Managing Organisational Behaviour for the benefit of a company

Organisational Behaviour is a field of study that investigates the impact that individuals,groups, and structure have on behaviour within organisations for the purpose of applying such knowledge toward improving an organisation’s effectiveness (s ribbins 2001) As you can see from the definition above, organizational behavior encompasses a wide range of topics, such as human behavior, change, leadership, teams, etc.OB is specifically concerned with employment related situations and hence it emphasizes behaviour related to jobs,work,employement turnover,productivity,human performance and management. The organization’s base rests on management’s philosophy, values, vision and goals. This in turn drives the organizational culture which is made up of formal ,informal and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers see this as the quality of work life which relates to their degree of motivation. The final outcome are performance, individual satisfaction, personal growth and development. All these elements combine to form framework that the organization operates from.

Management is the act of getting people together to accomplish desired goals and objectives efficiently and effectively. According to Mary parker Follett(1868-1933) Management is described as “the art of getting things done through people

It is the process through which the efforts of members of the organisation are co-ordinated, directed and guided

towards the achievement of organisational goals. It is an integral part of the successful operations of the organisation. Management is hence the cornerstone of organisational effectiveness, and is concerned with

the procedures for the carrying out the organisational processes and its execution (MULLINS)

Management operates along various functions, often classified as planning, organizing, staffing, leading/directing, motivation and controlling/monitoring. Among the various aspects of management,I would like to emphasize on the importance of Motivation,Leadership and Human resource management as one of the most important factors likely to determine the success of an organization.

In this essay I have taken a few case studies to emphasise the importance of management in an organisation. The first case study deals with the motivation of Siemens employees that has helped the company to achieve excellence in a creative environment. The second case study that I have used, mainly talks about the importance of Leadership and the way leaders are groomed for the future in a giant IT organisation like Infosys. And finally I stress upon the importance of Human resource management as a strategic tool in the management of the organisation’s most valued asset-people.I would talk about the various success Human Resource practices being employed in Google.

Success Factors:

Management is today the significant part of our daily life and one of the effective and innovative ingredients of our improved economies and better societies. Out of nowhere;

today management is being recognized as a separate ground of learning. Hence one of the important aspect of an effective management is the ability to motivate the work force and to make use of the human potential to the fullest.People vary in their ability to do an activity and in their willingness to do it. The need with the greatest strength at any one time is what leads to activity (Hersey & Blanchard,1933). Motivation is a desire to achieve a goal combined with the energy to work towards it.

Motivation is an important tool for the success of an organization because:

It improves the level of efficiency of employees

It puts work force into action

It leads in achievement of organisational goals

It increases the stability of work force.

There are two types of motivation. Intrisic Motivation and extrinsic Motivation.

Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure.Bainbridge, Carol. “Intrinsic Motivation”. giftedkids.about.com.Intrinsic motivation has been associated with greater creativity(Amabile,1983), flexibility(Mcgraw and McCullers,1979) and spontaneity (Koestner,Ryan,Bernieri & Holt,1984) the presence of those characteristics can signify intrinsic motivation. Intrinsic motivation and self determination in human behaviour by Edward L.deci, Richard M Ryan

Extrinsic motivation refers to motivation that comes from outside an individual. The motivating factors are external, or outside, rewards such as money or promotion or sumtimes even coercion or threat of punishment. Extrinsic motivation does induce an individual to perform a certain task even if there is no interest in it. Most difficult things become more bearable when you’ve got something to look forward to at the end. http://www.selfmademiracle.com/motivationmodel/is-extrinsic-motivation-effective/

Siemens Case Study:Motivation within a creative Environment:

Siemens is the engineering group that is behind many of the products and services people take for granted in their daily lives.The company has three main sectors;Industry,energy and Healthcare.It employs approximately 420,800 people in nearly 190 countries. Engineers use scientific principles to develop products or systems to solve real life problems.It is about innovation rather than invention which means engineers transform creative ideas into improved products, services, technologies or processes. A career within the field of engineering is exciting as the work is constantly changing. Becoming an engineer at Siemens is about using energy, ideas and passion. It requires a range of skills and abilities that are needed across the whole business.

Siemens provides opportunities for young people at all levels to enter the world of engineering. It recruits at a number of different levels.. It goes beyond the standard approaches to attracting good people because its employees enable it to be competitive. This approach has led to Siemens becoming an open culture with opportunities for employees at all levels. People can enter a career in engineering at many levels. Professional engineers usually enter after a university degree. Others may enter as apprentice technicians following studies at school or college. However, regardless of entry level Siemens employees enjoy wide-ranging opportunities for further education and training.This gives an opportunity to move into other disciplines For instance, they may go into areas such as research, manufacturing, sales and marketing, or finance.

Theories of Motivation.

There are many competing theories which attempt to explain the nature of motivation.

These theories may all be to a certain extent true, and help to explain the behaviour

of certain people at certain times. However there is no such thing as a generalized theory of motivation. A major determinant of human behaviour is the particular situation in which individuals find themselves. Motivation varies over time from person to person according to circumstances.

This case study focuses upon three different theories of motivation and uses these to illustrate how employees are motivated within at Siemens. Some staff at Siemens thrives on the problem solving aspect of their roles and responds to challenges. Other employees find the varied nature of the work motivating – having the opportunity to try different roles. The structure of Siemens motivates individuals by empowering them to improve processes. Siemens provides the sort of environment where workers can learn new things and are given the opportunity to progress within the business. This culture demonstrates that Siemens values its employees and helps to recruit the next generation of engineers. A motivated workforce puts more energy into work in order to achieve the required outcomes. Motivated employees feel that their work is special. They are encouraged to take pride in what they do.

Scientific Management

Frederick Taylor looked at work within a production setting. He believed that the relationship between task and workers’ co-operation could be standardized. Taylor’s scientific management theory involved observing workers to see how they carried out tasks. As a result of his work tasks were broken down into smaller scale units of work, requiring little understanding from employees of what they were doing. This job specialization meant that workers undertook tasks with a narrowly defined range, for which they were rewarded according to how much they produced. Payment systems rewarded those who produced the most. 

Taylor’s way of working is very different from the needs of the modern working environment. However his work has helped form a scientific understanding of how work is organized. Today, companies needs people with greater capability and flexibility. At Siemens, the culture encourages employees to become more involved in their work, suggesting and implementing improvements. Control as originally suggested by Taylor, is not what modern engineering is about. Controls still exist but the person doing the job is encouraged to work as part of a team and become involved in deciding the best way to do or improve a task. This is because in engineering there is a continuous need to develop new and better products and processes.By working with individuals as they perform their roles, it is possible to people’s enthusiasm and their ideas so that improvements can be made. This provides them with rewards and benefits, not just in terms of pay, but also in job satisfaction and recognition.

Hierarchy of needs theory:

The most well known theory of motivation is Abraham Maslow’s hierarchy of needs. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator.

As per his theory there exists a hierarchy of five needs. These needs are:

Physiological:Includes hunger,thirst,shelter and other bodily needs

Safety:Includes security and protection from physical and mental harm

Social:Includes affection,belongingness and friendship

Esteem:Includes esteem factors such as self-respect,autonomy ,achievement,status and recognition

Self Actualisation: The drive to become what one is capable of becoming includes growth,achieving one’s potential and fulfillment.

Siemens provides the opportunity for employees to fulfill their higher-order needs. For skilled workers, like engineers, these are likely to be of great importance.Feeling that one’s work is making a difference can improve self-esteem. Siemens runs schemes in which suggestions and projects for improvements are rewarded. This could be financially, either individually or as part of a team, or in terms of peer or management recognition of their achievements.Self-actualization is concerned with workers fulfilling their potential. An engineering environment generates excitement and challenges. Original solutions and ideas are required to solve problems on a daily basis. These appeal to the higher needs of employees. It is also possible to use technology to identify new ways of working and new processes. Siemens offers training and development opportunities. This links with self-actualization as it helps engineers to extend their capabilities which may lead to a progression up the career ladder. It also helps individuals to meet the changing demands of the business’ global markets.

Frederick Herzberg’s motivation-hygiene theory:

Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known as two-factor theory or Hygiene theory. According to his theory people are influenced by two set of factors. They are Motivation factors that includes achievement, recognition, resposibilty and growth and Hygiene factors which includes pay and recognition, status, working conditions and job security.

To reduce dissatisfaction, Siemens believes the best method is to raise awareness of issues with employees and encourage their involvement. They then understand and recognize the need for change. This has helped Siemens to manage change programs. Motivation at Siemens stimulate engineers to work in the best way possible. Being empowered helps them to manage their roles and enables them to use this power to change things. Whether individuals enter the organization after their college or as apprentices or graduates, the work they undertake is stimulating.

In addition to these three theories there are a number of contemporary theories in motivation which include ERG theory,McClelland’s theory of needs,Cognitive Evaluation theory,Goal setting theory and reinforcement theory.

Thus we see that works of Maslow and Herzberg applies in a modern engineering environment like Siemens more than Taylor’s. Lower order needs are met by the organization providing good pay and a safe working environment. Higher order needs are also provided for its engineers through training and development, as well as the opportunity to undertake creative and challenging work. Siemens employees are motivated by being recognized for their achievements and by having opportunities for progression, regardless of the level at which they started working for Siemens.