the organizational behavior analysis of a mid

Running head: THE ORGANIZATIONAL BEHAVIOR ANALYSIS 1

The Organizational Behavior Analysis of a Mid-Size Company

Robert Haskins

BUS 610: Organizational Behavior

Dr. Neil Mathur

24 June 2013

THE ORGANIZATION BEHAVIOR ANALYSIS 2

Abstract

This report will make an analysis of organizational behavior on the midsized distribution

company. Understanding how the organizational design and structure of the company will take

this analysis of the behaviors of its associates and create decision-making points to consider. A

study into the type of culture, modes of communication, the nature of authority, motivational

techniques, an examination of emotional intelligence, and the emergence of the virtual

organization will establish the means to make these decision making points.


The Organization Behavior Analysis of a Mid-Size Company

When discussing organizational behavior, one must consider the important aspects of

several academic disciplines including psychology, sociology, communication, and management.

This is because organizational behavior attempts to understand, control, and predict behavior

within the organization. Organizational behavior has been in a state of evolution that begun

since Henry R. Towne presented a paper entitled The Engineer as Economist. Towne argued

that “The study of management was equal in importance to the study of engineering…therefore

the field should create its own body of research and have its own professional organizations”

(Baack, 2012, p. 30). Thus, the birth of scientific management and the management of behavior

started a movement to understand the human element in organizations.

This report will investigate the organizational behavior of a midsize distribution company

using the techniques that have evolved throughout the past century. Examining the type of

culture the company has will offer a closer look into the relationship of senior management and

the workers in the company. An important function in developing the culture and commanding

the behavior of the employees will require effective communication. Effective and efficient

communication is “The principal device for the adequate implementation of administrative and

organizational activities” (Altinöz, 2009, p. 218). A person’s organizational rank will determine

the amount of formal authority they use in their leadership style. “Authority may be conceived

of as the right to influence due to formal organizational rank or position” (Baack, 2012, p. 340).

The Hawthorne Studies discovered that other things than money motivated people and behavior

is related to their attitudes. Thus, a focus on the relationships between people, their needs, and

motivation had begun to shift the emphasis of organizational behavior. This report will examine

the embracing of emotional intelligence in the midsize distribution company by illustrating the


subtle, some not so subtle, techniques to “Know one’s own emotions and to read others’

emotions as well” (Reilly & Karounos, 2009, p. 3). The midsize distribution company, having

recently expanded to three distribution centers, has begun to embrace the institution of a virtual

organization, streamlining its operations. This report will illustrate some of the issues that will

arise as the company embraces the virtual organization model. Organizational behavior is a

study to understand, predict, and control people’s behavior to get the best results for the

organization. An analysis of organizational behavior will be juxtaposed with a midsize

distribution company to further the learning in this import segment of management.

Type of Culture

In considering the organizational culture of the midsize distribution company, a look into

the type of culture the company has created for the organization by the people that occupy the

culture. Thus, investigating the dominate culture and subculture will give a deeper insight to the

company’s core principles. The core values of the company derive from the family principles the

company has built its reputation. This is the dominate culture of the company as it strives to do

what is best for its clients and associates. The subcultures of the company have become

entrenched into three groups including the office staff, drivers, and warehouse workers.

Although each of these groups has distinct differences, they each play a role in the attractiveness

of the company.

Modes of Communication

Communication in any organization is a critical component to its success. Therefore, a

great deal of energy is expended to ensure that effective and efficient communication is provided

and utilized. Communication is a pillar in the organizational structure of a company and it can


take place in two forms, informal and formal, and communication has four functions; providing

information, convincing and influencing, training, and unification.

The function of providing information is the basic function of communication and is

necessary “For the individual to have a harmonious relationship with their environment”

(Altinöz, 2009, p. 218). The distribution company has used written and verbal communication to

convey the ideas, tasks, and messages to its employees. A powerful communication function is

convincing and influencing change in the behaviors, opinions, and attitudes of individuals. This

is done at the distribution company by effectively using emotional intelligence, later reviewed in

this report. The culture of effectively communication begins with properly training associates, as

the need for training to achieve the goals of the organization is paramount. Furthermore,

unifying individuals through communication develops an environment the organization can build

at “Preserving these individuals’ psychological integrity and balance” (Altinöz, 2009, p. 219).

The distribution company uses informal and formal modes of communication through written

and verbal means. In addition, acting on the functions of communication will help to create an

organizational structure that other aspects can build on.

Nature of Authority

As this report examines the different pastels of organizational structure, the hierarchal

structure that forms the highest levels of authority will offer a degree of power through influence.

The authority to act over lower employees belongs to management because if the authority is not

granted, direction of the organization can be in flux and eventually create dissention.

Three types of authority, line authority, staff authority, and functional authority, regulates

employee responsibility. “Line authority is direct, formal authority, as indicated by the vertical


lines of an organization chart. Staff authority consists of the right to advise, or give advice.

Functional authority is the right to direct but not to discipline” (Baack, 2012, p. 311). The

distribution company practices each form of authority and has instituted a top-down authority,

decisions that start from the top and works its way throughout the organization. The reason for

this is speculative but it could be related to the early beginnings of the company as a family

oriented company. However, the founder is known to be a charismatic person and “Obtains the

right to influence those of lower rank through his…personality characteristics and personal will”

(Baack, 2012, p. 312).

Motivational Techniques

M. R. Jones defined motivation as what starts behaviors, what maintains behaviors, and

what stops behaviors (Baack, 2012, p. 100). A study of the theories of motivation allows an

understanding of techniques that can be used to influence and change behavior. The theories of

motivation are grouped according to the factors of internal, external, and the thought processes

that cause the behavior.

Content theories of motivation examine factors within individuals, notably needs,

that lead to behaviors…, operant process theories of motivation explore external

factors, such as rewards given by managers to employees that increase and

decrease behaviors…, cognitive process theories of motivation examine the

thought processes or mental reasoning processes that lead to behaviors (Baack,

2012, p. 102).

Intrinsic and extrinsic techniques are two types of positive motivational methods that

directly correspond to the use of the expectancy theory, the argument that focuses on forces that


motivate in the workplace environment. “Intrinsic techniques tap the positive satisfaction an

employee gets from the job itself. Extrinsic techniques are rewards an employee gets from the

employer such as money, a promotion, or benefits” (Kamery, 2004, p. 93).

The distribution company has an effective program to motivate its employees working

towards the organizations objectives. An aggressive compensation package that includes

medical, optical, and dental care along with retirement investment options help to give the

employees extrinsic motivation to work even harder. Furthermore, performance incentives help

to drive production quotas higher with each quarter. When a disappointing performance report

occurs, communication between workers and management helps to assess what could be improve

to change the figures.

Embracing the Theory of Emotional Intelligence

Interaction between management and subordinates is easier to navigate when a concerted

effort to understand the emotions they use. Having emotional intelligence is “The ability to

know one’s own emotions and to read others’ emotions as well” (Reilly & Karounos, 2009, p. 3).

Emotional intelligence will require leadership to accept additional effort to know themselves and

others, a list of five components of emotional intelligence that an effective leader exhibits are

self-awareness, self-regulation, motivation, empathy, and social skill.

The leader with self-awareness will have an understanding of their emotions, weaknesses,

needs, and drives, and the effect on other people. These leaders demonstrate “Self-confidence,

realistic self-assessment, and a self-depreciating sense of humor” (Reilly & Karounos, 2009, p.

3). Self-regulation is being able change your mood according to the circumstance, or thinking

before you act. Leaders that employ emotional intelligence will also use motivational techniques


to display a desire to work for reasons more than for money. “Empathy, the fourth component, is

the ability to understand the emotional makeup of other people, with skill in treating people

according to their emotional reactions” (Reilly & Karounos, 2009, p. 3). Leaders that recognize

and use empathy have a special skill in building relationships with other people that demonstrate

cross-cultural sensitivity. Empathy is a component of emotional intelligence that corresponds to

social skills in building the relationships to allow the ability of emotional intelligence to flourish.

The distribution company’s leaders have recently taken a concerted effort in embracing

emotional intelligence as they found the benefits to recognizing their emotions and others

because it creates an environment within the organization that includes everyone, cross-

culturally, cross-functional teams and department, and an ethical atmosphere throughout the

organization.

Emergence of the Virtual Organization

In the past decade, the midsized distribution company has expanded to include three

distribution centers throughout the country. With this expansion and the emergence of

information technology that helps to grow business exponentially, the shift to include virtual

teams continues to pressure the organization to consider further research into the virtual

organization realm. This report will examine the benefits and pitfalls in this shift into the virtual

organization world. Understanding the pros and cons of virtual organizations will help to create

success and avoid the mistakes in virtual organizations.

For a distribution company interested in using the virtual work environment, logistics is

the first thing to consider. How can logistics be effective in a virtual organization? The first step

is to reorganize the line of thought that the company will no longer operate in a lateral direction


than a vertical model (Kasper-Fuehrer & Ashkanasy, 2001, p. 239). This major cultural shift

needs to occur before moving on. This will take a level of trust with others because becoming a

virtual organization will require the organization to rely on others (outsourced

suppliers/providers) to become an extension of the organization. This relationship between

suppliers will often have no oversight and the danger to the parent company could result in

financial, reputational, and quality risks. The distribution company prudently kept the level of

risk to a minimum by outsourcing administrative services to trusted professionals. Outside of the

parent company’s warehouse, the two other warehouses are staffed with a minimal, skeleton

crew, trained by the same team members from the parent company. This will help to keep the

standards of the parent company enforced and not having to rely on outsourced, untested, and

substandard company.

The factors that sway decisions in embracing the virtual organization will be a

consideration into the pros and cons of virtual organizations. The advantages of a virtual design

“Provides [organizations] with the ability to move nimbly to exploit a favorable market

opportunity” (Anand & Daft, 2007, p. 239). Moreover, the organization can produce or offer

services that would normally not be possible or available because of distance. The distribution

company has used the tools of the internet, teleconferencing, and highly technical

communication devices to keep the essential component to virtual organizations viable, the

ability to communicate in real time. This leads the report to examine the cons of the virtual

organization. “The major downside of virtual organization design is that it requires a tremendous

amount of communication and understanding to keep it going” (Anand & Daft, 2007, p. 340).

Redundancy occurs when proper communication is misconstrued, misunderstood, and repeated.

Therefore, continual emphases on the methods of communication must not be compromised.

THE ORGANIZATION BEHAVIOR ANALYSIS

10

Maintenance of these devices and avenues will require costs that will need to be considered.

Trust must be maintained because it is trust that will create a breakdown in the same

communication efforts aforementioned. Keeping the associates in the satellite warehouses a

sense of ownership along with unity with the parent company will avoid substandard

performance. Therefore, collaboration with the associates will maintain the cohesiveness that is

required to keep them feeling like a part of the team.

Conclusion

This report compared the analysis of organizational behavior with a midsized distribution

company to make an example of the importance of this segment of management and its effect on

how to begin behavior, continue behavior, and stop behavior. The core values of the distribution

company establish a type of culture and vision that every associate can relate. The modes of

communication have ramifications if not effectively used. The distribution company uses

informal and formal modes of communication through written and verbal means. In addition,

acting on the functions of communication will help to create an organizational structure that

other aspects can build on. This report illustrated the nature of authority, where it comes from,

how it is instituted, and the purpose to implement authority to make things work in the

organization. An investigation into motivational techniques has shown that when used properly,

it can help to start behaviors, maintain behaviors, and stop behaviors. Combining motivational

techniques and emotional intelligence makes for an influential, understanding, and likeable

leader. The emergence of the virtual organization in these past years have successfully been

implemented in the distribution company because of the prudent decisions in avoiding the

pitfalls and benefitting on the advantages of the virtual world of business.


11

References

Altinöz, M. (2009). An Overall Approach to the Communication of Organizations in

Conventional and Virtual Offices. International Journal of Human and Social Sciences,

4(3), 218-224. [Electronic version] Retrieved June 20, 2013, from

http://www.waset.org/journals/ijhss/v4/v4-3-29.pdf

Anand, N., & Daft, R. L. (2007). What is the Right Organizational Design? Organizational

Dynamics, 36(4), 329-344. [Electronic version] Retrieved June 20, 2013, from

http://faculty.cbpp.uaa.alaska.edu/afgjp/PADM610/What%20is%20the%20Right%20Org

anization%20Design.pdf

Baack, D. (2012). Organizational Behavior. San Diego, California: Bridgepoint Education.

Kamery, R. H. (2004). Motivation Techniques for Positive Reinforcement: A Review. Academy

of Legal, Ethical and Regulatory Issues, 8(2), 91-96. [Electronic version] Retrieved June

20, 2013, from

http://www.sbaer.uca.edu/research/allied/2004_maui/legal_ethical_regulatory_issues/19.

pdf

Kasper-Fuehrer, E. C., & Ashkanasy, N. M. (2001). Communicating trustworthiness and

building trust in interorganizational virtual organizations. Journal of Management, 27(1),

235-254. [Electronic version] Retrieved June 20, 2013, from

http://www.uk.sagepub.com/fineman/Reading%20On/Chapter%2019a%20-%20Kasper-

Fuehrera%20et%20al.pdf


12

Reilly, A. H., & Karounos, T. J. (2009). Exploring the Link between Emotional Intelligence and

Cross-Cultural Leadership Effectiveness. Journal of International Business and Cultural

Studies, 1(1), 1-13. [Electronic version] Retrieved June 20, 2013, from

http://www.aabri.com/manuscripts/08134.pdf

the organizational behavior analysis of a mid

Documents