There are key issues and reason that lead to performance management issues. Every organization faces issues of performance management if there are no realistic and appropriate goals. This issue has the reason underlying, which is a lack of involvement in the management of a company. This issue and reason can be analyzed with the help of Locke’s Goal-Setting theory. This theory is based on five principles such as clarity, challenge, commitment, and feedback, and task complexity (Locke & Latham, 2015). This theory refers to the fact which is how goals and feedback can motivate employee’s results in Organizational development. In accordance with the theory, an organization should establish goals that can be measurable and clear. For example, the manufacturing time will be 12 minutes from 15 minutes by incorporating new technology. This gives a vivid knowledge to the employees about what is being expected from them. In accordance with McDavid, et al (2018), the goals should have their ground in the SMART principles which cover the understanding of tasks, measuring results, and lastly achieving success.
The theory of goal setting reflects on the fact that there should be an accurate balance for ensuring the right level of the challenge before setting challenging goals. Therefore, a company’s management should ensure that goals are neither too simple nor too difficult to achieve as it can make an adverse impact on the performance and motivation of employees. This issue leads to the challenges of employee retention which is a significant aspect of an organization’s performance. Lastly, management or leaders should analyze the needs of the workforce and collect all of the pertinent information based on the state of the organization. On the other hand, Morecroft (2015), Management of a company should take feedbacks from the workforce for determining if they are doing it right. Based on the feedbacks, management would check if they are heading towards the right path. Complex goals have the ability to influence morale, motivation, and productivity. Thus, while establishing a goal, adjusting complexity and level of difficulty is needed to be done. If the workforce gets enough time to accomplish the goals and enhance performance, it can help in making innovative approaches towards maintaining development.
Organizational Development Interventions Adaptation
Implementing change to enhance the performance of a company has to be one of the fundamental reasons for adopting Organizational Development Interventions. In accordance, companies are most likely to implement OD interventions if they have the reasons to address the needs for career development and increase accountability. On the contrary, the development of talents is a fundamental reason for implementing Interventions such as team building, intergroup relationships, etc. Implementing change stands out as the key reason for implementing Diagnostic Activity intervention. This can be analyzed by considering Lewin’s Force Field Theory of change which suggests there are two distinct types of forces that always oppose a company (Burnes&Bargal, 2017). Based on this, adapting a change along with controlling and effecting is essential to make changes in organizational structure and culture. Diagnostic Activity is an intervention that helps in establishing the current health of the organization. Buchanan & Huczynski (2019) argues the activity covers taking information from operation records, task activities, meeting with the subordinates, and lastly interview with the workforce. In accordance with the change theory, there are two types of forces such as driving and restricting. An organization can balance its performance if these forces are similar which can lead to level X of performance. But, change is necessary to cope with the changing market scenario due to enhanced Technology and changed demands of customers. For example, a company will thrive to enhance the driving factors of change to reach level Y of performance. Managers or leaders with the help of Diagnostic Activity intervention analyses the churned information and communicate the analysis and information to employees.
Managers of a firm design an action plan based on the information and feedback for improving the performance of a company. The action plans initiate the changes in a company which can be done by three steps such as unfreezing, movement, and refreeze. As per unfreezing, an organization takes the initiative to step out from the comfort zone and bring needed change to secure the performance. According to, Miskinis&Juozenaite (2015), there are a bunch of Marco- environment factors such as Tax Rate, Inflation, Exchange rate, Recession, etc. make a direct impact on business performance. Change management is a highly appreciated phenomenon that enhances the credibility of a firm to tackle changes in the macro-environment by making changes accordingly.
Figure3 : Lewin’s Force Field Theory of change Source: (Burnes&Bargal, 2017)As the change theory, transition process is difficult to maintain my managers or leaders. A firm’s management should give support to employees which helps in coping with change and enhance performance. Such support can be in form of training or coaching which keep the subordinates