OB Project
OB Project
OB Project
An efficient and a healthy organizational culture is what drives an SME like Allied
Worldwide to success. The executives need to understand the importance of understanding
organizational behavior and the culture that forms the basis of an organization. As stated by
Mullins, organizational behavior “is concerned with the study of the behavior of people within
an organizational setting. It involves the understanding, prediction and control of human
behavior” (2013). To effectively understand how a company operates and how it will endure in
difficult times, a top analyst definitely looks at the organizational culture of a company as it is a
key indicator. We analyze Allied Worldwide’s organizational culture in detail in the following
sections.
Using Edward Hall’s Iceberg Model of Organizational Culture, we can divide Allied
Worldwide’s organizational culture into two parts – the surface culture and the deeper culture.
Surface Culture
Deeper Culture
Allied Worldwide has a prevalent hierarchical structure with established procedures and
strict levels of authority. The duties are strictly defined for each employee, and operations tend to
be streamlined. While the hierarchical structure at Allied Worldwide does enable them to
mitigate risks and be efficient operationally, it curtails them from having innovative ideas, being
ahead of the market and responding to any sudden changes in the industries or markets. The
following statement adds on to this point, “A major disadvantage to the hierarchical management
structure is that it doesn’t encourage people to collaborate and share information across the
vertical lines of the reporting structure. People working in hierarchical organizations are more
likely to develop into cliques, which in turn compete for power” (Bianca, 2019).
Although the surface culture at Allied Worldwide provides a decent layout for the
organization, at the deeper level the organization suffers from traditional organizational problems
that will not allow the company to sustain in difficult times or can cause high employee turnover
rates. While currently the employees are somewhat content about the organization’s goals and
vision towards future, many of the employees do not truly understand the organization’s mission
and business outcomes. Essentially, the employees do not feel that they are part of something
bigger and this is causing a hindrance in improving employee motivation.
Another aspect that is of concern at Allied Worldwide is the internal communication.
While being an IT company it has several formal modes of communication like integrated
company sites, WhatsApp groups and email communication, the company lacks an informal
communication network for employees to communicate between themselves as the company
requires formality to be maintained in all communication that is work-related. Moreover, the
communication between frontline managers and top managers is also rigid as there are formal
procedures to go through before a meeting can be set between them. Adding on to the
communication issues, the employees at Allied Worldwide also feel that there are very less
opportunities to give feedback or to give suggestions.
Building on from the communication issues that disrupt a healthy organizational culture
at Allied Worldwide, another aspect that detriments the company is the lack of authority among
employees. The top executives at Allied Worldwide make unanimous decisions amongst
themselves and do not involve employees in the decision-making process. This results in
employees not feeling valued for the work they are contributing as they feel they have no sense
of authority whatsoever. The executives at Allied Worldwide believe they have this in order to
avoid a clash of opinions and referencing from an article that states, “…managers might shy
away from integrating their team into the process (of decision-making) to avoid additional
complexity or a potential clash of opinions” (Landry, 2020).
Another detrimental part of the organizational culture at Allied Worldwide is the lack of
training and professional development for employees. The employees the company hires are very
skilled by nature but there is no room for growth. Employees believe there are little prospects to
learn and be exposed to scenarios that will allow them to develop a multitude of skills. This can
cause high employee turnover rates for the company in the future and can cause the company to
not attract passionate skillful individuals.
Recommendations
To cater to the problem of employees being unaware of the organization’s goals and
mission, a special workshop should be held when employees first join the organization to
instigate into them what Allied Worldwide is all about and what it intends to grow into.
Moreover, a special company day should be held annually to review what the organization has
undergone and what are its plans for future growth that are aligned with the company’s vision
and values. In this way, the employees are more likely to feel a part of the company and keep
their interests and motivation intact to achieve the organizational tasks and improve further.
For internal communication amongst employees, an informal network, an intranet in
particular, should be set up where employees can communicate in an informal manner. This
grapevine network tends to boost productivity and allows the top managers to be more connected
to their employees. This is reinforced by Wudie in his article, “An active grapevine is indicative
of the company’s health and spirit, and executives can learn a great deal by listening to it”
(2018).
The lack of authority for employees at Allied Worldwide is a genuine problem for them
and to mitigate this, the executives at the company should adopt a wholistic decision-making
approach amongst managers and employees where both the managers and employees take part in
the decision-making process. Moreover, the employees should be involved in organizational
matters and have a say in it. Landry emphasizes the benefits of involving employees in the
decision-making process in her article: “By bringing employees into the conversation, you can
enhance creativity and gain a fresh perspective on the task or problem at hand” (2020).
To fulfill the self-actualization needs of the employees, according to Maslow’s Hierarchy of
Needs Theory, the company can conduct workshops, seminars and training that can expose the
employees to new skills within and out of their fields. These introductions can increase
workforce motivation. Most of the employees at Allied Worldwide have high task significance
and identity, but little skill variety and autonomy, according to the Job Characteristics Model.
This can cause low motivation so the top managers should view possible ways of job redesign,
for example, if someone is working in IT support, maybe they can try data analytics next, as their
job specifications are quite overlapping.
Putting the Relational Job Design into practice, the organization can conduct activities
whereby their employees and their clients who benefitted from their services get to interact. As a
result, the employees can recognize the impact of their services to the clients.
Motivation
Crisis times can come upon organizations at any instant and managers need to be
prepared and willing to handle tough situations. One such situation in times of crisis is the issue
of motivating other individuals, particularly their employees. Motivating employees in times of
crisis can be a critical situation for managers but they can pull through by applying a few
organizational tricks. Managers need to foster a collaborative environment in which each
department is helping other departments to cater to their needs. Organizations need to be
inclusive and cater to each employee’s problems. Moreover, managers need to praise and
acknowledge efforts of all the work that is being done in times of crisis to further instill
motivation amongst employees as stated by Williams in her article, “Gratitude allows leaders to
improve work culture and team performance, while transforming work itself” (2020). Lastly,
organizations need to enhance internal communication amongst executives, managers, and
employees in order to set clear objectives and ways to achieve so they can work collaboratively
to undergo the crisis and effectively putting the organization back to its successful phases.
Teamwork
Using Bruce Tuckman’s Model of Team Stages theory, the key to forming an effective
team has essentially four stages; forming, storming, norming, and performing.
In the forming stage, a group is tentatively made, and individuals are brought together. In
this stage, formal positions and roles are assigned to each individual. It is essential that a group is
made of those people who have tolerance for each other, have similar growth expectancies and
goals, and are confident about working with others. It is this stage that a strong foundation to an
effective team is made since members of the group create an impression of each other and tend
to discern their personal identities within the group.
In the storming stage, the members of the group get to know each other better and are
bound to share their views and ideas with each other more openly. There is bound for
disagreements and conflict to arise given the nature of the organizational tasks and
responsibilities. However, strong effective teams pass through this stage with ease by having
tolerance for each member and allowing healthy disagreements to take place. It is at this stage
that each member gets clarity on his roles and responsibilities and gets to know other team-
members’ strengths and weaknesses.
In the norming stage, the leader of the group assumes command and sets forth guidelines
and standards on how to go about the undersigned tasks. Effective teams undergo this phase and
realize the importance of it as it establishes the need for each member to collaborate and
cooperate with other and set standards of performance for every group member.
Finally in the performing stage, an effective team would have successfully progressed the
previous three stages and would have created cohesiveness and a set structure to work together
as a team. It will be this stage that the team comes together to work on the assigned tasks
efficiently without having any personal conflicts or reluctance to work as a group.
In the growing world today, organizational change is bound to happen, and companies
need to adapt to change. Leaders at top organizations tend for their companies to stay ahead of
the market and this leads them to implementing organizational changes at points. However,
organizational change initiatives are not always successful and have an estimated failure rate of
60-70% (Errida and Lotfi, 2021). This involves influencing the behavior of individuals which is
quite difficult in practicality. However, leaders at top companies influence and change the
behaviors of their subordinates in a positive way to improve business performance and
productivity. Leaders at many companies use Lewin’s Change Management Model to effectively
influence a positive change in the behaviors of their subordinates. A change in organizational
behavior can lead significant organizational outcomes in terms of enhanced performance,
productivity and effectiveness. This is reinforced in an article that states, “In the process of
organization change, employees will be able to acquire new skills, seek new opportunities and
exercise their creativity in ways that eventually favors the organization through extra ideas and
increased commitment” (MBA Knowledge Base, 2021).
References
Bianca, A., 2019. Pros & Cons of a Hierarchical Organizational Structure. Chron, [online]
success: Literature review and case study’, International Journal of Engineering Business
Landry, L., 2020. Why Managers Should Involve Their Team In The Decision-Making Process.
disadvantages-of-organizational change/#:~:text=In%20the%20process%20of
%20organization,extra%20ideas%20and%20increased%20commitment.. [Accessed 3
June 2022].
McQuerrey, L., 2019. Reinforcement Theory in the Workplace. Chron, Available at:
2022).
Mullins, L., n.d. Management & Organizational Behavior. 7th ed. Prentice Hall.
Rybnicek, Robert & Bergner, Sabine & Gutschelhofer, Alfred., 2019. How individual needs
Williams, T., 2020. In times of crisis, motivate employees with gratitude. Economist Education,