Organizational behavior is defined as the behavior of human either individually or in groups in an organization. Organization behavior impacts on effectiveness of organization. Of all the resources, human resources are mandatory and the behavior of human is unpredictable and that is why the study of organizational behavior is necessary. Organizational behavior or OB focuses on three levels of analysis- individual, group and organizations. This study includes the analysis of different organizational structures and the culture of an organization impacts the effectiveness of organization. Also, impact of teamwork on organization will be evaluated. Further, different effective leadership theories will be studied in this. Moreover, motivational theories for development of organization will be analyzed.
Depending on the objectives and culture, organizations are structured in various types. The performance and operational manner of an organization is determined with the help of its structure. Some of the organizational structures includes flat, tall, centralized and decentralized. Main features of organizational structures are as follows-
The culture of organization is closely linked to the development of organization. The culture of an organization can be its strongest asset or its biggest liability. Culture of an organization highly influences the performance of an employee. Culture of organization should be employee-friendly and at the same time it should be company’s environmental friendly too. Also, the culture of organization should depend on the nature of working of organization. For example- adaption of innovativeness in high tech industry will boost up its performance. Organization culture is more effective way of controlling and managing human behavior than rules and regulation of organization. When new employees join organization, the way they behave is result of organizational culture. If culture of an organization involves steps such as involvement of all employees in decision making, give opportunity to every employee to speak up will lead to a healthy culture of your organization and this will help employees to gain confidence which is good for efficiency of organization itself.
The employees get highly influenced by the organizational culture. The communication between and within the departments of organization, behavior of high level authorities with the employees, role and nature of work, wages provided to the employees, environment of organization, relation between employees, etc. are all those factors which describes the culture of an organization (Cortina, 2016). And this culture of organization highly impacts the effectiveness of employees. Also, by knowing the culture of organization, employees can work according to the known conditions which will help in attaining comfort level of the employees. And this comfort will increase the efficiency of work. Further, learning of culture helps in building confidence of employees which is necessary for the best performance of an individual. Moreover, culture of an organization also impacts the recruitment process and this will directly influence the effectiveness of employees. Thus, above were the factors which influence the effectiveness of employees.
Teamwork is always considered to be more effective as compare to the individual work. In teamwork, the different ideas of members merges and an effective combined outcome is obtained. The understanding between members is a sign of good team and this understanding leads to selecting a fair idea which is liked by everyone. Also, team resolves any ego and grudges issues among employees. Employees learn various things in teamwork like how to work collectively, how and when to imply each other’s idea, how to leave ego and grudges aside and work in unity, etc. Also, time required in teamwork is less as compared to individual work, thus employees can understand the value of time management and this time factor is the most important tool of an organization. Further, while working in team employees will compete with other teams and this will lead to individual’s effectiveness in their work role.
Leaders have the unique potential to serve as an energizing force within organization today and that is why understanding how a leader’s behavior affects the organization is of primary interest. Different leadership behaviors directly influence the communication and productivity of an organization. Leadership behavior used by the organization can also effect the effectiveness of employee input . A democratic leader will accept the inputs from employees and apply them in work progress and on the other hand some autocratic leaders may completely dismiss the employee input as they don’t like any changes in their leadership style. Also, leadership style directly influences the morale of an employee. Autocratic leaders that do not seek input from employees tend to alienate their employees and suppress employee’s involvement whereas democratic leaders are the one who involve employees and make them feel that they are also part of company’s success.
The process of change is well explained by the Levin’s three step change model; this model includes three steps of change and these are-
Unfreezing: getting ready for change by minimizing the resistance offered in changes.
Moving: in this phase the changing of individuals, groups, tasks, structure, etc. takes place. This step states the making of change.
Refreezing: this phase stabilizes the change or the new change to make permanent. Organizations often resists change in their functioning as it creates ambiguity and also the concern of personal loss is associated with change. A belief associated with change is that it might not be in the organization’s best interest also resists organizations to imply change. Also, cause of resistance of change is the belief that change is not compatible with the goals of the organization. Further, fear of losing status, money, authority, friendship and other benefits resists the change.
Leadership is one of the most important aspects in organizational behavior. Leadership behavior theories focus on the study of particular behavior of a leader. Behaviorists try to determine the types of leadership styles that have produced a higher level of work performance. There are various leadership behavior theories and main among them is contingency theory which includes Hersey and Blanchard’s situational leadership theory, leader participation theory, path-goal theory and leader-member exchange theory.
To improve the leadership ability organizations adopt different work relationship and interaction theories. Some theories are as follows-
Organizational effectiveness is the attainment of goals at organizational level. Organization effectiveness is the most important issue linked with the organizational culture. Different types of organizational culture like clan, adhocracy, hierarchy and market involves functions like discussion, teamwork, adaption, communication, stability, planning, goal setting, information management etc. leads to organizational effectiveness. An increasing body of evidence supports a linkage between an organization’s culture and its business performance. The effectiveness of an organization depends on the work environment, flexibility, stability, readiness, formal and informal relations of an organization and all these factors are associated with the culture of an organization. In accordance with the above statements, the organizational culture has a positive influence over the effectiveness of an organization; therefore the relationship between organizational culture and organizational effectiveness becomes important.
The involvement of employees in decision making strategies of an organization is a key factor in organizational growth. There are many advantages and limitations of involvement of employees in decision making policy. Advantages of employees involvement in decision making includes- job satisfaction, broader range of perspectives, employee motivation, job performance, organizational commitment, etc. also, from managerial point of view involvement of employees is effective way to leverage human resources. Providing employees with an opportunity to take part in decision enables employees’ voice in something meaningful. Further, organizing, scheduling and assigning of work become simpler in group decision making strategy. The issues associated with the involvement of employees in decision making are increased risk of unskilled employees in decisions, personal issues of employees, contribution of inexperienced fresh recruits, employees without relevant knowledge.
Motivation is a tool which is used to enhance intensity of individual, provide them with appropriate direction to attain their goals. In present context the combination of elements needs, job design and satisfaction are necessary to achieve motivation to the employees. There are many motivational theories used to motivate employees. They are as follows-
According to this employee cannot move to the higher level until all needs of their current level are satisfied.
In this theory the negative and the positive view of employee is determined. Theory X presents the negative view of people and Theory Y offers a positive view.
This theory is also known as motivation-hygiene theory. This theory is divided into two factors namely extrinsic and intrinsic. The extrinsic factor involves the job dissatisfaction whereas the intrinsic factors are associated with the job satisfaction and motivation.
McClelland proposed that an employee’s needs are attained over time and are shaped by early life experiences. This theory concentrates on the three fundamental requirements and these needs are: the need for achievement, the need for affiliation, the need for power. Employee’s efficiency and effectiveness are motivated by these three needs.
The actions of an employee directly impacts by goal. A goal is the main reason behind a single task done by employees, therefore, goal is the objective of an action
This theory states the situation of employees when they take some action. The factors like expectations, goals and needs are ignored in this theory. According to this theory the behavior is a function of its consequences. Reinforcement theory states that behavior is externally caused.
According to this theory, the employee tends to perform in a certain way based on their expectation. In this theory the individual work on their expectations and that is why the work done depending on this theory will be result-oriented.
This theory concentrates on the individual’s perception of how nicely they are treated as compared to other employees. The most common ways which helps in suppressing the inequity are- change inputs, change outcomes, distort perception, leave the job.Also, there are many other techniques which are used to increase the motivation level of employees such as rewards to employees, activities to increase motivation, motivational theories based training program, performance based wages, incentives, promotions, etc.
Every contemporary theory recognizes that employees are not identical and employees can recognize these differences with the help of the above mentioned theories. Every individual have different needs, attitudes, personality and other necessary variables. Also, employees can match people to jobs. There’s a great deal of evidence showing the motivational benefits of carefully matching people to jobs. High achievers should have jobs that allow them to participate in setting moderately challenging goals. Also, not everybody is motivated by jobs that are high in autonomy and responsibility. Managers should use these theories to motivate employees using different rewards depending on individual’s need. Further, these theory impacts the positive and negative views of employees which helps in choosing appropriate motivation way for employees.
Motivation is the set of forces that starts, directs and controls the efforts of employees to attain the required goals. It is very essential for an organization to keep its employees motivated to attain effective performance of the firm. Here, the motivation strategy of Starbucks will be explained. The top reasons why people want to work at Starbucks are- the opportunity to work with an enthusiastic team and to work in a place where employees feel that they have value. Starbucks is one of the biggest examples in terms of motivating employees. Starbucks mainly follows the equity theory of motivation, according to this theory every employee of Starbucks is treated as partner by the managers. Also, co-work exists in Starbucks which distinguishes it from other companies. Under this theory, employees feel that they are working in a friendly environment, which enhances the satisfaction of employees towards company, consequently, the efficiency of the business increases. Further, the management of Starbucks also plays a crucial role in motivating its employees, various benefits provided to the workforce depending on their needs. Moreover, hierarchy theory of motivation is also followed by Starbucks which helps employees in achieving safety needs, love and belonging needs and for attaining love and belongings needs Starbucks consider its employees as partners or friends. Starbuck also believe in this that the respect provided to employees keep them motivated towards their goal. Thus, in these above described ways Starbucks motivates its employees and boost up their performance in the organizational growth (Carpenter, Berry and Houston, 2014).
Organizational behavior is a crucial tool for the development of an organization. Organizational behavior involves the studying of performance of employees in an organization. Organizational behavior study generates a better work environment for employees and for managers too. This understanding also helps employees to estimate their understanding related to organization. This study involves various theories associated with organizational behavior such as leadership behavior theories, motivational theories, etc. also, this study helps in determining the different organizational structures and cultures and their impact on the effectiveness of organization. Also, this study indicates the advantages of teamwork in organization’s efficiency. Further, the process and outcomes of changes is discussed in the above study. Moreover, the advantages and disadvantages of involvement of employees in decision making are studied. Thus, it is crystal clear that organizational behavior plays a vital role for an employee to attain the desired results for the betterment of organization.