ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 12: Organizational Behavior

Submission date 11/07/2021 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name TRIEU MANH CUONG Student ID BHBF190213

Class BH-BF 2005-2.1 Assessor name Ngo The Nam

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
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Contents
PART 1: A case study handout ..................................................................................................................................... 4
I. Introduction........................................................................................................................................................... 4
II. Analyze how an organization’s culture, politics and power influence individual and team behavior and
performance. ............................................................................................................................................................ 5
2.1 Influence of culture ........................................................................................................................................ 5
2.2 Factors shaping organizational culture ......................................................................................................... 5
2.3 Factors affecting organizational culture:....................................................................................................... 8
2.4 Explore the ways in which the use of power creates and eliminates conflict. .......................................... 10
III. Evaluate how content and process theories of motivation and motivational techniques enable effective
achievement of goals in an organizational context. ............................................................................................. 11
3.1. Defining work motivation with clarification of extrinsic and intrinsic motivation. ................................. 11
3.2 Content theory: ............................................................................................................................................ 11
3.3 Process theory: ............................................................................................................................................. 14
III. Conclude: ........................................................................................................................................................... 15
IV. Reference .......................................................................................................................................................... 16
PART 2: A reflective statement .................................................................................................................................. 17
PART 1: A case study handout
I. Introduction
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the
world’s leading nutrition, health and wellness company. Sales for 2009 were CHF 108 bn. We employ
around 280 000 people and have factories or operations in almost every country in the world. Since its
founding, Nestlé’s business practices have been governed by integrity, honesty, fair dealing and full
compliance with all applicable laws. Nestlé employees worldwide have upheld and lived this
commitment in their every day responsibilities ever since, and Nestlé’s reputation remains one of the
Company’s most important assets today. Employees should always be guided by the Since its founding,
Nestlé’s business practices have been governed by integrity, honesty, fair dealing and full compliance
with all applicable laws. Nestlé employees worldwide have upheld and lived this commitment in their
every day responsibilities ever since, and Nestlé’s reputation remains one of the Company’s most
important assets today. Following basic principles: avoid any conduct that could damage or risk Nestlé or
its reputation; act legally and honestly; put the Company’s interests ahead of personal or other interests.
For the purposes of this Code, references to “employees” include employees, associates, officers and
directors of Nestlé S.A. and its subsidiaries. The Nestlé Corporate Business Principles prescribe certain
values and principles which Nestlé has committed to worldwide. This Code of Business Conduct specifies
and helps the continued implementation of the Corporate Business Principles by establishing certain
non-negotiable minimum standards of behavior in key areas. The nature of this Code is not meant to
cover all possible situations that may occur. It is designed to provide a frame of reference against which
to measure any activities. Employees should seek guidance when they are in doubt about the proper
course of action in a given situation, as it is the ultimate responsibility of each employee to “do the right
thing”, a responsibility that cannot be delegated.

Website: https://www.nestle.com/

Address: Nestlé SA, avenue Nestlé 55, 1800 Vevey, Switzerland.

 (Who owns Nestle? - Quora, 2021)

II. Analyze how an organization’s culture, politics and power influence individual and team behavior
and performance.
2.1 Influence of culture
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the
values that guide member behavior, and is expressed in member self-image, inner workings, interactions
with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs,
and written and unwritten rules that have been developed over time and are considered valid (The
Business Dictionary). Culture also includes the organization’s vision, values, norms, systems, symbols,
language, assumptions, beliefs, and habits (Needle, 2004). Simply stated, organizational culture is “the
way things are done around here” (Deal & Kennedy, 2000). While the above definitions of culture
express how the construct plays out in the workplace, other definitions stress employee behavioral
components, and how organizational culture directly influences the behaviors of employees within an
organization. Under this set of definitions, organizational culture is a set of shared assumptions that
guide what happens in organizations by defining appropriate behavior for various situations (Ravasi &
Schultz, 2006). Organizational culture affects the way people and groups interact with each other, with
clients, and with stakeholders. Also, organizational culture may influence how much employees identify
with their organization (Schrodt, 2002). In business terms, other phrases are often used interchangeably,
including “corporate culture,” “workplace culture,” and “business culture.”

(What is Organizational Culture? | Complete Definition and Characteristics, 2021)

2.2 Factors shaping organizational culture

Characteristics of people within the organization
YVEY, Switzerland — Peter Vogt, Nestlé’s Head of Group Human Resource

After joining Nestlé in 1980, Peter Vogt embarked on a career rich in international experience. Amongst
other roles he was a product specialist in Japan, manager of the Nestlé business in Hong Kong, marketing
division manager in Malaysia and Market Head of Nestlé Sri Lanka.

In 1996, Peter Vogt took over the leadership of the Swiss frozen food & ice cream business. He was
appointed Market Head of the Nestlé Nordic region in 2000.

He returned to Asia in 2005 as Market Head in Indonesia and later became Market Head in Malaysia and
Singapore. On March 1, 2013, Peter Vogt was appointed Head of Group Human Resources for Nestlé.

During his tenure as Head of Group Human Resources, Peter Vogt strengthened the business focus of the
HR function and was instrumental in fostering a culture of diversity and inclusion at Nestlé.

Peter Vogt has always been passionate about building talent and teams and served as a role model for
many of his colleagues, exemplifying Nestlé’s values rooted in respect. The Nestlé Board of Directors
sincerely thanks Peter Vogt for his outstanding service over the past 38 years.

(Nestlé’s Head of Group Human Resources to retire at the end of July, 2021)

Organizational ethics

Leadership is the manner and approach of providing direction, implementing plans, and motivating
employees in the organization. A Manager’s leadership style contributes, to the subordinates’ incentive,
work fulfillment, and the work growth in the organization. Leadership plays a vital role for the success of
organization. Lack of leadership leads to increased employee turnover, absenteeism, dissatisfied
customers from poor customer service.

Employment relationship

Training:

Nestle is providing to its employees. The employees have access to company sponsored training
programs and seminars.

The purpose of training is to upgrade the capabilities and efficiency of all the employees and prepare
them for more responsible positions in future.

Provide employees with greater opportunity to grow and succeed within the company.

Both managers and non-managers receive help from training and developmental program but mostly
non-managers are concerned with training while the managers are concerned with developmental
programs.
Career Advancement:

Nestle is providing clear path for career advancement to its employees. Company gives full support to its
employees in this context.

Discrimination:

According to employees, they face or experiences not any form of discrimination in Nestle. They are
fairly treated by their boss

Working environment:

Almost all the employees are satisfied with their physical working of employees. Nestle aim’s to ensure a
workplace that necessitates open and respectful communication between the employees’ abilities.

Relationship with supervisors:

Mostly employees somewhat agree that their supervisors communicates with them properly and also
provides counseling. They believe that their managers effectively lead the department.

Supportive colleagues and coworkers:

The morale of the employees at Nestle is satisfactory and the have teen spirit in their work environment.
They are satisfied with their professionalism of their coworkers.

Recognition:

According to employees their performance is individually recognized and they are appreciated according
to the performance

Organizational structure

An organization chart of a company often shows the transactional relationships between people in an
organization. Such transactions can include directors to sub-staff, managers to pull managers away, chief
executives to different departments, and more. When an org chart grows too large, it can be broken
down into smaller charts for separate parts of the organization. The different types of org charts include:
Function

Divisional

Matrix

Flat (also known as Horizontal)

The Nestle company is a decentralized organization organized in harmony with the construction of the
matrix. Nestle as a decentralized organization licenses its divisions to achieve a correspondingly high
degree of independence. Although it still makes major planning decisions at the headquarters level, day-
to-day operations are left to the deduced and implemented by subordinates. Defining executive duties
are pushed down to local units. In organizational construction, a Complex System is a system consisting
of a large number of entities displaying a high degree of nonlinear interaction. There are some pictures
of the fundamental observations that have been made through a close look at complex systems, mainly
using computer simulations and non-linear mathematics. Complex systems are often systems that are
not tightly coupled. Nestle, through its long historical development from a small town operation to a
Nutrient for the Universe, has illustrated a first-class ability to position itself in the ever-changing
external environment, without does not lose its core beliefs and core values, so import for long-term
success. In the coming old times, this possibility will be even more contested as Nestle is increasing its
size and complexity to a great extent, requiring constant evolution in its governance and operations.
Nestle..

2.3 Factors affecting organizational culture:

Organizational culture of Nestle: Organization culture is a system of shared meaning with in an
organization that determines in large degree how employees act. After Nestles inception, the corporate
culture underwent a comprehensive renewal program which was fully implemented in 2004. This
program over the years included the revamping of the organizational architecture, rationalization of
staff, employee empowerment and transparency in decision making through cross functional teams. This
new corporate renewal program has divided the company’s major operations into independent activities
supported by legal, financial, informative and other services. In order to reinforce and monitor this
structural change, related check and balances have been established by incorporating monitoring and
control systems.

Influences of culture on behavior of others in an organizational context:

According to the opinion of the Nestle’s sales officer Nestle is a sales oriented company. Strong culture is
a symbol of more profit more earning and sense of responsibility. It is also a monument of well-
disciplined enterprises in which every organ of that organization is well concerned with the ultimate
objective of the organization. As it’s a fundamental truth that every individual from worker to Top
manager is aware of his rights privileges responsibilities and outcome of efforts being invested. Special
efforts for continuously enriching our business systems and implementing relative strategies have always
been fruitful which are aimed at augmenting a work culture that enhances employee motivation as well
as gaining a better understanding of forces that shapes motivation, attitude, behavior patterns and
expectations.

Influence of power and politics:

Power is a potential ability and influence for a people which direct other people in desired direction to
do something. In an organization managers use normally two types of power interpersonal and formal.
Formal power is based on an individual position in the organization and personal power comes from an
individual unique characteristics.

Legitimate Power:

Legitimate power is used in Nestle as it is based on the power a person receives as a result of his or her
position in the formal hierarchy of an organization. The employee has the authority to control and use
the organizational resources.

Reward power: The authority and power brought about by the treatment is mainly formed from the
subordinates. The authority brought by the treatment is the feelings and feelings of the subordinates
themselves. The higher the level of compensation satisfaction, the greater the authority of the leader.
This power varies greatly between leaders of different organizations as well as between different
positions within the same organization.

(Quyền uy do đãi ngộ mang lại (Reward Power) là gì?, 2021)

Expert power: Expert power is the influence based on special skills, knowledge or expertise. Expertise
has become on of the most powerful sources. As jobs have become more specialized the organizations
have become increasingly dependant on experts to achieve goals.

Charismatic power:

At nestle charismatic leaders are motivated by their own beliefs. These leaders consistently demonstrate
great dedication and deep understanding of their field. They have a broad and specific vision capable of
inspiring a large number of employees. At the same time, these individuals are also dedicated people
and have a voice in the collective. They are the ones who can support their employees. Leaders at nestle
always create charisma so that their employees always support and create trust for them.

2.4 Explore the ways in which the use of power creates and eliminates conflict.

The nature conflicts in Nestlé found out through the unstructured interviews and through questionnaire
with the directors & the managers of Nestlé Peshawar are as follows:

The first thing which found, was the lack of training given to the employees, managers said that in the
organization, employees always have to work together in groups, and if some one feels that he/she
cannot work within the group, then there is some problem with that employee, but at the same time
managers said that it is the organization’s responsibility to teach the employees how to work together in
groups through proper training. They mentioned that without training the organizations might face
serious types of irresolvable conflicts, which are definitely not fruitful to the organization. The manager
of Nestlé also raised the point of communication’s problem. They believe that every information must be
communicated from their tables. If in any case any employee bypasses the manger, there may be a
conflict between them. Manager also said that there is no need of any employee who bypasses the
manager to access to the top management (directors). Usually the organizations do have “Coordinators”
who are directly answerable to the top management. He said that the manager will not be able to
properly deal with him and conflicts between them will arise. Racial problems also create conflicts
among the employees. Bad attitude of the manager and arrogant nature of the boss is also one reason of
conflicts. The manager said that effective person but highly cooperative person would be proffered in
place of an efficient but uncooperative one.

The managers presented the following ideas to prevent conflicts:

Contractual Jobs

Authority to the managers

Some of them had a bit different views. Director held the middle management’s capabilities responsible
for the conflicts within the organization. He also said that there is no relationship between the authority
and reasonability with the conflicts. He proffered the autocratic style of management in the beginning,
but it should be shifted to the democratic style in the later portions.

Director said that although the centralized system slows down the process of working, but it will also
decrease the conflicts between the employees. They said that, if you (Employee) have to be successful in
the company, then you have to become a big “YES SIR”.

One of the director also mentioned that horizontal conflicts are more common. Super seeded persons
normally indulge in making conflicts. He said that super seeded persons should be terminated in place of
super seeding them. Dress code can experience the anger from the employees due to Ethnic affiliations
to some dresses. Leaders used legitimate power to handle conflicts.

(Conflict Analysis Case Study: Nestlé, 2021)

III. Evaluate how content and process theories of motivation and motivational techniques enable
effective achievement of goals in an organizational context.

3.1. Defining work motivation with clarification of extrinsic and intrinsic motivation.

Work motivation is the internal factors that stimulate people to work hard in conditions that allow to
create high productivity, quality and efficiency. Expression of motivation is the willingness to work hard
and passion to achieve the goals of the organization as well as the employees. The most common
definition "work motivation is the desire and willingness of each individual to exert all efforts to direct
himself to achieve personal and organizational goals".

Extrinsic motivation: are external factors that cause employees to act toward accomplishing a task or
job goal. They are usually punishment or reward. A punishment will motivate employees to take action
to avoid punishment, while a reward will motivate action to receive a reward.

Intrinsic motivation: Motivation comes from personal satisfaction about the job itself. It is the
satisfaction when an individual performs a job well or achieves the set goal, when the individual finds
that his or her work has a great contribution to the enterprise. Intrinsic motivation is often more
effective than extrinsic motivation, because it comes from within the individual instead of being imposed
on the individual. This can be done through empowering employees to make their own decisions.
Employees are generally more satisfied with their jobs if they have more control and autonomy. Giving
employees the ability to be creative and innovative will also improve job satisfaction and help facilitate
internal motivation.

(Động lực lao động (Employee motivation) là gì?, 2021)

3.2 Content theory:

Alderfer's model.
Clayton Paul Alderfer is an American psychologist who developed Maslow’s hierarchy of needs into a
theory of his own. Alderfer’s ERG theory suggests that there are three groups of core needs: existence
(E), relatedness (R), and growth (G)—hence the acronym ERG. These groups align with Maslow’s levels of
physiological needs, social needs, and self-actualization needs, respectively.

Existence needs concern our basic material requirements for living. These include what Maslow
categorized as physiological needs (such as air, food, water, and shelter) and safety-related needs (such
as health, secure employment, and property).

Relatedness needs have to do with the importance of maintaining interpersonal relationships. These
needs are based in social interactions with others and align with Maslow’s levels of love/belonging-
related needs (such as friendship, family, and sexual intimacy) and esteem-related needs (gaining the
respect of others).

Finally, growth needs describe our intrinsic desire for personal development. These needs align with the
other portion of Maslow’s esteem-related needs (self-esteem, self-confidence, and achievement) and
self-actualization needs (such as morality, creativity, problem-solving, and discovery).

Alderfer proposed that when a certain category of needs isn’t being met, people will redouble their
efforts to fulfill needs in a lower category. For example, if someone’s self-esteem is suffering, he or she
will invest more effort in the relatedness category of needs.

(Alderfer’s ERG Theory | Introduction to Business, 2021)

Existence needs:

There are different kinds of rewards NESTLE gives to their employees which are as follows:
Cash bonuses

Promotions Make team leader

Increments in salaries

Allowances like ( fuel allowance, mobile allowance)

We found very different kind of reward in Nestle that they motivate their employees whose
performance is not up to the mark by giving them the salaries equivalent to the market value of the any
other employee of same rank so as to motivate their employees. Many of the employees are being
rewarded after accomplishment of their sales target in such a way that their management take them to
the picnic or invite them for dinner frequently. And another very interesting fact which I found in Nestle
is that their management does not fire their employees even their performance level is not up to the
mark.

Relatedness needs:

In NESTLE, employees are trained to improve their current jobs while the program is developed to
enhance skills to be used in the future. Both managers and non-managers get help from training and
development but the majority of non-managers are interested in training while managers care to
development programs. Nestle's goal is to ensure a workplace that is open and respectful.
Communication between employee capabilities. Almost all employees are satisfied with their physical
activity. Nestle had a mix of mission-oriented and leadership-oriented leaders. This shows that Nestle
has leaders who perform better in all situations and can manage their team more efficiently and
effectively. The organization properly communicates its strategies to employees to deliver good results
efficiently and effectively. Communication among employees is good and it motivates them to achieve
excellence in their work. At Nestle, employees are heard, respected, trusted and appreciated, which
gives them a sense of self-worth and belonging. Nestle is providing clear career advancement path for its
employees, The Company fully supports its employees in this context. At Nestle, the employees work in
teams and they have a group of more than 4,500 unique individuals that have made it the largest
company in Pakistan. With exposure to best practices and a conducive environment, they are the best
minds in the industry today. By working in teams, employees bring their collective skills and knowledge
to solve problems and develop innovative ideas to the organization.

Growth needs:

Nestle has got the combination of leaders that are both task oriented and leadership oriented. This
shows that Nestle have the leaders that perform better in all situations and can manage their teams
more effective and efficiently.
The organization properly communicates its strategies to its employees to carry good results efficiently
and effectively. The communication between the employees is good and that drives them to do
outstanding achievement in work. In Nestle the employees are listened, respected, trusted, and valued
that gives them a sense of self worth and belonging.

Nestle is providing clear path for career advancement to its employees, Company gives full support to its
employees in this context.

3.3 Process theory:

Vroom model:

The decision model of Vroom - Yetton - Jago in English is called Vroom - Yetton - Jago Decision Model. In
terms of the widespread application of computers to management and decision-making, a situational
leadership research perspective that is of great interest is the decision-making model of Victor Vroom,
Philip Yetton and Arthur Jago. This model was first developed by Vroom and Yetton, then materialized by
Vroom and Jago, so it bears the name of all three. The authors argue that one of the most important
tasks of a leader is decision-making, effective leadership is effective decision-making, so the authors
developed a decision-making model. determined. The Vroom - Yetton - Jago decision-making model
suggests that there is no one-size-fits-all leadership style. On the contrary, the leader must develop a
system of styles and options, using the style that is appropriate for every particular situation. One of the
problems that must be solved in a leader's work is that he must know when to consult his followers
when making decisions and when it is a waste of time.

(Mô hình ra quyết định của Vroom - Yetton -Jago trong quản lí là gì?, 2021)
Expectancy:

In Nestle 53% of the employees feel that their managers are employee oriented leaders and remaining
47% feels that their managers are task orientated leaders. So this shows that the Nestle has got the
combination of leaders that are task oriented and leadership oriented. This shows that NESTLE have the
leaders that perform better in all situations and can manage their teams more effective.

Task-Oriented: A manager with a task-oriented style will have work results as his major concerns and
therefore, he will enlarge rigid policy that would lead the subordinates to reach the preferred results.

Employee-oriented:

A manager with an employee-oriented behavior objective is to improve the employee’s confidence and
influence them to work jointly and to resolve the problems.

Participative:

In Nestle the leadership style is participative in which the leader involves one or more employees in the
decision making process (determining what to do and how to do it). The leader allows the employees to
make the decisions. However, the leader is still responsible for the decisions that are made. This is used
when employees are able to analyze the situation and determine what needs to be done and how to do
it. Positive leaders use rewards, such as education, independence, etc. to motivate employees.

While negative employers emphasize penalties such as loss of job, days off without pay

Performance:

NESTLE evaluates employee performance on: Leadership Communication skill. Teamwork and
Collaboration. Problem solving. Customer focus. In NESTLE, employees are trained to improve their
current jobs while the program is developed to enhance skills to be used in the future. Both managers
and non-managers get help from training and development but the majority of non-managers are
interested in training while managers care to development programs.

Outcome:

The employee's salary will usually have a fixed salary and commission-based salaries when achieving the
goals set by the company's management. Every year, the company will organize 2-3 trips for high-
achieving employees and commend them quarterly and annually.

III. Conclude:
To increase goodwill and positive impression of Nestle among employees and customers Company
should adopt the following things:

Enhance more promotion opportunities for their employees.

Encourage employees to participate in decision making. We would suggest that specific job related
training should be imparted to employees this would give an additional benefit to employees for
improving their skills. Professional counseling programmes should also be started to provide employees
with the information, regarding future prospects at Nestle and in the mobile industry

Although Nestle is covering whole Pakistan but is rates are high they can lower its rates, with low charges
in order to capture a larger market and this way they can capture the customers of low income group.
They should be establishing and maintaining effective communication with each employee, sharing of
ideas and employee involvement in decision making process. The employer should show a greater trust
to employees and employees should feel good about their employer. Their should be no artificial barriers
between employees and management.

IV. Reference

Quora.com. 2021. Who owns Nestle? - Quora. [online] Available at: <https://www.quora.com/Who-owns-Nestle>
[Accessed 11 July 2021].

gothamCulture. 2021. What is Organizational Culture? | Complete Definition and Characteristics. [online] Available at:
<https://gothamculture.com/what-is-organizational-culture-definition/> [Accessed 11 July 2021].

Comunicaffe International. 2021. Nestlé’s Head of Group Human Resources to retire at the end of July. [online]
Available at: <https://www.comunicaffe.com/nestles-head-of-group-human-resources-to-retire-at-the-end-of-
july/> [Accessed 11 July 2021].

vietnambiz. 2021. Quyền uy do đãi ngộ mang lại (Reward Power) là gì?. [online] Available at:
<https://vietnambiz.vn/quyen-uy-do-dai-ngo-mang-lai-reward-power-la-gi-20190815095415634.htm> [Accessed
11 July 2021].

UKEssays.com. 2021. Conflict Analysis Case Study: Nestlé. [online] Available at:
<https://www.ukessays.com/essays/business/research-project-on-conflict-in-nestle-business-essay.php> [Accessed
11 July 2021].

vietnambiz. 2021. Động lực lao động (Employee motivation) là gì?. [online] Available at: <https://vietnambiz.vn/dong-
luc-lao-dong-employee-motivation-la-gi-20190827145542474.htm> [Accessed 11 July 2021].

Courses.lumenlearning.com. 2021. Alderfer’s ERG Theory | Introduction to Business. [online] Available at:
<https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/alderfers-erg-theory/)> [Accessed 11 July
2021].
vietnambiz. 2021. Mô hình ra quyết định của Vroom - Yetton -Jago trong quản lí là gì?. [online] Available at:
<https://vietnambiz.vn/mo-hinh-ra-quyet-dinh-cua-vroom-vroom-yetton-jago-decision-model-trong-quan-li-la-gi-
20191015115058361.htm> [Accessed 11 July 2021].

PART 2: A reflective statement

1. I finished my report on the company in the talk show

2. I'm still bad at speaking on talk shows

3. I will practice more communication skills, as well as presentation and critique to make the talk show
better.

4. https://drive.google.com/file/d/1l7gcRhKu9VY07F5O5HxKz-5kcvRkv4IR/view