Literature Review on Using Compliance Gaining to Motivate Employees - Literature Essay Example

Introduction

Studies show that effectiveness of any organization is determined by the way the organization is structured and the way employees in the organization relate with each other in the workplace, how they cooperate with the management of the organization and the community as a whole - Literature Review on Using Compliance Gaining to Motivate Employees introduction. Certainly the level of their dedication to their organization depends on the communication styles and strategies of the organization. In the current modern world, industrialization, and technological advancement have created a highly competitive global business environment that calls for close working relations between the management and the employees to achieve the organization’s objectives and goals. Though, they are different theories and models which try to outline how the management can enhance the productivity of employees, compliance gaining concept has also been formulated to underscore motivation of employees.

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Problem Statement

There is an indelible imprint left upon organizations due to compliance gaining which is occurring presently in the business world. Compliance-gaining theory posits that, that leaders can effectively make use of informal communication strategies to motivate their employees. For example, (Daniels & Spiker, 1991) states that, supervisors who encourage employees with positive feedback are most likely to achieve task compliance and subordinate satisfaction. This research proposes to study how managers use compliance-gaining to motivate employees. Organizations all over the world are currently in an unprecedented period of transformation which is driven by different forces that ranges from globalization and human outsourcing to technology advances and an aging workforce. Thus, with no question, compliance-gaining is the latest business norm.

Thesis statement

            The purpose of this research study is to gain factual information from both business managers and the employee to examine how and to what extent the implementation of compliance gaining has on organizations; desire to drive the vehicle of organization excellence, and their self efficacy. To address this subject, the paper will proceed by taking a literature review on the subject and relate it to the current discussion.

Literature review

A lot of studies have been carried out to determine the impact of compliance gaining on employees and on organizations as a whole, for example Brohman, (2000) States that effectiveness of any organization is determined by the way the organization is structured and the way employees in the organization relate with each other in the workplace, how they cooperate with the management of the organization. The management also has to consult and involve the employees and have open communication channels to ensure that information follows effectively. These studies provide a good foundation to carry out the current research. Instead of repeating the details of the previous work we can focus on describing some of the major studies within the research.

Organizations have formulated programs for corporate compliance in an attempt to comply with expert recommendations, reduce dangers associated with wrongful conduct, and also probably as a reduction measure of fines and lawsuits that can result from an organization being sued. In order to make the compliance programs work effectively, Caldwell (2003); Palmer and Akin (2006) suggests that officers concerned with corporate compliance, other executives and the board needs to ensure that compliance programs of an organization has got enough infrastructure, resources and supervision. He further adds that an effectual training and education system as well as an efficient system of receiving reports regarding compliance problems needs to be place. In addition a continuous assessment and monitoring system has to be included in the compliance program to ensure that it succeeds.

It has been pointed out by Caldwell (2003) that there three main motives for a company to start compliance system, this are;

To avoid noncompliant incidences for taking place
To make sure that an organization is able to find out what non-compliance entails
To limit the adverse effects of outside enquiry regarding non-compliant events
Palmer and Akin  (2006) observes that, when an organization is formulating compliance programs, it basis on several elements, among these elements are:

·              To establish standards and methods for compliance

·              Lapse by top-level management

·              Effective communication for employees of the organization

·              Realistic procedures to attain compliance, encompassing monitoring programs

To echo the way of compliance, it has been noted that compliance activities in an organization should be geared towards driving a behavioral change among employees to reflect the organization’s objectives, practices and cost reductions. If this is taken into account, then it empowers the employees and improves their potential. However, as Worren and Moore (1999) clearly observes, there is no final checklist which can be used b all organizations to make sure that compliance program is effective. Eventually, the effectiveness of a compliance program will depend on organization. Nonetheless, any organization must be prepared to show how its program for compliance will meet its stated objectives, particularly in the areas of resources, oversight, infrastructure, training and education and monitoring.

In a survey carried out by Dopson and Stewart (1990), 95 managers from both private and public organizations, concerning organizational change revealed that 60% of the managers did agree that employees were much more pessimistic to change when organizations were carrying out changes which were not related to the outcomes of those organizations.

To further explore this point Worren and Moore (1999) outlines four involvement strategies, which are commanding, teaching, socializing and engineering. According to him, commanding involvement strategy entails a small group of employees in an organization, and the change agents employ threats in order to raise employees’ performance. However, in engineering involvement, the management presumes that, employees are normally motivated by their own interests and they do not need to be coerced in order to improve their performance.   On the other hand, teaching involvement entails a process where by the employees are called upon to partake in being re-educated in new changes by the management. Lastly, socializing involvement takes a viewpoint of improving the social relationships between the employees and the organization in order to accomplish the objectives of the organizations. The management uses gets involved in an individual’s emotional concerns as part of improving the productivity of an employee.

Koontz, and Weihrich, (1990) outlines how human relation theory of management to improve motivate employees. The starting point of behavioralism was the human relations movement which was an outcome of the Hawthorne Works Experiment. The key scholar inhuman relation is Elton Mayo.  Elton Mayo and his associates’ experiments challenged Taylor’s main beliefs that science dictated that the maximum productivity was established in ‘one best method’ and that method could be gotten by a controlled experiment. The experiments carried out by Mayo and company confirmed five things.

First, job satisfaction and thus performance is principally not economic – depends a lot on the working conditions and also attitudes – positive management, communications, working environment. Second, it refuted Taylorism and it stressed on employee self-wellbeing and the declared over-riding motivation of monetary incentives. Third, large-size experiments showed exceedingly positive responses to, for instance, enhancements in working environments and expressions of encouragement against to coercion from supervisors and managers. Fourth, peer group influence is very high – thus, the significance of informal teams in the workplace. Lastly, it denounced “rabble hypotheses” that a society is a mass of unorganized individuals who act in a way gauged to secure their self-protection or self-interest. The results demonstrated that the team dynamics and the social constitute of an organization are an extremely significant force either against or for higher productivity. This conclusion led for a call for bigger involvement for the employees, higher trust and also openness in the organization working environment, and better attention to groups and teams in a work place. (Koontz, and Weihrich, 1990)

Koontz and Weihrich (1990); Hill and Jones (2001) have stated that, Workers need to be compensated for their performance in order to encourage them to keep up or improve on that performance. The moment the human resource establishes the performance of the worker, managers should reward to commensurate with the worker’s achievement. These will ensure maximum production and effectiveness of the worker; current compensation programs should include a mix of basic pay, equities and variable pay (Armstrong, 2006). The management should know that, the most important asset for any organization is its human resource which requires extensive investment, commitment, financial benefits among others to be highly motivated and also committed to the company (Armstrong, 2006). This will ensure that any compliance gaining programs undertaken motivates the workers.

Employees need to be motivated in order for the organization to get the best out of them. An employee who is well motivated will easily stay in the organization and be more productive. For this to occur the managers have to attend to the financial and psychological needs of the workers by rewarding them well.

Human capital need to be motivated in order for the company to get the best out of them. An employee who is well motivated will easily stay in the organization and be more productive. For this to occur management have to attend to the financial and psychological needs of the workers by rewarding them well. Basic financial remunerations and working conditions are normally stated by the government or workers union. But, the management of the organization needs to come up with good employment policies that are desirable to the employees. It is important that the workers when paid accept their pay package as “fair and just” in order for them to be motivated.

The workforce today is much more educated and specialized in their field, thus, employees are becoming more concerned with job satisfaction, participation, involvement and other factors besides financial benefits. Therefore, the manager has to come up with strategies which will inspire the workers so that they give their best. To this end the managers will have to perform the following aspects;

Developing a motivational environment includes: acting as a proper role model, involve employees in decision making and problem solving and use effective communication.
Try to present employees with the entire picture of the assignment.
Create time to listen to employees.
Grant opportunities for employee comments, suggestions and innovations.
Enhance employee’s career development and advancement
Keep employees informed of issues which affect their jobs.
Encourage a range of diverse opinions in a positive approach. (Doyle, et al. (2000)

Doyle, et al. (2000) clearly points out that, though, the technicalities involved in payment may be a real concern to other department of the organization, and the results will be a big concern to the human resource management. It is vital therefore that, the management comes up with strategies that will ensure that the employee payments are not affected in any way. (Legge, 2004)

Workers need to be compensated for their performance in order to encourage them to keep up or improve on that performance. The moment the management establishes the performance of the worker, managers should reward to commensurate with the worker’s achievement. These will ensure maximum production and effectiveness of the worker; current compensation programs should include a mix of basic pay, equities and variable pay. (Legge, pp 123-127)

Gowler & Legge (1983); Murray & DiCroce (2003) points out that, Worker compensation only does not guarantee maximum performance of an employee. Another primary aspect is for employees to view their jobs having similar interests with their career course, so that the workers can be able to fill any competency gaps or experience gaps. Murray & DiCroce (2003) adds that the management has to develop a top-to- down succession program so that key position can be filled by employees in the organization who are qualified for positions arising.  When employees know that the organization have their career development at heart, they will be more comfortable working in the organization so to achieve their career development. At the same time the organization will not lose its experienced work off to rival organizations. The experienced workforce can come up with innovative products or ideas which can be used by the organization to improve its products or service delivery. (Gowler & Legge, 1983)

Performance management

Dainty (pp 43-46) suggests that, it is important that the management have a way of tracking employee performance based on objective of the organization and evaluate development of the employee competencies and skills. The old way which was paper based has been proven to be ineffective cumbersome and time consuming. The management need to replace these manual ways with complete automated performance management system allows the managers to easily connect organization objectives to individual objectives, giving the human managers a complete outlook of how effective the staffs are.  Management can then analyze the whole staff in order to spot concerns across the organization hierarchy. (Doyle, et al, 2000)

Tracking the employee production will enable the management to know where and which areas need improvement, those employees who does not perform to the levels of set standards can be told to improve on their abilities or given duties which they can perform best. Since the aim of any organization is to maximize profits and reduce costs, tracking the employees production will also enable the organization to cut cost of production by for example, lying off those employees who are not producing. Ultimately these measures will add value to the organization in terms of cost effectiveness. (Doyle, et al, 2000)

The employee recognition, which is basically an instrument that strengthens and compensates the most significant production that the employees have created for the organization is regarded as another improving organizational climate. Studies show that management system that takes a technical approach does not effectively recognize the efforts of an employee. However for effective social atmosphere in an organization the management should have an employee recognition structure that is made simple, instant, and effectively supportive to the employees and the organization at large. Under this, the management team can ensure that a principle for performance is established, involving the rewardable behavior of the employees, thus all of them should be entitled to the recognition by the hospital. This recognition structure should normally supply the employees with specific information about the behavior they are being rewarded for. Social aspect in an organization can not be enhanced when the employees feel neglected on their performance. The aspect of where the management is taken as a technical aspect fails to enhance the social aspect in the organization. (Legge, 2004)

Studies done by Beardwell and Holden, (1997) regarding employees motivations indicates that, employees becomes more motivated if their companies complies with the existing recruitment policies of the company. Recruitment being very critical in organization, appraising and selecting right employees for available jobs entails the capability to evaluate the skills and competency requirements needed by the job position and comparing them with the ones available on the labor market. (Beardwell and Holden, pp 92-97)

Beardwell and Holden (pp 92-97) states that, employee selection is important as it is a way in which a company ensures that it obtains the right human resource for specific job. Employee sourcing falls in the broader perspective of human resource. Employee sourcing is very important in organization. It consists of administration, performance and staffing. All these are interrelated activities that are carried out in an organization. Management and staffing activities help in ensuring that employees with right or desired skills are recruited. The employees have also to be in the right numbers desired by the organization. Employee sourcing aims at ensuring that employees are at the right place at the right time. Management in this case is concerned with ensuring that employees perform their best. Best recruitment processes insure that the organizations get the best staff that can improve and add value to the company. The human resource has to undertake the following recruitment strategies to ensure best selection.

Despite of the attempt which goes into formulating policies and practices, many organizations have made an observation that motivating their employees to pursue the regulations of their organizations is amongst the hardest undertakings of the management. According to Baker, et al (1994) the primary law of motivating employees is to acknowledge the fact that employees have a duty to behave in accordance to the organizations regulations, the employees can only be motivated and follow the organization’s regulations if the employees receive good and attractive incentives.

It has been observed that a number of organizations, restless in getting their employees to undertake organization’s objectives, proclaim inducements in terms of monetary incentives as an essential element of the program. However, studies have indicated that employees are more motivated by an organization undertaking compliance gaining programs. Improving safety of employees in the workplace and implementing some measures which are meant to improve the general working conditions of employees motivates the employees much more than other financial benefits.

 In their book Strategic Management, Hill and Jones (2001)  states that, personal relationship in a work place is crucial, it makes an employee feel valued and cared for, the manager will therefore have a duty of cultivating good interpersonal relations among himself and the employees. The manager is supposed not to have favorites but instead should look for fine points and have a concern in all employees. He should also maintain self-control; stay poised, particularly during stressful moments. The manager also needs to promote involvement of employees and make suggestions for improvement/alternatives. More so the supervisor should;

Watch what he says and how you say it: the content, tone, style and pace offer clues from which employees draw conclusions.
Be diplomatic: By not using or contributing in ethnic humor or cynicism. Maintain confidential information that way.
Sharpen his timing skills.
Good manager and employee interpersonal relationships lead to high morale of employee, improved productivity, and ease of management. This in turn leads to high returns to the organization. (Hill and Jones, 2001)

Pinker  (1997) makes an observation by saying that, in this an unprecedented period of transformation taking place in the business world, organizations are discovering that effective communication is vital both to make certain that employees of the organizations are engaged in times of compliance gaining program, and also to speed up  the program it self. Pinker (1997); Palmer and Akin, (2006)  points out that, the term “organization communication” is normally applied by organizations to mean the process that is used to facilitate the exchange of information and knowledge of the organization with its internal and external publics or individuals that have a direct relationship with the organization. Organization communication is usually used within the organization’s internal communication by the managements as share information with the employees’ investors, customers and the organization partners. Such sharing of information builds communication channels and enhances it. (Palmer and Akin, 2006)

According to Legge (2004) Communication is usually used within the organization’s internal communication by the managers to share information with the employees and customers. Such sharing of information builds communication channels and enhances it. The main goals of communication are; to be understood, comprehend others, support action, and be accepted. However Palmer and Akin, (2006) observes that, during communication some common barriers to efficient communication may occur, this are: differences in perceptions, close-ended process, jargon, prejudgments, stereotypes, actions versus words and emotions, the supervisor has a duty of ensuring the organization objectives are correctly communicated to the employees and in the same ensure that employees communicate their issues to the organization this will ensure effective understanding and smooth running of the organization. In addition the manager will have to handle rumors cautiously. Legge (2004) clearly states that, being forthcoming, sincere and truthful will ensure that both the employees and the management trust and willingly communicate to the managers.

In another research done earlier in relation to compliance gaining in an organization it was found out that those companies which effectively communicated with their employees had an 85% chance of succeeding. Palmer and Akin (2006) gives an example of IBM which had to make compliance gaining in order to remain competitive on the market IBM had to implement some business development changes in the organization.  In making changes in the business development section the most important aspect that IBM considered was quality. IBM identified particular new business development goal and then had to formulate a business plan that included the following ways of development; development in sales, development of new products, creation of new markets, structural and also processes development change for example e- business,  making new strategic partnerships together with development of distributions channels, and initiating international development.

Another thing IBM did looking for acquisitions of small companies. All this internal changes were geared towards recapturing the markets and increasing sales. However, Palmer and Akin (2006) clearly observes that this could not have been successful if IBM did not use effective communication to its employees so that the changes that were being undertaken by the company. According to Palmer and Akin (2006) effective communication should involve the employees since they are the people to carry out any changes hat the management.

In another study done by Murray & DiCroce (2003), on compliance gaining in relation to communication they found out that high-quality organization working atmosphere calls for a high level of efficiency in the communication. When communication is rightly used in an organization it motivates the employees and enhances the overall performance of the organization. Murray & DiCroce (2003), clearly states that good communication is vital for any organization. They add that, for the communication to be effective, proper management structure as to be in place. Good communication highly motivates employees and ensures that the organization objectives and goals are communicated to the employees.  On the other hand poor organizational structure in an organization leads to poor and ineffective communication which eventually may lead to poor performance at the work place. In order to ensure that communications channels remain effective and, the communication channels should be monitored and improved where necessary, especially when implementing changes. (Murray & DiCroce, 2003)

To Murray & DiCroce (2003), communication in an organization is defined by the organization culture and climate within an organization. Culture of an organization greatly impacts communication in the particularly organization. Effectual communication in an organization requires constant open discussions. It is important hat the management of organization develops a culture of having such discussion as the give opportunity to all employees in the organization to air their views. However, with big organizations with braches or divisions in other regions can hold branch meeting and organize for annual general meetings in which all employees can meet and discuss the new changes that the organization will have proposed. This the only way that one organization can pass on its intended compliance gaining program in an effective manner. Discussion helps the employees to feel as part of the change and valued, according to Murray & DiCroce (2003)

Legge (2004) points out that In order for any organization and its management to be effective in its work, the management should have prior knowledge in communication skills. One thing that the management of has to recognizes is that the workers are human, who have their own feelings and should be treated with humility. The channels of communication have to be well planned, implemented and also monitored. To improve on communication all managers in the hospital are encouraged  to  practice the following communication skills; Courteous speech, Direct communication, Feedback, Making time for employees, Listening and Repetition of values. These communication skills can really ensure that the objectives being undertaken by the organization are able to be understood by the employees and carried out in the way the organizations wants. However, Legge (2004) warns that breaking such communications aspects will derail any objectives that a company wants to achieve.

Listening is an important aspect of communication, without creating time to listen, it becomes hard to communicate and know where the problem is. This is one aspect in which the management of any organization has to undertake when its wants to cultivate good working relationship with its employees. For the organization to have efficient service delivery, the managers have to learn the communication skill of simply listening. The managers have to learn to listen to what the employees are saying. The management has to ensure that there are open forums with the employees. This is where the employees speak out on any issues affecting them to the managers. Employees always have so many issues that are affecting them. They can be matters concerning their profession or even their safety at work.

Baker, et al (1994) states that, when the management listens to such issues, they will always feel that the management is concerned and they care about them. This makes them to be very efficient when at work. Some employees have family issues that affect their working. Baker, et al (1994) warns that, unless the management listens and takes action, they may never address these issues. If they listen they can even provide guiding and counseling to the employees. There are sometimes some matters that need to be dealt with urgency. When the management is of good listener then the issues can be dealt with before they go overboard. Research shows that, communication is highly enhanced by listening. This usually has a positive effect on employees they well fell appreciated and valued and be eager to communicate issues (Campbell, et al 1970)

Importance of the study

From the above literature review it clearly emerges that there is no specific method that all organizations use when effecting compliance gaining. However for any organization to be effective in its business takings, it has to have structured compliance gaining program which will ensure that the employees of the organization are incorporated in the program. It is important that effective communication remains an important tool in communicating of the compliance gaining program, it is also apparent that the organization must involve the employees as they are the people who finally carry out any program that is proposed.

As Maund (2001) points out organization communication in an organization is very vital as a tool of passing out information and instructions to employees in any organization. Culture and climate created in organization greatly affects how any changes in an organization are communicated in that particularly organization. However it has been stated by a lot of studies that effective communication calls for regular open forums between the management and the employees to freely discuss issues concerning the organization. (Maund, 2001; Murray & DiCroce, 2003)

The management of organizations has to create time in which they can hold staff meetings to discuss compliance gaining program that have been proposed by the organization. The most effective meetings are the ones carried out when each one of the employees is present. Murray & DiCroce, (2003) However notes that with current big organizations that have branches and big departments. Meetings can be held in accordance to the departments or branches for them to be effective, as a very large gathering of employee do not provide sufficient time for any meaningful discussion. (Murray & DiCroce, 2003)

The study also indicates that employees or the human capital is the most important and expensive resource of an organization. Armstrong (2006); Brohman, (2000) observes that, highly successful organizations understands this vital differentiator and do take the required measures to get the most out of their human resource assets. These measures are done through providing motivation to the employees. It has been noted the today’s employees are highly skilled and requires much more than financial incentives to be motivated.

Conclusion

Management is very important in any business organization. Managers need to put in place control systems that will enhance efficiency in an organization. Compliance gaining is among the systems which the management can undertake to motivate its employees. Organizations formulate programs for corporate compliance in an attempt to comply with expert recommendations, reduce dangers associated with wrongful conduct, and also probably as a reduction measure of fines and lawsuits that can result from an organization being sued. In order to make the compliance programs work effectively,

Baker, et al (1994) suggests that officers concerned with corporate compliance, other executives and the board needs to ensure that compliance programs of an organization has got enough infrastructure, resources and supervision. Compliance gaining programs can be used to motivate employees in its organizations. However, though financial incentives motivate employees; today’s employees need more to be motivated than just receiving financial benefits, in terms of better working conditions to be more motivated.

Reference:

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