Skip to content
McArthur Executive Development

From the blog

What Impacts Employee Performance?

By Dan McArthur · · 2 min read

A person leaping over a puddle at sunset, silhouetted with one arm raised and reflected in the water beside a large tree

Performance = (Motivation x Ability) – Situational Constraints

Math never was my favorite subject, but I have found a great deal of value in this equation. The equation causes us to consider a more comprehensive view of what actually impacts performance. Without the broader view, we tend to engage the underperformance of those around us with a too simplistic and reactionary response.

I often ask leaders to look at this equation and tell me what part of it they have the most control over. This always leads to a lively discussion, with varied points of view. They usually ask me to break the tie and tell them THE answer. Most are dissatisfied with my response, because I don’t think the “correct” answer is as important as being able to hold the complex question: “How can I, as a leader, best support those around me?”

Can a leader change the motivation level of an employee?

This question is the “seed” from which Industrial/Organizational Psychology grew at the beginning of the industrial revolution. One of the first recorded studies took place in a textile factory. The problem: workers kept allowing the spools of thread to run out and it hindered productivity. The solution: the organizational psychologists brought kittens into the factory so they could play with balls of yarn on the floor. It was enough to keep the workers more engaged, which led to them refilling the spools before they ran out and everything shut down. Kittens? Really? Why didn’t they just threaten to fire them or give them another speech?

Here’s what I know: motivation at its best is an inside-out process. It happens when we can locate within ourselves a deep inner desire to contribute. Our perception of our environment will make it easier or harder to locate it. This is where the leader comes in.

As leaders, we can create a motivational environment.

The first and most important ingredient is who we are. Sure, we can remodel the office, provide state-of-the-art technology, put ping-pong tables in the break room, and even dangle a generous bonus program. But all of these measures will fail to create an optimal motivational environment if people don’t want to be around us. It’s not a good sign when I hear employees say, “this is such a better place to work when the boss is away.”

Having a remodeled leader is far more motivating than having remodeled offices.

***

More from the blog

  • A group of people silhouetted against a sunset sky on a rocky shoreline, one holding a flag and one crouched behind a camera

    Treat Your Employees Like Paid Volunteers

    The last 15 percent of an employee's effort can't be bought: problem solving, extra-mile service, loyalty. How leaders earn it from paid staff.

    · 4 min read

  • Two women laughing and working side by side on laptops at a wooden counter in a bright café

    Correct Employee Behavior Without Crushing the Spirit

    Correction that's too harsh or too soft is a top employee complaint. How to give timely, direct feedback that changes behavior and leaves the person intact.

    · 2 min read

  • A person sitting cross-legged on a hilltop, facing away toward a hazy mountain range under an overcast sky

    The Beauty of the Flawed Leader

    Leaders who own their mistakes win loyalty faster than any other trait. Why the cracks a leader hides are the source of their influence later in a career.

    · 2 min read

Talk with Dan about the team.

A short call to find out whether the practice is the right fit.

Schedule a call