Management and organizational behaviour


I was working for the Head Office of a south region subsidiary of JSC “BTA Bank” (BTA) for 5 years. BTA is one of the leading banks in Kazakhstan, which has 22 subsidiaries and 230 branches all over the country. Our subsidiary had 130 employees, the main realm being retail banking, which consisted of mortgage loans, credit line, auto loans, express credit and credit card departments.

During that time, “Raya” held the position of “Supervisor” in the mortgage department, where supervised 10 people. Due to the primitive size of the group, a friendly and cohesive working atmosphere within the group was established, which continued even after work hours. Even though the group received the same remuneration, the group worked in harmony and peace. Hence, the group consistently met sales targets and achieved performance efficiency, ranking higher than varying departments selling different banking products.

The status within the group began undergoing changes during the peak of economic development, in which the demand for mortgage loans increased sharply, causing the volume of work and working hours to increase without the provision of overtime pay. Complaints arose within the group regarding the disparity between the high volume of work and additional unpaid working hours. After discussing staff complains with management, group size was expanded to 15 people, and last an extra member was added to Raya’s group; Klara. At the age of 22, the latter had previously worked as Head of the “Express Credit” department, but was demoted due to low sales and dissatisfaction experienced by her subordinates. In her previous position, Klara was known to be an active and sociable person, prone to giving orders to people. A close relative of the management, Klara took the position of the main specialist, however, keeping her old remuneration. According to Raya’s numerous responsibilities, all training responsibilities were delegated to an experienced manager named “Indi”. After Klara’s probationary period, her performance was found to be extremely weak; weaker than expected. The latter’s unwillingness to learn was also taken into account. Consequently, Raya extended her training period by adding Klara to her existing group of agents, collectively learning the basics of mortgage products and the selling process.

In addition, Klara was late almost every day without informing her supervisor. The former was given warnings on several occasions which proved to be ineffective. This pattern of behaviour affected her entire department negatively. A number of her group members subsequently began to imitate her unpunctuality.

On a particular occasion, Klara was absent for half a day. This behaviour was discussed between her and Raya in the deputy director’s cabinet, with reference to previous offences. Unable to ignore this and adamant not to wait until the scheduled staff meeting, Raya called an emergency meeting immediately for the purpose of reminding staff of the conditions of their employment, with emphasis placed on punctuality. Unadvised delay in BTA is punishable by a 5-15% salary deduction, whilst an excess of three separate occasions of absenteeism results in the termination of one’s contract. Thus, the problem of absenteeism was seemingly solved; Raya and the staff apparently arriving at a mutual agreement.

Certain mannerisms and attitudinal elements which usurped the company code of ethics were manifest in Klara, such as laughing loudly inappropriately in front of clients, distracting others from their work, the usage of the company line for personal use and so on.

In conclusion, the combination of these factors affected the group and group dynamics drastically. The mortgage department suffered from low job satisfaction, low productivity and low motivation, both before and after her departure from the company. Another affect was made clear in company profits; our department in particular making experiencing a reduction in sales of 40%, which was accompanied by depreciation in the value of customer service provided by the group.

Impact of Events on Attitudes and Perceptions
Attitudes and perception at work are important simply because, directly or indirectly, they affect work behavior (Nelson & Quick 2007). It has been revealed that attitudes are evaluative statements – either favorable or unfavorable – about objects, people or events, which reflect how we feel about something (Robbins et.al 2009). Other author disputes this statement as an attitude is a predisposition to respond in positive or negative way to someone or something in our environment (Wood et.al 2010).
In the case of Klara, one may observe the negative attitude towards her job such as her unpunctuality, unwillingness to learn, talking on the phone, distraction of colleagues from their daily tasks and the like. One of the reasons of her misbehavior may be derived from her dissatisfaction with “psychological contract”. In various research findings of Bloisi, Cook & Hunsaker (2007) when people enter to organizations and jobs they bring their own expectations about what they will have to contribute and what they will receive in response, a set of called expectations called a “psychological contract”. In turn, individuals provide such qualities as their skills, effort, time, loyalty and commitment to an organization. In exchange, the organization offers such things as pay, security, opportunities and benefits to satisfy such motives as need for achievement, power, status and affiliation (Bloisi, Cook&Hunsaker 2007). As shown in the scenario, Klara in her previous position as supervisor of the express credit department was strongly disposed to giving orders. Hence, a need for power and status developed. In the process of her demotion, Klara was under the supervision of Raya. It is obvious that Klara harbored dissatisfaction with her newfound position. The findings of David Guest and Neil Conway (2001) state that both the individual and organization feel satisfied if they perceive the psychological contract to be fair. Stated below is the definition of “perception”:
According to Nelson and Quick (2008), perception involves the way we view the world around us and it is the primary vehicle through which we understand ourselves and surroundings. Robbins (2009) comments perception is a process by which individuals organize, and interpret their sensory impressions in order to give meaning to environment. What one perceives can be substantially different from objective reality. The differences in perceptions in organizations have impact on an organizational outcome (Schyns, B & Wolfram, HJ 2008).

Figure1. The perceptual process: from stimuli to behavior
Source: Wendy Bloisi, Curtis W. Cook, Philip L.Hunsaker, Management & Organizational Behaviour, 2nd edition, Mc Graw Hill Education, UK.

To summarize, understanding the perception process (Fig1) provides managers with a better understanding of why people perceive things in certain ways and why perceptions differ. This enables managers to deal better with such differences and minimize some of the “distortions” that occur.

The second reason may be derived from dissatisfaction of her current job, and in general, satisfied workers are more regular in attendance and are less likely to be absent for unexpected reasons (Wood et.el 2010). And Robbins (2009) says that a person with a high level of job satisfaction holds positive feeling about his or her job, while a dissatisfied person holds negative feelings (Robbins, 2009). Klara showed unfavorable attitude towards her job, maybe she didn’t see any perspectives from her current position, due to she feel not satisfied with her work. The job satisfaction is important factor in workplace, because job satisfaction influences absenteeism (Wood et.el 2010). Absenteeism is a huge cost and disruption for employers and it is obviously difficult for an organization to operate smoothly and attain its objectives if employees fail to report to their jobs. The work flow is disrupted, and often important decisions must be delayed and absenteeism can be considerably more than disruption, it can result a drastic reduction in the quality of output in organization (Robbins, 2009).

Two Relevant Motivational Theories and impact of events in scenario upon the motivation of staff
Motivation is the process of satisfying internal needs through actions and behaviours and concerned with a composite of mental and physical drives, combined with the environment that makes people behave the way they do. Its presence or absence can be recognized by observing employee behaviour (Ronald R.Sims 2002). The following two motivational theories will be considered: Hertzberg’s Two Factor Theory and Vroom’s Expectancy Theory.

Content Theory – Hertzberg’s Two Factor Theory
According to the Two Factor theory of Frederick Herzberg individual is influenced by two factors, which are: satisfaction and psychological growth was a factor of “motivational factors” and dissatisfaction was a result of “hygiene factors” as shown in figure 2.

Figure2. Two factor Theory - Herzberg
Source: http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html

According to Two factor Theory – Herzberg (fig2) Klara was on first stage, she was dissatisfied and unmotivated, because after demotion from position she lost motivation factors or motivators how it called by Herzberg. Herzberg says that motivation factors are needed in order to motivate an employee into higher performance and these factors result from generators in employees, and as shown in fig3 typical motivation factors include: achievement, recognition for achievement, responsibility for task, interest in job, advancement to higher level tasks and growth (Kreitner & Kinicki, 2008).

Motivators

No satisfaction

Satisfaction

Job that do not offer achievement, recognition, stimulating work, responsibility and advancement. Job offering achievement, recognition, stimulating work, responsibility and advancement.

Hygiene factors

Dissatisfaction

No dissatisfaction

Job with poor company policies and administration, technical supervision, salary, interpersonal relationships with supervisors, and working conditions. Job with good company policies and administration, technical supervision, salary, interpersonal relationships with supervisors, and working conditions.

Figure3. Herzberg’s Motivator-Hygiene Model
Source: Kreitner & Kinicki, Organizational Behaviour, 8th edition, 2008, The McGraw-Hill Companies, New York.
Furthermore, Biswajeet (Biswajeet Pattanayak 2006) says that true motivators motivate people to superior performance, accept challenging tasks, growth and development. And Herlsberg suggested job enrichment to provide true motivation. Job can be enriched by increasing skill variety, task identity, task significance, autonomy and feedback. According to (Biswajeet Pattanayak 2006) hygiene factors are essential for people to work but true motivators play an important role in helping people to work more and better.

Process Theory – Victor Vroom’s Expectancy Theory
Victor Vroom’s expectancy theory is one of the most widely accepted descriptions of motivation. Vroom first applied the theory of individuals in the workplace (Moorhead & Griffin 1995). The basis of the theory is the degree of motivation for an individual depends on the power of expectation that his act will be followed by an outcome i.e. a good performance appraisal and the outcome will yield something attractive i.e. salary increase or promotion (Robbins 2009).

Figure4: Vroom’s expectancy theory
Source: http://www.arrod.co.uk/archive/concept_vroom.php

Klara as employee was unmotivated as a good performance method currently did not exist. A good appraisal programme will serve as a benchmark for the employees to upgrade and evaluate themselves with their superiors. The main components of the theory are effort, performance and outcome (Robbins 2009). The components are linked by these relationships which are (Fig4) effort-performance relationship which describes an individual’s perceived probability that effort will lead to performance. Performance-outcome relationship which describes an individual’s perceived probability that performance will lead to certain outcomes. Outcome or rewards are divided into intrinsic rewards such as growth opportunities, challenges in the job and autonomy and extrinsic rewards such as position and benefits (Gordon 1999).

Critically discuss Group Dynamics and Teamwork
Group is defined as two or more individuals interacting and interdependent, who come together to achieve particular objective. (Robbins 2009) Group dynamics are the forces that function in groups to influence upon group accomplishment and member contentment in the group. In BTA the group is formal groups that are created by organization, intentionally designed to direct its members toward some organizational goal (Jerald Greenberg & Robert A.Baron, 2006).

Working group had number of recognized dysfunctions inside; one of them is social loafing. This problem occurs when members reduce their effort and performance levels when acting as group and primary causes include lack of performance feedback within the group, tasks are not intrinsically motivating, situations in which the performance of others will cover for the reduced effort given by some members, and the “sucker effect” of not wanting to do more than the perception effort being given by others (Fred Luthans 2008).

Required behaviours are those contributions the organization formally requested from group members as a basis for continued affiliation and support, which are may include work-related behaviours such as being punctual, treating customers with respect and helping coworkers (Wood et.el.2010). But as it may seen these norms are not followed by group, because of existed absenteeism and decreased quality service.

Due to not spending time together like before, BTA group become differ in cohesiveness, a degree to which group members are attracted to each other and motivated to stay together in group (Emmerick et al.2005). Because of the size of organization become quite large the staffs seldom spend time together and are low in interaction which lowers productivity. The most effective teams have fewer than 10 members. Expert recommends via smaller number of people, the assignment can be done. Unfortunately a pervasive inclination for managers to err on the side of creating teams too large as happening in BTA, results in coordination problem (Greenberg & Baron 2008). When teams have excess members, cohesiveness and mutual accountability declines, social loafing increases, where by more people do things that are not related to them. Studies shown relationship of cohesiveness and production depends on performance related norms in a company. (Robbins 2009).

Groups have life cycles similar to people and group’s effectiveness is influenced by its stage of development which are forming, storming, norming, performing and adjourning (Wendy Bloisi et.al 2003). Group in scenario is having period of high emotion and tension among the group members which called “forming stage” (Wood et.al 2010).

One serious phenomenon that occurs in groups in this stage of development is groupthink which the norm for consensus overrides the sensible evaluation of alternative courses of action. (Robbins 2009). The BTA staff usually won’t contribute much as senior management tends to play major role in their idea and puts less weigh in their subordinates views and opinions. Isolation usually takes place as the staffs usually comes for the meeting just to fulfil the quota as an attendee for the group meeting and discussion.

Recommendations:
Managing Attitudes and Perceptions Rationale
Reward power Wishes and directive of another make people comply, by doing so it produces positive benefits. Rewards can be both financial such as controlling pay rates, raises and bonuses or non financial including recognition, promotions and interesting work assignments. (Robbins 2009). BTA can include this reward power into their system, awarding people for all the effort put by them. This will change staff perception towards work and remove negativity in them.

Training, seminars and workshops Giving employees these special learning opportunities, both within and outside organization, encourages personal and professional development – and often increases motivation as well. It tell employees that company value their performance and wants to give them more opportunities (Bruce & Pepitone 1999)
Attitude surveys Attitude surveys identify the missing links between staff ‘attitudes’ and ‘behaviours’ and aid in creating goals and objectives to move an organisation forward, hence feedback and action planning should follow any survey implementation (Carey & Warner 2002). Additionally, 360º feedback tools that rate performance via peer to peer, manager to peer etc, can be used to identify gaps to develop employees, hence contributing to personal satisfaction and empowerment (Cawley et al. in Tovey & Uren 2006)

Leadership learning Leadership learning is required from the Supervisor to drive change, navigate strategic direction, retain talent, enhance relationships and build stamina for sustained developmental learning (Harris & Hartman 2002).
Actions to improve motivation Rationale
Reward-based system The practical idea of this idea begins with remuneration, company adopts a reward-based system, with staff encouraged to establish key performance indicators (KPIs) (Wood et.al 2010). This method is suitable for BTA, it can increase productivity, because if staff achieve KPIs level, they can earn extra money on top of their base salary.

Job rotation Some of BTA employees suffer from over routine of their work. Job rotation can be used changing an employee from one task to another. Rotation can be done into similar skill requirement after the staffs spends time in the same activity.(Emmerick et al,2005) Motivation is produced in changing employee daily routine; it also gives strength and diversifying effect in them. (Robbins 2009)

Actions to improve Group and Team Dynamics Rationale
Recognition program Recognition is crucial at all levels in the company, and there is a annual award day with prizes, entertainment and awards for team leaders, sales agents, service agents and project managers who have excelled in the workplace (Wood et.al, 2010). This recognition program will help to BTA build staff motivation levels based on strong internal communication and recognition measures.

Reflection
The task given in this assignment made me understand clearly all the aspect that is involved in the scenario that I was facing in my working environment. The in depth study of the element that I went through in my real life has given a clear answer to most of the question I have been asking all this while. The scenario revisited thought me to analyse the situation more thoroughly rather than using intuition knowledge. The theory for motivation clearly suggested an organization requires positive motivation. The theory of motivation is not about self-interest in rewards but about the association people make towards expected outcomes and the contribution they can make towards those outcomes.
Groups as defined earlier are process of working together in achieving common objective or fulfilling accorded tasks. It was reflected clearly how important different types of groups such as formal group, informal group, command group, task group, interest group and friendship group that enhance people security, status, self esteem, affiliation, power in goal achievement. What is required now in BTA now, are how each group work and create an effective team in any organization we are in.
In my scenario, attitudes tap positive and negative evaluation the employees hold about aspects of their environment which mainly involves job satisfaction that BTA were lacking, job involvement and organizational commitment. People’s perception influenced by factors in perceiver (attitudes, motives, interest, experience, expectations), factors in the situation (time, work setting, social setting) and factors in the target (novelty, motion, sounds, size, background, proximity and similarity) operate and sometimes distort perception. My view on BTA is based on their perception of what reality is, not on reality itself (Robbins 2009).
Overall the scenario gave a clear set up of all the things that need to be done to analyse improve, set up and change in an individual or organisation for better achievement.
Changing the corporate culture can be difficult, as is deeper attitudinal change. Criticality in understanding employee behaviour is the key to brand success requiring critical consistency and congruency between brand, culture and values. A holistic approach to brand management is required by empowering all employees into the change process.

List of References
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