According to French (2011), organizational behavior involves the study of staff in an organizational setup. It puts into consideration the practices utilized to organize and implement decisions. Hence, this term can be described as the study of individual employees and workgroups in the business environment. This paper aims to provide a discussion on organizational behavior grounded on acase study. It seeks to expound on the relevance of organizational behaviorin businesses, and how it can be utilized to bolster the performance of a workforce and the company at large. Moreover, the study seeks to explain the importance of communication in enhancing employee behavior.
Importance of Organizational Behaviour Knowledge to Managers
In today’s business environment, it is essential for managers to have an extensive knowledge of organizational behavior considering that they obtain the goals and objectives set by the company through its workforce (Fredrick, 2014). Thus, if a firm is to effectively organize the skills, talents, and expertise of its employees to obtain its underlying goals, it is imperative for the managers to understand how they can positively influence the behavior of its staff. This topic is crucial for managers because it enhances their understanding of how to classify resources into distinct departments to obtain both efficiency and effectiveness in the business environment. Additionally, the knowledge of organizational behavior is requisitebecause it teaches managers how to coordinate social units in the firm to attain mutual goals (Fredrick, 2014).
Furthermore, businesses today have experienced unprecedented growth due to the widespread advancement of technologies. For managers who have the mandate of the business operations of the firm, knowledge on organizational behavior is vital because it provides them with insights on how they can overcome global challenges and procure competitive advantage(Fredrick, 2014).For instance, this topic teaches them of the relevance of employee diversity, corporate downsizing, change of organizational structure,and job specialization. Similarly, knowledge of organizational behavior is essential for managers because it focuses on improving the productivity of both the employees and the organization, reduces employee turnover as well as patterns of absenteeism. It also helps mitigate deviant behaviors, and increase job satisfaction among its workforce (Fredrick, 2014).
Through the study of organizational behavior, managers construe what employees do in a work environment and how their individual behavior impacts the performance of a business firm. This topic also gives managers an understanding of how to administrate workforce diversity (Fredrick, 2014). This is critical because several business firms today are composed of a heterogeneous mix of people in terms of gender, age, and race. Thus, managers need a knowledge base on how toexercise control and channel the workers’ behavior into the desired direction.
Impact of Organizational Values to Employees
Organizational values refer to the perspectives utilized at a workplace towards the appropriate course of action (French, 2011). For a business environment to succeed, it is important that positive values are encouraged to positively influence the behavior of staff. For instance, an organization should encourage a labor force with strong ethical values. This can be attained through clearly defining the codes of conducts of a company, enrolling employees into training programs, and establishing an ethics committee that closely monitors and counsels employees on the acceptable and unacceptable behaviors in the workplace (French, 2011).
An assessment of the case study reveals that Pornthip Somsong altered the values of the organization to influence negatively the behavior of employees. For instance, Pornthip changed the organizational structure to a centralized authority stating that listening to employee ideas and complaints was a waste of time. Furthermore, rather than treating the employees as resources to the organization, she treated them as hired helps. This approach significantly decreased the job satisfaction rates of the staff to undertake their duties. The employees felt that their opinions were no longer appreciated.
Additionally, the organizational values of the company were compromised by the new punishment and reward system that Pornthip put in place. In her endeavor to expand the business firm, the new manager increased the production quotas by 20% and threatened the employees that if their productivity did not increase by 10%, their income would be reduced by the same rate. Conversely, she also delved onto theincentives that individually encouraged the employees to work harder. She eliminated the organization’s profit sharing scheme towards the employees, stating that they were paid enough. Moreover, Pornthip also instructed the closing down of the firm’s football field, where some of the employees played to rejuvenate themselves. She held that the staff did not use it much;thus,she plotted on how she would use the space for the expansion of the business. All these changes will not only decrease employee productivity but also lead to a high staff turnover and absenteeism.
Quality of Business Decisions
Upon appointment to the organization, Pornthip implemented several decisions, which were considered bad. She completely ignored the humanistic aspect of relating with the employees and looked down on the approach used by his father, who treated them like they were part of his family. By ignoring the complaints made by the employees, Pornthip created a venue for job dissatisfactionto not only take root but to also extend towards all the employees of the organization. Sadly, she also ignored the opinions and suggestions given by the workforce who did the actual implementation of business strategies and understoodits feasibility. By ignoring these ideas, the new manager reduced the probability of improving the firm’s profitability since the employees had obtained extensive knowledge base on business processes, and systemsthrough their direct working relationship with the company’s clients.
The other bad decision implemented by Pornthip wasthe decision to expand its business operation by partnering with the aggressive Japanese firms. While the successful execution of this strategy could increase the revenue accrued by the firm, this decision was madeon impulse rather than strategy. Pornthip should conduct an industry analysis to understand the prevalent patterns and trends of the market then identify its business niche. Furthermore, she should also evaluate the varying options for business expansion and identify which of the options were effective. Judging from her fear, Pornthip was attempting to identify a way to hedge the company from the fierce competition that was advancing in the industry while simultaneously growing her business.
To determine whether a decision is good or bad, one of the main factors put into consideration is the quality of its outcome (Ibrahim, 2014). In this case study, for instance, the quality of decisions implemented by the new manager can be classified as bad because several negative outcomes prevail. For instance, the performance of employees has significantly deteriorated and their motivation to work hard has decreased drastically. As a result, the productivity of the company has significantly increased. Aside from this, the novel decisions have increased the workload of employees causing lower concentration at work and an increase of waste materials as depicted by the rise of scrap rates.
Secondly, the other factor that is put into consideration is the costs(Ibrahim, 2014). A good business decision should increase the profitability of the firm, as well as its efficiencies by reducing expenditures and waste of raw materials(Ibrahim, 2014). An analysis ofthe case study reveals that while the manufactured outputs had gone marginally higher, so did the rates of scrap accumulated from the production process. The implication is that the cost of production is bound to rise as a result of this. Moreover, the increase of spare rates implies that there is an increase in raw material wastage due to poor production processes. In addition to this, the new decisions may have lowered the costs on the payroll, but it has acutely raised the expenditure on personnel.
Similarly, the other factor that is put into consideration when determining whether a business decision is good or bad is by evaluating its frameworks. In the case study, for example, one of the main reasons Pornthip altered the former approach was because she thought the employees were treated in a friendly manner. Changing this approach into a framework that does not accord employees the same respect, with the claim that these acts are ‘humanistic nonsense’ is wrong. Moreover, it was wrong for Pornthip to think that employees are only motivated by money and belittle the relevance of including them in the processes of decision making.
There are several theories that can be used to incite the performance of employees. In psychology, one of the theories that havebeen used to influence behavior to date significantly is the Maslow’s Hierarchy of Needs. Abraham Maslow put forward this theory in 1943 in an article titled, ‘A Theory of Human Motivation’ (Maslow, 2014). The principalconcept of the theory holds that the most basic needs of human beings must be procured for them to become motivated to achieve needs that are on higher levels. To support his hypothesis, Abraham Maslow developed a hierarchy of human needs that is composed of five levels. These include physiological needs, safety needs, love/ belonging, esteem, and self-actualization needs(Maslow, 2014).
In the workplace scenario, this approach holds that if employers want to incite their employees to work harder, it is imperative that they consider what their needs are (Maslow, 2014).This is becauseemployees have to be in good health, secure, safe, and in meaningful relationships before they are able to pursue self-actualization goals. At Sompong Machine Parts, Inc. the performance of employees can be improved by focusing on obtaining the self-actualization needs for its workforce. That can be achieved through explaining to the employees what their roles are in a relaxed and professional environment such as a staff retreat.Such an atmosphere gives them a feeling that the organization cares for them, and itclarifies the expectations of the manager to them.
The relevance of this approach is that it puts into consideration the needs of the employees. It encourages them to work harder by ensuring that the probability of obtaining their basic needs is possible. To instigate this effect, it is integral that Pornthipchanges the current organizational approach to the former model (Maslow, 2014). She should use an inclusive management perspective that gives employees a venue to not only provide suggestions on how the business can be improved, but also convey their complaints. This approach is beneficial in positively influencing the productivity of individual employees and the organization at large.
Communication is the Lifeblood of a Business
Communication in a business enterprise can be described as the transfer of information from an individual to another or a group of people for a mutual understanding (Sehgal, 2008). The person conveying this message is the sender while the person or the people receiving the information are the receivers (Sehgal, 2008). In a business firm, communication is perceived as the lifeblood of a business because of its role in conveying people’s ideas, grievances, and feelings on a subject matter. In the case study, for instance, Pornthip utilized vertical communication to explain to her subordinates the changes to be expected under her sovereignty.
Similarly, the importance of communication is illustrated by its capacity to promote the motivation of employees (Sehgal, 2008). If this organization is to produce more and its staff works harder, the new manager in collaboration with the leaders and supervisor of the company will require conveyinginformation byclarifying vision and goals of the organization, as well as the tasks to be done (Sehgal, 2008). This administration board will also be required to consult from its workforce the issues that affect them to identify areas within the work setup that can be improved. Aside from this, communication is imperative at Sompong Machine Parts, Incsinceit is a source of information to the stakeholders of the company who are required to implement decisions. Sufficient information on a subject matter is mandatory for the relevant stakeholders to appraise alternative courses of action and make a decision.
The term ‘group thinking’ is used to refer to the faulty decisions members of a group make because of the pressure exerted onthem by the group itself (Sustein& Hastie, 2015). Often, the pressure applied to the group deteriorates the members’ willingness towards reality testing;it sways their moral judgment and mitigates their mental efficiencies (Sustein & Hastie, 2015). In the former meeting, for instance, the group convened by Pornthip was affected by group thinking because she brought them the ‘final solution’ on how to increase productivity. Her imposition and sense of finality provided little room for any alternatives to be considered.
In the following meeting, Pornthip can overcome group thinking by becoming an impartial leader (Sustein & Hastie, 2015). She should encourage the senior managers to provide suggestions on how to enhance the productivity of the company. Additionally, she should listen to every suggestion without biases and later make a decision on which suggestions are suitable. Similarly, group thinking can be averted by encouraging the senior managers to brainstorm (Sustein & Hastie, 2015). The meeting should provide room for debate and constructive criticismto transpire without the fear of judgment. This will encourage innovative thinking, and new ways of resolving the productivity dilemma shall be established. Moreover, the group-thinkingdilemma can be avoided by appointing a team leader who will facilitate the meeting(Sustein & Hastie, 2015).The role of this person will be to challenge the assumptions of the group and motivate them to address distinct perspectives that will be raised at the meeting.
Fredrick, P. R. (2014). Organisational Behaviour and its Role in Management of Business. Global Journal of Finance and Management.
French, R. (2011). Organizational Behaviour. Chichester: John Wiley & Sons, Inc.
Ibrahim, O. (2014). Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis. Beruit, Lebanon: IGI Global
Sehgal, M.K. (2008). Business Communication. New Delhi: Excel Books Publishing
Sustein, C. &Hastie, R. (2015). Wiser: Getting Beyond Groupthink to Make Groups Smarter. Boston: Harvard Business Review Press
Maslow, A. H. (2014). Toward a Psychology of Being. Mason, OH: Lusena Books Publishing