Organizational Behavior

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ANALYSIS ON XYZ Company’s performance plummet


XYZ Company’s profits are solely based on its sales volumes. In the recent past the sales reports recorded a slump in the figures. Market conditions are favorable for the products and it has been identified the reason for sales drop is the low motivation and morale of the employees. Superiors are facing difficulty to manage day today work as employees have developed a habit to go on unplanned unapproved leave. Some of them notify their superiors or a colleague on the day of the leave and some never. Sabotage acts have created mistrust. Integrity in the organization has become a thing in the past. The latest developments were the clashes between superiors and subordinates reported by the human resources to the CEO showcasing the infested relationships within the organization.

This report evaluates the on going crisis of the XYZ Company, the reasons for such behavior from organizations and individual point of view based on the theories in organizational behavior. Recommendations to overcome this challenging situation will be suggested using the results proven concepts and theories in the field.

Literature Review

MARS Model
McShane, S. L. , Glinow, M. A. V., Sharma, R. R.(2008) uses the MARS model to explain the drivers of individual behavior and results. The authors have used this to highlight the factors influence the individual’s behavior which results in the performance. The four factors are Motivation, Ability, Role Perception and Situational Factors. The model explains the combined effect of these factors for the performance of an individual.

Big Five Personality Traits
Costa & McCrae, (1992) explained the five traits of personality which have been scientifically discovered to define human personality. This model explains the positive relationship of the five characteristics and performance, motivation and job satisfaction.

Schwartz’s Values Model
Shalom Schwartz (1992, 1994) used his 'Schwartz Value Inventory' (SVI) with a wide survey of over 60,000 people to identify common values that acted as 'guiding principles for one's life'. He identified ten 'value types' that gather multiple values into a single category. The values namely are Power, Achievement, Hedonism, Stimulation, Self-direction, Universalism, Benevolence, Tradition, Conformity, Security, Super-grouping. They can also be collated into larger super-groups namely Openness to change ( Stimulation, self-direction and some hedonism) , Self-enhancement(Achievement, power and some hedonism) ,Conservation (Security, tradition and conformity) and Self-transcendence( Universalism and benevolence)

Employee Engagement
McShane, S. L. , Glinow, M. A. V., Sharma, R. R.(2008) defines employee engagement as “Employees’ emotional and cognitive (rational) motivation, their ability to perform their jobs, their possessing a clear understanding of the organization’s vision and their specific roles in that vision and a belief that they have been given the resources to get their jobs done”.

What is happening?

If XYZ company challenges were to analyze many years ago, according to Theory X assumptions, by the scholar Douglas McGregor, a pay revise, ensure security of the job or a favorable working conditions (Luthens, Fred, 2008) would have been recommended to boost up the morale and increase the productivity of employees. Many research has identified people are extremely complex, and theoretical understanding & empirical research is needed to, implement solutions in order to manage people effectively.

As Sir Richard Branson, Chairman, Virgin Group, says “Engaged employees create loyal customers who in turn create bigger profits”. From the description given on the characteristics of the employees at XYZ, it is obvious employee engagement does not exist in the slightest way resulting sales drops caused by poor performance.

Employee engagement is described in the...
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