‘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. Woolsworth group is an Australian chain of retail stores. They have about 3000 stores, motivated workforce of 21000 to serve the consumer base of 29 million consumers. It serves markets of Australia and New Zealand (Woolsworth, 2020). A deep analysis of how organisational behaviour can contribute to success and failure of an organisation has been provided.
Importance of organizational behavior:
For understanding about different factors relating to organisation behaviour that contribute to success and failure in the organisation, we have to know importance of organisation behaviour. Following is the importance of organisation behaviour -
Organisation behaviour helps to understand the behavioural traits of employees in the organisation.
Organisation behaviour helps the individuals to know about themselves and others. This helps in building own personality and strong group relations.
Organisation behaviour helps to build up cordial employee relationships.
Helps in employee motivation. Managers get the idea of positive and negative motivators for their subordinates. Organisation behaviour suggests the motivational elements needed by the employees.
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.
Organisational behaviour has direct influence over decision making in the organisation.
Companies can only respond to the changes in environment by deeply understanding their organisation behaviour.
Organisation behaviour helps to facilitate communication in the organisation.
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. Some most commonly used organisational behaviour models are-
This model was more popular in earlier times. In this kind of model managers are responsible for the entire decision making and employees just follow their instructions. Managers use negative motivators like punishment, threat, authority, power etc. for the employees. Autocratic model increases the stress level among the employees and hampers the individual growth (Wibowo, 2017).
With the change in time drawbacks of autocratic model came into existence. In this model employee welfare came into picture. Managers started recognising the needs and wants of the employees. Rewards were associated with the performance to motivate employees (Christina, 2018). In this type of model employee satisfaction plays the key role. Health benefits and economic benefits were provided to increase the employee satisfaction.
In this organisation behaviour model 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.
This is an organisation model which treats everyone in the organisation equally. It assumes there are no manager and no subordinates. In this model authority relationships are overlooked. Everyone works together at a common place. Managers and subordinates work together as one team. It helps to reduce distance between manager and subordinate. This model is too unconfined liberty and may result into chaos.
The system model-
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.
Woolsworth understands the need of adopting organisational behaviour. The company has adopted ‘System model’ of the organisational behaviour. The workforce of the organisation is inspired and motivated. There is a sense of belongingness among the employees. The organisation has selected a suitable model to work with 21000 employees. It is stepping stone for achieving organisational goals.
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-
Clan- This type of organisational culture 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
Hierarchy- This type of organisational culture is autocratic type. It focuses on efficiency and control. It focuses on hierarchical relationships.
Market- This type of organisation culture is performance based. This organisational culture focuses on achieving the targets, being ahead in the competition.
Adhocracy- This structure gives more independence to employees. It develops the entrepreneurship and risk taking culture in the organisation (Maciag, 2019).
A healthy organisation 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. Woolsworth has more 6500 team members working for more than 25 years with the organisation (Woolsworth, 2020). Employees at Woolsworth are ready to put up extra efforts when required. Woolworth always nurtures its employees as family. Team work is encouraged in the organisation. Proper coordination and communication channels have been 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.
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. Woolsworth lacks here, 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. 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. Anti social behaviour in the organisation creates conflicts, poor team work and bitter relations in the organisations. This ultimately contributes to organisational failure in long run.
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. Motivation can be positive and negative. Positive motivation includes rewards, bonus, appreciation etc. Negative motivators include fear, threat, pain etc. There are several things motivate individuals. Both positive and negative motivators play their role but they should be used wisely. Individuals who are relentless or first class in their fields are constantly persuaded positively. Positive inspiration is the new level or redesigns the negative one. It's what makes us thrive as people, looking for greatness. Negative inspiration is an endurance gadget, it runs over when we around of some cynicism. Negative inspiration made you fair. Control your feeling, so you can control the sort of inspiration that drives you. Motivation can be classified into 2 broad categories- Intrinsic motivation- 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). There are three levels of change in – 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. These changes arise due to the external forces like- globalisation, laws, competition, technology and availability of resources or internal forces like- change in management, lack of effectiveness and organisational restructuring. Woolworth has gone through these changes several times and 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 effectively manage this change company is spending $10 million for training the employees. The company is successfully implementing changes in the organisation 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 is very important to reduce stressful situations in the organisation and achieve 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 an organisation 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. For example- In a highly competitive organisation the behaviour of groups and employees organisations and the individuals who work for them are a piece of a greater outside condition and this influences the organisation. Woolsworth deeply understand its business environment and organisation behaviour is guided in such a way that it suits the needs of present environmental scenarios. Analysing the business environment and guiding the organisation behaviour in the right direction is very important for success of every organisation.
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 Woolsworth 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 Woolsworth 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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