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Define organisational behaviour and discuss its relevance to management.
Introduction
Organizational behaviour relates to individuals or group of persons working together. In an organizational context, organizational behaviour refers to a study that is concerned with management, design, and effectiveness as well as with the interactive and dynamic relationships that exist within an organization. The concept of organizational behaviour has roots from the human relations school of thought that was based on Hawthorne Studies in 1920s (Martin, 2005, p. 4). Originally, the study of behaviour focused largely on the complexity of human behaviour in organizational setting. This led to recognition of the significance of social context in organizational working environment and the way groups behaviours within organizations become influenced by behaviours of individuals. However, more recent studies influenced by the earlier perception have demonstrated that organizational behaviour incorporates many more features in relation to human behaviour in an organizational context. Currently, organizational behaviour involves integration of studies from various academic disciplines such as sociology, psychology, economics, anthropology, political science and social psychology, (Staw 2010, p. 181). Thus, it is a comprehensive field of study that helps organizational management to apply the knowledge and skills about behaviour to investigate, identify and to modify the behaviour of individuals and groups within the organization. This paper explores the meaning of the concept of ‘organizational behaviour’ and discusses its importance to organizational management.
Definition of organizational culture
The term ‘organizational behaviour’ has multiple of definitions advanced by different scholars. Before adopting one of the most appropriate definitions of the term in this context, it is essential to appreciate the meanings of the terms ‘organization’ and ‘behaviour.’ According to Saiyadain, (p. 13), the term organization refers to the process of coordination of activities of a given number of individuals with an aim of achieving a common objective through accountability, division of labour and hierarchy of authority. Thus, organizations are rational entities and have well defined objectives and well defined economic means to achieve those objectives. An organization is made up of a minimum of two persons and the objectives of the organization are equally shared, understood and subscribed by all individuals within the organization.
The term behaviour on the other hand denotes an action or a reaction by an individual or a group of people triggered by an internal or external stimulus, which could be visible or invisible. This means that an individual’s behaviour could originate from within self or could be initiated by another person or thing. Thus, ‘organizational behaviour’, according to Saiyadain’s, (2003, p. 14) refers to, “a field of study that seeks to comprehend, predict and control human behaviour in organized settings through a scientific study of individuals, group processes and organizational structure and design and applying for the purpose of applying such knowledge in improving organizational effectiveness.” This definition has three major elements. First, organizational behaviour involves in investigative research on behaviours of individuals and groups within organizations. Second, organizational behaviour explores the impact that an organizational structure has on human behaviour and third, it involves the application of the knowledge gained to enhance efficiency within organization. The three elements are interactive in nature and they are applied to various systems of an organization in order to assist the management in achieving some set goals. Thus, the field of organizational behaviour emphasizes on understanding the behaviour of organizations and uses this as the basis for predicting how people will behave in the future. Thus, knowledge about organizational behaviour is important as it helps in controlling behaviours that are not generally beneficial to an organization and to facilitate behaviour that enhances efficiency of an organization. However, for people to have faith in the creation of organizational knowledge, it has to be derived using scientific methods such as through questionnaires, surveys, interviews and simulations, (Nguyen & Mohamed, 2011, p. 206). Therefore, knowledge and skills about organizational behaviour assists in identification of action plans that can be used to reinforce positive behaviour and to avoid disruptive behaviour.
Relevance of organizational behaviour to management
Organizational behaviour is very important to any organization’s management, since it has both intended and unintended consequences. As Henry et al (2003, p. 5) points out, the consequence of behaviour plays a crucial role in reinforcing certain behaviours and hence, affects the possibility of occurrence of behaviour. It affects productivity and can trigger occurrence of positive or negative reactions from individuals in the organization. Thus, study of organizational behaviour helps the managers to gain essential knowledge and skills about various components related to behaviour that lead to an organizational success including people, job design, processes and organization’s external environment.
According to Hashim et al (2008, p. 144), the study of organizational behaviour enables the management to investigate the behaviour of people and groups that relate to the organization. Managers have an obligation to look at the indicators and effects of individual and groups’ behaviours in the organization. Usually these indicators have a root cause. Thus, organizational behaviour assists the management in evaluating the symptom and establishing the root cause of behaviour. If the behaviour is good and will lead to organizational efficiency, the management can establish the norms of behaviour. On the other hand, if the behaviour is not conducive in enabling the organization to achieve the intended goals, then, the management can apply alternative and suitable models to modify individual and groups behaviours towards the appropriate vale system for the organization. According to Jeon et al (2011, p. 251), this strategy has been the base of success of most Korean firms. Besides the management of workforce, knowledge about behaviour of other stake-holders that determine an organization’s success such as customers and suppliers help in shaping the organization to cope with their requirements. Organizational knowledge helps to make adequate considerations when dealing with these stakeholders. Thus, in combination with the various concepts in the field of organizational management, managers apply the knowledge about behaviour to identify and to modify the attitudes of individuals and groups and to promote skills that will enhance effectiveness.
Secondly, knowledge of organizational behaviour helps in enhancing an efficient organizational structure. Usually, informal organizations lack some specific structure but formal organizations have systems which are built based on the organization’s goals, (Jeon et al, 2011, p. 251). The structure of such organizations is hierarchical in nature with people at lower levels reporting to higher level managers. For such an organization to be effective, it must have suitable structure with reporting system well explained and with appropriate number of tier. The efficiency of the organization will be dependent on presence of efficient communication system, free flow of information, well defined authority and efficient discharge of responsibilities supported by the rules and regulations. Thus, knowledge and skills relating to organizational behaviour helps managers to keep open mind while exercising full control over the various systems and while dealing with the subordinates and hence, it helps in achievement of high level of job satisfaction and ensure planned productivity.
Organizational knowledge is also important in assisting managers in assignment of jobs and recruitment of workers. For instance, an organization will require a person who is not shy to work at a credit collection desk. The management will need to recruit a confident person in such a position and place shy individuals in other department which have less direct contact with clients and less stress. Such knowledge therefore, helps the management to organize various tasks so as to accomplish a particular job (Kumar & Sharma, 2001, p. 298). It ensures that the management makes adequate work delegation, application of various job techniques as well as adequate supervision. Dhar U. & Dhar, (2002, p. 9) noted that in Indian firms, knowledge about behaviour helps the management to enhance processes hat lead to interdependence among individuals within organizations. This is achieved through section of appropriate subordinates to take up specific tasks based on personal traits, mental build up, aptitude and attitude as well as to lead by example. This helps the management in developing and building an organizational culture that will build a common cultural bond among the employees.
Finally, skills and knowledge about organizational behaviour helps proper management of organization’s external environment. Cultural, social, regal and government regulations changes in the society affect an organizational performance through their influence on individual behaviour of the workers and on the overall organizational culture, (Gorelick, 2005, p. 385). It is of utmost important for the management to examine how an organization and especially the subordinates are going to cope up with changes, both planned and unplanned. Cordeiro-Nilsson & Hawamdeh (2011, p. 89) note that management of knowledge about external environment such as culture of the society has enhanced success of the largest section of firms in Singapore and Sweden. Therefore, Knowledge and skills about organizational behaviour helps the management in examining and predicting organizational behaviour which helps in making the best anagram and work in order to cope with changes that affect organizational culture.
Conclusion
Organizational knowledge plays a very crucial role in determining the success of an organization. This is a field of study that seeks to investigate the impact that the behaviour of individuals and groups as well as organizational structure shave in the context of an organization, for the purpose of using such knowledge in enhancing organizational effectiveness. Knowledge about behaviour helps the management to identify and to modify the attitudes of individuals and groups and to promote skills that will enhance effectiveness. Further it helps the management in designing and redesigning jobs based on personal attributes of the workers as well as recruitment of the right individuals for specific tasks. In addition, knowledge of behaviour assists managers to develop an organizational culture that enhances job satisfaction and supports high levels of productivity. Thus, organizational management should have adequate skills and knowledge about organizational behaviour in order to evolve appropriate strategies that will enhance organizational effectiveness.
References
Cordeiro-Nilsson, C. & Hawamdeh, S., (2011) “Leveraging socio-culturally situated tacit
knowledge”, Journal of Knowledge Management, Vol. 15 Iss: 1, pp.88 – 103
Dhar U. & Dhar, S., (2002), ‘Study of Organizational Behaviour’ viewed 16 November, 2011
from < http://www.newagepublishers.com/samplechapter/001395.pdf>
Gorelick, C., ‘VIEWPOINT Organizational learning vs the learning organization: a conversation
with a practitioner,’ The Learning Organization, Vol. 12 No. 4, 2005, pp. 383-388
Hashim, J., Wok, S. & Ghazali, R., (2008) “Organizational behavior associated with emotional
contagion among direct selling members”, Direct Marketing: An International Journal, Vol. 2 Iss: 3, pp.144 – 158
Jeon, S. Kim, Y. & Koh, J., (2011) “An integrative model for knowledge sharing in
communities-of-practice”, Journal of Knowledge Management, Vol. 15 Iss: 2, pp.251 – 269
Kumar, A. & Sharma, R., (2001), Personnel Management Theory And Practice, 3 Vols. Set,
Atlantic Publishers & Distributors, New Delhi
Martin, J., (2005), Organizational behaviour and management, Cengage Learning EMEA,
London
Nguyen, H. N. & Mohamed, S., (2011) “Leadership behaviors, organizational culture an
knowledge management practices: An empirical investigation”, Journal of Management Development, Vol. 30 Iss: 2, pp.206 – 221
Saiyadain, M. S., (2003), Organisational Behaviour, Tata McGraw-Hill Education, New Delhi
Staw, B. M., (2010), Research in Organizational Behavior: An Annual Series of Analytical
Essays and Critical Reviews, Elsevier, Amsterdam
Tosi, H. L. & Mero, N. P. (2003), The fundamentals of organizational behavior: what managers
need to know, Wiley-Blackwell, Berlin
Deficit Spending
Deficit Spending
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Deficit Spending
Every government in the world needs some financial support in order to carry out its day-to-day activities. The money to help run any government is got from the revenue that the it collects from the public. The revenue can be accrued from taxes that the government has placed on various goods and services or fines imposed on people for various offences. At times, however the revenue collected by the government may not be enough to sustain its operations, thus, forcing the government to borrow money to assist in keeping the government running. The instance in which the government’s expenditure exceeds its revenue is referred to as deficit spending. This paper will look at the advantages, disadvantages, and the crowding out effect of deficit spending (Stähler, 2009).
Advantages of Deficit Spending
The advantages of deficit spending by the government can be seen clearly in two main aspects: during a recession and on investment. When there is an economic downturn, the government might result to borrowing. In that aspect, recession is important in increasing the AD. Deficit spending can also help increase investment. When under provision is experienced in the education or public sector, the government might increase spending in the affected sectors. In so doing, the sectors may experience increased productivity in the future, which might result to higher rate of economic growth (Stähler, 2009).
Disadvantages of Deficit Spending
Deficit spending has various effects some of which include rising costs, investment opportunities, and organizations’ emergencies. We will look at the negative effects of deficit spending in each aspect mentioned above. Although there are some positive effects of deficit spending, the disadvantages are immense some of which are felt long after the deficit spending is over and the debt has been repaid by the government (Stähler, 2009).
Rising Cost
Deficit spending causes a rise in the cost of products available for consumers, whether to an individual or an organization. This is because the government will have to buy almost everything on credit, which means it will have debts. Debts also attract interest that means that all commodities the government purchases will have inflated prices because of the interests charged (Stevens, 2012).
Organizations
At the level of organizations, the effect of deficit spending is clearer. Deficit spending in any organization might make it less appealing to lenders, thus, making such an organization unable to get any financial assistance. Deficit spending can also distort financial ratios such as debt to assets and times interest to earned ratios. Such a situation might make outsiders wary of investing in the organizations bonds. Some of the organizations may as a result close down altogether (Stevens, 2012).
Crowding-out Effect
Crowding out effect is the instance where the interest rates of borrowing rises to an extent those corporations cannot be able to afford. When there is a deficit in the spending ability of the government, it usually turns to financial institutions for financial help. When this happens, most financial institutions increase their lending rates to an extent that it becomes too costly for the corporations to afford, thus, limiting their access to financial help (Stevens, 2012).
Conclusion
Deficit spending is often done when a country experiences instances such as economic recess. Economic recess is only a short time experience, thus, when the government results to deficit spending some negative effects are felt which most of the time do not help in economic growth but in fact hinders economic growth. Deficit spending results in employees layoff as most organizations cannot be able to gain access to any financial help that is crucial to their daily operations.
Reference
HYPERLINK “http://www.bibme.org/” o “Edit this item” Stähler, N. (2009). Taxing Deficits To Restrain Government Spending. Journal of Public Economic Theory, 11(1), 159-176.
HYPERLINK “http://www.bibme.org/” o “Edit this item” Stevens, R. E. (2012). Market Opportunity Analysis Text and Cases.. London: Taylor and Francis.
Deferred prosecution agreement
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Deferred prosecution agreement
Deferred prosecution agreement, this is a process whereby the prosecution pursues another means of making a cooperation pay for its mistakes through other available means as opposed to traditional litigation in courts. Deferred prosecution agreement can be seen in the case of fraud in corporate; a deferred prosecution agreement may be applied where the firm will have to implement reforms, carry out thorough investigations and finally payment of fines. Once the corporations are through with the set terms then the charges will be dropped and if the same is not done, the prosecution will resort to the normal process of litigation.
This process has positive results to the government and the corporation. The firm is given a chance to redeem its name and reputation while the government gets revenue from the fines the corporation is paying and from the continued successful business of the firm. There are several advantages since with deferred prosecution agreement the corporation stands a chance to survive by avoiding bad press that comes with trials hindering business. Another advantage is that the company will stay afloat and continue with business for they will avoid indictment that will lead to loss of business and employment for the workers. Although it is advantageous to the firm, there are also disadvantages to the company. The company pays up fines in millions of dollars; the payment of fines has a negative impact on the company’s finances.
The companies involved in misconduct should be made liable and pay for their mistakes if that is not done, the mistakes will end up costing the consumers of that company’s services or goods. With that said, the government is not exploiting such companies. All companies are liable for the actions of its employees in that capacity; hence, it is right for the government to punish a corporation for actions of its staff. The company has a duty to ensure its empolyees work within a set framework and regulations. Corporate criminal prosecution is necessary because the companies have to pay for their mistakes that have a negative impact on the consumers. If prosecution is not done, the consumers will face the negative impacts that result from such mistakes.