Study Centre Sydney

Faculty of Business

Assignment 2 – Group report – OB Trend

Class: HRM 552 – Organizational Behavior

Lecturer: Suzanna Mahinder

Due day: 07/005/2017

Student name & number:

Amit Das – 11558236

Aphilaphole Sihalath – 11590685
Nguyen Thao Uyen Tran – 11593311
Pham Thi Thuy Duong – 11590631
 TABLE OF CONTENTS

EXECUTIVE SUMMARY.........................................................................................................................1
1. INTRODUCTION...............................................................................................................................2
1.1. BACKGROUND.........................................................................................................................2
1.2. AIMS...........................................................................................................................................2
2. OB TREND - DIVERSE TEAM.........................................................................................................2
3. INDIVIDUAL DIFFERENCES..........................................................................................................3
3.1. APPLICATION MARS MODEL AND DIVERSE TEAM.........................................................3
3.2. RECOMMENDATION...............................................................................................................5
4. GROUPING INDIVIDUAL................................................................................................................6
4.1. TEAM EFFECTIVENESS MODEL AND DIVERSE TEAM....................................................6
4.2. RECOMMENDATION...............................................................................................................7
5. LEADERSHIP.....................................................................................................................................8
5.1. CROSS-CULTURAL LEADERSHIP AND DIVERSE TEAM..................................................8
5.2. RECOMMENDATION...............................................................................................................9
REFERENCE............................................................................................................................................10
HRM 552 ASS2 Page 1

EXECUTIVE SUMMARY

Current working environment has to adapt changes of external and internal influences on
workforce. This report aims to analyze organizational behaviors (OB) relating to diverse team
which is a popular trend in workplace. It traces three academic theories and models as core
dimensions to support and emphasize how diversity playing on team-based relationship in
Qantas. More specifically, the report is based on three models from three OB different topics,
namely team effectiveness, cross-cultural leadership and MARS from different topics. From
Qantas’ reality, generally, diverse team and its implications will be discussed to enhance impact
of diverse team on organizational-level behaviors and provide recommendations responding the
trend.

Major findings indicate that individual differences in a team through diversity aspects are
extremely considered in Australian organizations, specially, in Qantas. While diverse teams
bring various benefits that help companies adapt globalization, attain talents and expand their
markets, it also has some challenges requiring development of managers’ knowledge and skills.
Main results are:

 In terms of individual differences, MARS model including motivation, ability, role

perceptions, and situational factor, specially influences on relationship between managers and
employees through psychological contract.
 Diversity can reinforce positive and negative behvaiors of team members that influence many
aspects of team effectiveness such as decision-making or group think, conflicts, cohesion, and
creativity and innovation.
 At Qantas, cross-cultural leadership is significantly considered. The leaders focus on
communication, collaboration and innovation at workplace to achieve employee engagement and
conducts benchmarking. Administration advancement is a fundamental part of its diversity and
consideration system
HRM 552 ASS2 Page 2

1. INTRODUCTION
1.1. BACKGROUND
In terms of organizational management, there are aspects involved and organizational
behaviors (OB) which is the management of people play an important role within workplaces.
This is because by understanding of organizational behaviors, feelings, thinking and actions in
and around organizations are considered (McShane, Olekalns & Travaglione, 2010).
Furthermore, globalization which has become an extremely popular trend brings diverse teams
from differences of generations, cultures, geography, etc. into one working environment.
Following figure by Deloitte Australia Research, up to 80% of inclusive teams outperform their
peers in team assessments (Bersin, 2015). Consequently, this in turn leads to significant
influence in management and psychological contract. As a given example, Qantas, a flag carrier
airline of Australia, takes diversity and inclusion as a key strategy with culture and gender
variety helping it through tough times (Qantas diversity and inclusion statement, 2016). From
those points of view, this report will attempt to develop understanding of organizational behavior
with diverse team and ways of dealing with its implications in specific workplace as Qantas.
1.2. AIMS
More specifically, the purposes of this report are
 The first aim is to discuss the trend of diverse team as well as its implications for
managers and psychological contract.
 Next, it goes to use three OB models analyzing the trend and identify pros and
cons of these academic theories relating to diversity in Qantas.
 Finally, there are three recommendations for managers in dealing with diverse
team in particular and organizational behaviors in general.

2. OB TREND - DIVERSE TEAM

Diversity is a now-a-days phenomenon in workplaces. Because of globalization,
organizations are increasingly shaped in diverse-team collaboration, which as Nishii & Goncalo
(2015) argument, is problematic, requiring a lot of improvement to conduct the performance,
HRM 552 ASS2 Page 3

especially in international market. With various aspects such as cross-cultural values, generation
differences, abilities and disabilities diversity, it creates different behaviors and mind-sets of
individuals in a team. Consequently, it can be seen clearly that differences in group go along
with several strengths namely building up ideas, making decisions and correcting mistakes
effectively, however, it also leads to increasing changing in recruitment processes and structural
management of the workplace in the future (Stevens, Plaut, & Sanchez-Burks, 2008).

In practice, how diverse teams contributing into business, specially, financial returns, is
showed clearly. Following Harvard Business Review, diverse teams are more likely to focus on
facts and process information carefully than homogenous ones (Rock & Grant, 2016). Moreover,
there is a great innovation making companies stay competitive, comes from gender and cultural
diversity (Díaz-García et al. (2013), Nathan & Lee (2013)). Team diversity, although, can bring
some uncomfortable issues, taking advantages of it also enhances the high-performance. As can
be seen, in the current and even the future, diverse teams are considered more as a business issue
than moral one because of demographic changes, globalized companies, etc. This means
diversity will be reframed in recruitment and retention not just about age, gender, culture, etc.
but about diversity of thought (Doonan, 2016).

3. INDIVIDUAL DIFFERENCES
3.1. APPLICATION MARS MODEL AND DIVERSE TEAM

Diverse team conceptualises not only “surface levels” of ethnical, racial, sexual, and
gender miscellaneous (Kearney, Gebert, & Voelpel, 2009) but also intangible angles exposing
knowledge bases and cognitive approaches to execute and complete assigned tasks (Kurtzberg,
2005; Mannix & Neale, 2005). Obviously, personal trait differences between team members are
shown explicitly as it causes an interference of employees’ engagement (Shalley & Gibson,
2004). A tendency of behaving differently in certain circumstances is an ultimate consequence of
human characteristics and cognitive ability in terms of trait theories (Arnold & Radall et al.,
2016). Despite some claims that the “Big Five” model is a relevant framework for variable
personality’s acknowledgement, it may not be a useful measurement for appraising job
performance (Arnold & Radall et al., 2016). Instead, MARS model is believed that covers such
HRM 552 ASS2 Page 4

aspects called motivation, ability, role perceptions, and situational factor, is more effectively to
evaluate individual behaviours and work performance.

Motivation is an internal power robustly affecting on employees’ direction, intensity, and

persistence performance (Arnold & Radall et al., 2016; McShane, 2010). The psychological
contract of motivation embeds an unrecorded expectation of employees, which is either
reinforcement of financial or non-financial incentives or aversive consequence caused by
negative encouragement from their supervisors (Kearney, Gebert, & Voelpel, 2009; Nicholson,
2003). As numerous studies on psychological contract show that employees’ willingness to
perform positively depends on different types of employment interaction including over-
fulfilment and under-fulfilment (Turnley, Bolino, Lester, & Bloodgood, 2003). Typically,
besides strategic bonuses and rewards balancing employees’ satisfaction (Qantas Corporate
Communication, 2004), Qantas HR management implements behind-motivation assessment tool
called Advanced Proficiency Training (APT) program to beef up the team orientated behavioural
(Qantas Annual Report, 2015).

Relating to situational factors, which can be a potential strength creating opportunities or

detrimental force causing constraints due to surrounding factors impact on employees’ attitudes
and performance at work including political and economic conditions, psychological and
physical work facilities, etc. (Johns, 2006). The past scandal of slashing 5000 full-time
equivalent positions for a “transformation program” caused workplace’s tension because
employees worry about the loss, but also deteriorated an enthusiasm of selected-employees.
Investigation proves that individuals behave differently are likely depend on the so-called strong
situations and weak situations impacting on their variable cognitive expectations and expressions
(Johns, 2006). It is believed that the most difficult task for Qantas’ leaders was to maintain
diverse employees’ motivation and job engagement until the final decision (Freed, 2014).

There is a strong interrelation between employee ability and role perception in terms of
organisational behaviours. While employee ability make individuals’ performance differently
with natural born talent and learned ability (Van Knippenberg, De Dreu, & Homan, 2004), role
perception concept describes a situation when employee have a certain recognition about their
specific tasks and expectations of behaviours and performance at work (McShane, 2010).
HRM 552 ASS2 Page 5

Although diverse educational background and skill competencies positively helps strengthening
team performance as inspiring creativity, knowledge sharing, problem solving and decision-
making are shared proficiently (He, Butler, & King, 2007), problems occur when the practice of
delivering ideas about job tasks to employees are not clear enough so that the required
performance is not well-presented (Van Knippenberg, De Dreu, & Homan, 2004). Proudly,
Qantas possesses a wide pool of talents with 35,000 Australian multicultural resident staffs
(Qantas Annual Report, 2007). The company focuses on targeting new-graduate talents,
emerging leaders and potential senior managers to promote the diversity (Qantas Group Business
Practices, n.d.). Annually, Qantas invests $280 for staff training program to make sure of high-
skilled and motivated crews and pilots (Qantas Annual Report, 2007). Simultaneously, Qantas
College is established to provide accredited education and training program to develop skill
needed to ensure job tasks are delivered correctly and righteously to employees (Qantas Annual
Report, 2015). The scheme helps to balance the team encouragement and narrow down
differences, also, the role perceptions and task accountability are also clarified.

3.2. RECOMMENDATION
Undeniably, managing diverse personal characteristics in a team is the most important task for
managers. According to Winsborough & Chamorro-Premuzic (2017), a great team is a
collaboration of personalities and the average level of emotional intelligence and a high degree
of communication. From that point, firstly, the team can benefit from their unique values and
stick with organizational inclusion by improving diversity awareness from self-awareness. Using
360 degree feedback managers can improve communication and understanding as well as respect
of age, gender, cultural differences, etc. between members. Conflict emphasis, in addition, also
should be focused on hiring and collaborations. Managers must have a clear recognition and
apply cognitive conflicts with task conflicts to make decisions and build up trust and team
commitment easily (Yeager & Nafukho, 2012). Simultaneously, they have to prepare a mindset
of diversity to achieve the best effectiveness and employees feel comfortable in their
performance.

4. GROUPING INDIVIDUAL
HRM 552 ASS2 Page 6

4.1. TEAM EFFECTIVENESS MODEL AND DIVERSE TEAM

Groups and teams in an organization play an important role in performance of the
organization. Effective teams are said to be more productive, thoughtful of ideas, faster in
working progress than individual can achieve[ CITATION Coo05 \l 1033 ]. Organization behavior
studies have pointed out three major factors (organizational and team environment, team design,
and team process) that build up the team effectiveness model [ CITATION Arn16 \l 1033 ] . For
example, team diversity is one of the key contribution of team design that leads to team
effectiveness. Horwitz & Horwitz (2007) found that diversity presented in team members that are
highly related to tasks facilitates team performance. That is, diversity-related tasks seem to have
high perforamnce in terms of quality and quantity when team members are diversed in
knowledge, skills, experience, or perspective. However, their study also pointed out that there is
an absence of the relationship between bio-demographic diversity and team effectiveness, which
could be said that bio-demographic diversity may not have any effect on team effectiveness in
any meaningful way.
Nevertheless, it appears that diversity can reinforce positive and negative behvaiors of
team members that influence many aspects of team effectiveness such as decision-making or
group think, conflicts, cohesion, and creativity and innovation. The early research by Triandis,
Hall, and Ewen, (1965) found that a team composed of individuals with diverse backgrounds,
cognitive dissimiliarity and different perspective were judge to have higher level of creativity in
problem-solving than those individuals with simmilar perspective. However, diversity does not
always promote team creativity in every case. Creativity and innovation can be hindered when
each member is more knowledgable in a specific area in relation to other members[ CITATION
Och90 \l 1033 ]. A good example is when a specific langage or jargon is used by a certain member
which thereby making communication and knowledge exchanging difficult. Moreover, the prior
study pointed out the negative effects of group think which can arise when groups place too
much emphesis on attaining consesus due to fear of damaging cohesion and fail to make the best
possible decisions [ CITATION Jan91 \l 1033 ]. Furthermore, diversity can promote conflicts
between team members who have diverse backgrounds and cognitive dissimilarity which hinder
team effectiveness[ CITATION Pel96 \l 1033 ]. However, team diversity can overcome such
hindrances by bringing in differing perspectives and encouraging healthy debates that contribute
HRM 552 ASS2 Page 7

to good decision-making [ CITATION Wil98 \l 1033 ]. Qantas Airline appears to be a good example
to show the extent of diversity contributes to the effectiveness of teams. In 2014, Qantas had
annouced the first half loss of $252 million and made over 5000 staff redundant [ CITATION
OSu14 \l 1033 ]. However, in 2016, Qantas made a big turn around by taking diversity
management as a key to success [ CITATION Hew16 \l 1033 ]. Alan Joyce, the CEO of Qantas,
pointed out that by having a very diverse environment and a inclusive culture, diversity can
generate better strategy, better risk management, better debates and outcomes [ CITATION Hew16 \l
1033 ]. In which the outcome has been shown through the better Qantas performance in relative
to prior years.
Creating teams with diversity seems to be an effective strategy to improve productivity
and effectiveness to achieve organization goals [ CITATION Dev99 \l 1033 ]. However, in practice,
the use of diversity can post many psychological challenges between employees and managers.
Diversity as a trend has profound effects on employees psychological contract and traditional
rewards in return for hard work is no longer exist for most case [ CITATION Sim941 \l 1033 ]. One of
the reason is that diversity can promote conflicts within a team and subsequently negatively
impact on team effectiveness and trust[ CITATION Pel96 \l 1033 \m Cur10] . This could result in
employees feeling betrayed and dissatisfied because organizations had failed to fulfill their
expectation. Moreover, fair contribution and knowledge sharing are normally expected when
working as a team. However, diversity may cause communication difficulty as each members
have their own specialty areas[ CITATION Och90 \l 1033 ]. The uneffective communication may
create the notion of social loafing because other members might expect the member who has
specialty in that certain area to carry more workload[ CITATION Chi05 \l 1033 ]. As a result, this
may lead to dissatisfaction of employees and intention to leave.
4.2. RECOMMENDATION
As mentioned above, trust issue and conflicts appear to have significant impact on team
effectiveness in the context of team diversity[ CITATION Cur10 \l 1033 ]. This suggested that
managers need to be aware that distrust will enhance the propability of intragroup conflicts
which as a result hinder team effectiveness. Moreover, it is important for managers to make sure
that emergence of trust is facilitated at every stage of team building [ CITATION Cur10 \l 1033 ]. In
this respect, effective diversity management programs can be significantly helpful to establish
HRM 552 ASS2 Page 8

trust within teams[ CITATION Gil99 \l 1033 ]. In order to facilitate trust, managers may use the
program aiming to improve communication, collaboration, mutual support, to establish a clear
collective goal and to help team members to develop skills of effectively dealing with conflicts
[ CITATION Bry15 \l 1033 ].

5. LEADERSHIP
5.1. CROSS-CULTURAL LEADERSHIP AND DIVERSE TEAM
Individuals appear to contrast between diverse nations or diverse ethnic foundations
(Thin, 2011). Understanding differences and grouping individuals expands mindfulness that the
conduct of individuals from diverse cultures and communities will affect how they can be
supervised at the workplace. Clearly, the individual perspectives and harmony in team is put into
the right direction by the leader. A leader manages multifaceted, fluctuating, ambiguous and
uncertain global environment to gain competitive advantage in the business (Den Hartog and
Dickson, 2012). Since, Qantas is an international company, it is expected from the leaders to
possess affiliation competencies and openness to new outlooks.

Leadership is a critical to associations however its capacity and limit are getting more
entangled with expanded contribution in globalization and innovation improvement. Innovation
augment the probability of worldwide economy which has changed the way individuals work
together and convey. Cross- cultural leaders must take a gander at the world's transformation as a
test and an open door for hierarchical development and individual improvement. Also, to adapt
to the progressions, leaders need to respond quickly to the effects of socioeconomic, innovative,
and globalization to offer employment ability advancement on worldwide authority, hardworking
attitude, and nonstop learning (Chuang, 2013). The difficulties confronted by pioneers of
innovative groups and associations just keep on increasing as business sectors develop more
intricate, conventional connections are changed, and the aptitudes of employees turn out to be
more distinct. Everybody brings devices, abilities and information, frequently from crosswise
over disciplines and capacities, which should be incorporated in cooperating on an assignment or
venture (Slocum, 2014). According to the CEO of Qantas, Alan Joyce, as an international
premium airline brand, it requires great people management strategy and involved employees to
accomplish their vision. The company focuses on employee engagement and conducts
HRM 552 ASS2 Page 9

benchmarking to study how people can be engaged. The leaders believe in communication,
collaboration and teamwork. And the CEO is a strong believer in innovation and creativity at
workplace. Joyce trusts that unless an administration group is different the concentration will be
thin and enormous thoughts might be smothered. Qantas trusts that administration advancement
is a fundamental part of its diversity and consideration system (Stribling, 2013).

Community oriented pioneers make comprehensive groups and workplaces and at last a
comprehensive culture. Cross cultural leaders ought to comprehend that globalization has
varying consequences for nations and individuals. Since cross cultural leader’s employment
capacities and obligations are more mind boggling and troublesome a future focused leadership
style is required (Congden, Matveev and Desplaces, 2009). Associations require leadership
improvement approaches for compelling organisational efficiency. To keep pace with the
dynamic settings, leaders require more relational aptitudes to address present and future
difficulties (Wang, 2011). In Qantas, there is a reasonable hierarchy of leadership in every office,
and data and guidelines are passed down from the top. This does not mean is only totalitarian:
while the vertical structure in every department is clear, significant esteem is put on agreement.
Likewise, Qantas leader inspire staff by indicating solidarity with them in taking after strategies.
They work for extended periods of time, comply with the principles and, however expecting
quick submission, demand reasonable play (Qantas Airways Limited, 2016). As far as it matters
for them, the leader welcome close direction: they know where they stand and what they are
relied upon to do.

5.2. RECOMMENDATION
???

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