Analysis of Organisation Behaviour - Essay Example

rgаnizаtiоn Bеhаviоur Аnаlysis Рrоjесt Name: Institution: Course: Tutor: Date: Title Page Topic: Organisation Behaviour Analysis Project Name: ID: Tutor: No. of Words: 3000 INTRODUCTION The ability to identify and analyze the management strategies and organization procedures of a company is an important skill in determining and providing a basis for the rejuvenation as well as sustaining the competitive advantages of an organization in the current competitive business environment. Different companies employ different organization structures and management techniques. One of the major concepts that every organization should consider not to lock out is the ability to harmonize the consumer needs and abilities with the goals and objectives of the organization (Bixler 2004). It is therefore important that an employee understands the environment from which he/she works, know what to provide, at what time and in what situations. In this article I will focus my attention on the organizational behavior of Malaysia shell company. I will critically analyze the Malaysia organization culture against the entire corporate and the relationship of its organization to the business performance. I will also analyze the relationship between three employee characteristics, that is, leadership, power and organization authority. Shell involves a union of energy as well as petrochemical corporations from all over the world. Shell company has its headquarters situated in Netherlands (The Hague). The Malaysia Shell group is a constituent of the Royal Dutch Shell plc that is also a constituent of the England and Wales Morrison (2004). It is among the many groups situated in different countries. Being an employee at the Malaysia shell company, I was able to compile a report explicitly discussing the role of the organization, the management theories as well as its entire organizational structure. Personal observation technique was employed to gather information about the company. Observations were made concerning the behavior of the employees in their responsibilities, compliance to rules and regulations set by the the organization, employee attitudes, order and the general business performance. Adequate and reliable primary data sources from different researchers was employed as a comparative tool to identify and analyze the organizational behavior of the Shell company. Body Malaysia Shell Company’s Historical Role and Objectives. Shell Company is a global corporation that was started up in the early 19th century in order to provide energy and other petrochemical products in the world. It has established corporations in more than 100 different nations. Shell Malaysia is among the shell/royal Dutch company. In Malaysia, the company has approximately 6,500 employees in the labor force. Backed by the archives of history since centuries ago and existence in the nation, the Shell companies in Malaysia deals with a number of functions including: exploring and the production of oil, petrol and other sources of energy, refining of petroleum as well as the manufacturing of petrochemical products. The corporation has greatly contributed into the development of the global shell into being the chief supplier of fuel to the Expeditionary Forces of the British during the World War I and earned profits from the widespread use of motor car after the war. (Morrison 2004). Malaysia Shell company played a very significant role pertaining the contributions they made to the global shell to the efforts of the Allies’ war in that they became the chief suppliers of fuel to the expedition forces of the British. Therefore, the shell Malaysia facilitated towards making its reputation and increasing profits while at the same time it extended sales to many parts of the world not swayed or affected by conflicts as in Venezuela and Mexico.The war accepted that the oil-fired transport was more supreme as compared to the railway transport that was slow and less flexible which was relied upon by the Germans. Romania was invaded by Germany and part of the company’s worldwide productions destroyed within a few days while the revolution ensured all its assets were seized in Russia (Morrison 2004). Currently, the company is actively engaging in developing main strategies where technology and professionalism adds worth to their resource holders and exploring new reserves for oil and gas. On the other side, the management sector constantly emphasizes on sustaining the generation of capital from their existing assets as well as the specific investments in the development markets. One of the company’s which forms the foundations of the group’s general working principles involve the critical virtues of integrity, honesty as well as respect for every humankind (Morrison 2004). The Malaysia shell management has its main objectives set to become efficient, responsible and profitable in producing oil, chemicals, petroleum, oil products and other special trades. The company also engage in exploration, development and extraction of extra sources of energy so as to meet the dynamic demands of the customers as well as the general global energy demand. The group aim at making oil and gas critical to the global energy demands for the development of the economy for many years in future. It purposes to take the role of ensuring that the products are extracted and delivered profitably - in ways that are responsible of the environment and society.It also aim at seeking performance of high standards as well as to maintain a strong and growing stand in the competitive conditions in which they operate. The management work in conjunction with its employees so as to promote an enabling environment them and their clients, partners and lawmakers in order to create a more sustainable and efficient use of natural resources and energy (Dorman 2004). Formal Organization Formal organization refers to a specific set of rules within an organization which governs its order, procedure and structures. It describes the hierarchical order of the entire staff from the most senior downwards to the juniors. The rules are basically written in a language that gives little discretion for interpreting. While in some organizations the rules may be taken as a formality there are organizations that follow the rules to the letter, for instance the Malaysia shell organization. Basically, the shell organization adheres to their formal organization with an aim of meeting the common set of objectives. One of the reasons why the Malaysia shell company adheres to their formal organization is to ensure that the organizational goals are accomplished: The organization delegates duties to certain individuals, to a specific group or to a team of workers where these parties work towards attaining the definitely set organizational goals. Compliance to this set of rules also ensure that various activities of the organization are co-ordinated: This clearly defines the authority, responsibilities, and individual accountability of every employee in the organization which facilitates efficient co-ordination of different activities in the organization.(Mossink & Greef 2005) The commission responsible for setting or reviewing the organization’s formal structure considers the needs of the employees or involves an employee representative during the formulation of the rules. Shell Malaysia employs a ‘Scorecard’ initiative which gives a record of deliverable which is used to assess and to compare the performance of individuals or organizations. The Company provides rewards to those individuals who contribute frequently to contributors through sending of e-mails, making inclusions of entries in the records of achievement stories and/or domestic in-house newsletter as said by Mcilroy (2003) which is evident that the company involves its employees in decision-making processes. The company has five chief worldwide item divisions, that is, the E & Ps, Coal, Chemicals, Oils and Gas. Every working company gives a report about which stands as the most relevant global division (Hoffman 2005). This helps the commission to establish logical authority relationships. This is an important motivation to employees in that they feel their matters are looked into when involved in designing their governance. The company also involves the members in decision making where they set specific positions to be determined by the employees through voting. The company also produces equipment like vehicles, uniform, office equipment like pens and books. This intends to unite and promote employees need to feel related to the company. The hierarchical structure of the Malaysia shell company is well defined and inherent with its formal organization. So every employee has a definite role in the organization. The Shell Company has the support of the top management and takes different roles in facilitating knowledge management activities. The top management was determined to emphasize their intention as the global proficient networks to share as well as disseminate knowledge increasingly. Formal organization of the company has permitted the employment of the idea of specialization as well as division of work. The organization divides work amongst all its human resources in consideration of their abilities and skills which aids in greater performances, efficiency, productivity and quality output. Separating individuals with different skills or abilities and grouping together those that have similar skills and abilities Creates greater group cohesiveness (William 2003). In order to improve performance, the shell organization offers training to its employees. Employees portraying better skills than others in a specific field may be promoted to a higher rank or have a higher rewarded. This is among the many ways that the company uses to enhance intra-competition as well as a way of motivating its employees. The Malaysia department has put in place the Organizational Performances and Learning Team which offers support to actively working units to promote their abilities to share knowledge (Mcilroy 2003). Malaysia Shell Company Public Relations Public Relations is extensively becoming important in the current business environment. It involves putting a premium on the worth of two-way discourse and endorsing a third party.The Malaysia shell company employs high professionals in public relations who have the responsibility of managing the organization’s public critics who critique their behavior. Having these experts the corporation gets the opportunity and ability to take part in debates so as to defend or promote its products to their different public.The Shell Malaysia takes this chance to promote themselves as well as promoting the image of their company and that of their products. It also helps them in managing the relationships with all its clients. The opportunity acts as their plan to save money through management of the threats to their operations which may at times generate income by creating support. The company co-operates with other companies selling similar products in regulating product demands and market prices. The company also complies with the set national and international business rules and regulations. The group follows appropriate procedures in extraction process as well as the location of sales and marketing infrastructure (Joy 2010). Malaysia Shell Company Human Resource In the year 2000, the Shell company started a worldwide strategy to execute a Human Resource personnel administrations system. At the same year, the Malaysia company had already acquired a few Human Resource systems. The company wanted one truth version and to build global Human Resource business processes, for instance pertaining performance and reward. In fact the company had set a few policies rewarding performance! Malaysia Shell employees, using an SAP system, were ranked in the first list of states in 2002. In the year 2003, Netherlands and UK were integrated while the US got integrated in 2005. Thousands of employees were using the system by the year 2008. Currently, it records a big number of employees, consisting of their citizens and the expatriates, whose track is specifically difficult to be traced, as well as several interfaces (Agwu 2003). After staying for three years working on the project, there emerged a demand for data cleanup. Thousands of data elements were cleansed, however, nothing in particular was made to explain the root causes. Immediately, data quality started deteriorating again. At that point the Malaysia Shell company hired professionals of data quality. A sample assessment of the company’s employees information in 2007 including hires, international transfer, local transfers and leavers, shown a rate above average. This was a chance for the experts, who by then were in charge of the Human Resource Data processes and dynamic leaders, to wave a flag at the international Human Resource executive committee, which raised people's eyebrows. Armed with these outcomes the shell Malaysia got a ticket to execute a more systematic programmer of data quality. The cyclical data quality procedure that is now followed by the Malaysia Shell company is: definition of data, measurement of data, identification of the problem root causes and making improvements. The employees are responsible of their personal information and they possess a portal tool (online) for that purpose (About us 2007). The advanced quality of Human Resource data, since year 2008 onwards, has been to open up new possibilities of analytical work. The Malaysia shell company is determined to move from a circumstance where a person would wait for the report to be prepared by another person to a situation where the Human Resource business persons greatly engage in controlling the analytic that they require to keep their businesses moving by means of dashboards that they can easily drill into.In response to the many journeys, the road has been a bumpy one so as in respect to several data management strategies the focus has been on more on the process than the technology. The labor costs have been estimated to be around £5000.This is modest in comparison with the Shell global company’s $20 billion net profit in the year 2010 (Morrison 2004). The Malaysia shell company has harvested much from its good relations with its employees. In fact, the major factor that has contributed to thrust of the company’s economy has been the inculcation of safety culture of the employees at company level founded on three principles: Inculcation of the safety culture of the employees at company level has led to higher employee’s safety performance, management and the entire company resulting in minimized disruption of the processes of work and minimized liabilities; Developed performance has led to occurrence of few accidents, less damages, minimized liabilities, few legal costs, less medical costs etc. by reducing the safety risks and creating better chances and rehabilitating employees after injury. Better company performance has led to advanced productions, profitability, proficiency, qualities, corporate images and innovative capacities by improving the employees’ skills through training, motivations and ergonomic (Porter 2005). People working in Malaysia Shell are divided into effective teams, and engage in creating and adapting the knowledge of international finest practice to local conditions. The Manager, in charge of Shell International Exploration & Production department in Malaysia once stated that within E&P, the department focuses on people and their connections. The statement developed into a slogan which meant that knowing the people to work with was as important as knowing how to work on a certain matter (Cupach & Tadasu 2003). The management of the Malaysia shell company enjoys the fruits of high business performance contributed partly by understanding and fostering safety business culture. The company is now working on how to enhance the following measures: Conducting continuous trainings and retraining for the safety personnel as well as the whole labor force on safe work Processes; Committing themselves towards uplifting visible management on inculcating safety culture in themselves and their labor force; the company has also established monthly safety incentives scheme for all its employees; constant execution of safety rules and the best industrial practice protocols; constant review of the company safety policies in order to accept changes in the building environment and current advancements in hazards management; reviewing and executing the daily toolbox meetings pertaining the safe work procedures; and increasing - in site - safety audits as well as reviewing the monthly safety meetings pertaining the attitudinal change of the employees towards safety (Court 2003). As stated earlier, Management of Knowledge is one of the complex skills for an organization as it requires the organization to strike a balance or harmonize the relationship between human resource and technology. Since the knowledge of any organization lies within the people, procedures and systems, products and other management basis, successful execution of management of knowledge is highly influenced by how the organization understands and influence the attitudes of its employees, culture of the organization as well as the physical form of the organization. The business nature is commonly compound, as a result, companies producing oil and gas that consider knowledge management to be a strategic plan are increasing in number around the world. Knowledge management has been the greatest challenge to the shell company. Among the factors that are considered critical for a successful knowledge management projects include: Commitment to top management, organizational form, style of management and favorable learning conditions with advanced technological infrastructure. However, the Malaysia shell company has tried to work on the above factors although it has not succeeded in implementing total knowledge management (Ulrike & Cairns 2004). Conclusion In conclusion, Malaysia Shell Company is one of the most performing groups of the global shell company. The organization has been able to employ appropriate organizational structure and adopted a culture that is favorable to both the employees and their customers. This has been able to boost their performance as well as earning them a reputation not only in their country but also in other nations. From my critical analysis of the organization behavior of Malaysia shell management department, I have been able to find out that the company has tried to harmonize, their physical and technological infrastructure and the human resources they have and directed the whole structure towards achieving the organizational goals (Stankosky 2004). The Malaysia shell succeeded to maintain the corporate performance culture and put in control the behavior of its employees which has led to its exemplary business performance (William 2003). The organization has employed professionals in consideration of high leadership qualities. It also recognizes employees according to his or her ability or power to carry out business tasks. The organization has therefore managed to keep a balance of its leadership, power and the organizational authority from their formal organization. Despite of these great performances, the Malaysia shell company faces the problem of managing the little extraction and exploration infrastructure. I would recommend that the organization forms a special department to cater for the purchases of new equipment and maintenance of the available equipment. It would also be important to get other sources of capital like borrowing from their government, bank loans etc. Appendix I employed a case study method to analyze the organizational behavior of the Malaysia management department. I compared my collection with the research work of other experts regarding the standard theories of management. I have worked at the Malaysia shell company for more than three years, so I had enough time to make observations to the employee behavior as well as the management procedures of the company. Furthermore, I employed personal interview to some employees to assess their needs and attitudes towards the management. Following is a sample of questions I used to gather information from a colleague employee: 1. What do you think can be done by the management to improve the performance of the organization? 2. Do you prefer working for another company to working here? 3. What is your idea about the culture of Malaysia organization? Another sample of questions I used to evaluate the consumer needs was as follows: 1. Are the prices of our products favorable? Yes or No 2. Do you prefer the quality of our products to other products? Yes or No 3. Do you think our business meets the demands of the consumers? Yes or No These questions were in a sheet of paper and did not require the subject to give his/her identity Reference List About us .2007. Shell Global, Shell Global Web site, Retrieved from: http://www.shell.com/Shell (2009), R D. Agwu, O. 2012. European Journal of Business and Social Sciences: Impact of employees safety culture on organizational performance in Shel. 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Implementing a successful knowledge management plan in a mature upstream subsurface organization. Singapore: Singapore press Morrison,T. 2004. Shell Gas Direct Limited. Retrieved from: shell.com, www.ofgem.gov.uk/ABOUT%20US/CORPPLAN/Documents1/5931-Shell_Gas_Direct.pdf - (2009) Mossink, J. & De Greef, M. 2005. Inventory of Socio-Economic Costs of Work Accidents Report, European Agency for Safety and Health at Work, Office for Official Publication of the European Communities, Luxembourg. Porter, M. 2005. Competitive Advantage. New York: The Free Press Stankosky, M. 2004. Tackling a unified Knowledge Management framework, Knowledge Management World, Available at: http://www.kmworld.com/publications, 13 (1). Ulrike, N and Ed Cairns. 2004. "Identity Management Strategies In Northern Ireland”, Journal Of Social Psychology 142.3: 371-380. Academic Search Premier William, B. 2003. "Intercultural Communication Theories", in William B (ed.), Cross-Cultural and Intercultural Communication. 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