ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 12: Organizational Behavior

Submission date 30/07/2021 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
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.

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

Division

al 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

During the talk show, I did a good job of preparing complete and clear information. in addition, i have
bad points such as saying a few words wrong, not having much interaction, and not rich in languge. i
will need to impreve my vocabulary, speaking fluency, increase interation with people, improve
critical and communication skills in the nex Talk shows.

Video link of the talk show:

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