J.B.A.Ravinath Niroshana (2009/MBA/WE/71) Semester Ι-First half 14 February 2010

Course: Lecturer:

MBA 531-Organizational Behavior Mr. Trevor Mendis

Postgraduate and Mid-Career Development Unit Faculty of Management and Finance University of Colombo

MBA 531 Organizational behavior 2 Table of Content

Abstract Application of MARS model for behavioral modification of XYZ Company Introduction Problem Identification Short-run Problems Long-run Problems MARS Model of Individual Behavior and Its adaptability for the XYZ Company Motivation and its application for the case Theories of Work Motivation Application of Motivation theories to XYZ Company Ability and its application for the case Role Perceptions and its application for the case Situational Factors (SF) and its application for the case Values and Ethics in the Workplace Conclusion Recommendations Reference Bibliography

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MBA 531 Organizational behavior 3 Abstract

The study is focused on pinpoint analysis about current challenging situation of XYZ company and given optimal solutions for those problems. Luthans (2008) described that Organizational behavior as the understanding, prediction, and management of human behavior in organizations. MARS model which is acronym for the motivation, ability, role perception, situational factors and it is used for analysis the prevailing condition of the XYZ Company. Based on the findings we can conclude that the MARS model is very useful tool for analysis the situation of the XYZ Company. In the light of the MARS model recommendations have been given to cater solution for contemporary problems of the XYZ Company. Keywords: Organizational Behavior, MARS model

MBA 531 Organizational behavior 4 Application of MARS model for behavioral modification of XYZ Company


The case is about the XYZ Company. The given case elaborates currant challenging situation of the company. Nanayakkara (2008) explained that problems in a case could be categorized in terms of their relationship to the main issue or in terms of the time taken to remedy the situation. In relation to the main issue some problems could be seen as symptoms, some primary, and others secondary. Symptoms are indications of problems elsewhere and hence cannot be remedied permanently. Primary problems are the ones which reside at the rock bottom of the main issues and hence they must be identified, diagnosed, and corrected.Secondry problems are the ones which are related to the main issues indirectly.

MBA 531 Organizational behavior 5 Problem Identification

The following are the Symptom, Primary problem, Secondary problem and the issue, in this particular case. Symptom Primary problem have affected this. Secondary problems : Conflict in the work place, absenteeism, lack of trust and integrity between superior and subordinates, and occasionally sabotage The issue : The company is at a challenging situation and overall performance of the company is being reduced. : Sales of the XYZ Company are dropping. : Performance level of the employees are dramatically

reduced. Employee morale and the level of motivation

Before proceed any further I would like to emphasize the meaning of the word, problem. As described by Nanayakkara (2008) a problem can be fruitfully identified as a gap between the current state of affairs and the desirable state of affairs (p.119).A longitudinal perspective would place problems on a time scale as short-run, and long-run.

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The problems in this case can be classified in time scale as short-run and long-run problems as follows. Short-run Problems

Low performance level due to employee morale and the level of motivation, Conflict in the work place, absenteeism, lack of trust and integrity between superior and subordinates, and occasionally sabotage can be classified as short run problems of the XYZ Company. Long-run Problems

Gradual declining of sale and the company is falling behind other innovative competitors can be identified as long run problems of the XYZ Company.

MBA 531 Organizational behavior 7 MARS Model of Individual Behavior and Its adaptability for the XYZ Company Why do individuals behave the way they do and perform poorly in XYZ Company? I begin the journey to explain these dynamics by presenting a basic model of individual behavior (called the MARS model).It is a useful starting point to understanding the drivers of individual behavior and results. The model highlights the four factors that directly influence an employee’s voluntary behavior and resulting performance: • • • • Motivation; Ability; Role perception; and Situation factors.

These four factors are represented by the acronym “MARS “in the models name. As described by McShane and Von Glinow (2000),the MARS model shows that these four factors have a combined effect on individual performance. The below exhibit depict the MARS model. Individual Characteristics MARS model

Values Personality Perceptions

Emotions S.L. & Von Glinow, M.A. (2000). Organizational Behavior (3rd ed). McShane, and attitudes Stress

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The above exhibit also shows that the four factors in MARS model are influenced by several other individual variables.As described by McShane and Von Glinow (2000), Personality and values are the most stable characteristics.Emotions, attitudes, and stress are much more fluid characteristics, whereas individual perception and learning usually lie somewhere between. Here on wards given a brief introduction the four elements of MARS model and their relativity for the XYZ Company. Motivation and its application for the case

Pinder (1998), described motivation as follows: Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior. Direction refers to the fact that motivation is goal-oriented, not random. People are motivated to arrive at work on time, finish a project few hours early, or aim for many other targets.Intesity is the amount of effort allocated to the Goal.Finally, motivation involves varying levels of persistence, that is, continuing the effort for a certain amount of time.Motivation is the activation or energization of goal-oriented behavior.The term is generally used for humans but, theoretically, it can also be used to describe the causes foranimal behavior (humans are also animals; false dichotomy) as well.For this analysis only refers to human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. According to the given situation, that is situation in XYZ Company, employees are less motivated compare to the other companies. As a senior manager I must check the motivational levels of the employees. As per given details it is obvious that employees of XYZ company are

MBA 531 Organizational behavior 9 less motivated. Therefore motivational strategies should be decided such a way to cater good motivation standard. Theories of Work Motivation

Before discuss the motivation strategies for XYZ company, I would like to emphasize few motivation theories and relativity of those theories to the XYZ Company. For this analysis take a quick look at following three motivation theories: • • • Maslow’s Hierarchy of Needs; Alderfer’s ERG Theory;and Herzberg’s Two-Factor Theory of Motivation.

The following figure depicts the relationship between three theories:

Source: Adopted from Luthans, F. (2008). Organizational Behavior (11th ed) Figure 1 Most theories recognize that motivation begins with individual need and their underlying drivers. Needs are deficiencies that energize or trigger behaviors to satisfy those needs. One of the bestknown and pioneer needs-based theories is needs hierarchy theory. This theory has been

MBA 531 Organizational behavior 10 developed by psychologist Abraham Maslow.In this theory five instinctive needs arranged in a hierarchy, whereby people are motivated to fulfill a higher need as lower one becomes fulfilled. The below figure depicts more detailed view of Maslow’s motivation theory.

Source: Adopted from Luthans, F. (2008). Organizational Behavior (11th ed) Figure 2 Wahba and Bridwell have mostly (1977) dismissed Maslow’s theory it is much too rigid to explain the dynamic and unstable characteristics of employee needs.Reserarches have found that individual needs do not cluster neatly around the five categories described in the model. Moreover, gratification of one need level does not necessarily lead to increased motivation to satisfy the next higher need level. Although Wahba and Bridwell (1977) mentioned like that I am not agreed for this argument. My argument is people should accomplished higher level of needs after acquiring the lower level needs only. Otherwise they will loose basic needs. Subsequently Clayton Alderfer has developed the ERG theory to overcome the problems with Maslow’s theory. ERG theory groups human needs in to three broad categories: existence,

MBA 531 Organizational behavior 11 relatedness, and growth.As shown in figure 1,Existance needs correspond to Maslow’s physiological and safety needs. Relatedness needs refer mainly to Maslows’s Belongingness needs. Growth needs correspond to Maslow’s esteem and self actualization needs. Whereas Herzberg’s two-Factor Theory of Motivation divide needs in to two parts viz.Motivators, and Hygiene factors. As described by Luthans (2008), Herzberg’s theory is closely related to Maslow’s Theory. The hygiene factors are roughly equivalent to Maslows’s lower-level needs. They prevents dissatisfaction, but they do not lead to satisfaction Application of Motivation theories to XYZ Company Having acquired basic idea about theories now I will elaborate the application of these theories in to the XYZ company scenario. As assumed earlier in this analysis, the employees of XYZ Company are less motivated. Employees in this organization have different needs, some needs are organizational driven (like achievement of required performance) and others are self driven (like ambition to go to the next higher position in the organization ladder). By assuming employees are lack in motivation, it is recommended to imply following motivational strategies. The primary problem of this XYZ company is employee performance has been reduced dramertically.It is vital to motivate employees who do not reach the bottom level of the Maslow’s Hierarchy of Needs by providing financial incentives. That is those bottom layer employees of the XYZ company are not being satisfied by money they earn, implies that they are not reached at least bottom level of the Theories of Work Motivation mentioned above. Therefore it is mandatory to cater solutions for this problem by the way of introducing financial incentive. As a senior manager, I can be recommended various target based incentives for sales staff of the company and performance based incentive for other category of employees. This approach will induce the employees to work hard towards their targets. This will leads to high employee motivation and sometimes employees may compete each other and even some employees try to over achieve their targets.

MBA 531 Organizational behavior 12 Apart from that to reinforce the security needs as described in second layer of Maslow’s Hierarchy of Needs can be archived by introducing group insurance policy to the employees of the company. This can be Workers comprehensive Insurance or Health Insurance or Personal accident insurance or other such group insurance plan. Then those employees of the company may feel some kind of security about their self and this will lead sudden boost of employee performance. As described in Herzberg’s two-Factor Theory it is necessary to give motivators such as Employee Recognition, Responsibility for different groups, Job satisfaction or work itself, Possibility for career growth or advancement as non-financial motivators. Some employees who are prevent dissatisfaction due to Hygiene factors can be lead to satisfaction by introducing non financial motivators as described in Herzberg’s two-Factor Theory. This will lead to minimize the secondary problems discussed above in this analysis. To satisfy the social needs mentioned in the Maslow’s theory Group formation can be done. This can be achieved by forming either Formal or Informal work groups or teams. As described in Alderfer’s ERG theory Relatedness needs can be achieved to allowing the employees to interact with other people, receiving public recognition, and feel secure around the people or interpersonal safety. This can be achieved using appreciation, recognition, organizing social gathering for employees and their family members such as a Get together.

Ability and its application for the case Individual behavior and organization performance can be achieved by identifying individual ability. Ability includes both the natural aptitudes and learned capabilities (i.e. Competencies) required to successfully complete a task. Employees learn specific tasks more quickly and perform them better, if they have natural talents, that are Aptitudes. For example by assuming the XYZ Company as a production company, some employees of company can perform pinpoint

MBA 531 Organizational behavior 13 tasks very accurately and precisely, rather than other peers. That implies their ability to perform that particular task. Skills, knowledge, aptitudes,and other personal characteristics that lead to superior performance are typically bunched together into the concept of competencies. (Spencer,1993).Basically three competencies can be identified as follows: • • • Technical competencies(or Professional competencies); Human competencies; and Business competencies.

As a senior manager of the company it is necessary to identify employees’ aptitudes and ability and Quantifying of employees based on that is necessary requirement.Differant tasks can be assigned for employees based on the above mentioned competencies and aptitudes of employees. Edwards (1991) described three basic methods which are used to match individuals and their competencies with job requirements as described as follows: • • • Select applicants whose existing competencies best fit the required tasks; Provide necessary training ;and Redesign the job.

Selecting the best person for a particular task of XYZ Company includes comparing each applicant’s competencies with the requirements of the job or work unit. The second approach include provide necessary training, so employees develop required skills and knowledge. Redesign the job roles also very important, and therefore based on job roles tasks can be assigned to the employees of XYZ Company within their capabilities. Both physical (e.g. flexibility, stamina, body strength, manual dexterity, etc) and mental, intellectual, or cognitive ability of employees of XYZ company should be identified for fully optimize the above mention process.For example some function of the company need strong and energetic persons, whereas for some jobs are more concerned cognitive abilities. As described by Dunnette (1976), Verbal comprehension, Numerical, Spatial visualization, Perceptual speed, memory and inductive

MBA 531 Organizational behavior 14 reasoning, can consider as Mental Abilities. This enhances the Person-Job matching and hence overall productivity of XYZ Company could be enhanced.

Role Perceptions and its application for the case Employees have accurate role perceptions when they understand the specific tasks assigned to them, the relative importance of those tasks, and the preferred behavior to accomplish those tasks (Nygaard and Dahlstorm, 2002).A person’s beliefs about the specific tasks assigned to them, their relative importance, and the preferred behavior to accomplish those tasks McShane and Von Glinow (2000).As a senior manager of the company it is necessary to develop accurate role perceptions to achieve desired behavior and results. Apart from that all the employees especially at technical or bottom level of the XYZ company should aware such a way that, they know which skills and knowledge to apply and what priority to follow. This will reduce the conflicts between superior and subordinates and enhance the performance of the company. The natural problem comes in this point is” How XYZ company improve role perception? “One strategy is to ensure that employees understand their required responsibilities and to show how those goals relate to organizational goals. Employees also clarify their role perceptions as they work together over time and receive frequent and meaningful performance feedback. To accomplish this performance reviews can be conducted. These performance reviews should focus on goals and role perceptions. Then employees know what their job objectives are and how they relate to the particular business unit they are working and, ultimately, the entire XYZ Company.

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Situational Factors (SF) and its application for the case This is another factor, that is, situation in which the person works also influences his or her behavior and job performance. Situational factors include conditions beyond the employee’s immediate control that constrain or facilitate his or her behavior and performance (Bacharach and Bamberger, 1995). As a senior manager of the XYZ Company I must understand situational factors which are in under the control of the company and beyond the control of the company. Situational factors such as consumer preferences and economic conditions originate from the external environment and, as a result of they are beyond the employee’s and organization’s control. However some situational factors such as time, people, budget, and physical work facilities are controlled by others in the organization. Senior managers of the company need to carefully arrange these conditions so employees can achieve their performance potential. Questions such as “What obstacles are created by management to prevent them from performing effectively?”, can be used to get an idea about the situational factors which are reduced the company performance.

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Values and Ethics in the Workplace Identifying of Values and Ethics in the Workplace is very important. Values Values represent stable, long-lasting beliefs about what is important in a variety of situations, that guide our decisions and actions. They are evaluative standards that help us define what is right or wrong, or good or bad, in the world. (McShane and Von Glinow ,2000).Values influence person’s motivations and decisions. Values dictate person’s priority, preference and desires. Values represent a potentially powerful way to keep employees’ decisions and actions aligned with corporate goals. As described by McShane and Von Glinow(2000),Values represent the unseen magnet that pulls employees in the same direction. They foster a common bond and help to ensure that everyone in the organization regardless of job or rank has aligned goals. In the case of XYZ Company common organization culture should be developed such a way that Organizational values should not conflict with individual values of the employees and moreover societal values. Even though it is difficult task, it is very important to Reinforcing a common organization culture. Ethics Ethics refer to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad (McShane and Von Glinow, 2000). One of the more effective ways to ensure that the company ethics are adhered to is to ensure that the company’s management adheres to the ethical standards. If employees see mangers breaking or bending rules, behaving irrationally and acting with a general disregard to ethics then they also will likely

MBA 531 Organizational behavior 17 follow a similar path. Additionally the company can specify a code of ethics or in extreme cases hire a manager for reinforcement of company ethics, and to ensure that the company as a whole works towards a more ethical culture. It is very important to minimize the unethical and illegal conducts of employees.

Conclusion Even though we categorized problems as primary and secondary, they are interrelated hard to demarcate by using a yardstick. Therefore analysis of the given case should be done in relation to the most important factors related to the problems identified in the given case. Lack of motivation among employees, Non-identification of employee ability, Misunderstand of roleperception, and, affect of situational factors are reduced the performance of the company. Hence the company became a critical situation. Therefore to overcome these problems pinpoint analysis about XYZ should be carried out in relation to Motivation, Ability, Role perception and Situational factors, and, the MARS model is the ideal solution for cater solution for this need. Consequently in the light of MARS model the analysis has been done.

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Recommendations Recommendations at a Glance are as follows: • Enhancement of company performance should be achieved by motivating employees of the company as described above. This can be done motivation through incentives or reinforcement, as described above. • • Identification of employee competencies and implementation of Person-Job Matching strategies describe above is very important. Role perception should be developed such a way that employees should know which skills and knowledge to apply, and, what are the important duties assign to them with priorities to follow (I.e. with sequence based on priority). • • • Controllable situation factors should be adjusted in an optimal way based on employee’s feedback. Reinforcing a common organization culture such a way that minimal conflict with individual and societal values. It is highly recommended to minimize the unethical and illegal conducts of employees.

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Reference Nanayakkara, G. (2008). A Handbook for Academic and Professional Writing in Management Luthans, F. (2008). Organizational Behavior (11th ed). Daft, R.L. (2009). Principles of Management. Robbins, S.P (2003). Organizational Behavior (10th ed). McShane, S.L. & Von Glinow, M.A. (2000). Organizational Behavior (3rd ed). Bibliography Nanayakkara, G. (2008). A Handbook for Academic and Professional Writing in Management. Luthans, F. (2008). Organizational Behavior (11th ed). Daft, R.L. (2009). Principles of Management. McShane, S.L. & Von Glinow, M.A. (2000). Organizational Behavior (3rd ed). Lower, E.E. (1973). Motivation in Work Organizations. Pinder, C.C. (1998). Work motivation in Organizational Behavior. Maslow, A.H. (1954). Motivation and Personality. Alderfer, C.P. Existance, Relatedness, and Growth (1972). Spencer, L.M. & Spencer, S.M. (1993), Competence at work: Models for Superior performance. Dunnette, M.D. (1976). Handbook of Industrial and Organizational Psychology.

MBA 531 Organizational behavior 20 Wahba, M.A. & Bridwell, L.G. (1977).Maslow Reconsidered: A Review of Research on the Need Hierarchy Theory. Organization Behavior and Human Performance 18 , pp.78-97. Retrieved from

Edwards, J.R. (1991). Job Fit: A Conceptual Integration, Literature Review, and Methodological Critique. International Review of Industrial and Organization Psychology6, pp.283-357. Retrieved from Hunter, J.E. & Hunter, R.F. (1984). Validity and Utility of Alternative Predictors of Job Performance. Psychological Bulletin 96, pp.72-98. Nygaard, A. & Dahlstorm, R.(April,2002).Role Stress and Effectiveness in Horizontal Alliances. Journal of Marketing 66, pp.61-82. Bacharach, S.B. and Bamberger, P. (1995), Beyond Situational Constraints: Job Resources Inadequacy and Individual Performance at Work. Human Resource Management Review 5, pp.79-102

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