STRATEGIC HRM | PERFORMANCE Ambrose Milayi June 29, 2024

STRATEGIC HRM | PERFORMANCE

Organizational Development

AMO Theory:

I have been reading extensively on PERFORMANCE MANAGEMENT and STRATEGIC HUMAN RESOURCE MANAGEMENT and one interesting theory caught my attention(AMO Theory). Researchers in the field of Strategic Human Resource Management have done a commendable job in regards to this and the research papers are really informative.

AMO Model suggests that performance is a function of ABILITY (training and selection), MOTIVATION (incentives and feedback), and OPPORTUNITY (environment). These three concepts impact our performance as individuals and a team if leveraged in a win-win capacity.
What makes an Organization?
1.Products/Services
2.People
3.Profits

Concepts of the Theory:

  1. ABILITY
    This is what an individual/team can do.
  2. MOTIVATION
    This is what a person/team is willing to do and is either influenced by Intrinsic or Extrinsic Motivations.
Intrinsic Motivation;

We are motivated to perform a task because it is internally rewarding. We choose to perform a task because it’s fun,enjoyable, and satisfying. Our goals come from within and the outcomes of our goals satisfy our basic psychological needs for autonomy, competence, and relatedness.

Extrinsic Motivation;

We are motivated to perform a task to gain an external reward in return. Our goals are solely focused on outcomes, and do not satisfy our basic psychological needs. Rather, it involves external gains such as money,power,fame and avoidance of consequences.

  1. OPPORTUNITY
    -Employee development -Employee improvement
    Entities allocate budgets which are used in trying to attract and retain highly
    competent employees. Is it necessary? Studies are showing that ability or
    intelligence (in cognitively demanding jobs) are the best predictors of job
    performance.
    “Nothing in the world can take the place of persistence. Talent will not; nothing is
    more common than unsuccessful men with talent. Genius will not; unrewarded
    genius is almost a proverb. Education will not; the world is full of educated derelicts.
    Persistence and determination alone are omnipotent. The slogan, ‘press on’ has
    solved, and always will solve, the problems of the human race.” –Calvin Coolidge,the
    30th President of the United States.

Generally,employees’ improvement and development aims to build a talent pool that supports the organization’s mission while creating highly engaged employees.
How does a team engage in its short term and long term goals to help the an organization achieve its mission?

a) Training sessions
b) Coaching and mentorship
c) Peer-coaching
d) Cross-training
e) Stretch assignments

These are perfect practices when adopted help build resilient and cohesive teams and strengthen the organizational culture.

By Ambrose Milayi CEO, Polam Holdings Ltd

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