Challenges and Opportunities for Organizational Behavior - Term Paper Example

Organizational Behavior Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecture Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Executive Summary Organizations in the present business environment need to apply organizational behavior knowledge to gain competitive advantage in the market. This paper discusses the current state of organizational behavior in Southern Africa and the United States. The paper begins by introducing the concept of organizational behavior and the integrative model of organizational behavior that is used to analyze and structure the aspects of organizational behavior as they are practiced in the two countries. Secondly, the paper discusses each of the aspects of organizational behavior with emphasis on what should be the ideal practice of the aspect in organizations. It goes on to compare how the aspect of organizational behavior is being applied in one of the two countries. Thirdly, the paper outlines the challenges and opportunities for the application of organizational behavior knowledge and briefly discusses some of these challenges and opportunities and how they are being dealt with by US organizations. Finally, the report concludes that if organizational behavior knowledge is applied in the management of organizations they will be able to gain and sustain competitive advantage in the markets they operate. Table of Contents Executive Summary 1 Table of Contents 3 1.0 Introduction 4 2.0 Influence of Organizational Behavior in Workplaces 4 2.1 Organizational Culture 4 2.2 Organizational Structure 6 2.3 Leadership behavior and style 7 3.0 Challenges and Opportunities for Organizational Behavior 9 3.1 Improving people Skills 9 3.2 Improving quality and productivity 10 3.3 Responding to Globalization 11 3.4 Empowering People and Motivating People 12 4.0 Conclusion 12 References 13 1.0 Introduction Organizational Behavior is concerned with how knowledge about people and groups is applied to enhance the efficiency and effectiveness of the organization. According to McShane and Von Glinow (2009) Organizational behavior has very many aspects which may sometimes leave a scholar wondering how the different aspects fit in and lead to the desired outcomes. Therefore, McShane and Von Glinow (2009) structures organizational behavior in the integrative model of organizational behavior according to how each aspect affects the three independent variables; individual, group and organizational level. The model divides aspects of organizational culture into organizational mechanisms, group mechanisms and Individual characteristics. Organizational level factors include organizational culture and organizational structure, Group level mechanism in leadership behavior and style, leadership power and influence, Team processes and team characteristics. On the other hand individual level factors include personal and cultural values and ability. In this paper each of these factors is explored separately and how each affects the organization, groups or individuals. Secondly, the paper analyzes the challenges and opportunities where organizational behavior can be applied in enhancing modern organizations. 2.0 Influence of Organizational Behavior in Workplaces 2.1 Organizational Culture Organizational culture has the largest influence in the workplace of the individual and the group level. In McShane and Von Glinow (2009) organizational culture was found to be closely connected to employees’ commitment to the organization. Organizational culture can be defined as a unique pattern of the way things are done in an organization. According to Prati, McMillan-Capehart and Karriker (2009) organizational culture plays several important roles in an organization including provision of a sense of identity, it generates organizational commitment to the organization’s goals and it creates and reinforces standards of behavior. According to Chen (2004) in successful organizations, organizational culture assists in the development of employee commitment and sustenance of the commitment intensity levels. Where there is a negative organizational gap the commitment of managers to the organization is negatively affected. A culture gap is defined as a situation where the existing and the dominant organizational culture is different with the culture that is preferred in the organization. According to Prati, McMillan-Capehart and Karriker (2009) organizational culture strongly pressures organizations to comply with the existing way of doing things in the organization. Thus, organizational culture is a large determinant of employee commitment. Where organizations have similar values to those of employees, the employee’s commitment to the organizations also increases. Mathekga and Buccus (2006) argue that a good organizational culture is key to the effective organizational performance and delivery of services. Where organizations possess an achievement orientated culture employees show higher levels of commitment and support for the organizational vision and mission. Mathekga and Buccus (2006) concludes that in South African municipalities organizational culture is a strong influence on employee commitment which in turn affects the quality of service delivery. The organizational culture typology adopted by an organization determines the employee commitment to the organization. Typologies of organizational behavior are classified into; power culture, achievement culture, support culture and achievement culture (Mathekga and Buccus 2006). According to Douglas, Davidson and Schwartz (2001) socialization is important in introducing an organizational culture where existing workers teach those who are joining the workforce the norms and the values of the organization. How well an employee fit into an organization’s culture is determined by how well workers socialize with others and this also has an effect on the employee commitment to the organizations. The effects of organizational commitment are thus important to the organization as it is an antecedent influences several important work outcomes. These outcomes include withdrawal, performance, employee turnover, extra-role behavior and tardiness (Richard et al 2009). 2.2 Organizational Structure Organizational structure is one of the factors that influence organizational behavior in the workplace. According to Ambrose and Schminke (2003), the structure of an organization is a powerful and visible aspect of organizational behavior. Its most profound influence is on organizations as it determines their ability to meet their goals. Secondly, in a world that is increasingly in flux organizational structure can determine how well an organization responds and survive changes in its operating environment. Organizational culture is formulated by top decision makers in an organization (Ambrose and Schminke 2003). Processes and level of the workforce needed to carry an organization's operation determine the structure an organization will adopt. The structure of the organization is the fast aspect of organizational behavior that is targeted for modification when an organization seeks to adapt to changes in its operating environment. The organizational structure is designed to enable decision makers control those who are insubordinate to the structure. Through the organizational structure a responsibility and power to make decisions is allocated to the appropriate staff. According to James (2000) the type of organizational structure adopted by a particular organization heavily influences its behavior. The matrix Organizational structures are one of the organizational structures that is gaining popularity in the United States after years of being disregarded. According to Galbraith (2008) Proctor and gamble who have successfully adopted the matrix organizational structure are performing remarkably well. Proctors and Gamble revenue grew by double digits for three consecutive years underlining the success of good organizational structure on the performance of an organization (Galbraith, 2008). The Matrix model has grown in stature in the US and is widely adopted by large multinationals, consumer-products and multi-brand companies. 2.3 Leadership behavior and style One of the most influential aspects of organizational behavior in the workplace is the behavior and leadership style of the organization’s management. According to Prati, McMillan-Capehart and Karriker (2009), the way leaders behave directly influence the behavior of employees in the organization. It is necessary for leaders to adjust their leadership styles to modify its impacts on the day to day operations of the firm. The relationship between workers and their bosses can either enhance or hinder the performance of employees. A casual relationship between a leader and his followers where a leader assumes those under him has the capability to perform their task without direction may backfire if the workers are unwilling to complete the task (Prati, McMillan-Capehart and Karriker 2009). On the other hand, too much follow-up on a responsibility that has already been delegated to someone else negatively affects the performance capacity of an employee. Most of the employees today prefer to have the maximum possible autonomy over the tasks they perform. According to Soylu (2011), employees in the workplace need their leaders to protect their interests in the organization. When employees view their leaders as protectors, employees grow an attachment to the leaders as they ensure them of security and survival in the workplace. According to Soylu (2011) managers should be attentive to the security needs of their employees to encourage them to commit to the organization. As a protector of employees a leader is able to better influence their performance as they adapt characteristics and perform in a way to impress their protector. Where leaders are perceived as protectors and they insist on performance, the employees will perform to the best of their ability to satisfy their leader. Flexibility is one of the most effective qualities of a leader in today’s workplace. Flexible leaders innovate new ways to achieve results through utilizing new ways of communicating and connecting with employees. Sims Jr, Faraj and Yun (2009) argues that flexibility is key in reducing errors and tension among employees as they feel they are well understood. Flexibility as a leadership quality shows that the leaders appreciate the diversity of the employees he leads. Sims Jr, Faraj andYun (2009) contrasts two groups of employees in an organization; those who need instructions to be laid out in detail and those who prefer to find their way of doing things. Recognition of the diversity in behavior of employees is important in determining which teams to place an employee. Whether a leader is supportive to those who follow him heavily bears on interpersonal relationships in the workplace. Where leaders are considerate about the plight of the people they are able to gain their loyalty and friendship. When the leader needs task to be accomplished he relies on the support and loyalty he has gained. According to Sims Jr, Faraj and Yun (2009) workers who are led by friendly, cooperative and supportive leaders express more satisfaction with their work than those who are under the control of cold and impersonal leaders. Employees who are satisfied with their work are less likely to be absent from work or exhibit deviant workplace behaviors. Organizations with a supportive leadership style are also able to reduce the rate of employee turnover as employees tend to stay longer with an organization whose leadership strives to ensure they are satisfied with their work. Directive leadership has been on the decline in the United States and instead, the empowering style of leadership is becoming popular (Pellegrini, Scandura and Jayaraman, 2010). Under empowering leadership, subordinates are delegated with as much authority as possible to allow them to complete their tasks more effectively and efficiently. General Electric one of the leading organizations in the United States a leader who cannot energize followers should not be recognized as a leader. 3.0 Challenges and Opportunities for Organizational Behavior According to Murray, Poole and Jones (2006) the study of organizational behavior is currently facing a number of challenges in contemporary organizations, but there are also opportunities where concepts of organizational behavior can be applied to influence the performance of individuals, groups and organizations. These challenges and opportunities include; a. Improvement of people skills. b. Enhancing performance through enhanced quality and productivity. c. Managing a diverse workforce. d. Providing an appropriate response to the forces of globalization. e. Empowering employees. f. Coping with flux. g. Stimulation of change and an innovative attitude. h. Emergence of virtual organization i. Concerns about ethical behavior 3.1 Improving people Skills According to Murray, Poole and Jones (2006) both leaders and employees need competence in a range of skills so they can achieve an organization targeted goal on time. Interpersonal skills are especially important to managerial staff who must be effective communicators. The required skills for managers include listening skills, motivation skills and leading skills, organizing skills, decision making and problem solving skills (Murray, Poole and Jones 2006). The level of relevant skills in an organization is directly linked to its performance as skills are meant to react to the external forces including customers. The skills needed in an organization have been divided into two; managerial skills and technical skills. Technical skills are mostly possessed by lower cadre staff while higher up the hierarchy human relation skills are more important. Organizational Behavior reacts to the problem of skills in organizations by providing training and skill development programs. In the United States, organizations have increasingly become education providers to their own workforce. According to Aguinis and Kraiger (2009) training in US companies is needed to react to the forces of globalization, technological change. Large multinational organizations in the US are more likely to have an employee training program than small firms. More complex organization exposed to the changing nature of a company’s operating environment the more likely an organization is to have an employee training program. Where employees perceive that there are opportunities to improve their skills their levels of task performance and Organizational Citizenship Behavior (OCB) are likely to increase (Aguinis and Kraiger 2009). This positive outcome on employee behavior is part of the reason an American organization invests generously in employee skill and career development. 3.2 Improving quality and productivity Customers who purchase a product expect that a certain level of quality has been realized in the manufacture of a product. Nowadays, the definition of what a quality product is more dependent on the specific requirements of a customer. Accordingly (Zakuan et al 2010) most US companies run quality improvement programs that require the cooperation of employees in achieving. In the US the Malcolm Balridge criteria is used by organizations that are keen to excel in quality achievement and quality management. The Balridge Criteria is part of the wider practice in the US of TQM that is characterized by: Increasing focus on customers, Belief in continuous quality improvement, Maintainace of high quality standards in all of the organizations activities, Insistence on accurate measurements, Empowerment of employees (Zakuan et al 2010). The relentless efforts by organizations to realize maintain and advance high standards of quality means leaders in these organizations must successfully influence their followers to participate willingly in the organization’s quality efforts. According to Zakuan et al (2010) employees are the main change agents in an organization and should be actively involved in planning what needs to be undertaken for the quality to improve. The effort to improve quality in communication must be characterized by more effective and regular communication through both formal and informal communication channels. Training to update the skills of employees to conform to customer requirement is another characteristic of a firm that is pursuing quality management. 3.3 Responding to Globalization Modern firms are operating in an increasingly globalized market where businesses are no longer limited to their own locality. According to Gelfand, Erez and Aycan (2007) global operations of organization throw up two challenges to management in organizations: a) Organizations have to manage more diverse workforces, b). Understanding the host culture and how it may affect interactions with people within and outside the boundary of the organization. Globalization and cultural diversity management issues have been a particular challenge to US organizations that are pioneers in globalizing their operations. For example, when Disney opened a Franchise in Paris, it underperformed for a number of years (Matusitz 2010). Disney had failed to appreciate and successfully manage the cultural gap that exists between European and American cultures. 3.4 Empowering People and Motivating People Empowerment is concerned with delegating an increased amount of responsibility and power to the employees and giving them more leeway in determining their schedules, procedures, operations and the method utilized to solve problems (Ramlall 2008). On the other hand motivation is concerned with getting people to participate in achieving the organization's goals willingly. According to Ramlall (2008) empowerment of employees is one of the best ways to motivate employees to commit to the organization's objectives. 4.0 Conclusion Organizational Behavior consists of several components that have an influence on individual, groups and the organizations. Among these factors is organizational culture which is the determinant of the behavior of individuals and groups in the organization. It is seen that organizational culture has a direct bearing on employee commitment and thus influences outcomes such as employee performance and Organizational Citizenship behavior. Secondly, organizational structures have a great influence on how organizations are controlled and ultimately the performance of the organization. Thirdly, leadership style and behavior is a determinant of the behavior of employees in the organization. Leadership style determines such outcomes like job satisfaction, absenteeism, turnover and organizational citizenship behavior. Therefore, leadership style and behavior is noted in the report as the most important factor in organizational behavior that can have a positive influence in the workplace. References Aguinis, H., & Kraiger, K. (2009). Benefits of training and development for individuals and teams, organizations, and society. Annual review of psychology, 60, 451-474. 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