Organizational Behaviour of Smithson - Coursework Example

Organizational Behaviour By 20 February Organizational Behaviour Introduction Organizational behavior playsan important role in defining the nature of most organization in the 21st century globally today. It refers to a set of forces that affect the nature of the organization. There are key elements that are involved. To start with, people normally make up the internal system of the organization. These are the different employees, managers and other stakeholders within the organization. Secondly, the structure of the organization defines the formal relationship that the organization has with other people and how it interacts with others outside the organization (Agarwal, 2007). Further, technology is also an important factor that affects the functioning of most organizations today (Kanten, 2014). These are the physical and economic conditions that people work and interact within the working environments. Finally, the environment includes both the internal and the external environments that influence the organization directly or indirectly. In the case study of the essay, we are presented with Smithson, which is a company that wants to be acquired it completely. There are two potential buyers who are interested. However, the company’s management is interested in them and decides to undertake an extensive research and determine their ability, viability, and scalability to acquire the company, in the long run. The first company is Derek Travel is highly efficient and profitable. Its performance was outstanding over the last years. Further, it employs a prescriptive approach in relationship to both the management and the employees of the company. On the other hand, there is the sunshine company that joined the travel business recently. Initially, it was a software company, but later diversified into the travel business. Also, the company has one of the most flexible styles of management. Therefore, in my position in the company, the company has assigned me a role of evaluating and assessing both companies in order to come up with the best of them. This will also cover their styles of management. Hence, in the essay, scientific and human relation approach will be discussed widely. Literature review Frederick Taylor is the scholar behind the scientific management theory. The theory was developed in the 20th century when most organizations were experiencing great revolution in their development and also in their operations that directly involves the management and the employees. This approach to management is found in all organizations as its influence is felt in levels of management. It is a theory of management whose main mandate is to analyze and synthesize the level and rate of workflow in the organization (Agarwal, 2007). The main objective of the approach is to improve the level of economic efficiency. Further, it emphasizes on labour productivity that concerns the level of output availed by the employees of the organization. The approach has four guiding principles as summarized by Taylor. To start with, the manager is mandated to gather all the necessary information concerning and affecting the organization directly or indirectly. Later, he or she is supposed to analyze the collected information and reduce it to rules and laws that will be followed in the organization’s operations and management. This provides a basis of the originality of trends and rules that are employed in an organization. Secondly, it is the role of managers scientifically to select all the employees of the organization. This should be a rigorous exercise where only the best candidates that the best knowledge and skills should be selected. The managers should also consider the changing trends and dynamics in the labour market. They should also ensure that all their employees are updated with the latest technology due to the changing needs and wants in the labour market (Agarwal, 2007). It is the role of the managers to ensure human capital development of their employees in order to increase the level of efficiency and effectiveness in the organization by fully exploiting the full potential of their employees. This takes care of the care of the changing trends and new needs that come along. Thirdly, it is the role of the managers to ensure that all the rules and techniques that are developed by the management and science are all employed by the employees in the organization. This enables the workers in an organization to develop a positive working culture. Finally, managers should employ the principle of equality in the organization. This implies that they should not overload workers with lots of work. Additionally, the employees of the organization should only perform the roles that are pursuant and outlined in the plans of the organization and according to their contracts with the organization (Morgan, 2006). The scientific theory of management has a number of advantages and demerits in its application in the organization. We will first evaluate the advantages. Firstly, the theory enables the organization to increase the level of production when applied in the organization (Agarwal, 2007). According to most analysts in this field, the theory is the reason for the steady improvements in major business operations that leads to increased production within the organization. Secondly, the theory enables the organization to decrease the level and occurrences of inaccuracy in the organization. This offers total benefit to the management due to the large amounts of works that are delivered by the employees in the organization (Morgan, 2006). Further, it helps to eliminate autocracy in the organization. Also, it enables the organization offer compensation and incentives in relation to the amounts of work and output that is delivered within the set timeline by the organization. This forms the basis of compensation and offering incentives in the organization. The theory enables the organization to facilitate the process of decision-making faster (Agarwal, 2007). This is because there is full involvement of employees by the management of the organization in various decision-making processes. However, this theory and method of management has several disadvantages. Firstly, the method requires the organization to make huge capital investments. This is because this is a costly system. Hence, it requires a huge capital investment in order to establish planning departments, the level of standardization, the work study and finally the training of the employees in the organization (Agarwal, 2007). This is a great undertaking in the organization that requires adequate planning and transition to ensure its success within the set timeline in the organization. Secondly, the style of management poses a possibility of consistent financial losses in the organization. Further, it increases the planning costs in the organization as the ensure system is costly and hence a lot of resources are required to be successful. Also, there is no flexibility as the management follows an established criterion and style in all levels of operations. This is a major cause of monotony in the organization as there is no specialization involved. Additionally, the scientific method put the organization at the risk of fraud by the top management employees (Morgan 2006). Finally, most employees in the organizations that employ the technique feel that there are low levels of democracy. This is because as the top management determines everything. It also increases the level of unemployment as the organization tends to replace workers with machines. This is one of the negative impacts of technology and the changing trends in the job market. Hence, it is the role of the management to evaluate and determine the best approach to be applied in the organization. Human Relation Approach This approach was founded by Elton Mayo, who undertook a research at Hawthorne plant in the US in the 1930’s. In his findings, he illustrated that the organizations and managers who took care of their employees had a positive impact on their motivation (Agarwal, 2007). Employees felt valued and appreciated when managers took a deep interest in them and their roles and responsibilities in the organization. He further examined the effect of the following key factors as discussed below: Motivation This is the level of commitment that individuals show in their work mostly at the workplaces. In his research, he established that understanding what motivates different employees enables the management to create an efficient working environment. Further, it ensures that employees are happy and satisfied at their workplaces. Motivating environment in the organization has multiple benefits, in the long run (Huczynski & Buchanan, 2000). It enables employees to work as a team while respecting each other in different activities of the organization. Social relations This refers to how employees relate to the management and the outside world on behalf of the organization. The top management is mandated to provide of how employees relate to each other in the organization by establishing ground rules on how everything should be conducted. This ensures that employees respect and appreciate each other in the organization (Kanten, 2014). Also, to stakeholders and other parties that directly involve the activities of the firm, there should be an outlined code of conduct and professionalism on how all issues should be conducted. Employee’s satisfaction It is the role of the organization and its top management to ensure that all employees are satisfied. It must ensure that employees are compensated fairly for their work. They should also be provided with incentives for any overtime and additional roles and responsibilities (Huczynski & Buchanan, 2000). It is also the role of the organization to provide them with benefits such as health packages and life covers. The organization should also provide a favourable working environment for its employees. There are various principles that strengthen this theory. To start with, the theory appreciates the role and importance and power of natural groups and teams in the organization. In most cases, social aspects normally take precedence over the functional structures of the organization. Secondly, communication is an important tool that promotes a good and efficient co-relation of employees and the top management. All employees can have their input into the decision-making process s well as air their views and opinions to the top management. Further, the top management can analyze the issues that are affecting employees within the organization and how they can be resolved to ensure peaceful coexistence within and outside the organization. The top management is also able to communicate any change that might occur in the course of operations due to changing needs and demands of the global market (Agarwal, 2007). This is the reason as to why capital development is important in order to keep the organization up to date with what is happening and practiced in the global market. Thirdly, Mayo stresses the importance of competent and quality leadership in the organization. Leadership ensures that all the goals and objectives of the firm are communicated in time to ensure that they are completed on time (Agarwal, 2007). Efficient leadership ensures that there is quality decision making in the organization. This is because the manager leads all the important all decisions of the firm while involving employees in different levels. However, there are a number of criticisms against this approach. Firstly, analysts in this area view the approach as manipulative, and it forces employees in an organization to comply with the directives as they come from the top management. Rather, many argue that the management should understand different human natures and create relevant and desirable changes within the organization. Secondly, the approach emphasizes on human needs rather that accomplishing the organization’s tasks and processes. Further, the approach did not avail derivations for empirical testing of the validity of the theory despite its wide application by most forms in the world today. Therefore, it is the mandate of the top management to ensure that it thoroughly evaluates the approach that it decides to employ in the organization. Analysis Derek Travel applies the scientific management approach. This is clearly illustrated by its level of efficiency and profitability nature. There is also a prescriptive approach to the management and the employees of the organization. Additionally, it has a good reputation due to its high and quality services to its clients. On the contrary, Sunshine Company applies the human relation approach in its operations. Initially, it was a software company but later diversified into the travel business. This shows its level of flexibility even its level of operations rather than in the management of the organization. There is complete flexibility in the management of the employees in the company (Agarwal, 2007). Human relation approach mainly takes care of the interests of the employees and their well being. The management styles of these two companies directly impact on the decision of the Smithson Travel company. This is because it is looking for a company that will take into considerations of all issues and aspects of their employees after the tale over. Also, it is looking for the best deal in the company. Conclusion In my opinion, I would advise the Smithson Travel Company to take the offer of the Sunshine travel company. This is because it has a flexible style of management that will take care of their employees after the take-over. Further, the company is much diversified in its operations that imply that it is moving with the current trends and dynamics in the global market. As we all understand, the world is changing due to the impacts brought by technology among other factors. As we have discussed earlier, the human relation approach provides an avenue for human capital development that is key and relevant to ensure improved efficiency and production in the organization. Therefore, any organization that employs this approach is set to benefit while incorporating other factors that are key to success of any organization. As we have seen earlier, it is important to ensure that there s quality leadership and communication at all levels of the organization. This makes the change management process and decision-making faster and reliable in the organization. References Agarwal, R, 2007. Organization and Management. New Delhi: McGraw-Hill. Huczynski A & Buchanan, D, 2000. Organizational Behaviour. Upper Saddle River, N.J: Prentice Hall. Kanten, P, 2014. ‘Effect of Quality of Work Life (QWL) on Proactive and Prosocial Organizational Behaviours.’ The Journal of Faculty of Economics and Administrative Sciences, vol. 19, no. 1, pp.251-274. Morgan, G, 2006. Images of Organization. New York: Sage Publications. Read More