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Challenges And Opportunities Of Organizational Behavior

Introduction

Organizations are social systems. They are ever changing dynamic settings with respect to

which employees constantly need to adapt in order to perform well. Organization behavior

refers to the characteristic ways individuals function in a formal setting like a workplace. It

pertains to understanding and predicting what influences an individual to behave in a certain

way. The study of organization behavior helps a human resource professional understand

employee-organization relationships. It helps to identify and understand motives behind

employee behavior which can be used to modulate ways to promote employee behavior in

favor of the company. Organization behavior also gives us an insight into what personal goals

employees are working towards. It helps gain better understanding of individual differences

at workplaces. According to Callahan, Fleenor and Kudson “Organizational Behavior is a

subset of management activities concerned with understanding, predicting and influencing

individual behavior in organizational setting.” Thus, organizational behavior is the study and

application of knowledge about how people, individuals, and groups act in organizations. It

interprets people-organization relationships in terms of the whole person, whole group, whole

organization, and whole social system.

In today’s ever-changing world, all organizations are dynamic in nature. They must work

according to the needs and demands of the society. Thus, it is crucial for employees to

constantly evolve and strive to suit the needs of the organization. Organizational behavior has

become a challenge to both understand as well as to regulate. This is because of involvement

of numerous factors that have come into play as a result of fast-growing world and the

extensive spread of technology. The key elements of an organization are – people, structure,

technology & environment. Groups of people is what makes an organization. People work by
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collaborating with each other and technology helps enhance their efficiency and

communication. The formal communications that take place amongst these groups make up

for an organization’s structure. And these interactions formulate the organizational

environment. As a result, organizational behavior pertains to three dimensions namely the

individuals, the groups and the organization as a whole.

Challenges and Opportunities for Organizational Behavior

Technology:

According to a survey by The Society for Human Resource Management (SHRM, 2002)

technology is one the two primary drivers of change in the 21st century. So, it is natural to

infer that the type of technology used in an organization has significant influence on working

relationships of employees and employers. Technologies can be impersonal, inflexible, and

create an artificial distance between supervisors and employees.

Implications for individuals.

Adapting to new technology and learning to operate and function it is a challenge for all

employees. There has been a shift from manual form of work to digital form of work.

Communications have also been affected.

Implications for groups.

Technology has promoted individualistic nature of work and has affected group dynamics.

Opportunities for interpersonal communication have been reduced which affects employee-

employee relationships.

Implications for organizations.

Technology is an advantage to the organizations as it improves employee efficiency and also

makes it possible to accelerate time required to perform tasks. Thus, the managers need to
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ensure that employees are equipped well to be able to make full use to technology. Use of

technology for training can be less engaging and monotonous. So, training and development

programs must be planned keeping in mind the employee competencies and requirements of

the organization.

Talent Management:

According to the survey by The Society for Human Resource and Management, the second

primary drivers of change in the 21st century is talent management. Successful organizations

are ultimately built upon the foundation of successful employees. Talent management is

required in order to keep the creative spark alive and enhance the productivity of each

employee.

Implications for individuals.

Work in organizations has become increasingly demanding and deadline oriented. The

monotony kills interest and creativity which robs the employees of their inbuilt talent. It has

thus become important to retain and maintain employees’ mental well being to ensure their

superior performance.

Implications for groups.

In order for each member to give fruitful inputs to enhance the performance of the group,

talent management is necessary to retain the creativity of employees.

Implications for organizations.

It has visibly become hard for organizations to retain employees and get the best out of them

because of work pressure. Thus, talent management is crucial to avoid burn outs and brain

drain of employees.

Changes in Economy:
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There is a shift from manufacturing economy to service or knowledge-based economy.

Manufacturing economy’s focus was upon conversion of raw materials to finished good that

meet the demands of consumers. A service-based economy is one in which there takes place

buying and selling of services or providing something to others.

Implications for individuals.

The employees need to become proficient in human interaction and develop communication

skills. Persuasion and negotiation are must for employees dealing directly with customers.

Implications for organizations.

The organizations need to become open to innovation, autonomy and creativity in order to

enhance employee turn out. Training and development to deal with customers is required to

be impaired. And they need to shift towards employee retention and meeting the varied needs

of their clients.

Globalization:

Globalization in this context refers to organizations that operate on a global or international

level. It presents a variety of challenges to organizational behavior including differences in

language and culture of employees and variations in social, political and legal systems. With

the rising number of multinational corporations across the globe, many organizations are

using workforce of different nations which force managers to work in diverse cultural

environments.

Implications for Individuals.

In order to accommodate their background learning across different cultures, employees face

challenge of diversity. They are under-represented and many a times their needs are

overlooked because of poor understanding to their background by the management. Thus,

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adapting to a diverse work place is a challenge to the employees.

Implications for Groups.

Because of the presence of multi-cultural people, it becomes difficult to enhance group

inclusiveness which in turn affects group cohesiveness. In-groups and out-groups are formed

and there are dangers of discriminations and stereotypes to creep in. This hinders

collaboration and affects performance.

Implications for Organizations.

Cross-cultural research indicated that individuals’ cultural values shape their reward

preferences and reactions to negative feedback (Glefand et al.,2007; Joshi & Martocchio,

2008). Individuals who valued individualism preferred reward allocation based on equity

whereas those who preferred collectivism preferred allocation based on equality. In addition

to this, individuals who preferred collectivism were more likely to accept negative feedback

than those who emphasized individualism. This poses a great challenge to managers as what

would motivate one employee may not be valid for another. Thus, managers need to work on

practices that are accepted in global environments.

Managing Workforce Diversity:

Diversity can be understood as acknowledging, understanding, accepting and valuing

differences among people with respect to caste, religion, gender, race, etc. Workforce

diversity management requires recognition of value of differences, combating discrimination

and promoting inclusiveness. Management of diversity is crucial to avoid loss of time and

money for an organization.

Implications for Individuals.

Discrimination at work place can be a demotivator to employees. Negative attitudes and

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behaviors can be barriers to organizational diversity because they harm working relationships

and damage morale and productivity (Esty et al.,1995).

Implications for Groups.

Individual differences are a major cause of inter-group conflicts. They cause intergroup

biases and wrong perceptions. Intergroup conflicts lead to deviations in achieving goals and

affect’s group’s performance negatively. Thus, understanding amongst group members can

be facilitated by managing workforce diversity efficiently.

Implications for Organizations.

Negative attitudes and behaviors at workplace include prejudice, stereotyping and

discrimination, which should never be used by the management for hiring, retention and/or

termination practices. Managing workforce diversity is a significant organizational challenge,

so managerial skills must adapt to accommodate a multicultural work environment.

Group Norms:

Norms may be understood as unsaid unwritten rules pertaining to code of conduct acceptable

to a set of people. Group norms refer to such rules that are expected to be followed by all

members belonging to a group. Norms are the components of groups that hold the members

together and make them a strong and lasting group.

Implications for Individuals.

According to researchers, individuals behave in a very different way in groups than they

normally would alone. Norms are often perceived as social pressures. If any member does not

conform to these norms, he/she may face rejection or differential treatment by other members

of the group. Thus, deviation from norms is not desirable which compels individuals to

behave in certain manner.

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Implications for Groups.

Considering the norms and hierarchy in groups, members are categorized into three levels.

The lower level members are those who observe the rules only within the groups. They do so

only not to be removed from the group. The middle level members observe the rules of the

group even when they are alone in order to secure their places in the group. The upper level

group members are tied to the rules only in the beginning and are often seen to be misusing

power after becoming leaders.

Implications for Organizations.

Kivlighan Jr. and Cole examined the relationship between absenteeism and commitment in

terms of group norms. It was observed that employees who were more committed to the

group were more influenced by the group’s absences norms as compared to those who were

less committed to the group. Thus, commitment and compliance in groups have a positive

relation and it affects an employee’s performance.

Emergence of E-Organization:

Majority of work is now done digitally. E-commerce refers to business operations that

involve electronic mode of transactions. It includes sale and purchase or products online and

marketing and selling of goods and services. E-business includes developing techniques to

run internet-based businesses, creating supply chains, identifying collaborators, etc. e-

organizations undertake both e-commerce and e-business work to expand the horizons of

their companies.

Implications on Individuals.

E-organizations have different requirements in comparison to traditional organizations. They

need special virtual leaders, skilled people to build and operate websites and intranet, and
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Running administrative tasks. Thus, skill is a necessary prerequisite for such businesses.

Implications for Organizations:

Companies use e-businesses to grow and spread their influence. The managers need to have

knowledge of how the systems work in order to be able to mange the workforce. The

employees must acquire specific skills in order to learn new technology and overcome

resistance to stay updated on new technologies and advancements.

Ethical Behavior:

Company complexities are forcing the employees to face ethical dilemmas where they are

required to define right and wrong conduct in order to complete their assigned activities.

Unethical practices have become widespread and common in organizations such as

successful executives who use insider information for personal financial gain, employees in

competitor business participating in massive cover-ups of defective products etc.

Implications for Organizations.

Managers need to evolve a realistic ethical code of conduct to help them resolve and mediate

ethical dilemmas. Organizing workshops, training programs, etc will help in creating a

serious atmosphere to help employees take the codes and ethics seriously. They must also try

to clear out any doubts or misconceptions regarding ethics to prevent confusion among

employees.

Stimulating Innovation and Change:

Stimulating innovation and change has become a hurdle for organizations because of stress

that employees have to undergo. It is difficult to push employees out of their comfort zones.

Change can bring about improvement and innovation helps in evolution which is necessary

for every organization to sustain it’s position in today’s competitive economy.

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Implication for Organizations.

Managers are facing problems with stimulation creativity amongst the employees. They need

to come up with unique ideas to foster creative thinking amongst the employees.

Conclusion

Organization behavior may be understood as patterns of behavior undertaken by employees

to conduct themselves in an organization. It has an impact on both the individual and the

organization. It is crucial for the organizations to foster and encourage positive organizational

behavior to promote the interests of the organization. The two primary challenges of

organizational behavior were identified as technology and talent management. Group

dynamics also play a major role in influencing individual behavior. Group adherence and

cohesiveness are inter related and can have a positive or negative effect on the working of an

organization. These challenges are in fact a source of opportunities to the organizations as

they have a lot of source of improvement.

References

Gençer, H. (2019). Group Dynamics and Behaviour. [online] Files.eric.ed.gov.

Available at: https://files.eric.ed.gov/fulltext/EJ1201477.pdf

Green, K., López, M., Wysocki, A., Kepner, K., Farnsworth, D. and Clark, J. (2015).

Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools.

[online] http://edis.ifas.ufl.edu.

Available at: https://edis.ifas.ufl.edu/hr022

Stone, D. and Deadrick, D. (2015). challenges and opportunities affecting the furtre of human

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https://www.sciencedirect.com/science/article/abs/pii/S1053482215000042?via%3Di

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Sharma, N. (2018). Organization Behaviour: Challenges and Opportunities.

www.iosrjournals.org.