Elements of Organizational Behavior - Case Study Example

Organizational Behaviour: Name: Course: Tutor: Date: Table of Contents: Organization Development 4 Current state of the field 5 Introduction Organizational behaviour is the study of organizations from a number of angles or views and levels of analysis. These numerous viewpoints are divided into three outlooks. They include contemporary perspective, representative perspective, and post-modern out look. A traditional peculiarity present especially in the American academic world is between the study of micro organizational behaviour referring to individual and group dynamics in an organization and macro organizational theory which studies whole organizations, how they adapt top their setting and the strategies and processes that guide them through the entire phenomena. Whenever people interact in organizations, many things come into play. Contemporary organizational studies try to understand and model these factors (Rollinson, 2008). Organizational studies seek to manage, foresee, and clarify. There is some disagreement over the principles of controlling workers’ conduct. Therefore organizational behaviour has been accused of being the systematic tool of the powerful; those who own the resources use the developed skills and principles to control the actions and behaviours of the workers in an effort to reduce conflicts and pacify the workers. In other words subdue their needs and wants therefore making them passive (Hit et al, 2006). The paper will therefore look Acciaio dairy firm a small dairy products in that has managed to survive through several issues over the past last years. The problems have hindered the growth of the business but through several good policies that were adopted during the turmoil the business has successfully managed to survive. Despite all the alleged accusations, organizational behaviour can and plays a key role in the development and subsequent success of an organization. One of the many goals of organizational theorists is to develop a better conceptualization of organizational life (Miner 2007). Elements of Organizational Behaviour An organization forms its base on management values, visions and aims/goals. In turn these ideals drive the organizational customs which are composed of the proper organization, casual organization, and the social setting. The customs determine the type of management and group dynamics within the organization. The workers see this as the quality of work life which directs their extent of impetus (Mullins, 2007). The last outcomes are performance, individual fulfilment, and personal growth. All these elements merge to build the structure through which the organization operates. Models of Organizational Behaviour These are the main structures that organizations operate on: Autocratic - The foundation of this model is power with a supervisory orientation of influence. The employees in turn will be/ are oriented towards compliance and reliance on the person in charge. The performance result is negligible. Collegial - The foundation of this model is a corporation with a decision-making orientation towards the team. In turn the employees are oriented towards responsible behaviour and discipline. The employee requirement that is met is self-actualization. The performance result is modest eagerness. Although there are more separate models no organization operates using one of the models alone. There is one model that outshines the rest and then one or more areas overlapping into other models. The autocratic model was established during the industrial revolution (Mullins, 2007). Specific Contributions Frederick Winslow Taylor: Frederick Taylor was the first person who attempted to study human behaviour at work using a systematic approach. He studied human uniqueness, social setting, task, physical environment, capability, speed, resilience, cost and their relations with each other. His overall purpose was to diminish and/or remove human unpredictability. He worked to realize his goal of making work behaviours steady and expected so that maximum productivity could be achieved. He relied strongly upon fiscal incentive systems, believing that humans are motivated by money. He faced a lot of disapproval, but his work was very fruitful and laid many base principles for modern management studies. Douglas McGregor: Douglas McGregor proposed two assumptions; the first was “Theory X”, which is negative and according to him it is how managers habitually see their workers. To help managers replace this assumption, he suggested a “Theory Y” which takes a more modern and constructive approach. He was of the opinion that managers could attain more if they start looking at their employees as devoted, self-energized, responsible and inventive beings. Through theory Y, he challenged conventional theorists to take on a developmental strategy to their employees. Organization Development Organization development is the application of behavioural restraint knowledge at various levels, such as group, inter-group and organization, to bring about change (Else, 2004). Its objectives are a higher quality of work-life, productivity, adaptability, and efficacy. It achieves this by changing mind-sets, behaviours, morals, strategies, and structures such that the organization can become accustomed to technological advances, competitive actions, and a fast speed of change within the surrounding. There are seven characteristics of organization development: 1. Humanistic morals: Positive beliefs about the latent of employees (McGregor’s Theory Y). 2. Systems orientation: All parts of the business, to include arrangement, technology, and people, must work together. 3. Experimental learning: The learners’ experiences in the training setting should be the kind of human troubles they encounter at work. 4. Problem solving: Problems are recognized, information is gathered, corrective action is taken and progress is assessed. 5. Contingency orientation: Actions are selected and modified to fit the needs as required. 6. Change agent: Motivate, assist, and coordinate change. 7. Levels of interventions: Problems can crop up at one or more levels in the organization so the approach will require one or more interventions (Else, 2004). Current state of the field Organizational behaviour is currently an emerging field. It is becoming more important in the international economy as people with diverse backgrounds and cultural standards have to work together effectively and efficiently. It is also subjected to growing criticism as a field for its pro-capitalist and ethnocentric assumptions. In the last 20 years organizational behaviour study and practice has developed and expanded through creating integrations with other domains (Mullins, 2007). Anthropology became a remarkable step towards discerning firms as communities, by introducing issues such as organizational traditions, organizational rituals and representational acts facilitating new ways to comprehend organizations as communities. Leadership understanding: the crucial function of leadership at different levels of an organization in the process of change management. Ethics and its significance as a pillar of any of the stipulated goals and one among the most significant driving forces in an organization (Mullins, 2007). Case Study In any small organization the manager plays quite a vital function and therefore he/she must have adequate familiarity to make some business’ key decisions. He or she also has to bring in the standard concepts and conditions for the communications necessary for the business. So how is organizational behaviour in small business important? It has been observed that small businesses are not equipped to recover from any difficulty that has occurred due to a major catastrophe or disaster (Else, 2004). The owners of the small businesses, lacking the resources of larger corporations, have to sell off some of their assets or be forced to make tough decisions i.e. stop their business from continuing and subsequent sacking of all the employees. They even face difficulty in reopening their business after the said calamity has passed, for example many businesses collapsed during the financial crisis forcing many small scale businesses out of the field due to lack of the necessary resources. But it is known that organizations are generally reactive, because being practical means making difficult choices over financial support and priorities, choosing from risks, and a basic apathy in organizational routines. An effective leader should therefore develop analytical skills and must possess the needed skills to identify the circumstances pinpointing to a difficulty that requires further attention. The problem indicators include waning quality and quantity of work, declining profits, pessimistic attitudes by the employees, and increase in absenteeism. Most issues of organizational behaviour in small business include each of these problems: Professionals say that social psychological and psychological processes determining human behaviour and practical knowledge of these processes help in dealing with the dilemma of working with others and managing people in organizations. Many troubles of organizational behaviour can be recognized and corrected by a good administrator who addresses these concepts and brings them to the management’s notice. Social activities and technological alteration affects team processes in organizations. Organizational behaviour advocates how to create value and cultivate change by coordinating employees within and between practical groups and coordinating activities across organizations (Else, 2004). Analysis Acciaio Diary is a small business founded by a group of farmers in a small town in the U.S.A. The company mainly deals in dairy products as its base product. It started as a dairy delivery service and after some time due to a clear lack of a processing facility in the town it established itself as a processing firm. It was a good idea considering the lack of a competitor and the availability of a market that had the potential. Unfortunately the market did not respond to the products due to a lack of a clear marketing and branding strategy. At the time the company was still struggling to clear up the loans it had taken to establish the small processing plant. Therefore the business through its clear business behaviour organization policy; decided to use the fact that it is a local business as a strategy to get the locals to consume its products, after all it was buying and processing the local milk boosting the local farmers. Consequently the strategy worked and the business picked. Over time it opened up a website so as to establish itself within the huge e-market. Unfortunately it could not engage a serious strategy - hiring and investing for the purposes of growth and e-commerce and ensuring growth in the future. The only competitor came forth after some time and tried to cut a niche of the small dairy market. The competitor’s strategy worked in that the firm engaged the farmers and made them feel like part of the whole process. While Acciaio Dairy only bought the milk, they did not venture in the farming practice. Acciaio later changed tactics and began campaigns through strained resources, but succeeded in establishing a relationship with the farmers through providing extension services in conjunction with the available government resources. The move received a lot of positive feed back from the farmers and created a solid base for the business. There are several strengths weaknesses, threats and opportunities that the business had against its competitors: The knowledge of the local market. Acciaio Diary was created by the locals to help process the milk produced by the farmers. It was to act independently and not to engage in the local dairy farming scene. It had the backing of the local market and bought milk from farmers while offering employment to the local people. Significant opportunities came in the form of a stable market. Another incentive was the subsidised extension facilities. The government could use all the support it could get to improve services. Acciaio took this as an opportunity to improve its brand name and consequently capture the market. Threats came from lack of a strong financial back ground and for some time the company struggled to repay loans. The competitor had substantial resources and succeeded in the small market. Therefore Acciaio Dairy seeks to establish itself within the local market in the hope that it will grow to be the business that was envisioned when it started a few years ago. Unfortunately the business has experienced a number problems that have quite literary threatened it existence. Fortunately it has always emerged unscathed despite the various misfortunes over the years. First was the fire that almost burnt down but its insurance company came to the rescue. Secondly was the global economic recession that saw many people lose their jobs. The company lost a large market share and the local community was adversely affected by the recession and many had to cut back. Though it seemed like a bad idea the two dairy companies in the area including Acciaio dairies decided to merge in an effort to attract an investor who would bring in the much needed resources and also give the workers and the dairy farmers a lifeline in the hard times. In this endeavour they were not successful and the company had to trim down many of its excesses through lean production. Many of the workers had to be laid off because of the lack of funds but with the promise of a job once the market picks up (Else, 2004). Fortunately, there was one thing that made the company stand out - the company had an established system of labour. The procedure of organizational behaviour was established among the few employees that were available. The relationship between the employees and the management was so well developed that the workers during the hard times decided to stick with the company and literally continued working and received lower pay to sustain the company. This is because they could not let the company and their only sources of livelihood go down. It was either they assist in whatever way or end up unemployed and in the streets with nothing. The company later came up with a system that would help in controlling the situation. During the recession the company accumulated debts but they knew that the situation was temporary and therefore they established a proper mode of communication between the various authorities within the company. Then they ensured that all the workers were treated as equals; the mangers would consult the workers as to what the next step would be and a consensus would be reached. The decisions varied and that is why a proper system of communication was established. This included a process of ensuring that all the employees were informed and well educated on the decisions that were to be taken by the managers The managers treated their employees as partners and in a way this ensured that the company continued to produce, though at a minimal or slightly above minimal but the company continued to receive orders that ensured it was running. The employees therefore had made a clear investment in the company. If another investor would have arrived may be a different strategy would have been taken. They employee would have been retrenched in the process and a lot would have been lost. This approach worked because of the relationship that was established between the managers and the subordinates (Hit et al, 2006). The relationship established ensured the survival of the company. That is therefore the power of organizational behaviour within an organization. If it is positive then the workers feel as apart of the company (Miner, 2007) Conclusion In conclusion, organizational behaviour is the study of organizations from a number of angles or views and levels of analysis. It is the study of how a business manages its relationships between the employees and the managers or the supervisors. Contemporary organizational studies try to understand and model these factors. Organization development is the other aspect of behavioural restraint knowledge at various levels, such as group, inter-group and organization, to bring about change. Its objectives are a higher quality of work-life, productivity, adaptability, and effectiveness. It accomplishes this by changing attitudes, behaviours, morals, strategies, and structures such that the organization can become accustomed to competitive actions, technological advances, and a fast pace of change within the environment. The change of attitudes is therefore of key concern to an organization. It involves the changing of mind sets within an organization therefore ensuring that a complete over haul of the mind is enacted and that the bodies of employees are of the correct mindset. This is important as stated above because the impetus of the employees is dependent on this particular mindset, and it therefore determines the potential and growth of the company. While this might be true, it can’t be the only reason as to why the study was established. Today the work environment has evolved and most of the workers if not all know their rights. The policies adopted by the relevant authorities are therefore constructed in search a way both parties are protected. The rights of the worker/employee have been up held while the rights of the employer have also been up held. Unfortunately a lot more still needs to be done. An organization forms its base on management values, visions and aims/goals. In turn these ideals drive the organizational customs which are composed of the proper organization, casual organization, and the social setting. The customs determine the type of management and group dynamics within the organization. The workers see this as the quality of work life which directs their extent of impetus or potential. Therefore their potential to improve or increase their potential is a determinant on how the management treats the employees. It is therefore imperative for a company to establish clear policies that protect the employees form the exploitative tendencies of the employer. It is therefore imperative of all the employers to ensure that their companies have the correct policies that encourage a positive organizational behaviour. Such a relationship is not only profitable but it basically requires very little to establish. This will guarantee that the protocols have been followed as they should. It will also ensure that all the necessary arms of the company are working together not against each other. Such benefits as positive competition will therefore come up, ensuring that the quality of work and products from the employees are of the highest quality possible. It is therefore recommended that Acciaio Diary should have made an early step in ensuring cooperation with the farmers and the local people. It should also have ventured in e-commerce to ensure that its products were not just popular locally but on a wider scale. This is a venture that the company can still exploit as it aims are regaining its position in the dairy industry. References Else, S. (2004) Organization theory and the transformation of large, complex organizations. The Faculty of the Graduate School of International Studies. University of Denver. Thesis. Hit M. et al. (2006) Organizational Behaviour a Strategic Approach. Wiley India Pvt. Ltd, New Delhi. Miner, J. B. (2007) Organizational behaviour, from theory to practice,. M.E. Sharpe, Armonk, N.Y. Mullins Laurie J. (2007) Management and Organizational Behaviour, Financial Times Prentice Hall, Harlow. Rollinson Derek. (2008) Organizational Behaviour and Analysis: An Integrated Approach, FT Prentice Hall. New York Statement of personal learning: The subject of behavioural studies as it applies to an organization or a business is fascinating. The subject is interesting as it defines the kinds of relationships that exist between the employer and an employee. This relationship is very important and is the basis of the study; it can vary between the employer and employee or the management and the workers. The relationship can vary depending on the established norms and rules within the organization. Finally, it has been identified that the condition, whether mental or physical of the employee is directly proportional to his/her output. This condition is therefore dependent on the rapport between the management and the workers. Read More