http://annalsofrscb.ro 1107 IMPACT OF EMPLOYEES PERFORMANCE TO DETERMINE
ORGANISATIONAL EFFECTIVENESS IN AUTOMOBILE INDUSTRY Mr. K. Raja Subramaniyam1, Dr. C. Samudhra Rajakumar2
1Research Scholar, Annamalai University, Annamalainagar -608002
2Professor, Department of Business Administration, Annamalai University, Annamalainagar - 608002
ABSTRACT
Organizational effectiveness is the extent to which an organization realizes its goals (Daft, 2010). It can also be referred to as the degree of correspondence between the actual and desired outputs of an organization (Taylor et al., 2014). The present study has made an attempt to understand the impact of employees’ performance to determine the organisational effectiveness in automobile industry. This study is the nature of descriptive research design.
Major findings of the study are: Most of 265 employees out of 300 forming 88.33 percentage are completed diploma. Employees with diploma qualification are interested to work in automobile industry. They have some awareness about the recent industrial policies which help them most. Majority of 288 employees out of 300 comprising 96 percentage has experience between 10 years to 15 years. Organisational competitiveness has significant and positive impact to determine the employees’ performance by 0.82. followed by employees motivation has significant and positive impact to determine the organisational competitiveness by 0.75. Organisational environment has significant and positive impact to determine the organisational competitiveness by 0.75. Major suggestions are: Employees have disagreed that consistently tendency to address the problem. Hence, employees must be consistent to address the issues to promote their business organisations. It is highly required for employees must look in to the organisation and latest information has to be grasped to survive in the organisation. Solve the problem by giving practical solutions has significant and positive correlation with Know to operate computer. Hence, employees must try to increase the knowledge to use computer and internet to solve the issues. Need to understand the importance of using technology in their relative field to improve their business operations.
Hence, if these findings and suggestions are to be taken in right direction, will bring more effectiveness in the organisation.
Keywords: Employees’ performance, organisational effectiveness, organisational environment
http://annalsofrscb.ro 1108 1. INTRODUCTION
In today’s scenario organizations take a proactive measure to increase its effectiveness. Strategies for measuring the organisational effectiveness to improve employee commitment and enhance workforce support for key corporate initiatives. Organizations are working towards the incorporating various ways which improve the productivity of the organisation. But still the attrition rate is quite high. Every organization has almost similar retention policies and strategies but the influence of these retention factors differs from organization to organization. Thus, it is very crucial to understand and identify the most influencing retention factors according to the expectations of the employees.
Organizational effectiveness is the extent to which an organization realizes its goals (Daft, 2010). It can also be referred to as the degree of correspondence between the actual and desired outputs of an organization (Taylor et al., 2014). According to Daft (2010), effectiveness for organizations is a broad concept that reflects a range of organizational and departmental levels variables and evaluates the extent to which multiple goals, whether official or operative, are attained. Understanding and measuring overall organizational effectiveness is still a vague concept because no universal theory has been developed yet due to the organizations’ large, diverse and fragmented nature. In addition, organizational managers face a difficult time to evaluate effectiveness based on the criteria that are not subject to hard, quantitative measurement (Daft, 2010). Moreover, understanding effectiveness becomes more challenging while evaluating in the public sector organizations.
According to Amayah (2013), organizational goalsin public organizations are politically influenced, more difficult to measure and more conflicting than in private organizations.
Going simply over the performance indicators will never provide an accurate picture of the overall effectiveness because public and private sector organizations are fundamentally different (Pee & Kankanhalli, 2016). They serve different types of customers and these two sectors are structured differently (Parhizgari & Gilbert, 2004). Generally, the private sector seeks effectiveness on a short-term basis (annual profit), on the other hand, public sector organizations may receive the results of their investments over a longer period (Mihaiu et al., 2010).
2. STATEMENT OF THE PROBLEM
http://annalsofrscb.ro 1109 Employee performance basically depends on many factors like performance appraisal, employee motivation, employee satisfaction, compensation, training and development, job security, organizational structure, among others. This paper focused only on two basic factors: employee motivation and organizational structure since these two factors highly influence the performance of employees. Motivation is an important determinant of human behavior. It is the force that moves one towards a goal i.e. motivation behaviour = performance. Motivation is the psychological process that gives behavior purpose and direction (Kreiter, 1995). Burford, Bedian,& Lindner, (1995) see it to mean a predisposition to behave in a purposive manner to achieve specific and unmet needs. Hence the present study is made an attempt to measure the impact of employees performance for determining organisational effectiveness in automobile industry with reference to Tamilnadu.
3. OBJECTIVES OF THE STUDY
To know the profile of the employees in automobile industry
To measure the impact of employees’ performance towards organisational effectiveness in automobile sector
To evaluate the impact of employees’ performance for determining organisational effectiveness of automobile industry
4. NEED FOR THE STUDY
The performance of an organization is reflected in the actual organizational output when compared with the intended organizational outputs, goals, or objectives. DeGroote (2011) mentioned financial performance consists of sale, market share and profitability while operational performance consists of speed to market and customer satisfaction.
Organizational performance is the most important criterion in evaluating organizations, their actions, and environment. The classical approach to performance measurement, as described by the Sink and Tuttle (1989) model claims that the performance of an organizational is complex interrelationship between six performance criteria: effectiveness, efficiency, quality, productivity, innovation and profitability (Van Aartsengel and Kurtoglu, 2013). There are number of factors are determining the performance of the organisation among the performance of employees are key parameter for determining the performance of the organisation.
http://annalsofrscb.ro 1110 5. RESEARCH METHODOLOGY
This study is belongs to the descriptive research design. Researcher has conducted the study and posted the results without any manipulation to determine the organisational effectiveness in automobile industry with reference to Tamilnadu. Hence, this study is well fitted into the descriptive research design. Both primary and secondary data is used in this study.
Researcher has collected primary data using questionnaire and secondary data has been collected from the various sources like journals, magazines, newspapers and websites of the companies to collect and consolidate the literature. In total of 300 samples were collected from the employees who are working in automobile industries in Tamilnadu. This sample size has been finalised based on the sample standard deviation from the pilot study.
Researcher has applied convenient sampling to gather response quickly form the respondents.
6. DATA ANALYSIS AND DISCUSSIONS 6.1 Observations farthest from the centroid Observation
number
Mahalanobis
d-squared p1 p2
363 164.936 .000 .000
380 13.162 .000 .000
145 12.856 .000 .000
111 12.507 .000 .000
75 12.314 .000 .000
446 12.314 .000 .000
369 12.021 .000 .000
230 11.162 .000 .000
280 11.162 .000 .000
402 11.162 .000 .000
31 9.475 .000 .000
191 9.475 .000 .000
323 9.475 .000 .000
113 9.339 .000 .000
Observation number
Mahalanobis
d-squared p1 p2
91 9.290 .000 .000
240 9.207 .000 .000
333 9.207 .000 .000
412 9.207 .000 .000
35 9.087 .000 .000
284 9.087 .000 .000
327 9.087 .000 .000
146 9.061 .000 .000
9 8.833 .000 .000
169 8.833 .000 .000
208 8.833 .000 .000
258 8.833 .000 .000
301 8.833 .000 .000
136 8.636 .000 .000
http://annalsofrscb.ro 1111 Observation
number
Mahalanobis
d-squared p1 p2
161 8.307 .000 .000
200 8.307 .000 .000
250 8.307 .000 .000
293 8.307 .000 .000
63 8.244 .000 .000
351 8.244 .000 .000
434 8.244 .000 .000
95 8.153 .000 .000
195 7.868 .000 .000
234 7.868 .000 .000
406 7.868 .000 .000
176 7.843 .000 .000
215 7.843 .000 .000
265 7.843 .000 .000
375 7.805 .000 .000
163 7.482 .000 .000
252 7.482 .000 .000
41 7.434 .000 .000
1 7.394 .000 .000
134 7.200 .000 .000
80 7.195 .000 .000
368 7.188 .000 .000
45 7.155 .000 .000
244 7.155 .000 .000
289 7.155 .000 .000
337 7.155 .000 .000
416 7.155 .008 .006
27 6.778 .008 .013
Observation number
Mahalanobis
d-squared p1 p2
92 6.749 .009 .006
17 6.676 .009 .002
177 6.676 .009 .012
216 6.676 .009 .008
266 6.676 .009 .000
139 6.666 .009 .006
76 6.664 .010 .002
85 6.655 .010 .002
115 6.523 .010 .008
374 6.461 .010 .007
411 6.431 .010 .002
281 6.423 .010 .009
403 6.423 .010 .007
32 6.382 .010 .002
192 6.382 .010 .007
231 6.382 .012 .008
324 6.382 .012 .006
120 6.331 .012 .006
131 6.255 .012 .005
295 6.246 .012 .006
3 6.116 .012 .009
202 6.116 .012 .008
141 6.107 .012 .003
132 6.088 .012 .009
377 6.023 .019 .015
123 5.987 .019 .020
399 5.839 .019 .017
5 5.761 .019 .043
http://annalsofrscb.ro 1112 Observation
number
Mahalanobis
d-squared p1 p2
130 5.760 .019 .028
81 5.634 .022 .009
371 5.573 .022 .007
361 5.561 .022 .004
105 5.506 .022 .005
413 5.348 .022 .006
309 5.323 .022 .006
388 5.323 .011 .009
Observation number
Mahalanobis
d-squared p1 p2
26 5.293 .012 .003
89 5.264 .014 .070
25 5.215 .015 .006
133 5.134 .015 .000
364 4.960 .017 .007
82 4.946 .025 .004
28 4.920 .025 .007
165 4.909 .025 .009
Here,
O- Observation number M- Mahalanobis d-squared
AMOS presents two additional statistics, p1 and p2. The p1 column shows the probability of any observation exceeding the squared Mahalanobis distance of that observation. The p2 column shows the probability that the largest squared distance of any observation should exceed the Mahalanobis distance computed. A heuristic for determining which; observations may be outliers is given by Arbuckle (1997): "Small numbers in the p1 column are to be expected. Small numbers in the p2 column, on the other hand, indicate observations under the hypothesis of normality."
Hence, it is implied from the randomized observation processes implied that the significant value not high in the both the significant values 1 (P1) and Significant value 2 (P2). , so, the data is distributed normally for determining the effectiveness of organisation based on the performance of employees in automobile industries.
Mahalanobis d-squared value used to measure the distance of observation and these levels of distances compared with other observation to find out the significance of each significance. It is inferred from the above table, majority of the observations have significant association with each other to determine the factors for determining the effectiveness of organisation based on the performance of employees in automobile industry.
http://annalsofrscb.ro 1113 6.2 AMOS has graphically represents to determine the impact of employees performance to determine organisational effectiveness in automobile industry with reference to Tamilnadu
Analysis of Moment Structure (AMOS) graphically exhibits the relationship variables determining the impact of employees performance to determine organisational effectiveness in automobile industry with reference to Tamilnadu. Four major dimension are determining the impact of employees performance to determine organisational effectiveness in automobile industry with reference to Tamilnadu. These dimensions are employee motivation, organisational environment, organisational competitiveness and employee performance.
From the above path diagram, the single-headed arrow used to define the regression relationship between the variables as well as among the dimensions. Double headed arrow infers that the covariance between the variables.
Organisational competitiveness has significant and positive impact to determine the employees’ performance by 0.82. followed by employees motivation has significant and positive impact to determine the organisational competitiveness by 0.75. Organisational environment has significant and positive impact to determine the organisational competitiveness by 0.75.
http://annalsofrscb.ro 1114 6.3 Regression estimates for understanding the relationship between the determinants
Regression Estimates Estimate S.E. C.R. P
Organisational competitiveness
<--- Employee motivation .689 .134 5.141 .000
Organisational competitiveness
<--- Organisational environment
.721 .122 5.910 .000
Employees’ performance <--- Organisational competitiveness
.788 .129 6.109 .000
Regression weights exhibits the estimated relationship between the variables.
Organisational competitiveness has significant and positive impact to determine the employees’ performance by 0.788. followed by employees motivation has significant and positive impact to determine the organisational competitiveness by 0.689. Organisational environment has significant and positive impact to determine the organisational competitiveness by 0.721.
6.4 Standardized Regression Weights
Standard Regression estimates Estimate
Organisational competitiveness <--- Employee motivation .751 Organisational competitiveness <--- Organisational environment .748 Employees’ performance <--- Organisational competitiveness .819
Standardised estimates of Regression weights exhibits the estimated relationship between the variables. Organisational competitiveness has significant and positive impact to determine the employees’ performance by 0.82. followed by employees motivation has significant and positive impact to determine the organisational competitiveness by 0.75.
Organisational environment has significant and positive impact to determine the organisational competitiveness by 0.75.
6.5 Covariances
Covariances Estimate S.E. C.R. P
Employee motivation <--> Organisational Environment .556 .103 5.400 .001 Covariance explain the level of variance between two variables. It infers that how one variable has significantly influence or varying with other and at the same how the opposite
http://annalsofrscb.ro 1115 variable tend to change with the same variation. Employee motivation has highest covariance with organisational environment by 0.556.
6.5 Squared Multiple Correlations
Squared Multiple Correlations Estimate Organisational competitiveness .782 Employees’ performance .710
It is estimated that the predictors of Organisational competitiveness explain 78.2 percentage of its variance. In other words, the error variance of Organisational competitiveness is approximately 21.8 percentage of the variance of Organisational competitiveness itself.
It is estimated that the predictors of Employees’ performance explain 71 percentage of its variance. In other words, the error variance of Employees’ performance is approximately 29 percentage of the variance of Employees’ performance itself.
6.6 Model Fit Summary
6.6.1 Results of minimum discrepancy Model Number of distinct
parameters
Minimum discrepancy
DF P CMIN/DF
Default model 12 10.464 2 .005 5.232
Saturated model 14 .000 0
Independence model
8 25.609 6 .000 4.268
is the several distinct parameters being estimated. Two parameters that are required to be equal to each other count as a single parameter, not two. CMIN is the minimum value, C of the discrepancy. CMIN is a "p-value" for testing the hypothesis that the model fits perfectly in the population. P-value, which exhibits the value, is less than 0.05. Hence, the model fits perfectly to the population.
http://annalsofrscb.ro 1116 6.6.2 Baseline Comparisons
Model Normed
fit index Delta1
Relative fit index rho1
Incremental fit index Delta2
Tucker Lewis Index rho2
Comparative fit index
Default model .991 .826 .995 .895 .008
Saturated model
1.000 1.000 1.000
Independence model
.000 .000 .000 .000 .000
Normed fit index, Models with overall fit indices of less than.8 can usually be improved substantially. These indices and the general hierarchical comparisons described previously are best understood.
The typical range for rho and delta between zero and one, it is not limited to that range. Values close to 1 indicate a very good fit. The is identical to the relative non-centrality index, except that the is truncated to fall in the range from 0 to 1. Values close to 1 indicates a perfect fit. The normed fit index value is more than .90, which is good model. Relative fit index the rho1 value is 0.826. Hence it is inferred that it is a good fit. Incremental fit index the value of delta 2 is 0.995. Hence it is inferred that very good fit. Tucker Lewis Index the rho2 value is 0.895 is close to the high range. This infers that very good fit. The comparative fit index also closes the value of 0. This indicates the very best fit for the model.
6.6.3 Results of Root mean square error of approximation Model Root mean square
error of
approximation
The lower boundary of 90
per cent
confidence interval
The upper boundary of 90
per cent
confidence interval
Probability value
Default model .002 .005 .006 .015
Independence model
.003 .000 .001 .036
Value of the root means a square error of approximation of about .05 or fewer should indicate a close fit of the model about the degrees of freedom. It cannot be regarded as
http://annalsofrscb.ro 1117 infallible or correct, but it is more reasonable than the requirement of exact fit with the root mean square error of approximation = 0.2. Value of about 0.08 or fewer for the root means a square error of approximation would indicate a reasonable error of approximation and would not want to employ a model with a root mean square error of approximation greater than 0.0."
from the above table infers that the root mean square error of approximation value if fewer then.05. Which indicates the low-level approximation of error in this model, and it closely fits the model towards the degree of freedom. Probability value used to test the hypothesis with the model and degree of freedom.
7. FINDINGS OF THE STUDY
Most of 265 employees out of 300 forming 88.33 percentage are completed diploma.
Employees with diploma qualification are interested to work in automobile industry.
They have some awareness about the recent industrial policies which help them most.
Majority of 288 employees out of 300 comprising 96 percentage has experience between 10 years to 15 years.
Solve the problem by giving practical solutions has highest degree of relationship of 76 percentage with The business is pleased with the usage of technologies. Solve the problem by giving practical solutions has significant and positive correlation with The business is pleased with the usage of technologies.
Solve the problem by giving practical solutions has moderate degree of relationship of 58.5 percentage with Know to operate computer. Solve the problem by giving practical solutions has significant and positive correlation with Know to operate computer.
Level of significance of the Fisher’s test for the hypothesis is less than the level of 0.05. Hence, the null hypothesis is rejected. Therefore, it is concluded that there is a significant difference between Occupational coping and Perceived relative advantages
Level of significance of the Fisher’s test for the hypothesis is less than the level of 0.05. Hence, the null hypothesis is rejected. Therefore, it is concluded that there is a significant difference between Occupational coping and Knowledge & Innovations
Level of significance of the Fisher’s test for the hypothesis is less than the level of 0.05. Hence, the null hypothesis is rejected. Therefore, it is concluded that there is a significant difference between Occupational coping and Information intensity in the organisation
http://annalsofrscb.ro 1118
Organisational competitiveness has significant and positive impact to determine the employees’ performance by 0.82. followed by employees motivation has significant and positive impact to determine the organisational competitiveness by 0.75.
Organisational environment has significant and positive impact to determine the organisational competitiveness by 0.75.
8. SUGGESTIONS OF THE STUDY
Employees have disagreed that consistently tendency to address the problem. Hence, employees must be consistent to address the issues to promote their business organisations.
It is highly required for employees must look in to the organisation and latest information has to be grasped to survive in the organisation.
Solve the problem by giving practical solutions has significant and positive correlation with Know to operate computer. Hence, employees must try to increase the knowledge to use computer and internet to solve the issues.
Need to understand the importance of using technology in their relative field to improve their business operations
.
9. CONCLUSION
Organizations need to reconfigure themselves on an ongoing basis to keep up with these trends to achieve sustainable organizational effectiveness. In simple term, Organizational effectiveness is the extent to which an organization realizes its goals. In other words, an organization’s objective achieving ability is known as organizational effectiveness.
Though existing literature attempted to explain organizational effectiveness through different contexts or characteristics, still there is no single formula for achieving optimum organizational effectiveness. A lack of understanding still prevails regarding the influencing factors and the intervening mechanisms to explain organizational effectiveness comprehensively.
Major findings of the study are: Most of 265 employees out of 300 forming 88.33 percentage are completed diploma. Employees with diploma qualification are interested to work in automobile industry. They have some awareness about the recent industrial policies which help them most. Majority of 288 employees out of 300 comprising 96 percentage has experience between 10 years to 15 years. Organisational competitiveness has significant and
http://annalsofrscb.ro 1119 positive impact to determine the employees’ performance by 0.82. followed by employees motivation has significant and positive impact to determine the organisational competitiveness by 0.75. Organisational environment has significant and positive impact to determine the organisational competitiveness by 0.75.
Major suggestions are: Employees have disagreed that consistently tendency to address the problem. Hence, employees must be consistent to address the issues to promote their business organisations. It is highly required for employees must look in to the organisation and latest information has to be grasped to survive in the organisation. Solve the problem by giving practical solutions has significant and positive correlation with Know to operate computer. Hence, employees must try to increase the knowledge to use computer and internet to solve the issues. Need to understand the importance of using technology in their relative field to improve their business operations. Hence, if these findings and suggestions are to be taken in right direction, will bring more effectiveness in the organisation.
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