Organizational Behavior at Hirbodan Company - Research Paper Example

Hibordan organizational structure contributed to its success (Sigh 12). They have a well-structured organization pattern where the Board of directors seats a top, the mid-level management, and then lower management. This kind of structure facilitates the decision-making and coordination of members in an organization. They use a technique in management called theory Y in the motivation of its employees. Under these theories, employees show commitment to goals and accept responsibility. Theory Y has enabled Hirbodan to have a goal-oriented workforce (Champoux 16).

Key Issues:
The Iranian economy has suffered a lot from the sanctions imposed by the international community. The sanction imposed on the government of president Ahmedinejhad, include a ban on Iranian oil, which is the backbone of the Iranian economy. This has affected several industries Hirbodan included. To worsen the situation President Amedinajhad’s plan on reforms on subsidy of 2010 removed subsidies on electricity and water affected industries. Iranian currency depreciated much making the cost of living rise and inflation skyrocketed (Sigh 18). The cost of running a company turned high due to the high cost of importing raw materials. The effects on Iran are adverse that companies are hoping for the best to have an enabling environment for investment. Hirbodan Rose against all odds and wage the storm, due to its strong foundation and the expertise offered by the founding professional. It coordinated with companies in Engineering, procurement& construction (EPC) to have its operations outside Iran (Sapru 36).

According to the chairperson of Hirbodan, their success during hard times was through definitive strategies and logical solutions to the firm’s problems, which include; reduction of financial debt in both local and foreign banks. It focused on means of increasing revenue to trade on real estate. They created teams to deal with opportunities and threats then sort problems one by one. The cornerstone of any organization is a sound financial statement. Hibordan achieves these through repayment of debts on income earned on real estate (Koontz and Weihrich 47).

The workforce of Hibordan stayed during the trying moment caused by sanctions on Iran. The management used the tool of motivation on its employees by offering incentives on their willingness to work hard until achieving a goal. This went on until employees maintained the right course of success (Sigh 52). Furthermore, management chats their path of success by fully implementing Maslow’s need theory. They used Maslow’s theory when they solved problems by putting them on the hierarchy based on their priority. To stabilize and constitute fairness on salary and wages, the management implemented equity theory by making fair judgments of equity (Sapru 36). Making employees feel they are fairly treated. The above are the measures Hirbodan adapted to survive in the industry after the turbulence experienced in Iran and indeed, it has paid.

Besides the above measures, a company faced with turbulence can survive by adopting this alternative course of action:
• The company should brace itself for an inevitable change.
• The company should avoid anxiety and loss but rather focus on future prospects.
• Be wary of unreasonable expectations, as the unexpected decline in production due to external factors.
• Expand the net worth and the value of the company through innovations and creativity.
• Look for the right compensation during times of risk and uncertainties.
• Embrace the use of technology and remain updated.

Conclusion
Hirbodan is a classic example of companies that have risen above the challenges experienced in Iran. Hirbodan has instead viewed the situation in Iran as a platform for exciting challenges. Rising above challenges and making lemonade out of a lemon. Other companies should borrow a leaf from Hirbodan (Champoux 22). Read More