GROUP REPORT

BM034-3-M OB

ORGANISATIONAL BEHAVIOUR

Student’s Name
Hrishav Koirala - 2109731346
Pratima Giri - 2110731361
Jeliya Maharjan - 2110731359

Lecturer Name
Mr. Ramesh Suwal

Submission Date
25th March, 2022

Word count: 2993

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 Acknowledgment

We have taken a lot of effort into this project. However, completing this project
would not have been possible without the support and guidance of a lot of individuals. We
would like to extend our sincere thanks to all of them.

We are highly indebted to Lord Buddha Education Foundation, affiliated with Asia
Pacific University, for giving us this golden opportunity to do this wonderful project on the
topic of Organizational Behaviour. We would like to thank our teacher Mr. Ramesh Suwal
for providing the necessary information and resources for this project.

We would like to express our gratitude towards our parents & our friends for their
kind co-operation and encouragement which help us a lot in completing this project. Our
thanks and appreciations also go to our colleagues in developing the project. Thank you to all
the people who have willingly helped us out with their abilities.

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 Executive Summary

Organizational behaviour (OB) is the study of people and their intersection with others in
the organization. It can be used to help understand and improve productivity in organizations.
This report aims to explain the relationship between the organization’s structures and cultures
and its impact on the performance of the business. This report also explains the important
factor that can influence individual behaviour at work, the organizational theory that
underpins the practices of the management, and the different teamwork approaches used by
the management of NIC Asia Bank. Moreover, this assignment highlights the different
leadership styles in NIC Asia Bank as well as its impact on employee motivation.

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 Table of content

1. Overview of Organization Behaviour……………………………………………………1

2. Organization Introduction………………………………………………………………..1

2.1. Objective…………………………………………………………………………….2

2.2. Relationship between the organization’s structures and cultures………………….....2

2.3. Impact on the performance of NIC Asia Bank………………………………………3

3. Factors that influence the individual behaviour at NIC Asia Bank……………………….4

4. Organizational theory underpins the practices of the management……………………….6

5. Different teamwork approaches used by the NIC Asia Bank……………………………..6

6. Leadership style at NIC Asia Bank………………………………………………………..8

7. Future plans and challenges of NIC Asia Bank from an organizational

behaviour perspective post-Covid-19……………………………………………..9

8. Recommendation and Conclusion………………………………………………………...11

References…………………………………………………………………………12

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 1. Overview of organization behaviour

Organizational behaviour (OB) is the study of how people interact within groups. It can be
used to help understand and improve productivity in organizations.

There are three main branches of OB: individual, group, and organizational levels.
Individual-level behaviours include things like attitudes and personality traits. Group-level
behaviours involve interactions between individuals within a group, such as communication and
decision-making. Organizational-level behaviours occur at the level of the entire organization,
such as culture and structure.

The most important idea in Organizational Behaviour is Motivation. Motivation is one that
motivates people to act in certain ways. The four main kinds of motivation are Intrinsic,
extrinsic, Achievement, and Power. The motivation that comes from within is called Intrinsic
Motivation whereas motivation that comes from external factors is Extrinsic Motivation.

2. Organization introduction

NIC Asia Bank is one of the leading commercial banks in Nepal. The history of NIC Asia
Bank starts in 2013, after the merger of Nepal Industrial and Commercial Bank and Bank of
Asia. In this research study, we will discuss the organizational structure, culture, management,
and leadership of NIC Asia Bank.

NIC Asia Bank has a traditional culture where the bank focuses on values such as trust,
teamwork, and accountability. The operating system of the bank and the behaving pattern of its
employees reflects the values of the bank. This type of value helps the bank to establish a strong

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relationship with customers and employees. However, it is challenging for the bank to adopt
these values in changing market conditions.

2.1. Objective:

 To provide quality banking and financial services that cater to the needs of its customers.

 to provide a wide array of products and services, which include deposits, loans,
insurance, and investment products.

 To offer specialized services for corporate and institutional clients.

 To have a well-defined organizational structure that enables it to carry out its business
activities efficiently and effectively.

 To provide competence and have the necessary experience and expertise to run the bank
successfully.

 To ensure that all employees adhere to high ethical standards in their dealings with
customers and other stakeholders.

2.2. Relationship between the organization’s structures and cultures.

NIC Asia bank has been able to maintain its reputation as a highly innovative, responsive,
and dynamic organization by maintaining an effective balance between its organizational
structures and cultures with regards to their performance. When we talk about organizational
structures, we refer to how they divide up activities among different groups within the company.

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A divisional zed structure would then promote specialization and enhance efficiency while at the
same time improving coordination among functional areas by organizing them under specific
managers. The centralization perspective focuses on the advantages of having decisions made
closer to those who are doing it; this is achieved through centralized structures where decision-
making is shifted down to lower levels. On the other hand, the history of NIC Asia bank shows
that they practiced a centralized organizational structure; this resulted in increased coordination
within different departmental groups while at the same time allowing for specialized expertise.

It was documented that there were five key components of an organization's culture: vision,
values, beliefs, norms, and artifacts. The vision element refers to how employees within the
company perceive themselves and which direction they want their organization to move towards.
Values on the other hand are the foundation upon which all actions are based on. Finally, beliefs
show what executives believe drives success i.e., its core values. Norms are what employees
believe are appropriate behaviours within the organization, while Artifacts are symbols that
represent their vision which they communicate to their customers.

To sum it up NIC Asia bank also has the culture of mornings like a kind of refreshment and
knowledge sharing. for this, time was very punctual and if someone came late there has been set
a kind of punishment for them. As a punishment, latecomers have to perform a leader comer to
do something new in the meeting. Sometimes the latecomer has to sing a song as well as dance
to it.

2.3. Impact on the performance of NIC Asia Bank

To have a greater impact on the performance of NIC Asia Bank, there is a need for an
organizational culture that fixates on efficient execution and therefore strengthens accountability.
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The organization should develop a culture that encourages employees to take initiative and
address issues at their level with mutual trust between superiors and subordinates. In addition,
there is also a need for establishing strong leadership from senior management as well as having
effective motivation programs to increase productivity. Finally, they achieve sustainable growth
through diversification in their subsidiaries, this would include expanding into various financial
services products not only serve Nepalese customers but also meet global standards. This would
allow them to have a greater impact on the performance of NIC Asia Bank.

3. Factors that influence the individual behaviour at NIC Asia Bank

Individual behaviour in an organization refers to an employee’s reaction at the workplace

against a particular situation. Employees need to maintain sensible behaviour at the workplace
not only to get appreciation from the management level but also to maintain healthy work
culture. Moreover, an employee of an organization needs to maintain the privacy of critical
information within the organization. They should not flash the confidential information of the
organization to others outside that organization. Some of the factors that influence the individual
behaviour at NIC Asia Bank are as follows:

 Sense of belongingness to the organization:

One of the core factors to improve employee engagement is a sense of

belongingness, which encourages employees to focus on their objectives and connect
with the company. This not only encourages employees but also improves the work of
employees towards business performance. NIC Asia Bank mobilizes the sense of
belongingness of its employees regularly. Taking employees' feedback, creating a social
group within the bank, taking employees' ideas in managerial decision making, launching
motivational events, and making strong strategies for future goals and plans. It is an
important factor to influence individual behaviour.

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 Self-esteem:

Self-esteem refers to one’s ability to perform the work given by the organization
according to self-ability or self-confidence. It is another important factor to influences
individual behaviour at the workplace. It is affected by individuals’ attitudes towards
themselves. One can develop self-esteem through many years of hard work. NIC Asia
Bank analyses the self-esteem of its employees to maintain individual behaviour at the
workplace. Individuals adopting confidence in work abilities, self-acceptance, not being
affected by other individuals’ views and optimistic behaviours are driving factors of self-
esteem. This affects one’s promotion and achievement at NIC Asia Bank.

 Training and education:

NIC Asia Bank provides various training and educational programs within and
outside the organization to improve the ability of its employees at the workplace.
Training and education for the employees help to provide a broad structure for the
development of employees. It also helps to provide an opportunity for the employees
within the organization. Business performance is also improved because of training and
development programs. The proficiency of employees, as well as the effectiveness of
operation, has a direct relation to influencing the individual behaviour at NIC Asia Bank.

 MARS model

MARS model theory also influences the individual behavior at NIC Asia Bank. It
includes four important factors motivation, Ability, Role Perception, and Situational
factors. NIC Asia Bank provides various motivational training to its employees
internally as well as externally. Bank also gives various incentives and rewards based on
their performance which helps the employees to focus on their individual goals. It also

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 ranks employees regarding the individual performance appraisal every year to reward and
promote them. NIC Asia Bank also recruits the employees according to their ability so
that they can perform the tasks as required by the bank. It also helps the bank to appoint
proper jobs for proper employees based on position and ability of technique and
knowledge. There are various departments in NIC Asia Bank where every department has
its role in performing tasks. There are various employees in each department where they
are assigned a specific job responsibility. Thus, role perception is one important factor
in individual behavior. In NIC Asia Bank, employees are required to perform their tasks
within the required time limit. They should work in a team and within the budget fixed by
the bank. Certain situations are given to the employees to assess their situational skills
and analyze their behavior at a given point/ These factors have a direct effect on
managing individual behavior at the bank.

4. Organizational theory underpins the practices of the management

Because NIC Asia Bank is a private bank they have the liberty of being able to implement
the strategy as per their choice. To do so, an organizational theory must underpin its practices. In
this case, it is the pyramid theory that suggests that there should be a small number of people
who make the ultimate decision and then those directly under them in rank and file, with level
below leading to lower power and responsibility. The idea behind such a structure for employees
is that it helps properly and efficiently channel and distribute authority, reduce conflict and
provide control. This organization theory plays out through some actionable items at NIC Asia
Bank such as:

 There is a distinct difference between the branch managers and their subordinates in
terms of powers and responsibilities. The manager only manages the business aspects
while his subordinates manage operational aspects such as customer care, recruitment,
etc.

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  There is a clear-cut and direct reporting structure where almost all employees (except
management) report to one superior. This helps in maintaining simplicity and also makes
it easier to monitor performance using relevant metrics.

 Employees are flattered into specializations considering they will be a better fit for
certain roles, increasing workplace proficiency.

5. Different teamwork approaches used by the NIC Asia Bank

NIC Asia Bank has implemented 3 different teamwork approaches to develop sustainability
practices. The first one is a participatory approach, the second one is a coaching-based approach
and the third one is a community of practice approach.

 Participatory Approach

This approach was a bottom-up approach and in this context, the focus was on
empowering members of the NIC Asia Bank. the bank uses social network analysis to
identify potential impact areas, such as sources of water contamination or risks for child
labor. The main idea behind using this "network" is that if we can understand and map
the various dependencies and relationships between those systems, we can better identify
the actual source of an environmental or social problem, as well as possible solutions to
those problems.

 Coaching-Based Approach

The main idea behind this approach is to provide coaching (through the capacity

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 building) to build sustainable operating practices in NIC Asia Bank. The coaching is a
long-term process and the idea here is to provide support to managers, so they can do
their daily jobs more effectively and achieve the sustainable development objectives of
NIC Asia Bank. Moreover, there are four main areas where coaching is applied: 1)
human resources management; 2) project management 3) community relations and 4)
financial management.

 Community of Practice Approach

It is one of the most commonly used approaches in knowledge management

practices. The main idea behind this approach is to develop networks and forums for
employees so they can share ideas and work together collaboratively.

6. Leadership style at Nic Asia Bank

The leadership style of NIC Asia Bank cannot fit in a box, instead, it can be broadly
categorized based on characteristics that include things like autonomy and flexibility. Leadership
style varies from department to department. Some common leadership styles adapted by NIC
Asia Bank are as follows:

 Authoritarian leadership (autocratic)

In NIC Asia Bank, the CEO of the bank adopts an authoritarian leadership style
where he makes decisions without interference from the rest of the team. In this type of
leadership, decisions are made quickly and confidently. But in this type of leadership
style, other employees of that organization might be demoralized in the wrong situation.

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 However, the authoritarian leader makes executive decisions creating a balance between
their decisions and the trust of the employees.

 Transformational leadership (visionary)

In this type of leadership style, leaders are mostly seen stimulating employees to
meet the company’s vision. By praising and giving rewards, employees are encouraged to
meet the objectives of the managers. This type of leadership in NIC Asia Bank is seen
mostly in departments like the recovery department, audit department, and central
account opening department. Where managers set a reward according to the performance
of the employees. Moreover, managers use a mix of fellowship, passion, and praise to
achieve their managerial objective, explore new ideas, and improve outcomes. Due to
these factors, employees feel empowered and loyal towards their targets.

 Transactional leadership (managerial)

In NIC Asia Bank, transactional or managerial leadership is seen most commonly.

This type of leadership style is mostly targeted towards branches. The leaders associated
with daily transactions of the bank are seen most commonly adapting this type of
leadership style. This style values mostly order and system, where managers set the target
and set the reward and penalties for a meeting or not meeting those targets. This type of
leadership is considered to be a rigid style that could suppress the creativity of an
employee. Moreover, this leadership style can also decrease the motivational level of
every employee associated with it. However, predictable and reliable outcomes can be
achieved due to a strong emphasis on procedures.
The Bank has taken advantage of very flexible and scalable world-class
technology, where the IT department may respond to day-to-day business demands
immediately with little technical knowledge. To manage significant customer requests,
the Bank has fully automated the whole loan application process.

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 7. Future plans and challenges of NIC Asia Bank from an organizational behavior
perspective post-Covid-19

NIC Asia Bank is one of the top banks in Slovakia that provides a range of financial products
and services to fit all kinds of customer needs. Its mission statement "to be recognized as the
bank for personal banking" has made it worldwide famous across various social media and
business online platform articles and blogs about serious business opportunities. The major
concern among current employees at NIC Asia bank is its serious problem regarding
organizational culture, leadership style, and management which leads towards inefficient
performance levels.

The serious problems faced by this organization can be classified into two categories:

 Organizational Structure and Culture:

This serious problem relates to the way how work is ordered, organized on a serious scale
within NIC Asia bank. For example, Multiple tasks assigned to one employee would result in
serious quality issues and cause serious time management problems. The serious task itself
cannot be completed within the stipulated timeframe due to the lack of broad division of labor
between employees. This results in underperformance metrics at NIC Asia Bank which
demonstrates serious ethical dilemmas.

 Leadership Style and Management:

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 Serious leadership style problems are faced by NIC Asia Bank where there is no proper
delegation of work among employees, thus creating serious confusion among them about their
responsibilities. There are several instances where managers are more serious about their work
performance rather than focusing on coaching employees to improve their serious skills.

Organizational structure, leadership style problems are faced by NIC Asia Bank can be easily
overcome by serious leadership styles and management practices.

Good knowledge of strategic human resource management is needed in the banking industry
due to the nature of this business environment. The primary function of an effective HR
department is to ensure important people issues are being managed on a 24/7 basis. The serious
nature of these serious people’s issues means that they are serious in the sense the resolutions
may need the serious involvement of more serious individuals that work on a higher level or
provide serious help to resolve them.

Serious leadership styles must be adopted by the serious HR department which has serious
accountability for these four serious people issues. The serious role of an effective leader is
critical as it will ensure that there are serious results through serious efforts and resources
provided. For example, developing a detailed action plan can demonstrate serious commitment
from the serious human resource department to address these serious challenges. It also
establishes clear lines of responsibility and accountability for each issue which allows people to
take more effective action towards achieving sustainable results.

To conclude, the serious situation at NIC Asia bank suggests serious changes in its
organizational behavior approach to achieve sustainable growth which will help them address

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serious challenges related to Covid-19. These serious measures may help NIC Asia bank come
out of the existing serious financial conditions that they are currently facing.

8. Recommendation and Conclusion

In conclusion, serious recommendations for future changes in NIC Asia Bank are offered. In
terms of the key elements that have been addressed within the dissertation, it is important to
reiterate that serious recommendations for future changes must be made from both a micro-level
and macro-level perspective. From a micro-level perspective, serious suggestions and
considerations should be made concerning

 the organizational culture at NIC Asia Bank;

 leadership; and
 employee morale and engagement.

Concerning the organizational culture at NIC Asia Bank, serious recommendations should be
given as such by maintaining an environment that will foster trust and commitment among
employees as well as establishing a sense of ownership among all levels of the organization.
With regards to leadership within NIC Asia Bank, serious suggestions and considerations should
be made concerning management style as well as creating a sense of empowerment among
employees. Finally, serious recommendations for future changes must be made concerning
employee morale and improvement of employee engagement within NIC Asia Bank. From a
macro-level perspective, serious recommendations for future changes must be given in terms of

 board of directors’ involvement.

 social responsibility as a financial institution,
 workforce experience, and qualifications.
 human resource policies

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 References

Glinow, M. (2012, September 9). MARS Model of Individual Behavior and Performance.
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behavior-and-performance/
How NIC ASIA Bank is reshaping Nepal’s banking future? (n.d.). NIC Asia Bank. Retrieved
February 23, 2022, from https://www.nicasiabank.com/quick-links/blogs/how-nic-asia-bank-is-
reshaping-nepals-banking-future
Martinuzzi, B. (n.d.). Leadership Styles and How to Find Your Own. Retrieved February 23,
2022, from https://www.americanexpress.com/en-us/business/trends-and-insights/articles/the-7-
most-common-leadership-styles-and-how-to-find-your-own/
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