Organizational Behavior Essay Example for Free

Organizational Behavior Essay With the advancement in technology the operations and scales of most business have become global in nature. Aside from this the target market of the corporations has also increased to include regional as well as international customers. This has requires the culture in most multination enterprises to change and adapt to diversification. Corporations have as a result invested in a diversified workforce that represents the various types of customers it targets and help create a much better understanding about the constantly changing and evolving target market. With the changing market dynamics the companies have also had to change their management styles. The most apparent trend for corporations has been to create a value based culture where the values are derived from the customer and business point of view the procurement training of employees is based on this value system. The best way to do this is by hiring people who have the desired talent and values required by the company. This reduces the cost of training and development for the company in the initial stages and contributes to a much better workforce which is intone with the organizations objectives and value system. However in most cases the new employees do require formal orientations where they are specifically informed about culture in place ion the organization and how the business conducts its operations. Yet again hiring people who share similar values as the organization does provides more harmony and direction for the workforce. Organization and Culture: Before establishing on a code of conduct of devising a formal culture for the organization, it is essential to define what organizational culture is. The culture at any organization is how the operations are performed in the entity and how the employees perform their specific jobs. Whenever the company is formally writing the essence of the culture it is acknowledging the core values of its operations and the company itself. As a result the culture should be representative of everyone in the organization and the values derived from it should benefit the company and its stakeholders as a whole. Therefore it is critically important for organizations to fully comprehend and understand the organizational culture in place in their organization before defining the values for the company or hiring personnel depending on their shared values with the business. Cameron and Quinn have designed a framework for the culture based on competing values. This framework identifies that there are essentially four kinds of cultures in an organization and any company can have either one of them or a combination as their organizational structure. These cultures have been specifically identified as the market culture, hierarchy culture and the adhocracy culture and the clan culture. Companies who have a clan type of a culture are organizations that operate based on their loyalty and relationship with others. Tradition and loyalty count as high priorities here and as a result employee commitment is a strong factor. Examples of organization that have this type of a corporate culture are the Japanese Companies. The market culture is characteristic of supermarkets and those companies operating in the retail sector. These kinds of organizations are result oriented and focus on getting the job done. The people usually employed in this company are competitive and goal oriented. The new hired sought by the company are leaders who can be tough and respond to the demanding nature of the organization. The company deems the pricing policies and intense competition as integral to the business. The vision of such organizations is to attain a large portion of the market share. Another form of an organizational cultures the hierarchy culture which is formalized in nature and structured according to rank and priority. The leaders in the organization are responsible for getting the work done and there is an essence of pride amongst the employees about their positioning the company. These companies are relatively predictable and they focus on hiring employees who are dependable and committed to long term employment in the company. The perfect examples of such organization are government organizations and public institutions. The last type of culture identified in the framework is the adhocracy culture which features entrepreneurship and creativity in the workplace. Organizations have this kind of a culture are usually dynamic and harbor innovation. They seek employees who are risk takers, creative and can be focus on the long term productivity and growth of the organization. The essence of this culture is innovation and commitment to change and diversification. An example of such a company is Google. Discussion: The main hotspots for cultural integration and diversification for Multinational Enterprises exist in the European, Asian and Middle East regions. A recent study was conducted to analyze the cultural orientation of the workforce and the similarities and differences for a multicultural workforce in Oman. The data for this research was conducted from about 700 employees employed in 6 large firms in Oman. â€Å"The results demonstrate a clear link between value orientations and preferences for particular HRM policies and practices. Group-oriented HRM practices are preferred by those who scored high on collectivism and being orientations, and those who scored low on thinking and doing orientations. Hierarchy-oriented HRM practices are preferred by those scoring high on hierarchy, subjugation and human nature-as-bad orientations, and those scoring low on thinking and mastery orientations. Finally, preference for loose and informal HRM practices was positively associated with being, and negatively associated with thinking, doing and harmony orientations. (Aycan, (et al), 2007) The HR employment policies and the recruitment process comprises of job identification and job design. When the specific characteristics of the job have been identified it becomes easier to document the requirements for the job. In market oriented firms companies seek prospective employees who are competitive and willing to embrace the values of the company. Colin Shaw conducted a research in association with the Marketing forum about employment in marketing. The research showed that â€Å"71 per cent of business leaders see customer experience as the next competitive battleground to be fought in a commercial marketplace — yet few are doing anything about it. Seven out of 10 customers say that emotions count for more than half of their customer experience. But most companies have not even thought through the emotions they are trying to evoke and will, therefore, struggle to recruit people who are able to evoke the positive emotions the company has identified. †(Shaw, 2002) Aside form simply managing diversity in the work force by creating a value based culture in the organization and hiring personnel on the basis of their value characteristics, the companies in multinational sectors can also develop relationship with their strategic partners, suppliers and affiliates on the basis of their organizational values. This is formally termed as Supply Relationship Orientation. Using this approach the organization can target a much diverse target market more efficiently and can also internalize most of its operations. The internal and external integration leads to strategic advantage for the company therefore further creating barriers to entry in the industry and making the organization more competitive. Job satisfaction is highly dependent upon the values that the employees have. These values can be cultural in nature or those endorsed by the organization. A study concerning the impact of cultural diversity on the employed job satisfaction showed that it is possible for people from different backgrounds and regions to have different values and work environment expectations. This specific study studied the Chinese nd Taiwanese organizations and depicted that â€Å"Integration, Confucian Work Dynamism and Human-heartedness are significantly different between Taiwanese and Chinese employees, while Moral discipline is not; Taiwanese employees have higher ES than Chinese employees; Taiwanese employees view career planning is the most important, while Chinese employees think management system is most important; For Taiwanese employees, Salary and benefit, Working load and Management system have effects on ES; Age and Education have effects on Chinese employees† (Chuan-Cheng Yu-Chen, 2007) Some cases of prominent organizations taking sides on their HRM and recruitment policies are depicted in the following examples. â€Å"Sears, for example, developed a strong culture based on its successes through the 1960s that kept later CEOs from making radical changes that were needed to respond to shifting consumer preferences. On the other hand, Wal-Mart, which was less restrained by its past, prospered during the same time period. † (Powell, 1998) When hiring new employees the bottom-line is to make way for a cohesive organization which is diversified in nature and its workforce yet is united in its structure, values and objectives. This is what has been termed as a model organization with an effective organizational perspective. Essentially the organization has two roles for an employee when it is hiring prospective personnel. These are that the organization needs employees who can help the organization grow and follow what is already in place in the organization. This is required to bring continuity into the business. However the other goal of the organization when recruiting new employees is to hire those candidates who are entrepreneurial in nature, risk takers and innovative, i. e. are willing to do what has never ever been done in the market or sector. In such situations the company needs to identify what are its core values and how it can attain both of its goals simultaneously. This requires identifying which values of the company fit the personal attributes of the company, and fit the situation the company is in. Then it needs to hire those employees which are suited to the values, goals and the job description in the company. â€Å"Searching for reinforcing fit on pivotal values is a good way for an organization to preserve the key elements of its culture. In fact, adherence to similar process values such as mutual respect, openness, participation, and consideration of alternative points of view facilitates a multicultural approach to diversity. On the other hand, searching for either reinforcing or extending fit on peripheral values seems unnecessary. Employees need to be allowed to express themselves as they wish, as long as they exhibit the pivotal values that support the organizations mission. † (Powell, 1998) Another view regarding value based recruitment of personnel is that the diversified and multinational corporations can invest in both kinds of employees by hiring those which are essential for the continuum of the organization as well as hiring those who fit the organization’s values and goals. This will enable corporations to have variety in the workplace and will aid in management of the diversified workforce by the use of actions teams. Aside from this there is another view which states that it may not be in the best interests of any organization to invest in the same values and culture over a long period of time. This is because the external and internal environment for the business is constantly changing and this requires the culture, and values of the organizations to also reflect change with the passage of time. â€Å"To be ready to play fundamentally different games at short notice, organizations need to keep themselves from being overly committed to one particular strategy. † (Powell, 1998) One way of adopting diversity in an organization and building a value based culture to sustain objectives is through the sequential process. The reason for using this process for managing diversity is due to the fact that the external environment is in a continuous change and the main stakeholders of any company are also facing similar changes in their lives. This makes the purchase decisions to be made on the basis of the vales of the company and therefore the employees and people in the organization are also required to work in accordance with the values of the company. An article by Steve Schuller in 2005 stated that merging diversification and value based culture the organization requires the company to adopt a focused hiring policy. This means that the company should strive to hire like minded people who share the values of the company. This can require employing on traditionally recruiting methods which can take the form of partnering with similar organization or organizations having similar technology and objectives. â€Å"Hiring is only the first step. Educating employees to understand and appreciate cultural differences and providing them with guidance about what diversity means to the organization is the most effective way to create an inclusive culture. Timing is critical. Dont make the mistake of marketing to diverse groups before providing your employees with the support and training they need to service these guests, who might have unique needs. Doing so could create negative guest experiences or hurt your efforts in the community. (Schuller, 2005). This text provides answers to the question whether only hiring personnel who share the values of the company is sufficient or should they be trained or not. The article states that even for newly hired personnel who share the values of the company it is essential for the business to provide them with orientation, mentoring and customer service training for leadership development according to the business ethics and the organizational culture in place in the company. Aside from this it is also important to communicate the values of the business and the company to the customers as well as to the employees. â€Å"Values are communicated to employees via overt internal communications, the ripple effect, senior management example/involvement, HR activities and external communications. While for consumers, values are communicated via their holistic experiences of the brand, interactions with employees, external brand communications and the tangible elements of the service offering. (De Chernatony, Cottam Segal-Horn, 2006) Conclusion: It can be derived from the above illustrated discussion that in order to manage diversity in the workplace and in the operations it is best to manage the company according to its salient nd existing value structure. This is the best recommended method for managing diversity as it does not contain any bias and conforms to the legal laws of the state and the personal values of the employees and the staff in the organization. The best way for establishing a value based organization culture is to first identify the culture for the organization and highlight its main points. The key values which give the company a comparative advantage and a competitive edge can be focused upon and these values can be derived top establish a new culture which is adaptable, innovative and in accordance with the changes taking place in the internal as well as the eternal environment of the business. Most companies seek to retain and manage the value based culture of the organization by hiring those individuals who share the commitment and the values of the organization. However it should be realized that even like minded people can end up having conflicts and as a result a base period of training has to be established in the organization for successfully managing the organization and its human capital.