There are three layers within the holistic concept of company performance. These layers are viewed from the perspective of the individual. Some layers influence individuals more directly than others, and companies must manage each layer differently. When leaders understand these layers better, they are more equipped to handle performance-related issues. This post explains these three layers and how leaders can utilize this information to improve individual and company performance.
Performance and Culture Overview
Individual performance definitions vary but are generally defined as the quality, quantity, and efficiency in which an individual completes their goals or tasks. At the company level, the definition is roughly how well a company achieves its vision, mission, and goals.
Companies are groups of people working together to achieve specific goals, and their culture is the sum of the learned behavior of the group that is transmitted from person to person, to all new hires, over generations. Creating a robust and high-performing culture is vital to overall company success. However, performance problems will inevitably arise as companies work to achieve their vision, mission, and goals. To keep performance on course, leaders should understand how there are different layers to the company culture and how each layer affects individual performance differently.
The holistic concept of company performance is divided into three layers. For analytical purposes, these layers can be viewed as a bullseye. Company factors are the most distal to most employees and make up the outermost layer. The middle layer is comprised of job-related factors (e.g., one's immediate work environment). Finally, the central layer pertains to individuals. Below, these layers are discussed.
The Outer Layer: Company Factors
The outermost layer of the triad consists of company-related factors. Company-related factors include:
Business strategy
Leadership support and patterns
Organizational communication
Policies and procedures
Methods and processes
Hiring and firing
Training and development culture
Reward and recognition culture
Environmental dynamism
Organizational trust
The overall organizational climate
Company factors are considered an outermost layer because these factors are the most distal to most individuals, meaning that while factors contribute to an individual's overall performance, they generally do so less directly and slower than the other two factors in the triad. This layer is mainly under the responsibility of the executive suite or business owners.
The more the c-suite handles the objectives or tasks, or discusses them more regularly, the less the individuals do on the front lines, which means decisions and information takes longer to reach those on the front lines. Therefore, the methods used and time given to work on company factors are essential, as well as considering the factors in their entirety, holistically, and with consideration of others and the future. Additionally, finding efficient systems and methods to communicate information and decisions quickly is critical.
When it comes to company factors, it's essential that leaders gain insight from individuals across the company through feedback and then implement changes considering this feedback. Furthermore, culture change (including the factors related to performance) will require information communicated with communication instructions to local leaders, which can then be passed down to teams and internal networkers (those who have the power to influence and be change agents). Finally, it's also important that all leaders are on the same page and support changes.
Key performance indicators are different for every company and industry. Many performance questionnaires are available across various fields; finding valid ones for your company or industry is imperative, especially for new and developing companies. Managing key performance indicators and adjusting as necessary is essential for long-term company success.
And finally, those on the ground will often have more insights than those at the higher levels. Having convenient ways for individuals to provide feedback is vital to help the company gain valuable insights into the ever-changing company environment. However, companies must ensure that individuals feel comfortable and safe to give feedback without fear of retribution.
You can improve individual performance through company-related factors by being more mindful, communicating better and more frequently, increasing internal stability, building organizational trust, and creating a better overall climate.
The Middle Layer: Job Factors
The middle layer of the triad consists of job-related factors. Job factors include:
Team composition and dynamics
Autonomy
Job training
Tools and technology
Workload
Job design
Job-related communication
The overall work environment
While executives and business owners have some influence on this category, the day-to-day operations of this layer are largely influenced by local leadership. Local leadership acts as a buffer between the company and its employees. Part of their job is to communicate well and efficiently without too much delay so that everyone is on the same page. But remember that good communication is a two-way street; empowering local leaders to communicate on-the-ground information effectively with the company is also essential.
Additionally, consider giving local leaders more control over the factors they oversee. Not only does this help local leaders to solve issues more quickly, but it helps to provide them with more autonomy. It also indicates the company trusts its leaders, making leaders more likely to trust the organization out of the rules of reciprocity. Ultimately, this creates a more trusting environment and can increase organizational trust.
For individuals to perform their best, they will also need access to the best possible tools and technology. When individuals aren't preoccupied with solving technical problems or finding tools, they will have more time to focus on their tasks or other ways to help the company.
And finally, consider job design and workload. There's a fine balance between giving people enough work to make them feel satisfied and too much work that creates a constant state of stress. Job design should also fulfill an individual's esteem and self-actualization to some extent, meaning they feel satisfied with their job and that it provides them, or others, value in some way.
Companies can improve job-related factors in multiple ways. Ultimately, it comes down to considering the overall work environment of individuals and having supportive leadership that looks out for their employees. Take the individual's perspective, and make sure local leadership is in a position to be a good buffer between the company and individual layers.
The Central Layer: Employee Factors
The central layer of the Culture and Performance Triad involves individuals, as individuals are the core of the company. This layer includes:
Intrinsic and extrinsic motivation
Declarative and procedural knowledge
Skill level
Flexibility
Proactivity
Adaptability
Commitment
Engagement
Job satisfaction
Self-esteem
The layer is made up of individual knowledge, behaviors, actions, feelings, and beliefs. It also includes the employee factors of organizational performance, such as turnover, presenteeism, and absenteeism.
One part of this layer focuses on skills, training, and development. Good training and development will ensure your people know how to perform all their tasks and help them develop skills for their current job or career goal. When people feel that their job or company is helping them achieve their career goals, they're more committed and less likely to leave the company. Additionally, finding ways to boost both task and contextual performance will help the company and its employees succeed.
Company leaders can use Maslow's Hierarchy of Needs to understand better individual needs and the order in which individual needs must be met. This way, many employee factors will be considered to create an employee-focused company culture. When companies care about their people, through reciprocity, people are more likely to care about the well-being of their company.
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