Scenario The Great Shift

Published Date: 02 Nov 2017

DIPLOMA IN BUSINESS MANAGEMENT

INDIVIDUAL ASSIGNMENT

ORGANIZATIONAL BEHAVIOUR

BM402A(09)

Name

:

Lee Yiwen

IC

:

930925-07-5794

Index No

:

PP102426

Batch No

:

DBM1119

CAMPUS

:

PENANG

WORD COUNT

:

5289

Scenario: The Great Shift

‘For the next three years, China will be the main target for foreign investors to expand their businesses. From year after year, China has managed to increase Foreign Direct Investment tremendously from US$6.6 billion in 1990 to US$62.4 billion in 2000,’ said Md. Saad Hashim, Deputy Head of the National Economic Action Council (NEAC) Secretariat.

The awakening of China poses great threat to countries in South-East Asia. China offers lower-cost and lower-tax environment, ideal manufacturing sites especially for the current economic slowdown. Furthermore, foreign investors hope the market opening will bring them new customers through easier access to the country’s 1.3 billion people, and offer a more predictable business environment in which to locate low-cost manufacturing bases. The economic downturn has also triggered the senior management of most multinational companies to ensure cost effectiveness of their manufacturing plants. Therefore, many multinational companies have made prudent decision to relocate their manufacturing operations to China with the hope of cutting down the cost and gaining China’s market share. In the Bayan Lepas Free Industrial Zone (FIZ), Penang, the relocation of several multinationals to China has resulted in a few thousand workers losing their jobs.

Lowering cost structure is the key focus of many multinationals; they moved to contract manufacturing and improved productivity. Align with this effort; there is a trend of work schedule change among the multinationals such as Intel, Agilent, AMD and Komag. They switched from eight-hour three shifts to 12-hour two shifts, compressed work schedule. Would this trim down the manufacturing cost?

In order to stay competitive, Semiconductor Company in the Bayan Lepas FIZ recently embarked on cost reduction by changing work shift. The company is operating in a shift work system where the workers are divided into four crews called as crew A, B, C and D, running in three rotating shifts in order to be able to cover 24-hours operation in a day and seven days a week. The coverage is such where in any day there will be three shifts working for eight hours each in day, afternoon and night. In this rotating shift system, at any one day there will be a crew of workers on ‘off’ or rest day. Each crew will work for average of 10.5 days every fortnight, of there is any absenteeism, the ‘off’ or rest crew can be called to come in to work overtime to cover for the absenteeism.

The new shift system is operating with four crews, but its operating in 12-hours per shifts, two shifts a day. This means at any one day, there will be two crews of people working in a rotating two shifts, day and night. This working system even has a direct stretch of 12-hours working in a day, but the shift worker need to work for a stretch of three or four days in a week then they will be entitled for three or four days off or rest day. Each crew will work for average seven days, per fortnight. The total working per week or the total working hours per month still remained unchanged and it is within the labor law requirement.

Beside the shift pattern changes, the day shift working hours formally started t 6.45am is also changed to 7.00am. This change subsequently leads to other changes such as the employee attendance system, production operating system, charted busses schedule, etc. With the implementation of the new system, Mr Zulkifli, person responsible for the change, is having anxiety form the employees’ negative responses related to the long working hours, work environment and wages. The employees’ resistance might lead to even lower productivity. He needs to overcome all the resistance without fail.

Source: Adapted from a case developed as part of class assignment for AGW613 Management and Organizational Behavior, 2002-03 by Kesvakumar M, Henry Wong Kim Seong, Ang Choo Keong, et al., School of Management, Universiti Sains Malaysia.

Tasks:

Compare and contrast 2 types of organizations in terms of their structures and culture citing relevant examples.

Discuss the organizational theory that underpins the principles and practices that this company has taken to its management and leadership.

Discuss the different relevant motivational theories, and hence, apply one of the theories within this company in order to motivate its employees towards effectiveness.

Discuss the nature of group behavior within this company, and hence, evaluate the factors that lead to effective teamwork using relevant examples.

Table of Content

TITLE

PAGE

Introduction

5

Task 1

6 - 10

Task 2

11 - 13

Task 3

14 - 17

Task 4

18 - 20

Conclusion

21

Bibliography

23 – 24

Introduction of Organizational Behavior

An organization refers to a group of two or more individuals who are working together to achieve a common goal. When we talk about an organization, we may be referring to different types of organization besides businesses including government agencies, statutory bodies, non-governmental organization, association, clubs and many types of formalized groups. Organizational Behavior is the key aspect to maintain and enhance interaction levels amongst employees in the company. Other attributes like leadership, openness to discuss problems, challenge-initiative are all tied in to this base concept of Organizational Behavior to help the business achieve its strategic and in some cases business objectives. The proper definition of organizational behavior with its understanding and management has resulted in development of few key offshoots to the concept of Organizational Behavior. Manager of an organization is required to have complete knowledge and information about the following facts:

When do two people (co-workers, or a superior -subordinate) interact?

When do two or more groups need to co-ordinate their efforts?

What complexities are involved in inter-personal relations?

Why some employees are more successful than others?

How can we act as a team?

How to handle the stress of workers - superiors and sub ordinates?

How to obtain suggestions from employees?

Why the culture of one organization differs from other and why it is changing constantly?

An understanding of organizational behavior is valuable for improving human behavior in positive direction, on the one hand and the total organization climate, on the other hand. It tries to promote our understanding of the process of human behavior and the changes that takes place in the goals, roles, values and interests of the organization members during the course of their association with organizations.

290 words

Task 1

Compare and contrast 2 types of organization in terms of their structure and culture citing relevant sample.

Introduction of Intel

Intel Corporation is an American multinational semiconductor chip maker company headquartered in Santa Clara, California. Intel is the world's largest and most valuable semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel Corporation, founded on July 18, 1968, is an acronym for Integrated Electronics (the fact that "Intel" is a term for intelligence is also quite appropriate). Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. Founded by semiconductor pioneers Robert. Though Intel was originally known primarily to engineers and technologists, Intel is the developer of SRAM and the beginning of the DRAM, and this represented the majority of the business until 1981. Although Intel created the first commercial microprocessor chip in the world in 1971, it was not until the success of the personal computer (PC) that this became its primary business. During the 1990s, Intel invested in new microprocessor designs fostering the rapid growth of the computer industry. During this period Intel became the dominant supplier of microprocessors for PCs, and was known for aggressive tactics and sometimes illegal to defend its market position, particularly against Advanced Micro Devices (AMD), as well as the struggle with Microsoft for control the direction of the PC industry. 2011 ranking of 100 of the world's most valuable brands published by Millward Brown Optimor showed the company's brand value at number 58.

Introduction of Organization Structure

The typically hierarchical arrangement of lines of communication, authority, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different level of management.

A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells-multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well. An organizational chart illustrates the organizational structure.

jetfan7.jpg

Diagram 1.1.1 Organization chart of Intel

Introduction of Organisational culture

Culture has been defined as shared ways of thinking and doing things. Popular culture is measured in four main continuums, such as, time, space, language, and also religion. Organizational culture is the basic pattern of shared assumptions, values, and beliefs the govern behaviour within a particular organization.

Organization have sub-cultures as well as the dominant culture, some sub-culture enhance the dominant culture, whereas countercultures have values that oppose the organization’s core values. Subcultures maintain the organization’s standard of performance and ethical behaviour. Sub-cultures maintain the organization’s standard of performance and ethical behaviour. They are also the source of emerging values that replace aging core values.

Organizational culture has three main functions, that is, it is a deeply embedded form a social control, it is also social glue that bonds people together and makes them feel part of the organizational experience, and corporate culture helps employees make sense of the work place.

1.3 Organizational Culture of Intel

Intel in Bayan Lepas, Penang, Malaysia.

A Women at Intel Network (WIN) was established to demonstrate the value of a diverse workforce by encouraging women to reach their full potential. At the same time, the indicator of diversity in recruitment, career development and career assessment study. With the belief that all employees can contribute regardless of age, the company has also raised the mandatory retirement age. Intel treating employees as partners, the communication between all levels of open and honest. Employees are recognized for good work and creativity, and there are guidelines to protect the privacy of the employees such as personal details and employment history. Financial programs and special also created to help those in need.

A variety of flexible programs such as start time and part-time jobs instead implemented to help employees achieve work-life balance. Workers will appreciate the policy no meeting on Friday afternoon, which means they can end the week on a good hour in anticipation of a peaceful weekend. Workers who had to stop work for up to one year may choose to leave prolonged absence.

In addition to a competitive market salary, Intel Malaysia has joined two employees profit sharing plan - Employee Cash Bonus and Employee Bonuses. They were also given a free company stock and can choose to buy more on their own. Workers continue to be given the option to choose a medical plan that best meets their needs at a low premium. Dental and vision correction coverage available subsidies. Other benefits include subsidized housing and vehicle loans.

Towards creating a fun atmosphere, a game room / corner can be found in every building and canteen. Drinks, ice cream and fruit available. Rather like the campus, there is transportation between buildings, shops and ATM machines.

University Intel offers programs that comprehensively to develop employees at all levels. There are also program-program for facilitate transition the workers from one role which to who other. As employees are neat, the company is planning ahead by focusing on a succession planning cross-functional well, which aims to build bench strength strong for the challenges the future by taking advantage of the talents of each individual and ability.

Put the health and safety of workers in the business, Intel Malaysia has health centers in homes run by a certified nurse and visiting doctors. Room-room mother & Special-this special has been set up while many program-program well-being has been introduced. Employee also have access to tennis and basketball the court-court and field-field foot sal. In addition, external professional counselling made ​​available.

Intel in China

The Walk Intel into the Community program was launched in 2004. As a leader in technological innovation, Intel has been running schools for community Sichuan and Shanghai, teach elementary school students how to use computers, and help students to primary and secondary students to draw pictures to show the creation of their technology, to design the picture on environmental protection with Photoshop, and to build a model community.

At the event, Intel volunteers praised by organizers and parents of students to

Efforts and patient. In the Junior Achievement (JA) volunteer activities, JA China partners with companies to recruit volunteers, develop business and economic curriculum based on students from primary school to university, care to enlighten and educate students about business and the economy, and provide them with more opportunity to interact with people who are working in various sectors and industries.

Job Shadow Day, an annual event held by the AC, providing students look up almost any "real work" is, show how the skills they learn in school implemented in the workplace, and help them to understand the relationship between learning and their future career.

In 2008, Intel has teamed up with the launch JA JA Job Shadow Day, School Children of Foreign Workers' Career Go. In March of 2008, Intel decided to help build a first-aid system for the school children of migrant workers' on Shanghai, and held a series of activities in the following months: Intel bought a first aid kit and health teachers in these schools have taken part in training by the Red Cross Society; Intel volunteers are trained and go into schools to teach first aid knowledge along with health teachers.

To help the disabled learn computing is an important part of Intel’s support for the disabled. Intel has supported the computer training class of Chengdu Disabled Person’s Federation in various ways. Intel volunteers help these people improving computer skills, increase their independence, and give them more opportunities to expand the scope of trade careers for people with disabilities.

Task 2

Discuss the organizational theory that underpins the principles and practices that this company has to its management and leadership.

Introduction of Leadership Theories.

2.0.1 Fiedler Model Theory

Predicting leadership success involved more than isolating a few leader traits or behaviour. Developed by Fred Fiedler, the Fiedler model is contingency theory proposing that effective group performance depends upon the proper match between a leader’s style of interacting with his or her followers and the degree to which the situation allowed the leader to control and influence. On the same time, Fred Fiedler also developed the last-preferred co-worker questionaire, it is an instrument that purports to measure whether a person is task or relationship oriented. Fiedler also isolated 3 situational criteria that he believed could be manipulated to create the proper match with the behavioural orientation of the leader. That is, leader member relations describe the extent to which followers have confidence, trust and respect in their leader. Secondly, task structure describes the extent to which job assignments are formalized and are structured or unstructured. Thirdly, position power describes the amount of influence a leader had over power based activities such as hiring, firing and promotion.

2.0.2 Path Goal Theory

Robert House extracted key elements form the Ohio State leadership research on initiating structure and consideration and the expectancy theory of motivation to develop the path-goal theory. This theory asserts that it is the leader’s duty to support needed to ensure their goals are congruent to the organization’s overall objectives. Path-goal theory states that a leader’s behaviour is agreeable to subordinates to the level that they perceive it as an immediate source of satisfaction or a source of future satisfaction. The leader’s behaviour is motivational to the degree that it makes subordinate need satisfaction contingent on effective performance and offers the guidance, support, coaching and rewards needed for effective performance. In addition, Robert House also identified four types of leaders, that is, the directive leader informs followers of what is expected of them, schedules work that needs to be done and gives clear directions as how to accomplish tasks. Secondly, the supportive leader is friendly and displays concern for the needs of followers. Thirdly, the participative leader discusses with followers and considers their suggestions while making a decision. Lastly, the achievement oriented leader establishes challenging goals and expects followers to perform their best.

2.0.3 Leader Participation Model

Developed by Vroom and Yetton, the leader participation model is a contingency model that links leadership behaviour and participation in decision making.

Vroom and Yetton argued that leader behaviour must change to reflect the task structure, the model is normative for it provided a sequential sets of rules that should be adhered to in establishing the form and amount of participation in decision making, as determined by different types of situation.

Leaderships theories at Intel Company

Intel Developer Forum, San Francisco, Sept. 13, 2011 - Intel Corporation today announced a new effort with Google that aims to accelerate Intel's business in smart phones. The company also revealed that Intel engineers working on a new class of platform power management for Ultra â„¢ book that will help in the delivery of always-on computing-always connected. Intel President and Chief Executive Officer, Michael Carter, made the announcement during the opening keynote of Intel Developer Forum in San Francisco. "Computing is in a constant state of evolution," said Otellini, describing the opportunities and challenges facing Intel and the industry. "Unprecedented demand for computing from the client devices to the cloud creates a huge opportunity for the industry. Intel innovation and working with our partners to deliver computing experiences that are more simple, secure and seamless. I'm excited about the new experiences that will be created throughout multiple devices, and we've just begun. "

Addressing a major corporate goal to expand Intel's business in adjacent computing market segments, Otellini discussed the recent efforts of the company to accelerate business and showcased a smartphone form factor reference design based on Intel ® Atom ™ processor, and run the Android ™ platform. Otellini then introduced Andy Rubin, Senior Vice President of Mobile at Google *. The two executives outlined plans to enable and optimize future releases of the Android ™ platform for Intel's family of low-power Intel ® Atom ™ processor. Joint Venture is designed to accelerate time-to-market of Intel technology-based smartphones run the Android platform. "Our collaboration with Google will bring a powerful new capability to market that helps accelerate industry innovation, adoption and choice," said Otellini. "I'm excited about the possibilities of this collaboration. It will enable our customers to bring exciting new products and user experiences to market that harness the potential of Intel architecture and combined the Android platform." Today's announcement builds on recent initiatives the two companies together to enable Intel architecture on Google products. Joint initiatives include Chrome OS, Google TV, and the Android Software Development Kit (SDK) and Native Development Kit (NDK).

800 words

Task 3

Discuss the different relevant motivational theories, and hence, apply one of the theories within this company in order to motivate its employees towards effectiveness.

Introduction of Motivation

Motivation can be defined as a process that takes into account individual strength, direction, and persistence in order to achieve its goal. Motivation is the driving force for any individual to achieve under certain conditions. In the context of the organization, it is part of the activities of the organization to motivate employees. Basically every individual is different from others. Some are interested in the work and some are considered lazy. Organizations need to understand the individual needs and implement programs that meet the needs of motivated individuals and encourage them to achieve the goals of the organization and at the same time achieving their personal goals.

3.0.1 Introduction Of Motivation’s Theories

Maslow’s Theory

Maslow proposed that human motivation was influenced by our needs, and argued that these needs had a hierarchy of importance. He proposed that the lower-level needs had to be achieved (at least to a satisfactory level) before a person would be motivated by the subsequent level. In terms of motivating people at work, this theory implies that you need to understand what level the person is at in order to be able to select the most appropriate strategy to positively impact on their motivation.

If a manger attempts to motivate an employee through greater autonomy via promotion (which does not include any pay increase), this would be highly unlikely to motivate the employee if she/he was having major financial problems. In fact, the extra responsibility would probably have demotivating effect in this scenario. Therefore, it is important that managers know their employees well enough so that they do not make such errors. However, if this person had been offered a promotion with a significant pay increase and/or bonuses the outcome would be likely to be different as the employee needs the money to satisfy their physiological and safety needs.

The orders of the hierarchy are physiological needs, safety needs, social needs, esteem needs and self-actualization. Physiological needs include a person’s need for, for example, food, water and shelter. Safety needs is a person’s need for protection and security from emotional and physical harm. Social needs are a person’s need for belongingness, affection, friendship, and acceptance. Esteem needs is about a person’s internal esteem needs such as autonomy, self-respect, achievement, and external esteem needs such as attention, job and social status, recognition for achievements. Self-actualization is about a person’s need to grow and become as much as she/he is capable of becoming.

Herzberg Two-Factor Theory

Herzberg’s research concerning what employees felt made them feel exceptionally good or exceptionally bad about their job consistently showed there were two sets of factors that affected motivation at work. These two factors were referred to as hygiene (or maintenance) factors, and motivators (or growth) factors. Hygiene (or maintenance) factors are salary, job security, working conditions, level and quality of supervision, company policy and administration, and interpersonal relations. Motivators (or growth) factors are sense of achievement, recognition, the nature of the work itself, responsibility, and personal growth and advancement.

Herzberg found that no matter how good the motivators/growth factors were, they would not serve to motivate employees if the hygiene/maintenance factors were lacking. In other words, the first place to start in terms of building a motivated workplace is to make sure the hygiene/maintenance factors are attended to. Only then will the presence of motivators/growth factors impact in any positive way on employee motivation.

Vrooms Expectancy Theory

This is one of the most widely accepted explaination of human motivation. It argues that people tend to behave in a certain way based on the expectation that what they do will cause a certain result, and the result is attractive to him. So, the expectations theory of motivation suggests that the amount of motivation a person has for a given task is the result of the calculation process / mental person who considers the long, intermediate and valence.

So, the idea that a person has at any given is important in helping to explain the motivation of the person's particular tasks. If any of the missing elements in common as people who do not appreciate the results, then there will be no or very little motivation. If correct, the theory of expectations is important for managers to ensure: employees feel they have the skills, knowledge and abilities to do their jobs, at least to a sufficient level (= long); employees feel that if they do their job well, or at least enough, they will be rewarded (= intermediate); employees feel reward offered for successful job performance is interesting to them (= valence).

This theory helps to explain why many workers failed to exert much effort in their work. This is because the evidence shows that many employees do not believe that if they put in more effort will have any effect on the benefits they receive. In addition, employees may not have the skill set to do any better, then, regardless of the amount of effort they put in, their performance will not improve, there will be no impact on the reward, and the result would lack motivation for the tasks given

3.1 Motivation Theory Practiced at Intel Corporation

Intel provides its employees an annual wage supplements and any decision to employee bonus program as well. This program supports cultural performance with reward their employees based on the achievement results. There also have Rewards Bonus which rewards employees based on the results achieved, strengthening individual accountability to meet business objectives. Intel also provides a Share Option Plan provides an opportunity to reward and retain high-performing employees and promote employee ownership of the company.

Intel also has favourable conditions of work environment for employees. Intel has provided subsidized cafeteria meals and award-winning, free snacks and coffee / tea every day for the employees. It also has a shop, Automatic teller machines and a prayer room. In addition, it also has a website on sports and recreation for employees to carry out sports activities. Intel library consists of technical, management and leisure time reading to their employees. There is a great centre of learning in the classroom intel to provide their employees about computer-aided training, technical lab and media centre.

For the healthy parts of the employees, Intel providing outpatient medical consultation panel, dental benefits, medical benefits obligations, and 24 hours of in-plant clinic for employees. However, Intel also provides group personal accident insurance and medical insurance widely to the hospital and surgical procedures for worker safety purposes.

1076 words

Task 4

Discuss the nature of group behaviour within this company, and hence, evaluate the factors that lead to effective teamwork using relevant examples.

Introduction of Group Behaviour

Think of the different groups you encounter or belong to in the workplace or where you are studying. Can you describe the similarities or differences between these groups in terms who are the members (composition), how many members (size), how do the members behave (role), what guides their behaviours (norms), and how well they work together (cohesiveness)? These different characteristics called properties may help us explain and predict group behaviours as certain properties shape the behaviours of the members as well as the performance of the group itself.

Composition

Composition refers to the nature and characteristics of the team members. Team composition is a combination of team expertise, adequacy of team size and team stability. While this is a group or team in both large and small organizations, the more important point is the composition of the group or team. There is no point of including people into a team or group if they do not have the relevant skills to contribute complementary to team goals. In many organizations, what usually happens is that individuals get appointed to the team or committee where they feel that they are wasting their time in meetings instead of contributing members. Therefore, it is important that a team has a mix of labor rights, the expertise and the right skills.

Role

It is important that members understand their role in their group or team. Patterns of behaviour are expected due to the role of a person holding a specific position in a social unit. There are many roles that members can play in teams or groups of them. Team members can play a variety of roles but more importantly, they need to match the skills and roles of their choice. This is why it is important for managers and team leaders to carefully select individual skills and choice for the role they are expected to play.

Norms

Norms are a form of expectations with regards to the behaviour of its team members. They are a set of informal rules and values that guide the team member’s behaviour and define the boundaries of acceptable and unacceptable behaviour. According to Cohen et al. (1996), when a norm becomes well internalized, there is a high degree of agreement among group members about the amount of approval or disapproval associated with particular behaviour, which in turn encourages team performance.

Cohesiveness

Cohesiveness refers to the extent to which members are attracted to each other and are motivated to stay in the group. High integration will bring a positive impact on job satisfaction and communication. It is important that all team members to build unity through understanding and respecting the role and contribution of each in order to perform the tasks and goals of the group. However, unity can also be a major factor that poses particular problems for some groups make decisions.

Group Behaviors of Intel Corporation

Group behaviour is very important in Intel because they do business. Their business requires a lot of teamwork, communication between each other, trust between the members and the role each member is playing. In Intel, there will always be run by a group of tasks. There will be a small group or groups of the larger, but whatever it is, must have run the best trait group behaviour.

Group in Intel will have some composition between workers as there will be some professionals or skilled workers in the course of their work. Each of the band members to play their roles more effectively and efficiently. In the work environment, there will be some rules and conditions or targets for tasks or work. In the group, there must also have the motivation of each of the members to achieve the goals or targets for these tasks.

Intel has provided benefits to their employees for their performance. This is one of the factors that motivate their employees to achieve the company's goals and carry out their tasks effectively. There are some training provided by Intel for their employees for better skills and increase their knowledge about the business. This can help each other when carrying out tasks. Employee group at Intel also have good communication with each other while working together.

702 words

Conclusion

In this assignment I find out that's Using Intel corporation were a lot of strategic and leadership skills motivate. And finally I Fell Intel is a good company for the employee to work at there. Intel is a multinational company and for hire have a lot of factory in Globally. Organizational behavior ORARI the study of human behavior, with RESPECT to organization along with the other fields of sciences like Psychology, Sociology, Anthropology, and political science with the clear understanding of These sciences, the leader cans think methodically and systematically to design Plans that's motivates the employee to dramatically improved the Productivity and fulfill the Organizational goals. Thus, the study of Organizational behavior is a complete science of human behaviour in the organization.