Managing Organizational Behavior

Managing Organizational Behavior

In all organizations, regardless of size, it is important for management to create a safe and nurturing environment for all employees. To create this type of environment management needs to understand: employee behavior; organizational culture; the need for diversity; a formal code of ethics; strong communication; and how to promote and manage change.

The first step is to understand employee behavior and to manage that behavior. The behavior of employees within and organization is called “organizational behavior.” To manage organizational behavior, an organization needs to focus on hiring, maintaining, developing and utilizing the skills of their human capital. In addition to maintaining quality employees, it is important for an organization to monitor and manage employee interactions with their coworkers and their customers. By understanding these interactions and the skills of each employee, manager is able to place employees in positions they are best suited for. Placing the best employee in the best position allows the organization to develop and grow using the strengths of each employee. This also promotes positive behavior amongst employees which ultimately will result in strategic advantages for the organization (Hitt, Miller & Colella, 2006).

The second step is to create a culture where employees want to work and are empowered to make decisions. To do this, the culture of an organization should be developed from the top down. Management should outline the expectations of “shared values, beliefs, and norms that influence the way employees think, feel, and behave” (George & Jones, 2005, p535). These expectations inform, guide and motivate employees to participate in activities which are best suited to help the organization grow. This culture often becomes a way of life for the employee as well. Often employees find themselves acting outside of the organization as they do inside. Indirectly, employees represent their employers when this culture becomes a part of their daily lives.

Whole Foods Market is a prime example of both organizational behavior and organizational culture which thrives internally and externally. Whole Foods Market believes that each employee of the organization is a key member supporting and promoting organizational growth. Teams meet frequently to discuss their objectives and to recognize the work of fellow team members. Employees are driven to succeed in their personal goals with full support by management. They are also encouraged to have fun with their jobs and coworkers. The culture that has been created at Whole Foods Market is that of openness, honesty, support, and simple enjoyment. This culture flows over to their customer service as well. Customers can see that employees enjoy what they are doing and where they are working and are pulled into the culture. Many customers are return customers, not because of the products and services provided, but because the behavior of employees and the culture created are inviting for both employee and customer (www.wholefoodsmarket.com).

Diversity within an organization provides a competitive edge for organizations that embrace diversity. Having a diverse human capital means having a well mixed base reflecting men and women, different age groups, and different cultural backgrounds. This diversity in human capital provides a variety of views on the overall needs of the organization and what options are available to obtain them. With organizations moving to global levels, it is important that they understand the needs and wants of their employees and customers in foreign countries. The best way to do this is to consider what motivates those employees or customers to work and to buy products. Diversity within an organization can help to ensure process and product development takes this information into consideration. Organizations may also use diversity committees to motivate employees of specific gender and/or nationality to develop a culture within a culture.

HSBC has a number of diversity committees throughout the World. Some teams are within a site, some within a state, and others span the globe. My manager is the president of the Latin American Diversity Committee; and though more than half of the committee is located in the Northwest suburbs of Chicago, she does work with committee members in Mexico, Central and South America. This committee meets twice a month to discuss how they can contribute to the growth of the organization as well as increasing knowledge throughout the organization on what it means to be Latin American. Each diversity committee covers some form of education for the organization once a year and growth opportunities for the organization on a monthly or bi-monthly basis.

Organizations need a formal code of ethics to ensure employees are positively representing the organization