Analysis of Organisational Behaviour - Research Paper Example

Organizational Behavior A Brief Introduction - ITC India Limited: Imperial Tobacco Company is one of India’s leading private sector companies. Its registered office is in Kolkata. The business segments of ITC Ltd have diversified in hotels, Fast Moving Consumer Goods (FMCG), paper & packaging, paperboards and agri business. Over 26000 people are working in 60 locations across the country. The Company constantly endeavors to develop its wealth generating capability in global surroundings without fail, rewarding more than 4,11,000 company shareholders, fulfilling the aspirations of company stakeholders, and meeting public expectations. ITC is an excellent market leader in its business of hotels, cigarettes, paperboards, agri-exports and packaging. Its speedy achievement of market share even in emerging businesses of confectionery and packaged foods, personal care, branded apparels and stationery have made it a prestigious organization. ITC is one of the most respected and valuable corporations in India. ITC Ltd, its agri-business is one of the largest exporters in India for agricultural products. It is one of the largest foreign exchange earners for the country. The company has established e-Choupal scheme in enabling Indian agricultural sectors considerably improve its competitiveness, by empowering farmers through the control of the internet. “ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Companys ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974” (History and Evolution 2012). ITC Company owns a subsidiary firm in Information Technology, ITC InfoTech India Ltd, and it provides information technology services and solutions to leading international customers. ITC Infotech has gained a position for itself, by addressing the challenges of customers through their innovative IT solutions. The company’s corporate strategy is to generate growth in its core competence. The company strategy is diversified in its superior brand building capability, unmatched distribution, effectiveness of supply chain management, hoteliering service skills etc. “ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems” (The ITC Way 2012). The corporate strategies of ITC are: to create several drivers of expansion, by developing a portfolio of world class business that matches best the capabilities of the organization, with opportunity in domestic and international export markets. The company continues to concentrate on the chosen fields of FMCG, paper, hotels, agri business, paperboards and packaging and information technology. The benchmark of ITC, the fitness of each business systematically across the criterion of profitability, market standing, and internal vitality, ensure that its businesses are internationally competitive and world class as well. The company tries to enhance the aggressive power of the group through synergies, imitated by the combination of the different capabilities and skills residing in its various businesses. The ITC Company has created a distributed control of leadership inside the organisation by encouraging talented professionals, and by focusing on the management teams for all the businesses. For constantly enforcing and refining the corporate governance systems and processes to catalyse the commercial energies of the organization, the company needs the fair balance between managerial freedom and effective accountability and control. 2. A Brief Discussion on the Aspects of the Metaphors (from Morgan’s Images of Organization) to Develop in Relation to Your Reading of the Organization. The organization and the management theories are based on the metaphors which persuade the employees to vie and understand the situations of the organization in an effective way. “The central thesis is that all theories of organization and management are based on implicit metaphor, and that metaphors play a paradoxical role: they are vital to understanding and highlighting certain aspects of organizations, while at the same time they restrict understanding by back grounding or ignoring others” (Lawley 2001). On the basis of Morgan’s theory, three important metaphors are considered in relation to ITC limited. The metaphors are: Organization as machines Organization as organism Organization as culture They are explained below: Organization as Machines: This is a very common metaphor in the organization. An organization involves certain inputs and outputs, and productivity in order to achieve the ultimate goals. This metaphor includes inputs and outputs, maintenance, programmes, efficiency, production, clock work, standardization, order, wastage, design, control, and measurement. The ITC products include cigarettes, packaging foods, stationery products, packaged foods, apparels, and safety matches. The company has state-of-the art manufacturing technology which creates innovative product designs. They have e-Choupal to supply the product demanded by the customers. The latest manufacturing processes and contemporary technology have combined in ITC to manufacture definitely better products, which remain high on excellence and customer demand. Being a leader in sustainable environment process, for example, solid waste recycling, water and carbon positive, the company concentrates to come across challenging principles of management of waste in all areas of productions. With the effective applications of electronic and electrical equipments in their day to day activities, dumping of outdated equipments has become a warning to the environment. There is a need to control such disposals. For this, they have adopted an E-Waste policy in accordance with the rising international standards and principles. Its product development and R&D group build up distinguished and better products that meet the consumers strong needs. Organization as Organism: The organism metaphor includes environmental conditions, living systems, evolution, life cycles, adaptation, and the theme of survival of the fittest, recycling, needs and health. ITC’s product lifecycle management problem has appeared as the primary way to distribute utmost business value, and to develop product growth across the chain. Only qualified and experienced employees are selected. On the other hand, products are tested in the lab, and those with bad quality are destroyed in the lab itself. ITC’s paperboards and paper division have started a recycling program that aims at the revival of production recyclables which will offer low-cost materials to industries, and decrease the load on the surroundings. Organization as Culture: This type of metaphor includes values, mission and vision, service, history, beliefs, society, ideology, qualities, families, rituals, diversity, rituals, traditions and law. The company was established on 24 August, 1910 with the name Imperial Tobacco Company of India Limited. Its name was changed on 18 September, 2001 as ITC ltd. Its early development was modest, but later it flourished in the market with a wide range of products. The vision of the company is to maintain its position as India’s largest corporation, by adopting better performance, and creating value for the customers and the shareholders. The mission is to improve wealth accumulation or generation in the global competitive environment, and delivering sustainable value for the shareholders. Its leadership qualities have enabled it to create uniqueness in all the products and services it provides to the customers. ITC Services considers the business functions of operating and managing customer data centers. It includes remote support services which provide fast solution to small IT problems, and on-site support services that deal with larger issues. 3. A Brief Discussion of Why You Have Chosen These Metaphors: In this study, one has to choose three important metaphors; they are machines, organisms, and culture. Metaphors are to create insight. The entire theories of management and organisation are based on the inherent images or metaphors that convince us to see, and imagine situations, and understand in partial ways. Metaphors have strengths, and they also have limitations. Metaphors create habits of observing, and they make ways of not observing. Importance of Metaphors: Machines: It takes the objective vision of an organization with the communication systems among the essentials, as controllable and predictable. In a certain premise, the leaders of the organization take the mechanistic view of management of organization. The mechanistic vision of ITC Limited considers the combination of organizational charts with manageable components, policies, job descriptions, people, operational plans, etc. This metaphor is based on the management’s belief that a successful management is able to realize and control all the organizational components. The machine metaphors in ITC Limited consider the maintenance, efficiency, waste, clockwork, order, programmes, inputs and outputs, production, standardization, design and measurement, and control. In ITC limited, emphasis on accuracy, clarity, speed, reliability, regularity and efficiency, is achieved in the course of the formation of a fixed division of work, managerial supervision, and comprehensive rules and regulations. This metaphor appeals to one’s mind with a method which resembles that of engineers, in addition to tie up, by way of re-engineering business process. Every business requires a high level of effectiveness, and this fundamentally relies on machines. Organisms: In ITC limited, the organism metaphor has to guide concentration towards the issues of environment, survival of organization, and the effectiveness of the organization. The organism metaphors include the conditions of the environments, the living system, life cycle, adaptation, illness, health, recycling, needs etc. In ITC, organism metaphor is related to the business environment; what they think about the relations outside and inside the organizations. This metaphor describes how and why organizations innovate in the form of organisms. The use of metaphors in ITC Limited metaphors emphasizes on organizational survival as the key aim. The metaphor gives an understanding of the relationships between the business environment of ITC Limited and the organizations. The success of ITC Company Limited depends on a consistent path of relations between the organization, its age, structural design, technology, size and the industry condition. An organism is responsible to its environment, as it can study and adapt. The company effectively uses the organism metaphors, to develop the business of the company. Culture: Culture is a combination of factors that are learned through interaction with the environment, during our developmental and growing years. It is the pattern of development reflected in the systems of knowledge, ideology, values, laws, social norms and day to-day rituals associated with culture. Culture is transferred from generation to generation. It is important in every successful organization. ITC limited should be conscious of using cultural metaphors for its development. The consultants and managers intend to use manipulative tool as a company culture. The challenge is to create new forms of management, and the organization to a great extent, faces the challenge of change of culture. The essential task facing managers and leaders rests in creating proper systems of collective meaning. The reputable practice can be opposing to change, as cultural change involves the formation of shared system of sense that are established, acted and internalized at each and every level of the company. In ITC Company limited, it shared beliefs and an attitude develops within the organization, and guides the behavior of its members. The function of culture in ITC Limited helps to create a sense of identity for the members, and to enhance social stability. Every company is socially responsible, so companies choose metaphors for the survival of their businesses. 4. Analysis of ITC using the metaphors- Machines, Organisms and Culture: Machine Metaphor in ITC: ITC’s energy efficiency practices have helped us achieve first-rate standards of energy consumption in different units. Energy consumption has been reduced yearly through careful audit process, with the support of benchmarking. More than thirty percent of the energy consumption of ITC is from renewable sources. The commitment of Paper Board and Speciality paper Division (PSDP) of ITC to the environment is beyond the process and technology of the company. The Wealth out of Waste (WOW) scheme of ITC help us manage issues like efficient management of waste, and waste recycling to corporate bodies, schools and households. Wealth out of Waste program has been launched by ITC in order to encourage the recyclable waste from not going to the landfills, or to stop burning the waste which emits pollution into the environment. Wealth out of Waste is designed by us with a view to manage the waste from civic bodies and individual households. The study conducted by various organizations reveals that about 2,500 tons of wastes are generated every day from Indian cities. The three tiered formal governance structure includes board of directors, consisting of non- executive and executive directors, and the corporate management committee, which comprises senior managers and executive directors. The last tier of the governance structure includes divisional management committee and the Divisional Chief Executive. It constitutes all executives who are involved actively in the management. The various organizational programs of ITC include: 1) ‘Mission Sunehra Kal’, for the implementation of initiatives for social development, 2) Watershed program for rain water preservation across different states, 3) ITC’s Farm and Social Forestry program to provide livelihood for poor tribals and farmers, 4) The R&D program for creating new business opportunities and 5) The Sustainable Community Development program to supplement education, women empowerment, and animal husbandry program. Special attention has been paid to employees’ training, to increase their safety alertness, and adoption of specially designed safe and sound working methods in preventing serious accidents within the organizations. The corporate strategy designed by the company creates long-lasting values for the share holder as well as for the nation, through business leadership, and by achieving top-notch competitive abilities. We take necessary control measures to check and balance whether the freedom of the management is exercised within the organization’s framework. It ensures the appropriate use of power and the timely response of the management to the changes and risks in the business. The testing of core competencies on a timely basis, better-quality brand building, and efficient supply chain management have paved way for our company to grow as a top industry in the global market. It exerts high control over FMCG division, to withstand the high competitive market within. It has taken lots of measures to control and improve the efficiency of the performance of the employees, and organization as well. Organism Metaphor in ITC: Being an organism, the company gives huge importance to a safe and healthy work environment. We are devoted to offer better physical working environment, and so high hygiene standards are encouraged within the organization. We believe that, for a responsible corporate citizenship, dedication to sustainable development is a vital factor to be considered, and therefore high priority is given to that factor. Our company promotes demands and demonstrates professional behavior at workplace, and treats every employee in a respectful manner. The senior management, directors, and the employees make sure that the company interests are not compromised in the dealings with customers and suppliers. If our company’s interests get compromised by the acceptance of gratuity payments or other payments from customers or suppliers, or gifts of more than a nominal value, it will be considered as serious violation of discipline. We focus on equity, and uplift company values and every HR processes including appraisals, performance management systems, rewards and remuneration. Every ITC business makes every effort to reduce energy consumption, and use environment friendly energy sources wherever possible. ITC is the first company in India to launch environment friendly premium paper for business purpose. We always focus on water-positive, carbon-positive, and zero-solid waste disposal units, and this enables us to frequently develop ways to reduce, reuse and recycle the wastes.  We have launched IT E-waste policy for the disposal of outdated equipments. Our company uses Life Cycle Analysis (LCA) as a tool to study the impact of its products on the environment of the business, like water, air, land, animal, plant and human health. For some of our businesses, we conduct a detailed Life Cycle Analysis from time to time in order to help improve our efforts towards environmental responsibility. The widened consumer insight of our company, our capability to absorb knowledge rapidly, superior technology, our advanced innovations in processes and in products, leadership in the market, and our quick adaption capability to market opportunities altogether comprise an ever-strengthening competitive capacity. Culture Metaphor in ITC: The core value of ITC lies in the corporate philosophy of "trusteeship". We are always dedicated to create a long-lasting value for the stakeholder, as well as for the nation. We believe that the organization has been handed over to the company by various shareholders in the name of "trust" and the company is the "trustee" of these shareholders. Therefore it is the responsibility of the company to make sure that the organization is managed well in such a way that it protects the interests of its stakeholders. We consider society as an important shareholder of the company, and so it is our responsibility to carry out good corporate citizenship. The rich organizational culture of ITC is deep-rooted in the belief in empowerment, and the core values in respecting the people. Our strong corporate governance systems and policies support the philosophy of value creation. The corporate strategies of ITC include developing a high class business portfolio that suits the capability of the organization, with domestic and export market operations, and to continue to focus on the existing portfolio of hotels, FMCG, agri-business, paperboards, paper & packaging, and IT. The vision of our company is to maintain ITCs place as No.1 among India’s highly valued corporations, through high class performance, and by facilitating rising value for the company’s stakeholders, and for the Indian economy. The mission of ITC is to improve the capability of the enterprise to generate wealth in a competitive environment, and to deliver a sustainable and superior stakeholder value. In dealing with people within the organization, employees, senior management and directors, we maintain certain values which are the foundation of our HR Philosophy of teamwork, trust, mutuality, meritocracy, self respect, objectivity, and human dignity. These values shape the foundation of our HR management processes and systems. In every process of hiring people in ITC, the main criteria of recruitment will be the factor that protects the interests of the company. The company is dedicated to providing a friendly workplace for all genders, as it promotes good corporate citizenship. We provide guidelines to increase equal opportunities for all genders, by preventing and redressing sexual harassment in the organization, and by setting up better employment practices. The primary concern of our company is customer safety. The company’s prime concern for consumers or customers’ safety has made them not to compromise its commitment in providing high-class products and services to satisfy its customers. All the products in our cigarette business are benchmarked internationally, and they are supported by wide-range testing and research facilities at ITC Research & Development Centre. We use proprietary software facilitates for the regular review and monitoring of raw materials and product specifications. We have state-of-the-art facilities, and the international quality management systems of our manufacturing units are continuously upgraded and reviewed. The food business assures superior levels of quality, hygiene and safety standards in the supply chain, and in manufacturing processes. The quality of each manufacturer’s performance is monitored by us on a daily basis. 5. A critique of the metaphors, in relation to your reading of the organization, may include a discussion of the benefits and weaknesses of each chosen metaphor. The following are the advantages and disadvantages of the metaphors discussed above: Organization as Machines: Advantages: The state of the art technology produces better quality products. Improves customer satisfaction, through the performance of class products. Develops newer and better products, processes and management practices. Conducts programmes to create livelihood for women and children, to develop the value of life in rural society. ITC e-Choupal programme has developed exclusive business models that provide shareholder value, with attractive environmental and societal funds. This approach has considerably increased rural incomes. Social and Farm Forestry programme has provided agricultural estate to underprivileged family and farmers, generating major income. Disadvantages: The use of modern technology for production may cause various health problems and sickness to the employees working in the ITC limited. Moreover, the waste from technology, such as the emission of fuel and the factory machines, might contaminate the environment, trouble the system and make people unwell. Organization as Organism: Advantages: The company has introduced the programme for recycling wastage products. This shows their responsibility to serve the environment. Recycling is one of the most significant and practical ways to fight the dispute of resource reduction. Recyclables like wood, plastics, metal, cloth, paper and glass are improved through source segregation. Source Segregation of recyclables decreases the excessive use of natural resources, supply cost reduced raw material to industry, develop hygiene and health, and give green and clean environment. Disadvantages: If any error occurs in the production of the products or in the strategies adopted by the company, the whole system will be in trouble, and it also affects the main goals of the business. If the organization cannot meet the mission and vision stated earlier, the chances of survival will be seriously affected. Organization as Culture: Advantages: It provides IT solutions to small and large firms. Develops terminal operations with real time tracking. The development and progress of ITC limited shows that we have an effective team of employees who follow the basic values and beliefs needed for the smooth functioning of the organization. Disadvantages: The employees should be enlightened about the mission and objectives of the company. Considering all the aspects of organizational culture, it is doubtful whether the employees of ITC limited are following those objectives in developing the business. The company does not recognize those current rules, policies and procedures necessary to be altered, in order to support culture and new values. There is no change in the recruitment and retention programs, accountability systems, benefits and reward structures, and compensation, needed to support the new values. The new employees are not provided any information regarding the system and culture followed in the past. Since different metaphors make diverse insight and diverse explanation, they create difficulties for the company to get a general perceptive on as and when their analysis of basic facts becomes different. This enables the organization to evaluate the differences among the team members who are involved in the disagreement. Conclusion: The ITC limited is growing fast in recent years. The machine metaphor states that the company has achieved higher standards by adopting different programs such as waste management, energy consumption, and the research and development activities. The organism metaphor states that the management focuses more on providing better working environment to the employees working in ITC limited. The culture metaphor states that they hold a strong value while dealing with the employees as well as the society. From these metaphors it is clear that ITC limited focuses on providing better benefits to the society. Reference List History and Evolution 2012. ITC’s Brandworld. [Online] Available at [Accessed on 11 April 2012] Lawley, J 2001. Metaphors of Organisation – Part 1. Penny Tompkins and James Lawley. [Online] Available at [Accessed on 11 April 2012] The ITC Way 2012. ITC. [Online] Available at [Accessed on 11 April 2012] Read More