Action Phase: Development Interventions and Performance Excellence

Following the identification of the distinctive executive competency parameters, an important question remains: whether the identified executive competencies can improve the performance of the firm and how to bridge the gaps in competencies among the executives?

It, basically, questions on the lasting effects and consequences of executive competencies for

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the individual and organisational performance and how to utilise to get a lasting competitive advantage. To analyse the developmental quality of the executive competencies within the organisation, it is crucial to monitor the executive’s on a regular basis so that the gaps can be identified and supplementary developmental or training initiatives can be introduced to fill those gaps. The goal is to advance some mechanisms through which the advantages of the competencies identified those can exert a lasting impact on the organisational outcomes through enhanced individual and team performance. Consistent with the strategic approach reflected in the proposed research model, emphasis has paid on the developmental interventions which are neatly lined up with bringing in performance excellence.

Through developmental intervention, it is possible to positively determine the job performance of the executives within the system (Welbourne, Johnson and Erez, 1997).

There’s increasing evidence that suggests that executive’s learn and adopt essential competencies through work experience while working on the respective job assignments.

Most of the organisations are trying to groom their executive’s through job assignments with higher potential for leadership role and career development (McCauley, 2001; Day, 2007;

Ellinger and Ellinger, 2014). Homer (2001) has noted in his research paper that “the capability to determine skills gaps enable organisations to implement more cost‐effective and meaningful training and development practices, determine changes in individual and team performance”. According to the study of Dragoni et al., “unfamiliar responsibilities are developmental because they force managers to initiate new ways of coping with problems, reveal when existing approaches are inadequate, and frequently require managers to perform in front of new sets of peers, subordinates, and superiors, thereby providing challenge and motivating learning and adaptability” (2009: 732). In addition, it fosters adaptation of essential competencies and to improve individual and organisational performance. In an organisation employees need to work in a team to achieve a common goal. Recent research illustrates that through team tasks, competencies and knowledge of the teammates is increased as well it creates a flexible gamut of skill sets within the team which leads to optimal performance. Developmental and training inventions can be arranged taking in the specificity of the team and its individual members, as for a new work assignment a database of essential competencies and training tools can be developed in context to the nature of the assignment. The specificity of developmental initiatives helps to detect the competency gaps

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among the individuals and remedial measures are implemented, which will underpin effective task performance (Cianni and Wnuck, 1997; Kim et al., 2013).

Hypothesis_4: Continuous monitoring and frequently updated training and development interventions aligned with the organisational objectives would enhance the level of individual performance.

The prevalent dynamic business environment has necessitated the measurement of organisational performance to retain and sustain competitive edge in the global market. The model proposed by Sink and Tuttle (1989) in their study illustrates that, the performance of an organisation can be improved through application of six performance criteria such as;

effectiveness, efficiency, quality, productivity, innovation and profitability. The desired organisational performance cannot be achieved without the individual contribution of the executives, as the performance index of the individual executives is highly related to the overall performance of the organisation. The study by Allen during the 90’s demonstrated that “employee’s organisational commitment and loyalty has serious and potential effects on the organisation’s performance and can be an important predictor of organisational effectiveness; therefore, ignoring it is damaging to organisation and may impose extra costs”

(Kashefi et al., 2013: 503). According to Rolstadas (1998), the adoption of innovation and striving for organisational excellence while managing the day to day operations is a key element in sustaining and improving organisational performance. The sense of ownership and belongingness among the executives can stimulate accepted organisational behaviour that can guide them to perform within the organisation more effectively (Avey et al., 2009). Palmer and Wiseman (1999) found that performance of the executives engaged in risk taking behaviour has direct implications on the firm performance. Both extrinsic and intrinsic incentives are essential for enhancing the performance of individual employees. A study conducted by Khan, Zarif and Khan (2011) explicate that applying a combination of intrinsic and extrinsic incentives such as employee recognition and appreciation as well as cash rewards for achieving results can enhance the employee morale and can motivate them to achieve the optimum level of performance excellence for the organisation. The continuous

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enhancement in individual executive’s performance can therefore help in improving the overall organisational performance.

Hypothesis_5: Individual executive performance level has a positive impact on the organisation’s overall performance.

From the existing literature it can be depicted that executive competencies have got a significant relationship with the performance of individual executives and the organisation as a whole; which is incorporated by the proposed hypotheses of this study. The parameters of executive competencies have been identified through extensive literature reviews on executive competencies, which are projected to assist an organisation in achieving performance excellence. The hypothesised framework for performance improvement of executive’s through executive competencies is illustrated in Figure 3.1.