Explaining Organizational Behavior And Culture Commerce Essay

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Organizational behavior organizational behavior refers to the study of the individual in organization that how it feels and reacts in the environment of the organization: we can explain the behavior of the organization in the words of Buchanan:

"The study of the structure, functioning, and performing of organization, and the behavior of groups and individuals within them" (David Buchanan, p. 2.)

In behavior we study the mind of the employees and motivate them to maximize the profit and employee feel satisfaction in all respect...

"A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the Purpose of applying such knowledge toward improving an Organization's effectiveness.

OB "studies three determinants of behavior in organizations:

Individuals, groups, and structure. In addition, OB applies the Knowledge gained about individuals, groups, and the effect of Structure on behavior in order to make organizations work more effectively" (Stephen P. Robbins)

The study of the organization behavior is to find that how individuals behave within organizations and how organizations respond to that behavior.  For human resource manager, the challenge then becomes finding and retaining individuals whose behavior suits the atmosphere of the company.  While it can be effectively argued that organizations are ultimately responsible for the overall success of their employees, it can also be argued that individuals possess intrinsic character and person traits that determine whether or not they will be successful within an organization.  It is the job of the human resource personnel to identify these inherent characteristics, and foster their growth so that an organization can eventually cultivate an "ideal employee."

Organization culture:

To explaining the culture of organization or corporate culture we can define this the collection of relatively uniform values, beliefes,customs, traditions and practice which are shared by an organization members and which are transmitted from one generation of employees to the next"(Buchanan p.512)

Values: anything which have some worth, these are childhood learning, moral and social percepts etc.

Organization believe: it is the acceptance of the situation and organization with in it

The concept of the organization culture rise by many social scholar, but the main contribution which is given to two main publication in 1980 namely by tom petr and Robert waterman in 1982. in their book. After that credit goes to Terrence deal and Allan Kennedy they wrote the book the corporate culture and they clearly explain the concept of culture on their book.

After that the concept and idea which is clearly explain by Edgar schein, his big contribution towards organization behavior.

Organization culture is an idea in the field of organization study and behavior which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with outside the organization.

We can diagrammatically explain this as following


If we see to the above diagram that how various activities are combine to formed an culture so culture is the combination of organization customs, values, and traditions to form an organization now the question is that how is will be best manage by the human resource personnel its totally upon his ability that how he are much competent to manage the organization activities and culture because its have great affect the working condition of the employees and their working condition it must be develop in such a way to have a role model for future. We can better understand organization culture also form below diagram also.


The organization culture may also be define as the culture which expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, express or implied contracts, and written and unwritten rules that the organization develops over time and that have worked well enough to be considered valid. Also called corporate culture, it manifests in (a) the ways the organization conducts its business, treats its employees, customers, and the wider community, (b) the extent to which autonomy and freedom is allowed in decision making, developing new ideas, and personal expression, (c) how power and information flow through its hierarchy, and (d) the strength of employee commitment towards collective objectives. It is termed 'strong' or 'weak' to the extent it is diffused through the organization. It impacts the organization's productivity and performance, and provides guidelines on customer care and service; product quality and safety; attendance and punctuality; and concern for the environment. It extends also to production-methods, marketing and advertising practices, and to new product creation. Expressed commonly as "It's how we do things here," it is unique for every organization and one of the hardest things to change.

But there are several factors which affect the culture as well as the behavior of the employees in the organization they are as under:

Factors which influence the behavior of employees may be external and internal factors

Internal factors include the leadership style, culture of the organization, and organizational structure. A Whle external factor includes the social and family life of the individual and other social dominant factors such as other businesses etc.

The factor which influence the culture of the organization includes the following

a) Changing in the management activities may greatly influence the corporate culture

b) Employees play vital role in the development of the organization it they also disturb or made change in the existing level of the employees these may also suffer and influence the organization culture.

c) Different type strategies may also affect the culture of the company

d) Geographical location may also affect the culture of the organization.


Now we can see from case study that the oil and gas academy how they treat the behavior and culture of the company:

The major thing or we may say the major benefits of the opito is to form a supply chain from that supply chain they are able to understand the behavior of the employees and the working condition of the employees, as the behavior and culture play very important role for achieving the overall objectives, so the opito starts their work form universities and colleges to attract new talented entrants into the organization. The opito learning supply chain has change the behavior and culture of the organization and now they are seeking the objective to achieve.

Company leadership approach to management and its human resource policies:

Leadership: different authors have defined the world leadership in different ways, but in simple words the term leadership means" is nothing but to encourage people to do work, with not only willingness, but willingness to do work with zeal and confidence

Leader must be able to evaluate the human and organizational context and be able to decide what behavior will best fit the situation there are several theories about the leadership behavior

contingency theory or approach:

path goal approach

situational leadership approach

1) Contingency theory or approach: the theory or approach presented by Fred E fiedler ,this approach states, that leader must adjust his or her style according to the nature of the organization context, such as the nature of task, and according to the attribute of the employees who carrying out the work..

2) Path goal approach: according to this approach a leader is to clarify and set goals with subordinates, help them to find the best path for achieving the goals and remove the obstacles.

This theory presents four leadership behavior and style

supportive leadership

participative leadership

directive leadership

Achievement oriented leadership.

Situational leadership approach: this theory/approach is also known as managerial grid. This theory can be best understood from the following figure.

Concern for people


Style 3

Style 2

Style 4

Style 1

↕ Low → task behavior ← high

Concern for task

Style 1: here the leader has high amount of task behavior, telling to subordinate what to do, how to do, when to do, and so on. But low amount of relationship.

Style 2: here leader has both high amount of task behavior and high amount of relationship.

Style 3: here leader has high amount of relationship behavior and support for subordinate but little task or direction behavior.

Style 4: here leader has low task behavior as will as low relationship behavior.

Six traits of leader:

Drive ------------ desire to lead----------integrity---------self confidence--------intelligence-------- job relevant knowledge

We can easily understand the concept of leadership from the above diagram also.


HR policies vary considerably from one organization to another, depending on the age of the organization, its size, the nature of the workforce and the position regarding union recognition, but here are the main policy areas

Principles: This is a statement about the general view by the management of employment in the organization. It is likely to carry ringing phrases about teamwork, fairness, innovation and opportunity, but may also include a declaration about the degree and method of employee involvement and the security of employment in different parts of the workforce.

Staffing and development: Here will be the specific undertakings to employees and the management strategies to be followed in appointing the most appropriate people, providing the opportunities for career growth and ensuring that employees develop their skills and capacities in line with the growth of the business. The main features of this policy area are how vacancies will be determined, where applicants will be sought and how decisions will be made in selection. There will be further sections on how promotions are made, training opportunities and requirements, as well as the use of performance appraisal and assessment centers.

Employee relations: Policies in the area of employee relations will depend on the union recognition situation, but typical features are arrangements about recognition, bargaining units and union membership agreements, agreements relating to negotiation, consultation, shop steward representation, membership of joint committees, safety matters and points of reference, such as following national engineering agreements on the number of days' annual holiday.

Mutual control: Several features of policy and related procedure deal with the working relationship between the organization and the employee or employees. These are mainly to deal with the approach to matters of grievance and discipline.

Terms and conditions: Aspects of terms and conditions policies are approaches to determining differentials in payment, levels of sick pay, pension provision, holidays, study leave and hours of work.

Equality of opportunity: A different type of HR policy is that relating to equality of opportunity. Theoretically, equalizing opportunity should be subsumed in all the other areas, but legislation and pressure groups have tended to identify this as an area needing separate treatment.


HR specialists could use the following procedure to devise policies:

1) Identify the topic: Individual topics on which policy clarification is needed have to be identified and worked on when the time is ripe. In identifying the topic, one has to be sure that it is correctly identified and that a policy statement will be timely.

2) Determine the key features: After the general idea has been accepted and shaped, there will be the key features of the policy to be determined. In the area of trade union recognition, the idea to be sold is whether or not to recognize. If the idea of recognition is accepted, the key features to be determined will be to decide which union to recognize and for what the union will be recognized - individual grievances only, terms and conditions of employment, manning levels or what?

3) Agree the details: The last stage is to agree the precise details of the policy statement, with all the implications for later interpretation and implementation. If the key features have been previously determined, then the detailed considerations can be carried through without the risk of jeopardizing what the policy is intended to achieve, but the importance of the details should not be ignored.

As now we can study how the opito has use their leadership and how they are achieving their objectives, the opito using the fyol suggested principles and also they are using for motivation the Abraham Maslow need of hierarchy.

Organization culture is basically the norms and value and belief of an organization in every organization it is necessary to have some understanding on the attitude and perception of the individual, without proper understanding of all these things one can not best control the organization culture, as we can see from the case study of the opito they properly designed a separate system for each employees learning centre from which they are in a position to understand the behavior and attitude of the employees so it is very easily than to shape organization culture on such way.


To explaining the culture of organization or corporate culture we can define this the collection of relatively uniform values, beliefes,customs, traditions and practice which are shared by an organization members and which are transmitted from one generation of employees to the next"(Buchanan p.512)

Perception: is the dynamic psychological process responsible for attending to, organizing and interpreting sensory data. Perception can be very useful in a variety of organization settings, for example with the design of aircraft instrumentation and displays for pilots and in the conduct of selection interviews for new employees.

Organization attitude: is a tendency to respond in certain way favorably or unfavorably to objects persons or situations.

Organization norms: are derived, expected modes of behavior. They are based on an organization values and beliefs, and they provide guidelines for individual and group behavior. These in turn produce outcome that reinforce shared values and beliefs.

Shard values

Reinforcing outcomes Shared beliefs


Individual group behavior

It is clear form the above figure that how different things combine to form organization culture, but here the question arise again that person attitudes.,perception,behavior, is very necessary to form organization culture as we have seen from the case study of oil and gas company opito. How they have combined their workforce team to done work and how they are using different management techniques to solve the problems.

Organization culture may also be clear from the above diagram as its seems the culture complete picture

Each organization has its own distinctive culture. It is a combination of the founders, past leadership, current leadership, crises, events, history, and size (Newstrom, Davis, 1993). This result in rites: the routines, rituals, and the "way we do things." These rites impact individual behavior on what it takes to be in good standing (the norm) and direct the appropriate behavior for each circumstance

The climate is the feel of the organization, the individual and shared perceptions and attitudes of the organization's members (Ivancevich, Konopaske, Matteson, 2007). While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, traditions, and customs; climate is a short-term phenomenon created by the current leadership. Climate represents the beliefs about the "feel of the organization" by its members. This individual perception of the "feel of the organization" comes from what the people believe about the activities that occur in the organization. These activities influence both individual and team motivation and satisfaction, such as:

Organizational climate is directly related to the leadership and management style of the leader, based on the values, attributes, skills, and actions, as well as the priorities of the leader. Compare this to "ethical climate" - the feel of the organization about the activities that have ethical content or those aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave the way we ought to behave. The behavior (character) of the leader is the most important factor that impacts the climate.

  It is useful for managers to have an awareness of how values and attitudes develop in individual and how these may relate to the organisation.  Also, managers may need to change attitudes in an organisation if faced with change situation or if they are seeking to change the corporate culture.  From your understanding of organisations behaviour, critically examine the extent to which this statement is true.

All attitudes ultimately develop from human needs and the values people place upon objects that satisfy those perceived needs. A value is a belief, a mission, or a philosophy that is meaningful. Whether we are consciously aware of them or not, every individual has a core set of personal values. Values can range from the commonplace, such as the belief in hard work and punctuality, to the more psychological, such as self-reliance, concern for others, and harmony of purpose.

this statement is true because it is very important for manger to have a complete awareness about the individual behavior and attitudes, because if no manager not no the perception and attitudes of the employees so he can not manage his business or organization successfully, as we have seen from case study that how opito are knowing the attitudes and behavior of the employees they form a separate supply chain through that they are able to best manage the employees.