Do Actions Speak Louder than Words? an Empirical Investigation in Terms of Organizational Performance in Manufacturing Organizations

During the last years, organizational performance of manufacturing organizations is considered to be a key for a country’s economy. As a result of high positive performance of manufacturing organization; the overall effects on the society have attributed the attention and the interest of organisational researchers. Armstrong and Baron (2003) highlighted the need of performance management as being strategic, integral (vertical, functional, human resource integration and integration of individual needs), focus on performance improvement as well as with the development. Gates and Otley (1999) further broaden the scope of performance measurement to include strategy development and the taking of action. In this study, researcher investigates the extent to which an organizational performance is affected by the actions of manufacturing leaders than by just implementing strong rules and regulations in the manufacturing organization. It was also examine whether differences in manufacturing organizational performance and actions of their leaders relate directly to manufacturing organizational performance or vice versa. There are number of tools and techniques available to measure organizational performance e.g. balance score card theory (BSC) by Kaplan and Norton (1992) based on stakeholder theory. The balanced scorecard approach was used as an operational tool, and it is employed to measure and improve operational performance of manufacturing organizations. According to Professor, Bob Kaplan, balance scorecard approach has further extended the measurement of organizational performance. Lipe and Salterio’s (2000) observed that the application of balance scorecard approach facilitates managers’ judgment, they further elaborate that balance scorecard approach improves managers’ judgement regarding what is actually essential without any overloading of information. Further according to Tomasello M et al (2005), humans are more skilled than other animals at discerning what others are perceiving, intending, desiring, knowing, and believing—allowing group decision based on mutual discussion. It is therefore expected that the performance of the manufacturing organizations in this study to be attributed to the ability to actually do the job of their subordinates by the manufacturing leaders and thus set an example for the workers and thus enhance the performance of the manufacturing organization. Based on the results of data analysis of 132 manufacturing organization leaders/workers, it was found that organizational performance measured using balance score card approach is negatively related to both strong rules and regulations than by the actions of manufacturing organization leaders. Researcher argues this is due to strong rules and regulations in manufacturing organizations and so subordinates own innovativity reduces and causes organisational performance at stack. On the other hand manufacturing leaders’ positive attitude has a significant positive relation between manufacturing organisational performance. Finally, it was also observed that manufacturing leaders educational background, related field experience positively influences the manufacturing organizational performance. Overall, results suggest that the more skilled and experience a manufacturing leader has, the more positive is the organizational performance. In a nut shell it can be concluded that manufacturing organizational performance is directly related to the actions of manufacturing leaders as well as the skills, experience and ability to do the job of his/her subordinate. A model for improving performance of manufacturing organizations has been developed as a result of data analysis of this study and is presented in this paper to enhance the performance of manufacturing organizations. [Syed Athar Masood, Mirza Jahanzaib, Khalid Akhtar. Do actions speak louder than words? An empirical investigation in terms of organizational performance in manufacturing organizations. Life Sci J 2012;9(4):687-693] (ISSN:1097-8135). http://www.lifesciencesite.com. 107