Organisation behaviour comprises of two words organisation and behaviour. Therefore it can be explained as the behaviour which a particular organisation displays. Organisation is a group of individual that show certain behaviour in an organisation. Combined behaviour of the humans in an organisation is called organisational behaviour. It is a study relating to coherence between organisation and human behaviour. In other words organisation behaviour can be defined as the field of study which applies systematic knowledge to study how people of an organisation act individually or in groups (Brooks 2018). Organisation behaviour is an interdisciplinary approach. Psychology, Social psychology, social psychology, sociology, anthropology and political science are the contributing disciplines in the organisational behaviour (King and Lawley). Organisations are the social systems that need to maintain a good organisational culture for achieving its goals. Woolworth’s group is an Australian chain of retail stores. They have about 3000 stores, motivated workforce of 201,000 to serve the consumer base of 29 million consumers. It serves markets of Australia and New Zealand (Woolworths, 2020). A deep analysis of how organisational behaviour can contribute to success and failure of an organisation has been provided.
Existing ‘Organisational Behaviour’ plan in the organisation:
Woolworths is having around 3000 store and more than 201,000 full time and part time employees. Therefore it is important for the company to manage the behavioural aspects of so many employees in the organisation. Study of organisational behaviour helps the managers to draw out the tactics to improve organisation efficiency. Organisation behaviours help to build up a positive organisational culture. Positive organisational culture helps to improve organisation’s performance. In the territory of organisation conduct organisation has a particular chain of importance. The top most manager, in the organisational hierarchy is placed at the centre and solely responsible for organisation operations. The next level of managers is placed at stores and they are responsible for fulfilling stocks, managing workforce and other financial operations. The next level comprises of full time employees and the lower most level comprises of part time employees. The company focuses on competitive performance but has a very little attention to employee motivation or employee need assessment. Therefore it has a higher employee turnover cost in the organisation. Woolworths, needs to analyse different factors related to organisation behaviour for revising its organisational behaviour strategy and built a positive organisation culture in the organisation. Positive organisation behaviour helps to build up faith of employees in the management and vice versa (James, 2017).
Factors related to organization behavior that contributes to success and failure:
Choice of organizational behavior model:
There are many kinds of organisational behaviour models to meet the needs of different organisations. Choice of appropriate business model is important factor contributing to the organisation success. Whereas a wrong choice while adopting business model can lead to failure. Woolworths Company has adopted ‘Supportive model’ of the organisational behaviour. Supportive model is the organisation behaviour model that emphasises on the importance of participation of employees in thinking and decision making was recognised. Steps were taken to self-motivate the employees. Managers began to play the role of aspiring leader in the organisation. There is a hierarchal control established in the organisation growth (Wibowo, 2017). Whereas, it’s close competitor ‘Coles ‘has adopted ‘Systems model’ of organisational behaviour. This model aims at attainting meaning at work. More than salary, incentives, rewards for motivating employees this model develops a feeling of mutual trust among employees and managers. This builds up a positive and healthy work environment. Such environment is incorporated with the feelings of trust, optimism, hope and self-determination. This is the most recent model of organisation behaviour (Kaplan and Owings, 2017). In this type of models employees consider themselves as the part of organisation and take responsibility of their actions. Woolsworhth also needs to adopt this model. Today’s most of the organisations are shifting to system’s model to achieve success. This model helps the business to support its employees by cresting a family kind of culture in the organisation. This family of employees is the major element contributing to organisation’s success. In today’s era autocratic model of organisation behaviour is completely obsolete.
Building up of Woolworths culture which brings harmony and increases the efficiency of the organisation is important for the success of every organisation. A negative organisation cultures creates chaos, confusion and conflict within the organisation and reduces the overall efficiency of the organisation. To understand about the organisation culture of Woolworths we have to understand the term organisation culture and its 4 basic organisation cultures .Organisation culture can be defined as values, assumptions and behaviours that create a unique environment at the workplace. There are 4 types of organisational cultures-
This type of organisational culture in Woolworths is based on nurturing others. It creates the family kind of atmosphere in the organisations. Employees are self-motivated to perform better. It promotes collaborative working
This type of organisational culture in Woolworths is autocratic type and focuses on efficiency and control. It focuses on hierarchical relationships.
This type of organisation culture is performance based. This organisational culture focuses on achieving the targets, being ahead in the competition.
This structure gives more independence to employees. It develops the entrepreneurship and risk taking culture in the organisation (Maciag, 2019).
Woolworth’s culture attracts employees and retains tem in the organisation. It is responsible for reducing employee turnover cost in the organisation. Positive organisation structure should be created and communicated well within the organisation. Woolworths rears market type of organisation culture. Employees are provided periodic target and appraisals are performance based on the terms of targets achieved. Woolworths has more 6500 team members working for more than 25 years with the organisation (Woolworths, 2020). But employees turnover cost is higher at Woolworths .Employees at Woolworths are not ready to put up extra efforts in the crisis situation. Woolworths has realised this and working in the direction of nourishing its employees as family. Company’s revised strategy focuses on keeping people first. Team work is encouraged in the organisation. Proper coordination and communication channels are being established in the organisation. Communication plays a vital role in constructing the organisation culture. Effective communication is the key to success whereas poor communication can lead to failures. Organisation culture is not always the same. It is dynamic and keeps changing with new members adding up in the organisation. Thus it important to effectively manage future changes and maintain raise a healthy organisational culture. Keeping this in mind Woolworths has also laid stones in creating family type atmosphere in the organisation.
Role of top management:
Top level managers are the key persons framing the organisation behaviour. They lay the foundations of organisation behaviour. They are ones who analyse the individual behaviours and group behaviours and link it to the organisational behaviour. Managers are responsible for motivating employees and framing cordial relationship between top level and the subordinates. Woolworths lacks here, top level managers of the firm effectively maintain the operations of the firm but they not lay much emphasis on building relations with employees at every level. Managers do not lay emphasis on building up supporting relationships between top management and lower level. Company’s lower level employees cannot communicate directly to the top level. This has sometimes leaded to communication breaks and reduced the efficiency in the organisation. Managers can predict and control employee behaviour in an organisation. But at Woolworths less emphasis is given on identifying behavioural aspects at individual or group levels. For the success of organisation managers should identify and promote positive behaviour and impede anti social behaviour. They have the responsibility to effective use the human resource for the benefit of the company. Sometimes in Woolworths this anti social behaviour of employees in the organisation creates conflicts, poor team work and bitter relations in the organisations. This will ultimately contributes to organisational failure in long run. Top level managers of the Woolworths need to analyse the forces driving employee behaviour in the organisation and take steps to manage the employee behaviour in the organisation.
Motivation includes the natural, passionate, social, and intellectual powers that actuate conduct. In ordinary use, the term motivation is as often as possible used to depict why an individual accomplishes something. It is the main impetus behind human activities. In simpler words motivation can be described as the guiding force for a particular behaviour. Employees at Woolworths lack motivation. Organisation should take efforts to analyse different needs of individuals and tactfully using that need to motivate the employees from within. To evaluate the needs of individual employees Woolworths can use Maslow’s need hierarchy theory or McClelland’s theory. Top level managers should find out ways to communicate with lower levels and know about their motivational needs. Without motivated or inspired employees Woolworths could land into risky circumstances. It can lead to failure in the coming future. Woolworth should try to motivate employees using positive motivators.Positive motivation includes rewards, bonus, appreciation etc. Positive inspiration is the new level or redesigns the negative one. It's what makes us thrive as people, looking for greatness. Although most of the employees can be motivated using positive motivations motivators some special circumstances or individuals require negative motivators. Negative motivators include fear, threat, pain etc. Negative inspiration is an endurance gadget, it runs over when we around of some cynicism.
Woolworths can use following methods to motivate its employees-
This is the type of motivation that comes from within no external force is used to drive this motivation. The person is motivated from inside when he aims to achieve a goal or feels unfulfilled (Wlodkowsk, 2018). Natural inspiration is ordinarily more reasonable than outward inspiration since it as a rule centres on positive or selfless things you can control. According to Tarver (2020), types of intrinsic motivation are following-
Competence and learning motivation
This type of motivation is driven by external forces like money, rewards, bonus, appreciation, reputation etc. This type motivation is based on the theory of operant conditioning. Thus this motivation force is guided by rewards or punishment (Latham, 2016). Types of extrinsic motivation-
Affiliation and social motivation
In business managers extrinsic motivation is used more than the intrinsic motivation to guide the organisation behaviour. Woolworth did not pay salaries to about 6000 of its employees which amounted about $300 million. This has resulted into a legal case against the company and various other negative impacts. This underpayment eclipses record sales driven by collectables (Powell, 2020). It resulted into less motivated workforce and rage among the employees. This case of underpayment has given a competitive edge, to its competitor group- Coles. The firm’s organisation culture at this time was growing negative. Due to the negative consequences the firm decided to cut the bonus of executive sad clear the salaries of the unpaid employees. The company also offered an apology to its team (Powell and Sakkal). Now the company needs to use some more positive motivators to stimulate employees to perform better and build up a positive organisation culture.
Change is permanent. Every organisation transforms in process, policies and practices. Therefore it is necessary to successfully implement these changes in the organisation. In terms of organisation behaviour change management can be defined as the way to deal with moving or progressing people, groups and association from their current state to wanted future state (Voehl and Harrington, 2017). Woolworths has gone through these changes several times which arise due to external forces like- globalisation, laws, competition, technology and availability of resources or internal forces like- change in management, lack of effectiveness and organisational restructuring. The company effectively managed these changes. In the year 2010 the company restricted its senior management. The recent change it went through was in the year 2019 of restricting its stores (Hall, 2019). To deal with this change the company is spending $10 million for training the employees. Woolworth’s implements change at 3 individual level, group level and organisational level. The process of change is not easy; changes have to face resistance or create stress in the organisation but company is effectively managing changes in the organisation culture. For successfully implementing changes in the organisation, the company is dealing with the behavioural aspects of the employees. Several methods like education, participation, facilitation, coercion and negotiation are being used by the company to overcome the resistance to change. This reduces stressful situations in the organisation and achieves organisational objectives. The organisations who do not lay emphasis on the behavioural aspect of organisational change often face difficulties in implementing the change. Resistance to change can sometimes lead to the failure in change implementation.
External business environment of Woolsworth comprises of political environment, economic environment, social environment, technological environment, ecological environment and legal environment (fernado, 2011). Organisation behaviour of an organisation is influenced by the business environment to a great extent. Woolworths deeply understand its business and is working in the direction of framing its organisation behaviour strategies depending on the needs of environmental scenarios. Woolworths is also revising its organisation behaviour models to achieve success. Every organisation must understand the need to revise its organisational behaviour strategies to gain success in the dynamic business environment. If the company fails to maintain pace with the changing trends in the environment it will lead to failure.
It can be concluded that organisation behaviour plays a vital role in success or failure of organisation. Organisation behaviour begins with individual behaviour then group behaviour and the behavioural aspects of organisation as whole. It identifies the interface between human behaviours and organisation. In this essay we have developed deep insights on how different concepts or factors related to organisation behaviour contribute in their own ways to the success and failure of organisation. Here we have used the example of Woolworths group Australia. factors from the perspective of organisation behaviour that contribute to success or failure are organisation culture, organisation environment, role of top level managers , motivation methods sued by the organisation and change management. It is recommended for Woolworth’s group to use better motivation methods for employees in the organisation. The organisation also needs to develop stronger and effective communication chances between top level and lower level employees. Organisation’s success or failure depends on how well it utilises the factors related to organisational perspectives.
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