Organizational Behavior and its Impact on Business

Discuss about the Organizational Behavior Of Hershey Company.

The organization behavior is a field of study that may affect the income level and attitudes of the people in the global market. The organization is a social and unique system that includes technology and humanity. The organizational behavior analysis is a fundamental and unique factor for each and every organization to flourish and explore the business actions. The significance of organizational behavior audit helps in making dynamic and unique decision in the global market. The organizational behavior is also significant to improve and enhance the communication and motivation among the workers in the international market. The paper depicts that how organizational behavior audit plays a imperative role to gain achievement and progress in the global market. The field that needs to be measured as a part of the organizational behavior audit also have been explained in the task. Here is the discussion about the operations and activities of Hershey Company that has been chosen in the task.

Hershey is an American company and it is one of the biggest chocolate manufacturers across the world. The company was originated in 1894 by Milton S. Hershey. The organization’s products are sold in more than 60 countries around the world (Hersheycompany, 2018). The organization behavior is an empirical component of Hershey through which the organization has been able to make a different and unique position in the minds of the target audience.

Pinder (2014) stated that the organizational behavior plays a significant role in each and every company to carry out the business activities and operations in a hassle free manner. The organizational behavior may be explained as a study of group, individual and action within the association. The organizational behavior audit also provides an understanding to investigate the elements that are essential to generate an effective and unique organization. It is very significant and unique to examine the organizational behavior (Nahavandi et al, 2013). It also gives the assistance to the company and also helps to evaluate and understand the life of the firm. Hershey conducts organizational behavior audit to meet the long term requirements and needs of the business. The reasons behind to conduct an organizational behavior audit have been discussed below.

Skill development: It is stated by Miner (2015) that the organizational behavior audit helps in improving and enhancing the skill development of the workers. It also helps in gaining knowledge to enhance and increase the performance and productivity of the employees. The employees must remain up to date with new and innovative technology and use existing one in a hassle free manner. Training improves and enhances the essential skills and knowledge of the workers and teaches them to perform the tasks independently. Thus, organizational behavior audit should be done by the Hershey to gain competitive advantages in the international market.

Case Study: Hershey Company

Understanding customer behavior: The behavior and attitude of the customers help the company to decide what products and services to be rendered. When a company builds and develops a strong and dynamic connection with the customer, a firm will get innovative ideas and opinion about the needs, wants and requirements of the customers. For understanding and determining the customer behavior the organization or company should conduct organizational behavior audit.

Employee motivation: Employee motivation is not an easy task. It is the level of commitment, energy and the creativity that helps the company to fulfill the long term objectives and goals in the competitive market. Thus, the firm should collect reviews from the employees on a regular basis to discuss and analyze the improvement and productivity. The organizational behavior audit provides support to collect reviews and opinion from the customers. 

It is stated by Jones and Jones (2013) that auditing the functions and actions of employees in the company is effective and unique factor that assists sound inner audit outcome and result because it all rotates across people’s performance to make all the things easy and effective in the organization. Along with this, the organizational behavior audit is essential to minimize the risks and challenges that the association may be uncovered to when employee attitude and behavior in repulsive manner. The organizational behavior audit also helps in mitigating the gaps that are existence in terms of conformity in meeting the wants and needs of their various stakeholders that includes customers, employees, communities, suppliers and environment. The organization may affect the environment and communities completely and they are anticipated to show good and favorable ethical behaviors. In this way, the company should conduct organizational behavior audit or survey to improve and enhance the productivity and effectiveness (Jones and Jones, 2013).

The three areas of behavior and actions are groups, individuals and formation. All these areas play a significant and fundamental role in accomplishing the desired mission and vision. The areas that need to be monitored are as follows: the organization structure, the organizational people, the knowledge and the environment. These four areas are considered the lifeline of the company. Each and every factor contribution is significant for efficient rivalry in today’s modern world. It is very significant to look at these areas as mentioned above because these areas are empirical in near future. The cause why this is effective and important in the future is because in various festivals, management tends to draw inimitability equality. These actions have normally been seen as a distinctly interpersonal marvel existing in the relations among the followers and pioneers. The pioneer practices accountable to develop and enhance representative’s innovative conduct and including ideas, thought era and application ways. The pioneers must have suitable and effective vision while keeping in mind the goals and objectives to perform roles and responsibilities effectively and efficiently (Jones and Jones, 2013).

Significance of Organizational Behavior Audit

Individuals allow seeking for accomplishment in each period of their life. From satisfying their significant needs, wants and expectations, the company wants to attract and retain maximum number of customers in a large extent. It also provides job satisfaction and security to the people in the workplace. The specific arrangement of satisfaction reduces absenteeism and job dissatisfaction at the workplace. There is no way and formal rule to overcome the challenges and issues related to the workplace. The association behavior is one of the effective and unique ways to reduce and handle the consequences related to the workplace. With the help of organization behavior, people can manage the errand weight and beat the variety of issues and difficulties. With examining and learning the organizational behavior, the employees would have the capacity to show their skills and talents in the international market (Jones and Jones, 2013).

All these areas are evaluated by the company throughout the organizational behavior audit. The level of organization, group or teams and individual are also be identified and evaluated with the help of organizational behavior audit. The organization behavior audit also helps in analyzing and identifying the policies, strategies and plans of the company. It also helps in understanding the core component parts of the firm. It also helps in determining the core functions and responsibilities of group or team members in the workplace. A collection of persons can become a group if the team members expand and improve interdependences, affect the performance of one another and monitor and control on the mutual contentment.  The organization can run the business activities and operations successfully with the help of organizational behavior audit. Further, long term goals and targets can be attained through good and effective organizational behavior audit (DuBrin, 2013).

It is stated that Hershey should analyze and identify the each and every factor that may affect the sustainability and efficiency of the firm. Some of the factors have been discussed below.

People and culture: The people and culture play a vital role to make dynamic image of the company in the marketplace. No company can grow and run the business smoothly without potential employees and favorable culture. Culture is a significant and effective part of each and every organization to attract maximum candidates in the global market. Culture is considered as a DNA of the particular firm to expand and explore the business activities and functions globally. There is a close relationship between civilization and act. The success and growth of Hershey depends on its favorable culture. Culture helps in maintaining strong goodwill and financial position in the global market. Storey (2016), stated that favorable and strong culture leads to high productivity and efficiency and further, it also increases outputs and profitability. On the other hand, people also play an empirical role to carry out the business activities effectively and hassle free manner. People make unique and effective policies, plans and strategies to flourish the business actions widely. Potential workforce also helps in increasing and enhancing the outputs and revenue of the firm in a large extent. People keep an eye on the needs, wants and requirements of the customers to compete with competitors in the global market. They identify and evaluate the preparation, policies and procedures of the competitors to attain rivalries benefits. Also, they measure and analyze the threats and risks of the market to attain maximum profitability in the market. In this way, people and culture are considered most effective and important elements of the firm (Cameron and Quinn, 2011).

Factors to be Evaluated during Organizational Behavior Audit

Organizational structure: The organizational structure is foremost factor that should be evaluated while conducting organizational behavioral audit. The main aim of the organizational structure is provide right direction and assistance to the employees and top management within the organization. The organizational structure entails various departments in the firm that are liable to perform their own work such as administration, marketing and finance.

Technology: It is one of important factors that help in maximizing the profitability and returns of the firm. There are four major aspects of technology such as information storage, information capture, and information manipulation and information dissemination. Innovative and advanced technology is used by the company to run the business operations smoothly and effectively. Innovative changes in technology are done by the company to attain maximum benefits in the competitive market. According to Curtis and Payne (2008), technology helps in increasing productivity in various work related and personal tasks and eases of access to process, plans, and products and persons that might otherwise quite complex. Along with this, innovative and advanced technology also helps in improving and enhancing the communication and collaboration among the workers (Thomas, Zolin and Hartman, 2009).

Environment: It is unique and effective factors that must be analyzed by the company before initiating the business functions and operations. The environment may affect the profitability and returns of the organization adversely. Therefore, top management keeps an eye on the environment to analyze and identify the threats and challenges of the market. The environmental factors also affect the performance and effectiveness of the employees. The environment is generated by a product and functional organizations formation therefore, helps supervisor and leaders to effectively and significantly evaluate and determine the work of their juniors or followers in the association. The environment that exists in the company is a significant and vital factor since it may help workers to get along besides complementing each other (Champoux, 2010).

Along with above mentioned factors, some other factors also affect the organizational behaviors. The other factors include customers, suppliers, competitors, social factors, political factors and investors. All these internal and external factors may put direct impact on the progress and targets of Hershey adversely. The organization needs to understand and measure these factors to make a strong and attractive image in the eyes of the customers globally.

The above elements that are measured in the organizational behavior audit are effective part of the major factors that may affect the association. The significance of these factors go a long method to make the firm successful and effective. These elements make Hershey trustworthy and consistent in the rendering of its products and services in a professional and ethical way. It will enhance responsiveness and offer rapid services. These factors also provide satisfaction, respect and better teamwork and friendliness. It also encourages trustworthiness, dignity, integrity and credibility in workers and the firm as well. Apart from this, these factors also help in understanding and analyzing the requirements and wants of the customers globally. The various factors such as environment, organizational structure, technology, people and culture are most vital part of Hershey to beat the competitors (Luthans, Luthans and Luthans, 2015).

Benefits of Organizational Behavior Audit

 It is worth noted Downs and Adrian (2012) that in the absence of a formal and dynamic organizational structure, the managers and top management might think that it is impracticable to know and understand what they confidently answer to in a variety of conditions. It shall be noted that organizational formation works to increase and augment operational efficiency by giving clarity to the employees at all levels of the company. The organizational structure is also significant for basic leadership in order to make unique and effective decisions within the organization. It is also important to attain desired outcomes, goals and objectives of the firm. Thus, it is a component of the organizational behavior audit as it is an element that helps in accepting and evaluating allocation of tasks and authorities in the association. The well designed organizational formations enable companies to direct changes effectively that occur in the global market.

On the other hand, environment helps the company to operate business functions in a hassle free manner. The company cannot analyze and evaluate the external threats and risks without analyzing the macro environment. People and culture also are considered the empirical part of the firm. If the company maintains favorable and heavy culture in the workplace then it can overcome the competitors globally. Technology also helps to distinguish the company’s image from the competitors. All these factors also help Hershey to accomplish the long term mission and vision in the international market (Simpson, 2009).

The role of work has constantly changed throughout the world due to social demands and various economic conditions. In today’s modern world, work still is essential but it must be a source of personal satisfaction as well. Each and every organization is influenced by various external factors which are existed in the environment. The environment is dynamic and it affects the returns of the firm in a large extent. Changes in political, social, technology, economic and legal environment force may affect the success and sustainability of the firm widely. These factors also affect the labor management relations and economic conditions globally. On the other hand, when there is a change in technology in the company and other organizations accept and adopt new technology thus, it may affect the production capacity and efficiency of the firm. The company should adopt new and innovative technology and equipments to stay in the competitive market (Karakas, 2010).

According to Wagner III and Hollenbeck (2014), socio-cultural changes affect in terms of needs, wants, requirements and expectations of the customers widely. Social changes are taken place just because of the various forces such level of education, feeling of autonomy, and urbanization impact due to new and innovative information sources. The socio-cultural changes may affect the income level and behavior of the people in the global market. Changes in organizational structure also put various impact on the long term objectives and goals of the company. Due to changes in organizational structure, old managers and employers are replaced by new and skilled managers which necessitated just because of promotion, dismissal, transfer and retirement. The new managers and leaders bring new ideas, opinion, thoughts and way of working in the company. Moreover, culture also plays a vital and fundamental role to increase the skills and efficiency of the workers globally. The favorable culture enhances and improves the diversity at the workplace and furthermore, it also helps in maintaining reciprocal relationship between the managers and employees. Cross cultural training and development coaching is provided by the company to promote and enhance the strong culture at the workplace. It is noted that people considered asset of each and every company. It is analyzed by Alvesson and Sveningsson (2015), the production and performance of the firm depend on the potential workforce. Rewards, incentives and bonus are given by the company to the workers in order to increase and improve their efficiency and effectiveness. Apart from this, it also helps enhancing the level of satisfaction and job security of the workers in the global market. The top management and managers motivate the followers or subordinates to perform tasks and duties smoothly and carefully. In this way, all these factors help in determining and measuring the progress and growth of the firm in a large extent.

Conclusion

Conclusion

It concludes from the above mentioned analysis that organizational behavior is a significant and unique feature in the life of each and every company and therefore needs to be taken effectively and seriously. In today’s modern world, organizational behavior audit is a crucial and empirical tool for monitoring individuals and groups as well. Here is the discussion about the significance of organizational behavior audit that helps to beat the competitors in the international market. The organizational behavior covers a variety of issues and challenges that the management of various organizations across the world faces in today’s competitive world. The organizational behavior also affects the job satisfaction, leadership, decision making, motivation and team building. The paper explains that how various organizational factors such as technology, environment, people, culture and organizational structure may impact on the organizational behavior and success of the company. Hershey chocolate company has been taken in the paper to outline and explain the role of organizational behavior audit. Now it is recommended that each and every organization should conduct organizational behavior audit to know and analyze various internal as well as external factors. Along with this, the firm should focus on the plans, policies and strategies to conduct business activities and functions efficiently.

References

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