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The Man Who Sold the Web Blog | Tag Archive | Organizational Culture


Tag Archives: Organizational Culture

Employee Onboarding: How to Get Off to the Right Start

21 Nov

The single most pressing challenge for an organization in this knowledge economy is attracting and retaining talented people.  This can be a make or break challenge for the organization and warrants careful consideration during Strategic Planning.

Starting on the right foot is absolutely essential to overcoming this challenge.  Organizations, particularly HR, need to have an Organizational Culture that boasts of an effective Employee Onboarding process.  In order to accomplish this, present-day HR needs to be clear regarding the challenges of modern-day Onboarding and develop a strategy to establish an onboarding process that yields a rewarding experience for the employees.

At many organizations the Employee Onboarding process follows a customary theme—a run down on “how things are done here”—with the traditional HR view that if the employee can be made to commit to the Organizational Culture from the get-go, they are easier to retain.

Such an Onboarding process does not help the new employee adjust to the company or the role, become an Engaged Employee, and meet the expectations of the organization.  Experts have identified various challenges with this conventional Onboarding approach.  Here is a list of 8 most frequent challenges:

  1. Poor Socialization of Organizational Values
  2. Lack of Role Clarity
  3. Challenges with Expectations and Results
  4. Managing Change
  5. Issues with Time Management
  6. Issues with the Manager
  7. Navigating the Culture
  8. Handling Personal Transition and Relocation

By addressing these challenges appropriately, organizations can establish a rewarding Employee Onboarding experience that results in Employee Retention, quality output in the short-term, and enhanced productivity in the longer run.

Let us delve a little deeper into the challenges.

1. Poor Socialization of Organizational Values

It is presumed that Organizational Values are a thing to be imparted and accepted by the new employee.  This is, indeed, essential knowledge, but it is not sacrosanct.  Studies suggest acceptance of organizational values in contravention of one’s own identity may be counter-productive in that it may exhaust the employee psychologically, restrict full engagement, hinder creativity, and create work dissatisfaction.  This can be overcome by allowing employee to express their unique perspective on the job from the beginning and welcoming them to incorporate what they do best in their work.

2. Lack of Role Clarity

Lack of clear understanding of one’s role is a widespread problem in organizations.  After spending some time in the new organization, the employee realizes that the expectation of the role is conflicting with what the employee thought he/she accepted.  Encouraging the new employee to identify the gaps in the expectation / perception and discussing it with their managers enables the employees to have a clear perspective and understanding of their roles and responsibilities, enhances employee satisfaction levels, and improves their efficiency and productivity.

3. Challenges with Expectations and Results

New employees are often unable to realize their workload.  In order to meet the perceived expectation of managers or peers, they take on too much of work resulting in overload, which diminishes their performance.  Informal discussions of new employees with managers and peers regarding their expectations eases the pressure and enables them to take on what is manageable and deliver quality results.

Interested in learning more about various aspects of Employee Onboarding, guiding principles, challenges, and approaches?  You can download an editable PowerPoint on Employee Onboarding here on the Flevy documents marketplace.

Are you a Management Consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

Transforming Employee Engagement into a Competitive Advantage? Here’s How

22 Oct

Organizations typically focus on Customer-centric Design in their Strategic Planning and overlook the critical driver of PerformanceGrowth, and Operational Excellence—their employees.  With cut-throat competition now the norm the realization has become clearer that employees are:

  • The face of the business and create lasting—or perishing—brand impression.
  • Sources of innovation and organizational knowledge.
  • Representation of the company’s service philosophy.
  • Expected to live by its Organizational Culture and values.

Employee Engagement has emerged as one of the significant pillars on which the Competitive Advantage, Productivity, and Growth of an organization rests.  What, exactly, does it mean when an employee is engaged?  Employee Engagement, over the years, has been thought of in terms of:

  • Personal engagement with the organization.
  • Focus on performance of assigned work.
  • Worker burnout.
  • Basic needs (meaningful work, safe workplace, abundant resources).
  • Attention on Cognitive, Emotional and Behavioral components related to an individual’s performance.

Although Employee Engagement is widely seen as an important concept, there has been little consensus on its definition or its components either in business or in the academic literature.

Kumar and Pansari’s 2015 study define Employee Engagement as:

“a multidimensional construct that comprises all of the different facets of the attitudes and behaviors of employees towards the organization”.

The multidimensional construct of Employee Engagement has been synthesized into the following 5 components (or dimensions).

  1. Employee Satisfaction
  2. Employee Identification
  3. Employee Commitment
  4. Employee Loyalty
  5. Employee Performance

The 5 dimensions of Employee Engagement have been found to have a direct correlation with high profitability, as substantiated by a number of research studies:

For instance, a study of 30 companies in the airline, telecom and hotel industries shows a close relationship between Employee Engagement and growth in profits.  After controlling other relevant factors—i.e., GDP level, marketing costs, nature of business, and type of goods, the study found:

  • Highest profitability growth—10% to 15%—in companies with highly engaged employees.
  • Lowest level of profitability growth—0% to 1%—in companies with disengaged employees.

Research reveals that Employee Engagement affects 9 performance outcomes; including Customer Ratings, Profitability, Productivity, Safety Incidents, Shrinkage (theft), Absenteeism, Patient Safety Incidents, Quality (Defects), and Turnover.

The differences in performance between engaged and actively disengaged work units revealed:

  • Top half Employee Engagement scores nearly doubled the odds of success compared with those in the bottom half.
  • Companies with engaged workforces have higher earnings per share (EPS).

These 5 dimensions become the base for measuring Employee Engagement in a meaningful manner that permits managers to identify areas of improvement.  To assess an organization’s current status of Employee Engagement, a measurement system is needed that includes:

  • Metrics for each component of Employee Engagement.
  • A scale for scoring metrics in each component.
  • A comprehensive scorecard that pulls everything together.

Let us delve a little deeper into the first 2 dimensions of Employee Engagement.

Employee Satisfaction

Definition

Employee Satisfaction is the positive reaction employees have to their overall job circumstances, including their supervisors, pay and coworkers.

Details

When employees are satisfied, they tend to be:

  • Committed to their work.
  • Less absent and more productive in terms of quality of goods and services.
  • Connected with the organization’s values and goals.
  • Perceptive about being a part of the organization.

Metrics

The 5 metrics that gauge Employee Engagement in terms of Employee Satisfaction include:

  1. Receiving recognition for a job.
  2. Feeling close to people at work.
  3. Feeling good about working at the organization.
  4. Feeling secure about the job.
  5. Believing that the management is concerned about employees.

We take a look at another dimension central in significance.

Employee Commitment

Definition

Signifies what motivates the employees to do more than what’s in their job descriptions.

Details

Employee Commitment is much higher for the employees who identify with the organization.  This element:

  • Develops over time and is an outcome of shared experiences.
  • Is often an antecedent of loyalty.
  • Induces employees to guard the organization’s secrets.
  • Pushes employees to work for organization’s best interests.

Research has found that employees with the highest levels of commitment:

  • Perform 20% better.
  • Are 87% less likely to leave the organization.

Metrics

The 3 metrics that gauge the Employee Commitment dimension of Employee Engagement include:

  1. Commitment to deliver the brand promise along with knowledge of the brand.
  2. Very committed to delivering the brand promise.
  3. Feels like the organization has a great deal of personal meaning.

Interested in learning more about these foundational pillars to Employee Engagement? You can download an editable PowerPoint on 5 Dimensions of Employee Engagement here on the Flevy documents marketplace.

Are you a Management Consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

The Devil is in the Details: Your Primer to a Lean Culture

3 Jul

Culture is essential today in helping employees and management survive in today’s environment. Survival has become a strong word today. Without culture, everyone in the organization would act or behave differently. No one would be able to anticipate someone else’s behavior, and no one would understand why people behave the way they do. When this happens, the organization’s performance would be very chaotic.

What is culture? Organizational Culture is a learned process and is developed by the organization as a response to the working environment established by the organization’s leadership and management team. It is established in all organizations, regardless of whether its development is guided or unguided. Either way, culture can have a positive or negative impact on the organization’s performance.

A Take Away at Corporate Culture and a Lean Culture

Corporate culture is a set of standards shared by members of an organization. It produces behavior that falls within a range that the organization considers proper and acceptable. Having the right culture will increase the organization’s chance to survive.

What is a Lean Culture? Lean Culture is a total system and represents a complete and comprehensive culture change in the organization. A Lean Culture enables lean implementation and represents a completely new way of managing the organization through Lean Management.

The development of a Lean Culture starts with a Lean Culture Framework.

The Lean Culture Framework

The development of a Lean Culture starts with a definition of a Continuous Improvement Lean Culture. As a starting point, the Lean Culture Framework consists of 5 essential elements.

  1. Definition. This element ensures that the organization gets to properly define what Continuous Improvement Lean Culture really means for the entire organization. When this is undertaken, improvement becomes a part of the organization’s culture.
  2. Translation and Integration. The second element ensures that culture is well translated and integrated into values and related behaviors. It is important for organizations to understand that strong values can guide the behaviors of people.
  3.  Strategic Applications. This basically refers to the strategic application of cultural elements. If problem-solving is one of the cultural elements, the strategic plan of the organization can take a problem-solving approach to achieve key targets.
  4. Diligent Development. This element focuses on the diligent development of a comprehensive culture. This ensures the alignment of programs with a long-term problem-solving culture of improvement of the organization and eliminates conflicting messages.
  5. Reinforcement. The fifth element ensures that reinforcement is undertaken with regular recognition. When this is done, the organization can expect to gain more improvements.

The five (5) elements of the Lean Culture Framework must be properly structured to ensure its effective implementation. In today’s business environment where Competitive Advantage and Operational Excellence is gaining ground towards sustainability, organizations just need to learn how to operate smartly and effectively. This can be done when a Lean Culture Framework is established and implemented.

The Devil is in The Details: The Implementation

Culture change typically is not greeted with open arms. To be successful, a Lean Culture change initiative must have a few DO-NOT-PASS-GO items. A few of these are leadership involvement and engagement, cultural dynamics, and education. Implementation of a Lean Culture Framework may seem easy but it is not. It requires care, patience, a bottomless energy source, and an iron will to succeed. It can be of advantage if organizations are well guided in undertaking a culture change. A well developed and thought-of plan can highly help organizations go through culture change with just a few bumps along the way.

Interested in gaining more understanding of Lean Culture? You can learn more and download an editable PowerPoint about Lean Culture here on the Flevy documents marketplace.

Are you a management consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

Thinking of Undertaking an M&A? Here Are the 3 Critical Pre-merger Considerations

18 Oct

Takeovers can turnaround companies in a short period of time, but there is a significant degree of risk to be anticipated and mitigated prior to undertaking such transactions.

Lack of careful deliberation of the potential risks, insufficient planning, weak execution, and lack of focus on Post-merger Integration are the major reasons why many Merger & Acquisition deals fail to achieve their desired goals.

The course of an M&A transaction has to be set at an early stage, way before the actual deal closure. The period prior to the deal approval by the regulatory authorities and while due diligence is being done is most critical, and should be utilized by the leadership to clearly define the goals of integration, the potential risks, and a layout for the execution of the actual integration process. It is the right time to perform a structured evaluation of 3 core pre-merger considerations associated with such deals, i.e.:

  1. Strategic Objectives
  2. Organization & Culture
  3. Takeover Approach
https://flevy.com/browse/flevypro/post-merger-integration-pmi-pre-merger-considerations-3941

Understanding these PMI Pre-merger considerations helps the stakeholders ascertain the unique challenges and constraints related to M&A transactions and make informed decisions. These considerations assist in developing a systematic approach to undertaking a Post-merger Integration (PMI) — which is devoid of any “gut decisions,” and ensures realization of synergies and value. These considerations set the direction and pace of the post-merger integration process.

Now, let’s discuss the 3 core considerations in detail.

Strategic Objectives

Organizations undertake Mergers and Acquisitions as a way to accelerate their growth rather than growing organically. The foremost core consideration associated with an M&A transaction is the strategic objectives that the organizational leadership wants to achieve out of it.

M&A deals take place to fulfill one or more of these 5 strategic objectives:

  • Reinforcement of a segment
  • Extension in new geographies
  • Expansion of product range
  • Acquisition of new capabilities
  • Venturing into a new domain

The PMI approach needs to be tailored in accordance with the desired strategic objectives of the deal.

Organization & Culture

The senior management should be mindful of the significance of organizational and cultural differences in the two organizations that often become barriers to M&A deals. Small companies, typically, have an entrepreneurial outlook and culture where there aren’t any formal structure and the owner controls (and relays) all the information and decision making. Whereas, large corporations typically have formal structures and well-defined procedures.

A takeover of a small firm by a large entity is bound to stir criticism and disagreement. M&A process often faces long delays between the offer, deal signing, and closing — due to antitrust reviews or management’s indecisiveness — triggering suspicion among people. This should be mitigated during the PMI process by orienting the people of the small firm with the new culture and giving them time to transition effectively.

For M&A deals to be effective, leadership needs to carefully evaluate the behavioral elements of the organizational culture and contemplate the overriding principles guiding a company.

Takeover Approach

Integrating the operations of two companies proves to be a much more difficult task in practice than it seems theoretically. Organizations have the option of selecting the takeover approach most suitable for them from the following 4 methodologies — based on their organizational structures, people, management, processes, and culture:

  1. Direct Hit
  2. Hiatus
  3. Deferred Decisions
  4. Quick and Unsympathetic Disposal

Interesting in learning more about the takeover approach and the pre-merger considerations in detail? You can download an editable PowerPoint on Post-merger Integration: Pre-merger Considerations here on the Flevy documents marketplace.

Are you a Management Consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.


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