Organizational Behavior is the way of people interacting with others, it is important for an organization in change or remaining. There are most important elements which should be highly considered on organizational behavior, Leadership, Management approaches, motivation and effective group formation, these elements should be well managed and this report is about how these factors are important what are the characteristics and how their suitable for different organizations how employees can have proper career progressions by using these elements.
- What is Organizational culture
Organizational culture is a system where it shared values, behaviors, assumptions which direct how people should behave in the organization, these values and behaviors has a clear influence towards the employees which emphasize how employees should dress, perform and behave in the organization,
- Characteristic of Organizational Culture
- What is Organizational structure
Organizational structure is a hierarchical arrangement of an organization which emphasize the authority, power, responsibility. It shows how the power, authority, controlled and information’s should be float accordingly
It is important to identify the organizational culture and structure in order to find out the performance level of the organization, both elements can affect to the employee performance
- Impact on Organizational culture on performance,
Organizational culture could do a major difference in performance of the organization, culture insist the nature of the organization, how employees should dress what are the techniques, how they may behavior in the organization, it can affect to the employees of the organization, starting from the recruitment level HR department should recruit people who can adapt to the particular organizational culture, unless it will affect the employee to decrees the performance of them
- Impact on Organizational structure on performance
A well designed organizational structure is really important for an organization, it shows how the authority, power and communication should be followed accordingly, with an well-defined organizational structure employees could identified how they should report who is the authorized person and how they may communicate, so it can help employees to identified their job properly and perform well
In an Organization each and every employee behavior could be different to one another with different life styles, thinking patterns etc:, but in an Organization there are certain situations which employees should behave as same as an example, in a meeting employees should behave very respectfully, but every time we cannot expect all employees to behave in a similar way, there are external and internal reasons which could influence employees to behave differently, so some of the factors could be mentioned as follows,
- Leadership –
The immediate manager or the supervisor could directly influence in their employee behavior, the manager should always be aside of the employee and help them to groom and develop their skills, an wrong manager could always be a reason of his employees to behave an unexpected way, at same time a good leadership behavior always supports his employees to perform well and behave in a good manner.
- Work Culture –
Organization culture have a direct impact on the employee behavior, employees need to feel comfortable in the workplace in order to perform well, the organizational rules and regulations should be implement for each and every employees in a same way, faviourism could be reason to demotivate the employees, organizational structure should be well designed and the reporting system should not be complicated and employees should be able to understand it very well, the code of etiquette of the organization should be communicated well and the employees should feel the job security. Because an work culture can change the employee behavior
- Job responsibility –
In an organization the management should clearly defined the job responsibilities of the employees and find out whether they have the responsibilities, and the management should identified the capabilities of the employees and divide the responsibilities among the employees, if an employees get work which it not within the capabilities of him it will really affects to the employee performance and the behavior.
- Conflicts within the organization
In an organization there can be various types of conflicts between employers and employees, employees and managers, so those conflicts can really impact for the employee behavior, management should be able to create a proper environment where there is no space for conflicts and also there should be ,proper process to handle conflicts, employees can be demotivated because of the conflicts and it can really affect for them in mentally and physically, so these factors can be direct reason for employee behavior
- What is Leadership
Leadership is the ability to influence people towards attainment of the organizational goal,
- Different Leadership styles
- Autocratic Leader
- Individual decision maker, not taking others ideas
- All people should be depended on him
- People obey him not because of the respect but for fear
- People can be demotivated
- Sometimes it can be valuable in needs of making decisions quickly
Ex: Military leaders
- Participative Leader
- Democratic leaders
- Allow people to share the ideas
- Get others involvement in decision making
- Help people to think and present ideas
- These leaders offer guidance to their people
- Affects people to be motivated and creative
- Sometimes this can be affect to delay the decisions
- Laissez –fair
- Very little guidance from leaders
- Complete freedom for followers to make decisions
- Leaders provide the tools and resources needed
- Group members are expected to solve problems on their own
- Power is handed over to followers, yet leaders still take responsibility for the groups decisions and actions
- Transformational Leadership
- The ability to make difficult decisions
- Willing to take right risk
- Willing to get others ideas
When it comes to Apple Company the founder Steve Jobs and Virgin group founder Richard Branson, there are major difference between them and they both can be categorized in to different leadership styles
Steve Job is an autocratic leader, he used to shout at his employees, he got them obeyed through fear but not from respect, he did not reward his employees, most of the employees hated him and as a result one day he had quit from his own company, anyhow he managed to climb the ladder with his innovative ideas and he always wanted his ideas to be implemented so according to his characteristic he is an autocratic leader, and a CEO of the world recognized company.
Richard Branson is a democratic leader he used to get other peoples ideas, his core values was to listen to other people’s ideas, he interact with any level of employees and reward them. employees loved to work with him, he has done all the work with the influence of his employees and he always kept trust with his employees, he had an ability to understand his employees very well, he also the owner of world recognized organization. with his leadership skills he got a chance to be one of the richest people in the world.
Explain how organizational theory underpins the practice of management by providing suitable examples
- What is Organizational Theory?
Organizational theories could help each organization to set up their organizational structure and the Organizational culture, it also supports the organizations to set up their future goals, and there are various theories with various implications
- Classical Theory –
Classical Theory is the first theory or management and it focuses on the productivity, output and the efficiency of the workers, this has been divided in to three main categories that is Scientific, Bureaucratic and administrative theories,
- Scientific Theory – Federick Taylor the developer of the Scientific theory of management for improving the efficiency of the work process, with his studies he has emphasize that organizations should identify the best way to do a job. It also emphasized the rationalization and standardization of work through division of labour, time and motion, work measurement and piece rate wages
- Bureaucratic Theory – This theory is related to structure and the administrative process of the organization. Max Weber the father of the bureaucratic management he has emphasized that there should be proper rules and regulations, process, procedures, patterns in order to reduce the complexity of the organization’s functioning
- Administrative Theory – This theory is based on the departmentalization, it says different activities to be performed to achieving a common purpose of the organization should be identified and classified in different groups or department, so that it can be achieved effectively
- Contingency Theory –
Theory is based on how the management could be flexible with the changes in the External & Internal Environment, it says there cannot be one optimal organizational design for every organization, every company are not similar, so they has to face different environment contingencies that result in different environment uncertainties, when it comes to analyze about the different environment factors PESTEL term could be really helpful
P – Political
E – Economic
S – Social
T – Technology
E – Environmental
L – Legal
- Systems Theory –
It says all the components are interrelated in an organization, one change could be a huge impact on another, organizations are viewed as a open system
There are three types of Management approaches
- Classical – Scientific
- Management as planning, organizing and controlling
- Hierarchical Organizational structure based on division labour
- Autocratic Leadership
- Management as leading, motivating, Communicating
- Less hierarchical organizational structure, team work
- Participative/democratic leadership
- Contingency –
- Adapting management and organizational approaches to circumstances
Same with the above two organizations according to the leadership styles of Steve Jobs and Richard Branson it is clear that Steve has had the Classical management approach with insist of autocratic leadership and Richard Branson has had a Behavioral Management approach towards his employees and he was a democratic leader
- What is Groups
Two or more people interacting with each other in order to accomplish a common goal
- Types of groups
- Formal group – A group which has establish to achieve organizational goals
Ex: Production team, HR Team
- Established by the management team
- Form to achieve organizational goals and objectives
- The structure is well defined
- Importance is given according to the designated level
- Goal is well defines
- These groups are interdepended
- It has professional relationship
- The size of the group is large compare to informal groups
- Communication is restricted due to the unity of command
- Informal group – Groups which has forms to achieve their own personal goals or needs
Ex: Lunch buddies, friendship groups
- Groups created by employees themselves basis of common likes, interests, prejudices, language and attitudes
- Form to achieve their own needs
- There is no such a structure
- Importance given according to the people
- Each and every person has a separate goal
- It has a personal relationship
- The size of the group is small compare to formal groups
- NO defined rules and regulations
- Primary group – A group which has less amount of people
Ex : A small team with a leader
- Less amount of people
- Has their own values, beliefs and culture
- Working to achieve the same goal
- People are interact with others regularly
- Secondary Group – A group where is a large number of people get together
Ex: A committee organized to plan a welfare work
- Interaction with each other is less
- Individual usually have their own agendas
- A short term relationship
- Group behavior within the Organization
According to Psychologist Bruce Tuackman there are five stages of activities are happens within the formation of a group, he has introduced it as Forming, Storming, Norming, and Performing and Adjourning,
The each stage characteristics could be mentioned as below
- Forming – This is the first stage of the group development, people have positive feeling about the group and their very polite but they cannot understand what work the team will do, people have to get to know one and another, since they do not know about the task they have to depend on the leader and the leader may play a dominant role since the team member’s roles and the responsibilities aren’t clear.
- Storming – The next level of the group formation, people are starting tp get to know each other people are trying to give ideas, and they start to compete with each other in order to accepting their ideas, if the other group members does not agree with the ideas there can be conflicts, at this point group leader should be able to interact with people and give space for their independence for decision making and to help them in resolving conflicts
- Norming – Now at this stage the group members know each other very well, they start respecting each other like to listen others ideas, at this stage they don’t have any competition they start implementing final decision and achieving a common goal, they try understand the differences of the others and start to respect those, at this stage leader doesn’t invove in decision making or problem solving but he is always there in case the team members need help
- Performing – This stage is not reached by all the groups, if groups are completed in above three levels they can reach this level, this is the level where people start to work on achieving the goals and objectives. In this stage people can work independently, subgroups or as a total unit with equal facility, their roles and authorities are getting changed according to the group needs, in this stage people are well motivated and their highly task oriented and people oriented, in this stage leader should be able keep the people in highly motivated level
- Adjourning – This stage is reached when the task is successfully completed, the task is coming to an end the members are moving in to different directions
- What is effective team work
Effective team is one that achieves high level of organizational goals and objectives, team satisfactions, teamwork is an very important aspect for an organization to succeed, it is very effective to work as a team rather than working in individual, there are so many benefits of working as a team like motivation. There are factors which could affects to promote or inhibit the development of effective teamwork in organizations
- Team size
- Group norms
The use of new technologies can improve in team functioning. As technology changes teams must update and maintain their knowledge in order to function effectively.
Technologies which have improved team functions
- e-mail – emails can be used in communication, the team members should not need to be in the same place to work, they can communicate via emails and do the work
- Mobile phones .- Mobile phones allow teams to communicate even when team members are out of the office, on the road or otherwise unavailable. Sometimes having always access to team members can hinder team functioning.
- Intranet – Allows people to get connected within the organization
- Social media – it is the latest technology which people could connect all over the world, it helps to understand about the members personal behaviors
Impact that different leadership styles may have on motivation in organizations in periods of change
Leadership has a direct impact on the motivation of the employees, a good leader can motivate the employees as well as a bad leader could also de motivate the employees of the organization, motivated employees would always help the organization to achieve its goals and objectives, there are leaders who are task oriented and people oriented
- Task oriented leaders –
They always concern about the task more than people, they don’t care about people’s feelings, or the personal interest of their employees. They create so much of power and control towards their employees, the task oriented leaders always need to work with their ideas and avoid others suggestions, this type of leaders can also consider as autocratic leaders. Though it helps to achieve the task after sometimes employees can get demotivated and they tend to have low morale.
- People oriented leaders –
These leaders always concern about the people who work under them, they always concern on the personal growth, development, motivation of the employees, they help people to develop their careers growth, these leaders like employees involving in decision making, and they think it helps employees to develop their creativity. Employees like to work with these kinds of leaders, employees respect these leaders and ultimately it helps the organization to achieve goals and objectives
TRO is a family own business and the full management is done by the family members it selves, the Personal manager was MD’s daughter and the manager contracts also was MD’s son in law, and even the company lawyer is one of a close friends of them, hence according to this the company is controlled by under an autocratic leadership where leaders have absolute power over their workers or team, it seems employees have little or no opportunities to make suggestions, they doesn’t care about the personal growth of their employees, according to these factors can assume that employees in here are demotivated
Hence with the restructuring it is important that employees to be motivated and should create space for personal growth of the employees, people love to involve with decision making and it shows how the employees are important to the organization, since employees are fed up with working under autocratic leader/ task oriented leaders at the restructuring level it is important of recruiting employees for the managerial positions, who has democratic leader / people oriented leaders in order to have well motivated employees within the organization.
- Theories of Motivation
- Maslow’s hierarchy of needs –
Maslow stated that people are tend be motivated with the certain needs, he says when one need is fulfilled they seek to fulfill the next level of need, the four level of needs considered as psychological needs and, while the top level of need is considered as growth need, the lower level needs should be fulfilled in order to reach high level of needs .
- Herzberg two factor theory –
According to Herzberg there are two types of needs which people can be motivated, Hygiene factors and motivational factors, Hygiene factors are important in motivating people in the organization, but it cannot lead for long time motivation, motivational factors are important employees to perform their job well and to have trust worthiness employees within the organozatyion
- Hygiene Factors – salary, fringe benefits, Company policies, physical working conditions, interpersonal relationship, job security
- Motivational factors – Recognition, career growth, personal development, rewards
- Equity theory –
It says even though employees get paid and recognition still there can be demotivations, when one person get promotion or pay the other employees can be demotivate, it says when all employees treated fairly everyone can be motivated, when thy feel the unfair treatment they tend to be dissatisfied with the job
According to the situation of TRO (Pvt) Ltd, it is very important of consideration Herzberg’s two factor theory and the Maslow’s hierarchy , since the employees of TRO company is not getting recognitions or rewards by the management and there is no career growth for their employees as well as no job security for their people hence with the restructuring process management should consider on the level of needs , kind of needs which employees needs in order to have well motivated employees within the organization. According to above theories it says people can be satisfied with money in a certain period but after that they seek on other motivational factors like career growth, recognition etc; hence with the restructuring it is indeed of considering these theories to retain employees within the organization.
It is very important of managers to understand about the motivational theories and how it is important for an organization, motivated employees will always try to achieve organizational goals, they always happy to work in their work place and it will help them to do their job well. Highly motivated employees performance will increased and it could be benefit to an organization,
But management should identify the employees’ needs and what kind of needs that can motivate them , it is very necessary of identifying the extrinsic need and intrinsic needs of the employees as an example if employees prefer career growth more than other fringe benefits management should motivate them with implementing development programs, giving promotion likewise
According to the above case management should find out what sort of needs that employees need in order to motivate them, for that management should find which theory should be taken in considering to motivate employees,
During the acquisition of TRO (Pvt) Ltd, firstly management should find out what factors which was affected to demotivate employees as an example, previously there is no career growth for the employees hence they should follow the Herzberg’s two factor theory which emphasize there are more factors which employees can be motivated apart from money , so the management can conduct programs to reward employees, have a well performance appraisal system, giving space for the employees to decision make.
And also to these elements should be run in long time, for that management should prepared proper systems as an example management should have a proper career planning for each and every existing employees and the newly recruiting employees, and the performance management system should be well maintained and the rewards should be given accordingly
Organizational behavior is one of an important context for managing business effectively in today’s environment, each individual behavior has direct impact on organization development hence it should be managed properly, firstly it is important of understanding the differences of organizational culture and the structure so that it may be help in formation the business . It is important of understanding the different leadership styles and characteristics, in order to managed the business accordingly and have well behaved people in the organization. To enhance the leadership capabilities of the employees Human Resource department could implement various kind of training programs and provide them opportunities to identify their skills, it also helps to motivate employees within the organization since it is a necessary requirement for an organization to have well performed employees, there are various things could be implement to motivate employees for that it is important of identifying the different motivational theories so it would help to identify needs that employees need, as a motivational factors management could provide them fairly salary, bonuses, other fringe benefits and also reward ceremonies, recognition programs, performance appraisal systems likewise, but management should identified whether they prefer extrinsic needs or the intrinsic needs . As we know what ever the tasks can be achieved easily with an effective team hence it is important of identifying the difference team formations and how the teams behave in an organization so that it helps to achieve the organizational goal successfully.
According to the restructuring of TRO (Pvt) Ltd the main identified there is no proper leaderships since most of the senior positions are filled with the family members or the close friend, hence we can assume that their task oriented leaders more than people oriented so employees could be dissatisfied under those kind of leadership, people would like to have career growth and personal development , since employees doesn’t get those benefits with the restructuring it is indeed of implementing such programs to motivate employees and remain them within the organization, as an example when filling management level positions they can fill the position with existing employees who has leadership capabilities and qualifications to work with that position and recruit people from out for the last level positions and implement such programs like development programs, career succession planning from the recruitment point it selves, so that organization could have well talented people who can take over the business in future
Career planning process
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