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Master of Business
Administration

COR601
Organisational Behaviour
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Study Materials

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Video Case 1: Introduction to Organizational Behaviour

https://youtu.be/wdsmUnd8eRU

Multiple Choice: Circle the correct answer

1. Three perspectives of Organizational Behavior are:

a. Individual, group and organization
b. Culture, motivation, and conflict
c. Inputs, process and outputs

2. A group that serves a specific organizational purpose to which employees are assigned is:
a. Work team
b. Formal group
c. Informal group

3. A group that emerge without being officially designated by the organization. They form
spontaneously through personal relationships or special interests:
a. Work team
b. Formal group
c. Informal group

4. Which of the following statements is true?

a. All employees should possess the same personal values
b. Employees satisfaction of being in an organization can depend on their values matching the
organization values
c. Managers can change employee values to fit those necessary for the organization culture and
needs

5. The most important thing in making an organization run smoothly is:

a. Pay and benefits
b. Engaged employees
c. Good communication skills

True or False?
T/F
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6. Org Behavior should review and consider job stress and employees’ perceptions T

7. Organizations with employees who have diverse personalities tend to be more innovative T

8. An extroverted person will always be more successful than an introverted employee T

9. Organizational Behavior considers how a company responds to its external environment T

10. Managers should use similar motivational factors for all their employees F
Video Case 2: Motivation and Conflict Management
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https://youtu.be/KwJhtrwj_5o

1. What is the difference between Intrinsic and Extrinsic Motivation?

Intrinsic motivation comes from inside yourself. When you are intrinsically motivated.

Extrinsic motivation is an external form of motivation or outside of yourself.

2. Define the three factors of Pinks Intrinsic Motivation Theory

What are the two types of conflict? Explain each.

1- Being Mastery: is to conquering the skill.

2- Being Purpose: find meaning of this behind you work.
3- Being Autonomy: taking responsibilities for all cause.

This is not to be confused with the three needs theory. The two types of conflict are:
- issue/task conflict: healthy conflict involves differences and ideas
- Relationship/ personal conflict: involves clashes and personalities and characters

3. What are the five (5) styles of conflict management? Briefly define each.
- Forcing: is when you to try win the other party expense
- Avoiding: is try to skip and smooth over conflict situation.
- Accommodating: giving in to the other party wishes.
- Compromising: satisfactory between parties.
- Collaborating: come up with a solution that benefits both parts.

Video Case 3: Groups and Teams

https://youtu.be/E4AX4vaOL5w

1. Explain the basic differences between a group and a team.

A group has something in common with each other.
4 Page

A team is more than a group.  They have a common goal toward the goal.  And that
goal transforms them into a team of people working toward the same outcome -
together.

https://youtu.be/nFE8IaoInQU

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1. Define the four steps of team formation

1- Forming: most team members are positive and polite, and people making effort to get to know
each other.
2- Storming: people push against boundaries, as people become frustrated with one another
differences and approach
3- Norming: people start resolve the differences.
4- Performing: team members reach this stag e when they’re able to achieve the group’s goal.

Video Case 4: Organizational Culture

https://youtu.be/CcW6rn0uMDc

1. Considering Edgar Schein’s “Iceberg” model of Organizational Culture, define the

three levels and explain each.
1- Artifacts: is the only thing we see, and it is the way the people act, the things they say, the
way they dress, behave, and the items that they surround themselves with.
2- Values: the articulation of the basic assumptions.
3- Underlying Assumptions: the deeply buries foundation for the values that the group has
formed over time.
5 Page

OB Toolbox: Self-Assessment

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Do You Have the Characteristics of Powerful Influencers?

People who are considered to be skilled influencers share the following attributes.

How often do you engage in them? 0 = never, 1= sometimes, 2 = always.

• present information that can be checked for accuracy

• provide a consistent message that does not change from situation to situation
• display authority and enthusiasm (often described as charisma)
• offer something in return for compliance act likable
• show empathy through listening
• show you are aware of circumstances, others, and yourself
• plan ahead

If you scored 0–6: You do not engage in much effective influencing behavior. Think of ways
to enhance this skill. A great place to start is to recognize the items on the list above and think
about ways to enhance them for yourself.

If you scored 7–12: You engage in some influencing behavior. Consider the context of each
of these influence attempts to see if you should be using more or less of it depending on your
overall goals.

If you scored 13–16: You have a great deal of influence potential. Be careful that you are not
manipulating others and that you are using your influence when itis important rather than just
to get your own way.
6 Page

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Chapter 8

Case Study 2: Organizational Structure: The Case of Toyota

Toyota Motor Corporation (TYO: 7203) has often been referred to as the gold standard of the
automotive industry. In the first quarter of 2007, Toyota (NYSE: TM) overtook General
Motors Corporation in sales for the first time as the top automotive manufacturer in the world.
Toyota reached success in part because of its exceptional reputation for quality and customer
care. Despite the global recession and the tough economic times that American auto
companies such as General Motors and Chrysler faced in 2009, Toyota enjoyed profits of
$16.7 billion and sales growth of 6% that year. However, late 2009 and early 2010 witnessed
Toyota’s recall of 8 million vehicles due to unintended acceleration. How could this happen
to a company known for quality and structured to solve problems as soon as they arise? To
examine this further, one has to understand about the Toyota Production System (TPS).

TPS is built on the principles of “just-in-time” production. In other words, raw materials and
supplies are delivered to the assembly line exactly at the time they are to be used. This system
has little room for slack resources, emphasizes the importance of efficiency on the part of
employees, and minimizes wasted resources. TPS gives power to the employees on the front
lines. Assembly line workers are empowered to pull a cord and stop the manufacturing line
when they see a problem.

However, during the 1990s, Toyota began to experience rapid growth and expansion. With
this success, the organization became more defensive and protective of information.
Expansion strained resources across the organization and slowed response time. Toyota’s
CEO, Akio Toyoda, the grandson of its founder, has conceded, “Quite frankly, I fear the pace
at which we have grown may have been too quick.”

Vehicle recalls are not new to Toyota; after defects were found in the company’s Lexus model
in 1989, Toyota created teams to solve the issues quickly, and in some cases the company
went to customers’ homes to collect the cars. The question on many people’s minds is, how
could a company whose success was built on its reputation for quality have had such failures?
What is all the more puzzling is that brake problems in vehicles became apparent in 2009, but
only after being confronted by United States transportation secretary Ray LaHood did Toyota
begin issuing recalls in the United States. And during the early months of the crisis, Toyota’s
top leaders were all but missing from public sight.
7

The organizational structure of Toyota may give us some insight into the handling of this
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crisis and ideas for the most effective way for Toyota to move forward. A conflict such as this
has the ability to paralyze productivity but if dealt with constructively and effectively, can
present opportunities for learning and improvement. Companies such as Toyota that have a
rigid corporate culture and a hierarchy of seniority are at risk of reacting to external threats
slowly. It is not uncommon that individuals feel reluctant to pass bad news up the chain
within a family company such as Toyota. Toyota’s board of directors is composed of 29
Japanese men, all of whom are Toyota insiders. As a result of its centralized power structure,
authority is not generally delegated within the company; all U.S. executives are assigned a
Japanese boss to mentor them, and no Toyota executive in the United States is authorized to
issue a recall. Most information flow is one-way, back to Japan where decisions are made.

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Will Toyota turn its recall into an opportunity for increased participation for its international
manufacturers? Will decentralization and increased transparency occur? Only time will tell.

DISCUSSION QUESTIONS

1. Do you think Toyota’s organizational structure and norms are explicitly formalized in
rules, or do the norms seem to be more inherent in the culture of the organization?

Toyota has remained too much on the side of an organizational structure that is too globally
centralized. Decision-making structures involving everything from recalls, communications,
marketing, and vehicle design and development have historically been centrally managed and
tightly controlled. Somehow there is part of Toyota’s culture inherited from norms, Toyota
culture is a perfect reflection of Japanese culture. Norms are accepted by every member of the
company, everybody knows basic rules, how to dress, how to speak with boss. This level talks
about the philosophy of the company.

2. What are the pros and cons of Toyota’s structure?

Pros
 Easier budgeting and cost control
 Specialists can be grouped to share knowledge and responsibility.
 Personnel can be used on many different projects.
 All projects will benefit from the most advanced technology (better utilization of scarce
personnel).
 Flexibility in the use of manpower.
 Continuity in the functional disciplines policies, procedures, and lines of responsibility are easily
defined and understandable.
 Admits mass production activities within established specifications.
 Good Control over personnel, since each employee has one and only one person to report to.
 Quick reaction capability exists, but may be dependent upon the priorities of the functional
managers.

Cons
 risk of reacting to external threats slowly
 individuals feel reluctant to pass bad news up the chain.
8

 No one individual is directly responsible for the project

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 Coordination becomes complex, and additional lead time is required for approval of decisions.
 Decisions normally favor the strongest functional groups (cannibalism).
 No Customer focal point / project. Response to customer needs is slow.
 Difficulty in pinpointing responsibility; this is the result of little or no direct project reporting, very
little project-oriented planning, and no project authority.
 Motivation and Innovation are decreased.
 Ideas tend to be functionally oriented with little regard for ongoing projects.

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3. What elements of business would you suggest remain the same and what elements
might need revising?
In my opinion, I suggest to do some amendment to the rigid corporate culture and
have some flexible and smooth work environment, also the company should transit
from centralized to decentralized organization. On the other hand, the power given to
the employees on the front lines and Just in Time should be remain the same.

4. What are the most important elements of Toyota’s organizational structure?

Rigid corporate culture and a hierarchy of seniority

Class Group Discussion Questions: Friday, 6pm

Prepare an Organizational Review of your company in a short power point presentation, that
includes the following topics as they relate to your specific organizational structure, manager
and leadership style, culture, mission, vision and values:
Organizationn Name: Mountain Company, for hotels and hospitality

Question 1:
Considering the four behavioral science influencers (Psychology, Sociology, Political Science
and Anthropology), give brief examples of how each of these influencers affect the
organizational behavior of your company.
Psychology
Employees are different and each one of them has a unique traits, social life and experience
drive people to a certain way of personality and as said “Organizations with employees who
have diverse personalities tend to be more innovative ”
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Sociology
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Dealing with peers, co-coworkers create a variety of expectation for individual behaviors. like
minded or workers working in same department go together in any organization. such groups
have powerful impact on individual behavior and eventually on organization performance.
Political Science
For example study of voting behavior, enquiry into political process etc, have been benefited
greatly by the new approach. The salutary results of behavioral movement may be summed up
as new awareness about the needs of scientific research greater degree of empiricism and an
increasing use of new analytical technique.

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Anthropology
Examines the influence of values, attitudes and behaviors of people within different settings,
cultures and countries.

Question 2:
Application of the four (4) management functions to your organization (Planning, Leading,
Organizing, and Controlling). Give examples how these apply to your organization.
Planning: it defines the goals of organization and then how to achieve these goals by
providing detailed road map. Example: weekly, Monthly and yearly reports/forecasts
Leading: it is the most human-oriented management function it needs close contact with the
employees and the groups involved on daily basis while considering personal and
interpersonal uniqueness of individual and group. Example: CEO accompanying with sales
team on critical customer engagement.
Organizing: these are the actions taken by leadership of organization to do planned activities
by providing structured tasks and by defining authority on different levels.
Example: Steering committee where leaders of customer and service providers grouped
together to plan for the milestones and activities to be accomplished within defined time
frame.
Controlling: the activities that ensures that outcomes are aligned with defined goals and are
as per planning. it considers all 3 levels of effectiveness involving individual, group and
organization.
Example: department KPIs, individual KRAs and organization strategic objectives are aligned
to the over all goals.

Question 3:
Examining the 3 perspectives of effectiveness (Individual, Group and Organizational),
describe what elements of each are important in your organizational success strategy?
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- Individual: the elements are important in Mountain Company are:

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Knowledge/Skill Set, Attitude and Motivation.

- Group: the elements are important in Mountain Company are: Cohesiveness,
Leadership, Structure and Roles.
- Organizational: the elements are important in Mountain Company are:
Environment, Technology, Culture and Strategic Choice.

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Question 4:
Who represents your organization’s stakeholders and how are each impacted by what your
organization does?
Internal Stakeholders: Employees, Investors, Board of directors, Board members.
External Stakeholders: Customers, Suppliers, Community and Government.

Question 5:
What type of leadership styles are used by your organization’s managers? By your senior
leadership?
Organization's manager is an Affiliate (Delegating) style: always strive for team satisfaction.
Senior leadership is an Authoritarian (Telling) style: Imposes decisions.

Question 6:
Provide a model of the “Zone of Indifference” using a department from your organization,
listing tasks that are “inside” the zone and “outside” the zone.
Inside Zone of Indifference:
Work 40 hours a week, Help co-workers, handle customer satisfaction form, recommend to
the customer the suitable product, customer database should be up to data.
Outside Zone of Indifference:
Talking aggressively to customers, utilize the outsource products as per customer request,
battery & wheel inspection.

Question 7:
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How is political influence used in your organization?

Page

Rational Persuasion: By utilizing the concept of the logical and factual evidence.
Consultation: Seeking the support via asking for suggestion
Collaboration: where each provides the difference components for the solution.
Inspirational Appeals: appealing to a person's ideas or values.

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Question 8:
Provide examples of “Routine” and “Non-Routine” decisions that are made in your
organization.
Routine: provide complementary to new guests in hotels, change towels on daily basis.
Non-Routine: Accept or Reject a Special Order by guests , give absent customers free nights
at hotel.

Question 9:
Describe the use of intrinsic and extrinsic rewards in your organization
Extrinsic Reward:
- Provide employees with annual bonus.
- Shopping Vouchers.
- Commission.
- Provide company’s car.
- BBQ Party.
Intrinsic Reward:
- Words of praise from the seniors.
- Recognition of employee of the month.
- Taking pride from the job.
- Work autonomy.

Question 10:
What percentage of employees in your organization would you estimate as “Engaged”? Non-
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Engaged? Actively Disengaged?

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Percentage of Engaged: 11%

Percentage of Non-Engaged: 83%
Percentage of Actively Disengaged: 6%

Question 11:
Describe how the methods of communication flow are used in your organization.

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It is Top Down Communication: communication in Mountain company is from superiors to

subordinates in a chain of command in order to meet expectation and satisfaction of guests.

Question 12:
What are the most common styles of conflict resolution utilized in your organization?
The Company uses Accommodating style known as Giving in or smoothing, this approach is
effective in order to satisfy the guests, It can also be effective for preserving future relations
with the other party.
Also Collaborating style, in hotels business, parties should discuss to solve their issues and
seek outcomes that benefit both parties (win-win).
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