Advantages of organizational behaviour in an organization
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Management deals with people, their ideas and things related to them. In a simple form management can be defined as the art of things getting done through people in groups organized formally .
Management is the process where groups of people are involved in performance of organized activities. In an organization with a large number of employees the process of management directs the managers to perform some functions such as planning, staffing, controlling, organizing and directing to get things done by others.
Organizational behavior can be used to improve the management practices for influencing the employees effectively and working with them. Management is the key to obtaining organizational effectiveness. Organizational effectiveness depends on meeting the rapid changing requirements of the organization such as having the right people for the right job and at the right time. It helps understand the production and behavioral control in an organization.
The study of organizational behavior in an organization has the following advantages:
It helps to expand the horizon of management.
It helps improve the organizational performance in line with the individual performance which include reward systems, leadership, motivation etc.,
It helps develop commitment among the employees to achieve their personal goals thereby achieving the goals of the company.
It helps to understand, predict and control the behavior in the organization.
There are numerous factors that determine the successful performance in an organization, but for our discussion we will consider few important factors which are as follows:
Recruitment and Selection
Training and development
Reward through proper Performance Appraisal System
Effective Communication Skills
Developing Dedication by Motivating employees
Also, there are many factors that contribute to the changing nature of work at organization, but the two main factors are:
Current market scenario requires organizations to be more competitive and customer focused, hence there is an increased pressure on the organization
The breakthrough in IT and communication is another factor. For example mobile and internet have made work to be separated from time and space.
Organizations have changed their focus and their main principles are:
Defining vision and values from the consumer's perspective
Creating a value chain i.e., defining activities and process that add value to customers and link them
Remove activities that add no value to the organization.
Reducing inefficiencies in the tasks in an organization.
These principles have added value to the organization enabling them to respond rapidly to customers' needs and supporting change and encouraging innovation. I would also be discussing the various changes in the nature of modern work environment relevant to the factors I've stated above.
Recruitment and Selection
Recruitment is process in which a qualified and suitable person is selected for a job in a company. The recruitment process is the responsibility of the HR department and various methods are available for this process such as interviews, aptitude test, questionnaires etc., It is a forming phase and is the most difficult phase for the managers.
Let us consider the recruitment and selection process at Tesco. There are different ways through which Tesco advertises its vacancies. It first advertises its vacancy internally through intranet for two weeks. This provides an opportunity for the current employees looking for a change at the same level or for a promotion.
Tesco advertises its vacancies on the web at www.tesco-careers.com for external recruitment. It also displays vacancy boards on its stores. For managerial positions the applications are made online. The applicants chosen will have to first undergo an interview and for the final stage they will have attendance at the assessment centre. A waiting list of applicants is prepared by the stores and as the jobs become available candidates are finalized.
Specialist jobs as bakers and pharmacists are advertised externally through the following means:
Through the web and offline media
Through television and radio
Through advertisements in newspapers and magazines.
As many other companies Tesco also looks forward for cost- effective way of attracting applicants. Though advertising on media and magazines is expensive but sometimes this becomes essential to attract suitable people for the vacancy.
Selection can be defines as selecting the most suitable person from the list of candidates who have applied for the vacancy taking into consideration the laws and regulations of employment. Screening is an important part of the selection process and ensures that the selected candidates for the interview will be best suited for the job.
There are different stages in the screening process. In the first stage, the selectors at Tesco look through the CV's of the applicants as this briefs the candidate's education and job history. A CV helps to assess whether the candidate meets the specification for the job.
Screening is followed by the candidate who attends the assessment centre. This process takes place either in store and are run by managers. The candidates are assessed through various exercises such as team work and problem solving. This also provides consistency in the selection process.
In the modern work environment, the selection and recruitment process has become more sophisticated and detailed to opt for the best knowledge and skills in the market. The number of screening processes that organizations hold to select the right candidates has increased and also the type of tests have become more radical in their approach. Tests such as psychological evaluation and stress interviews are a common practice in today's work environment.
Training and Development
Training is very essential for the newly recruited employees. It is also very essential for the employees already employed so that their skills are up to date and in line with the latest trends and technologies. Training is becoming an essential part of every organization these days. Employees are made to undergo training programs in order to maximize their potential to meet organization goals.
Lets us consider Barclays for our case study here. Training is a very crucial task for the Human Resource department at Barclays. The main reason for this being the induction program helps employees understand the various policies and the structure of their jobs. This will also give employees enough time to adjust themselves to the environment in the organization together with inducing new ideas and skills in the employees. Training is the most difficult and challenging part in the organization as it is a continuous process where the trainer acting as a change agent makes trainees get familiar with the new organization.
The following are the main training aims at Barclay:
It helps to increase the level of confidence and motivation in employees
It creates a feeling of achievement and personal satisfaction
Improves the quality of staff and improves their skills.
The above are the contributing factors that the help the HR achieve their goal of making the employees feel a part of the organization.
Selecting a suitable a trainer is a very challenging issue as he a middleman between the employees and the organization. The trainer has the following responsibilities.
The trainer must assess the need for training the individual and set up a training program for the employee in order to reach the ultimate goal of the organization.
He must design the training program.
The most important task at Barclays Plc is group participation. Hence the main aim of the trainer would be to encourage this task.
The trainer acts as a messenger between the employees and the management.
The trainer must make sure that the newly learned skills are being practically applied.
He will decide the need for further training on the basis of the current performance appraisal.
In the modern work environment employees are keener on keeping themselves in touch with the latest technological development. They always pick up skills and enhance their knowledge quotient so as to face the growing competition in the current work environment. Therefore employing training and development schemes would be easier and would improve the overall quality of the workforce.
Performance Appraisal and Reward System
Performance appraisal is a process where performance of an employee is assessed in terms of expected goals set for them. On the basis of performance appraisal the company decides promotions, terminations, the level of supervision and the duties and responsibilities to be assigned to the employees. During the phase of performance appraisal the actual performance of the employees is assessed and evaluated. The HRM is responsible for the performance appraisal and it is its duty to pass the information accurately and impartially to the management so that necessary and future corrective measures can be taken. The HRM faces the following issues during performance appraisal:
Recognition and identification of an employee's strengths and weaknesses. This will help to utilize the strengths more effectively and the necessary steps to be taken to overcome the individuals weakness.
In certain cases employees should be given full effort, hence the HRM should identify the problems which are causing this. This also provides information needed for HR planning and act as an input to the HR department. This acts as a basis to make decisions such as strategies and future long term objectives.
It is the duty of the human resource management to create a method of performance appraisal and system of reward. The method created should be in line with the objectives of training and development program. Defined standards should be set to measure performance. The HRM should decide who will be using the appraisal method and appraised by the method created. The HRM should gather feedback from the employees about the appraisal method created, this will act as source of boosting the employees morale. This will help the employees assess their strengths and weakness. This will further encourage the employees to do better to get a reward from the organization. Employees in the organization try to do tasks that will not alone get them rewards in the form of bonuses and incentives but recognition in form of certificates and medals and also appraisal for doing something new and innovative. This will help motivate the employees.
In the case of Barclays the reward system is very important as this will help influence the employees to do something better and innovative. The reward system ultimately acts as a motivational factor for growth in future and is not an easy task. As this depends on the responsibility and the type of job being done.
If the performance management system is handled carefully and properly, leads to outstanding performance by employees and increases the level of motivation decreasing the absenteeism lack of morale of employees.
Performance appraisal and reward schemes are vital in today's work environment because employees today are more influenced by the corporate lifestyle and are always in the lookout for better job opportunities and hiked salaries. Therefore it is essential for organizations to keep their employees loyal towards them, and the easiest and most effective way of doing it is performance appraisal and reward schemes.
Effective Communication Skills
Effective communication is nothing but an art of conveying our message clearly to other people. It involves a lot of effort for effective communication as any error or distortion will result in misinterpretation of message. Lack of effective communication may result in lack of information, misunderstandings, employee performance may decrease which may ultimately affect the company's turnover. Ineffective communication may become a source of conflict and frustrate the employees. The manager's inability to communicate effectively may lead to the inability of employee not performing well as per the company demands. This happens when the employee is not aware of what is requested of him and ultimately leads employee dissatisfaction.
Effective communication has its own benefits in the workplace. Effective communication from managers to employees will result in the employees doing their job well. A good management style together with a positive communication approach will be quite effective in the workplace and will lead to better understanding between the employee and manager.
For an organization to be successful communication should happen both internally and externally.
Internal communication: between management and employees.
External communication: this takes place between staff and clients.
Let us consider Vodafone as a case study to illustrate the effective communication skills
Internal Communication: this takes place inside the organization between the employees and management. Here the employees act as stakeholders. This communication may take place in any of the forms listed below:
Vertically: this the top down approach which happens from the senior employees to juniors associates. The ultimate goal here is to improve the performance of tasks and make the junior employees understand the company's priorities and requirements.
Horizontally: this takes places between various teams and across departments. The goal here is to make sure roles are effectively carried out and tasks completed.
Intranet with restricted access to people within the business is a great tool for promoting better communication.
External communication :this takes place with customers. Vodafone has laid a principle for communication as "We will communicate openly and transparently with all of our stakeholders within the bounds of commercial confidentiality". Vodafone believes that this will reduce the barriers to communication. It makes sure that its messages are conveyed both verbally and non verbally.
For verbal communication the company has set contact centers so that the staff can be in direct contact with the customers and further giving an opportunity for its staff to talk to the customers about the issues.
Non verbal communication can take place through various methods such as advertisements in television, newspapers and other media, the Vodafone logo. This also acts as a method of determining the position of the brand. Further methods of non verbal communication include SMS to contact certain customers. Sales information can be reached out to customers through literature in the Vodafone shops.
The many forms of communication through which Vodafone reaches out to its customers are as below:
Promotion and sales material- Vodafone makes sure that the advertising material is correct and follows its Business principles. This also helps the information reaches out responsibly to its stakeholders together with promoting its products and services.
Awareness and Information: Vodafone promoted the use of mobile phones responsibly in the cars. It took the complex material and translated the information in easy to understand form and made the public aware of the new law and appropriate use of phones in the car.
Explanation and guidance: mobile phones have health effects on human beings. But the latest scientific research has something new and Vodafone needs to convey these findings clearly to the customers.
Communication in today's work environment is not only important as a means of better process flow but also as a means to bring all the employees together as a single unit. This is really beneficial when the employees have to work in a team environment. In today's work environment, employees have access to social network websites which are capable to increase the bond between employees and improve their effort as a team.
Motivation to dedicate Employees
A well motivated staff is a key to a productive and pleasant environment in a workplace. Motivating the employees must be one of the key responsibilities of a manager. An effective management and leadership reflect through effective motivation of employees in the workplace. Understanding the human nature is a key to effective employee motivation.
The key to performance improvement in an organization is motivation. Motivation is very essential for any business to survive and excel. Motivation is a skill and must be learnt. Performance can be defined as a function of ability and motivation as below
Job performance= function (ability)(motivation)
Ability depends on education and training. Motivation has the following seven strategies through which it can be initiated:
Fair treatment of people
Positive and high expectations
Satisfying the needs of the employees
Setting goals at work
To restructure the jobs
Set rewards and recognition for performance
Every organization has its own ways to motivate the employees to ensure that goals and targets are reached .
Motivation plays a vital role in today's work environment. Due to the cut-throat competition between organizations, it can be seen as a common practice for organizations to hire their rival's best workforce. So as to avoid that, employees need to be motivated not only in terms of their incentives and salary packages for their physical needs, but also with praise and recognition and better work environment to ease their psychological needs.
Obstacles to Effective Performance
The main obstacles to effective performance in an organization are as follows:
Culture is related to beliefs, values and customary ways of doing things. The main reason for employees leaving the company is cultural mismatch. According to the present culture employees are required to have a clear understanding of short term and long term goals. The employees are required to have a shared vision and values as well as being productive and motivated.
The organizational culture is determined by the leadership style and practices in an organization and hence plays an important role especially during acquisitions and mergers. Every organization has a set of values and beliefs. When an employee is exposed to a new culture, the individual goes through a state known as culture shock. When the companies merge the employees from the non dominant company need to adapt themselves to the new culture of the dominant company.
Let us consider Barclay Plc for instance. Barclay acquired Lehman Brothers and one of the major issues for Barclay after this acquisition is to take into consideration the two different cultures in these two companies. Most of the employees of Lehman Brothers have left Barclay and a few did not join Barclay. This makes it clear that the employees are not ready to adapt to the new values, leadership styles, beliefs and practices of the Barclay culture. One of the biggest challenges to the management at Barclay is to make employees accept the new culture. The change in culture ultimately has an effect on the motivation level of the employees, their commitment to the organization and their engagement in work. Another consequence of an acquisition is that the individuals from the non dominant organization will feel like loss of identity and the others will have a superior feeling. This will ultimately affect the company achieve its goals and objectives.
Another major issue of culture when the two organizations were merged is it will divert the attention of the employees and make the less productive. The attention of employees will be diverted to issues such as job security , feeling of discomfort working with new employees. Job security is the main issue as there will be duplication of departments and to manage the staff, the organization can reduce the manpower.
The job profiles may be redesigned which may have an impact on the performance of the employees. The employee's motivation, attitude and performance are determined by the culture. Motivation and culture go hand in hand. More an employee is motivated; the culture will be healthier. The key factor to be dealt in any organization is motivation. If an employee is not motivated properly then the employee will have problem accepting the new culture which will impact the individual's ability to do the job effectively and efficiently. The company should have flexible culture if a decision of acquisition is taken. This will allow the new employees to adjust to the new culture.
Culture reflects the style of management and leadership. A slight change in the values, leadership style and ideas will help the new employees adjust to the new environment. This is not easy task, but since Barclays has taken a decision of merger it should be ready to consider changes in its culture and leadership style.
Except for change nothing is constant in this world. Every activity in an organization results in some change. It can have a positive or negative effect depending on the communication made through change. The acquisition of Barclay and Lehman Brothers bought together a huge change in both organizations. New strategies and policies, procedures and work environment were created for work in both organizations. Change should involve people and not be imposed on people.
Preparing the employees of an organization for change is a very vital task and it is the responsibility of the management to do this. This can be done through various methods such as through oral communication, via training programs or through counseling. The major reason for the Lehman employees leaving Barclays when the two organizations were merged is that the change was not managed properly.
The key principles needed when planning to manage change are as follows:
Every person reacts to change differently.
Each person is different and has its own perceptions and preferences. A few people always look forward to change and new things and it easy to handle them. But it is a very difficult to handle people who always like things the way they were. These kind of people will experience stress and dissatisfaction and negative attitude towards their counterparts preferences.
Every person has his own needs and priorities
A few people work just for money but a few for the self and social identification. Change can be managed effectively by designing jobs in a better way through job redesign, job rotation management etc.
Managing expectations realistically
The organization should make clear to its employees that it cannot make everyone happy at the same time and this should be communicated effectively and realistically. The relation between expectations and reality is very important.
The management should do the tasks listed below in order to manage change effectively:
The management should inspire people and set certain objectives, goals and values for the organization
It should set up a communication network such as face to face interaction so that new ideas and policies can be easily communicated. If there are any obstacles in the way of communication then those should be removed as this will help people accept change.
Change can be made inevitable by promotions, recruitments and rewards.
When Barclays merges with Lehman conflicts were natural to arise as people from two different cultures and two different companies were merging. Starting with small disputes, conflicts may reach to higher levels which will ultimately affect the organization. Since the culture of both organizations is different each will have its own ideas, strategies, perspectives and goals.
The different types of conflict that may arise when people of two different cultures merge are as follows:
Conflict with boss
Since the manager has a more experience and bigger perspective it will not be good to encounter conflict with the boss. In order to avoid such a conflict it is better not to question his authority and any ideas and views should be presented in the form of suggestions.
Conflict with colleagues
Different point of view will lead to conflict between employees. This can be done resolved through proper communication.
Conflicts with the subordinates
Conflicts can be handles effectively by one of the following ways:
Each person should be given freedom to express their views.
Conflicts can be sorted to a greater level by identifying positive minded people.
Not everyone may have a broad vision as ours. So communicating and discussing our vision will help keep conflicts away.
The base of any organization depends on the policy, the values, the vision, the philosophy and goals set by the management. These act as the driving force for the organizational culture. Culture in a workplace determines the leadership style, the type of communication and group dynamics within the organization. The employees in the organization perceive the culture as a quality essential at work which has an impact on the degree of the employee's motivation. This ultimately affects the performance, personal growth and self development which ultimately affect the organization from achieving its goals.
The above discussed concepts such as communication, motivation, culture etc, make up only a small part of the theories of organizational behavior and theory. The success of any organization is determined by the application of the concepts of organizational behavior in the organization.
The best way to handle conflicts in a workplace is to address them through discussions and debates. Conflict can have a positive effect within the organization if it is addressed effectively. A successful manager is one who takes time to address and deal with the conflict. This in turn will lead to a healthy and diverse work environment.
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