing its strategy from achieving success.
5.0 REFERENCES
Agence France-Presse, 2013. Mobile phone industry predicts 4 billion subscribers by 2018. [Online] Available at: http://www.rawstory.com/rs/2013/02/25/mobile-phone-industry-predicts-4-billion-subscribers-by-2018/[Accessed 17 7 2013].
Adejimi, A., Oyediran, O. S., and Ogunsanmi, E. B., 2010. Employing Qualitatively Enriched Semi Structured Questionnaire in Evaluating ICT Impact on Nigerian ‘Construction Chain Integration’. The Built & Human Environment Review, 3(1), pp. 49 - 62.
Anon., n.d.. INTERVIEWING IN QUALITATIVE RESEARCH, s.l.: ISBN.
ÇALIŞKAN, E. N., 2010. THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE. Journal of Naval Science and Engineering , 6(2), pp. 100-116.
Campbell, M., 2012. Forbes Global 2000 survey reveals the highest ranking car makers among the top 2000 companies in the world.. [Online] Available at: http://news.drive.com.au/drive/motor-news/rankings-worlds-biggest-car-companies-20120420-1xc14.html[Accessed 17 7 2013].
CHENEY, P., 2010. The 12 worst cars ever built. [Online] Available at: http://www.theglobeandmail.com/globe-drive/car-life/the-12-worst-cars-ever-built/article4392663/?page=all[Accessed 17 7 2013].
DAILY MAIL REPORTER, 2013. Revealed: These five famous flops are the worst-selling cars to ever hit American roads. [Online] Available at: http://www.dailymail.co.uk/news/article-2307507/Revealed-These-famous-flops-worst-selling-cars-made.html[Accessed 17 7 2013].
Dawson, C., 2011. Practical Research Methods, New Delhi: UBS .
Galunic C & Hermreck I, 2012. How to Help Employees "Get" Strategy. [Online] Available at: http://hbr.org/2012/12/how-to-help-employees-get-strategy/ar/1[Accessed 17 7 2013].
Goldman, D., 2010. Why Nokia can't crack the U.S. market. [Online] Available at: http://money.cnn.com/2010/09/16/technology/nokia/index.htm[Accessed 17 7 2013].
Heathfield, S. M., 2011. Create a Work Environment That Encourages Employee Engagement. [Online] Available at: http://humanresources.about.com/od/Employee-Engagement/qt/Employee-Engagement.htm[Accessed 17 7 2013].
Li Y, Guohui S & Eppler M, 2008. Making Strategy Work: A Literature Review on the Factors influencing Strategy Implementation, Lugano: ICA Working Paper .
Marchant, T., 2011. STRATEGIES FOR IMPROVING INDIVIDUAL PERFORMANCE AND JOB SATISFACTION AT MEADOWVALE HEALTH. Journal of Management Practice, 2(3), pp. 63-70 .
Parafloo, K., n.d.. Questionnaires: Use, value and limitations, s.l.: ISBN.
Schroeder-Saulnier, D., 2011. Organizational Effectiveness: Five Steps to Navigating Workforce Strategy, s.l.: RIGHT VIEWPOINT.
Scott, J., 2012. Mobile phone market growth slows. [Online] Available at: http://www.computerweekly.com/news/2240173807/Mobile-phone-market-growth-slows[Accessed 17 7 2013].
Valenzuela, D., 2011. Interview as a Method for view as a Method for Interview as a Method for , s.l.: ISBN.
Wood, N., 2011. Nokia's US performance a 'pattern of disappointments' – CEO. [Online] Available at: http://www.totaltele.com/view.aspx?ID=461890[Accessed 17 7 2013].
