Factors Organizational Behaviour - Essay Example

Organisational Behaviour There are different implications of the factors related to establishment and operation of an organisation. The main focus of the study is to present the effects and implications of specific factors through the perspective related to organizational behaviour. Characteristics of contemporary organisations Organisation Structure The field of organisational behaviour is directly related the different factors of an organisation such as the individual, the groups and the structure. Basically, these factors have effects on the behaviour of the members and units of an organisation. The organisational structure has an essential impact on the organisational behaviour due to its contribution in the view of the members of the organisation (Kumar and Mittal 5). The organisational structure is defined by the ‘system of task, reporting, and authority relationships within the organisation’ with the purpose of coordinating the operations and process based on the mission, vision and goals (Griffin and Moorhead 407). Within these stages and steps, the organisational behaviours of the employee and the leaders play an essential and crucial role. The main purpose of the establishment of organisational structure is to be able to have an efficient, methodical and orderly accomplishment of goals to be able to achieve end results e.g. production of goods or provision of services. There are different factors included in the structure of the organization such as the type of leadership, the division of labour and the coordination of the different actions and processes undertaken within the system. One example that can be viewed is the production of computers in the Dell Company. Without the proper organisational structure, either the production of computers will be a failure or the thousands of employees will build their own computers and sell them. In such a scenario, the cost efficiency would never be achieved due to high labour and production costs (Griffin and Moorhead 407). Basically, a structured organisation enables efficient work that can ensure achievement of goals. Upon the determination of the determination of the meaning of organisational structure, the next step is the determination of the implications related to these challenges. In the case of the organisational structure, there are different issues that can affect the company specifically on the basis of organisational behaviour. In the contemporary era, one of the issues being faced by organisations is the international competitiveness on the basis of globalisation. This is a challenge specifically for the highly complex global organisations. This entails a very specific protocol and rules on the division of labour of the members of the organisation as well as the coordination of every unit especially since the operating units can be separated by territorial, cultural and social boundaries. Examples of such organisations are the Philips of Netherlands and the General Motors. These companies originated from different countries but due to transnational organisational structure, they cater to nations around the world (Daft 237). In these types of organizations, the organisational behaviour is important in every aspect of the operation. In the different units located in other countries, a common method used is the adaptation to the local cultures to be able to successful accomplishment of goals. Intrinsic organisational behaviour is comparatively more basic, such as dedication to the mission, vision and goals, and cooperation to other members of the organisation. Organisational Culture Organisational culture can be defined as the core values of as organisation and the collective view, perspective and course of action of the whole organization. It is also the manner and quality by which the members of the organisation work. Thus, organisational culture is directly related organisational behaviour since the individual attitude and behaviour of a worker is influenced by the prevailing culture within the organisation (Griffin and Moorhead 468). Organisational culture is a factor used to determine the characteristics, the performance and the success of an organisation in terms of the achievement of its own goals. For example in a profitable organisation, the determination of the organisational culture can be related to the success in the market. Improvement of an organisational culture or the collective values of the people is even a known and effective method to improve the performance of the organisation (Cameron and Quinn 24). Organisational culture is one of the most essential components of a company according to the work of Griffin and Moorhead. Creating an organisational culture is one of the primary and most essential decisions needed to be made upon the establishment of an organisation. Although it can be considered secondary to the development of the products or services offered, it comprises the main identity of the organisation. The strategic values of an organisation and the structure within the organisation are both directly linked to the culture that the organisation has. For that matter, the whole operation defines the organisational culture (p.473). Another view on the role of organisational culture had been presented by Kumar and Mittal. According to their work, organisational culture is important in terms of the effects it can have on the perception of the employees on their work. It can directly influence the group’s teamwork, sense of innovation and initiative. By understanding and accepting the culture of an organisation, an employee and member of the organisational structure can be inspired and be proactive in doing more that what is required in his or her job (p.55). Organisation culture defines shared perspective and perceptions of the members of the organisation but it is not dictated by any rule within the system. Thus, different cultures can occur within an organisation. It is a fact that organisational culture can be considered as an important parameter to describe the organisation but such view can mainly be based on the dominant culture. Numerous organisational subcultures though can exist with the dominant culture, which can be defined as the core values of the majority of the members of the organisation (Kumar and Mittal 55). Organisational culture can have implication in the operation of an organisation specifically when change is required to improve the effectiveness of the system. One example is an organisation with a dynamic environment such as the company IBM. Organisational behaviour which is a part of the organisational culture can then be considered a hindrance in the fast changing environment. Stability in organisational culture had been effective in the past eras but in the rapidly changing environment companies such as IBM which is directly linked to technology can be a barrier (Kumar and Mittal 58). Ownership Organisational ownership is one of the basic and most essential structural decisions needed to be undertaken in the establishment of company or organisation. There are important implications of the ownership of the company in terms of the achievement of a stable and recognized niche in the target market and stakeholders. Aside from the effects of ownership to the structure of the organisation, it can also affect the other aspects of operation such as the legal, financial and even the cultural dimensions. There are different factors that are taken into consideration in the decision regarding ownership which include size and nature of the business, level of control on the organisation, level of structure to manage, tax implications, expected profit or loss, plans of re-investment of earnings and plans of cashing out for the owner/s (AllBusiness.com, Inc.1). There are different types of ownership which is mainly based on the structure of the organisation. These are the sole proprietorship, the partnership, the corporation, and the limited liability company (LLC). Each of these types of ownership corresponds to the capital, the managing capabilities and the niche of an organisation. They have their own advantages and disadvantages (AllBusiness.com, Inc.1). Success of an organisation depends on the synergy of different factors but not limited on the type of ownership. For example in China, the Township and Village Enterprises (TVEs) are the focus of organisational research since it had not been limited by the type of ownership, in fact, classification of the type of ownership is a challenge. But the said enterprise is a huge success. TVEs are based on collective ownership. Based on the study, the form of ownership is directly related to organisational behaviour, worker attitudes and degrees of commitment to the enterprise (Bowles and Dong 1). Type and Nature of Organisation There are different types of organisation on the basis of the different factors such as the line of business, the mission and purpose of the organisation, and the other essential components of the organisation. Examples of the classifications of organisations are agricultural, financial, manufacturing, retailing and distribution, and marketing (Mitleton-Kelly 77). In the ICT field for example, there are 4 main times of organisations based on structure which include multinational organisations, financial institutions, national companies, utilities and transport (Slideshare Inc.). Based on the classification of organisation in UK, there are private and public sectors. The private sector organisations are classified further into the sole traders, the partnerships, the companies and the franchises (The Time UK) Based on the different references, there are formal and informal organisations. The formal organisations are structured and follow specific set of rules and culture within the operation. Any organisations then working for a goal in an organised manner such as the profit or non-profit, and in different fields and disciplines can be considered as a formal organisation. For example, one organisation can be classified as formal, profitable, technological, and a corporation. The different factors studied such as the types of structure or the organisational ownership can then be a basis of the type or nature of the company. Another basis of determining the type of organisation is the function or goals, e.g. manufacturing company (Kumar and Mittal 281). Different factors can be a basis of the type or nature of the company. This then can dictate the organisational behaviour and the organisational culture within the company. Geographical Scope The geographical scope is another important factor considered in the establishment and operation of an organisation. There are different levels or stages of geographical scope of operations which include international, local, national or regional levels (Clarke 42). This can also affect the policies and organisational structure of the company, thus affecting the organisational culture and behaviour within the members of the organisation. The determination of the geographical scope of an organisation can be considered included in the strategic decisions with the determination of the ‘breadth product line, the industry position, the extent of vertical integration and the orientation towards growth.’ The geographical scope is one of the important factors that can ensure the achievement and determination of the position of an organisation in the market or the niche in the social arena (Mukherjee 51). The geographical scope of an organisation is one of the three intrinsic features of the geographical dimension in corporate organisations along with the geographical centrality and host country characteristics. It is also referred to as multinationality which can be defined as the number of countries covered by the operation of an organisation. Commonly, multinational organisations can refer to four or more countries included in the operation (Clarke 65). Recommendations Organisational behaviour is an influential and important factor in the operation of the organisation. Due to the challenges of managing and maintaining an organisation, the continuous improvement in the strategies and decisions making process is important. Through the process, the organisational behaviour also changes and improves. Based on scientific data and evidences, the proper management of organisational behaviour can lead to the understanding, development and utilisation of the potentials of the members of the organisation. Due to the fact that organisational behaviour is defined as the manner by which individuals and groups act within the organisation, the strategies to improve and inculcate change for the development and growth are related to this definition (Ahmad, Gilkar and Darzi 3). Included in the basic methods for organisational development is the application of organisational interventions to improve on the organisational behaviour through interpersonal relationships. Sensitivity trainings for individual improvement and team building for the improvement of relationship within the organisations are important. Another method for improvement is through feedback surveys which can gather comments on different aspects of the organisation. The grid training which is based on the Blake and Mouton’s Managerial Grid presents important guidelines for organisational development and improvement (Ahmad, Gilkar and Darzi 317). The determination of the organisational behaviour specifically serves as a basis for managers in making decisions for the company in terms of achieving knowledge about the company and the development of a manager’s managerial capabilities in terms of planning, organising, directing and controlling different events and factors within the organisation, such information are essential (p.5). The organisational behaviour concepts are directed to the three major levels which include the individual, the group and the organisation, thus, the decisions of the managers are needed to take into account the effects on these levels within the organisation (p.10). To be able to perform the multitude of facets of roles, the manager needed to have the technical, interpersonal, conceptual, communication and political skills. These skills should be applied specifically in the fast changing organisational environment greatly affected by factors such as globalisation, information technology, work force diversity, empowering employees, business ethics, and stimulating innovation and change (p.19). For example in terms of globalization, the company Procter & Gamble has a manufacturing base in Vietnam with the major consumer in India. For that matter, the organisational behaviour and culture had to adapt to both countries. Multinational organisations have complex decision making process specifically in terms of organisational behaviour since it can greatly affect their success and performance (p.19). Works Cited Ahmad, S. Fayyaz, Nazir Ahmad Gilkar and Javid Ahmad Darzi. Organisational Behaviour. Atlantic Publishers & Distributors, 2008. AllBusiness.com. Inc. 2009. Forms of Business Ownership. 13 January 2011 Bowles, Paul and Xiao-Yuan Dong. “Enterprise Ownership, Enterprise Organisation, and Worker Attitudes in Chinese Rural Industry: Some New Evidence. Cabbridge Journal of Economics 23 (1999), 1-20. Cameron, Kim S. and Robert E. Quinn. Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. John Wiley and Sons, 2006. Clarke, Ian. The Spatial Organisation of Multinational Corporations. Taylor &Francis, 1985. Daft, Richard L. Organization Theory and Design. Cengage Learning, 2009. Griffin, Ricky W. and Gregory Moorhead. Organizational Behavior: Managing People and Organizations. Cengage Learning, 2009. Kumar, N. and R. Mittal. Organisational Behaviour. Anmol Publications PVT. LTD., 2001. Mitleton-Kelly, Eve. Complex Systems and Evolutionary Perspectives on Organisations. Emerald Group Publishing, 2003. Mukherjee, Sampat. Organisation & Management and Business Communication. New Age International, 2005. Slideshare Inc. 2011. Types of Organizations. 13 January 2011 The Time 100 UK. Types of Business Organisation. 13 January 2011 Read More