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1 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Applying Organizational Behaviour Principles to Case 7: Promotion from Within Atul Kunnath (TBF8780) Jeevitha Sachithanantham (TBF0173) Kriti Pandey (TBF7767) Savleen Kaur (TBF6534) Reuben Abraham (87200448)

Strategic Global Business Management

Organizational Behaviour, BUS8020 Professor Shannon Weber Conestoga College, Downtown Kitchener Campus December 11th, 2020

Submission by Team 3

2 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Table of Contents Executive Summary..........................................................................................................................3 Primary (Root) Problems.................................................................................................................4 Secondary Problems (Symptoms) and Impacts...............................................................................5 Alternatives for Resolving the Primary (Root) Problems.................................................................7 Recommendations...........................................................................................................................9 References.....................................................................................................................................10

Submission by Team 3

3 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Executive Summary The purpose of this report is to (state purpose). This case involves (briefly summarize case in one paragraph– this is a summary of the case factors that have direct bearing on your analysis). The root problems identified were (describe primary problems briefly in one paragraph). The secondary problems identified were (describe secondary problems briefly in one paragraph). This report recommends the following (describe the recommendations in one paragraph). Briefly summarize the case, identifying only those case factors which have a direct bearing on your analysis. Briefly summarize the problems and recommendations.

Submission by Team 3

4 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Primary (Root) Problem Analysis (2-3 pages incl. Secondary) There are a few primary & secondary problems that are evident in this case study. These concern the VP of sales, Elisa, Elisa’s supervisor, and the HR manager. We list out three primary problems that we analyzed in this section and will focus on the secondary issues in the following section: 1. The key root problem seems to be a lack of organizational justice. Organizational justice deals with fair process and treatment – essentially how employees feel the organization and leaders treat them at work and how they perceive the processes employed by the organization and leaders (Langton et al., 2019, p. 146). In this case study, Elisa joined the organization at a lower designation with the expectation that the firm would value her efforts and give her a chance to advance based on her capabilities & performance. The interviewing HR manager concurred that Elisa was over-qualified and motivated Elisa by indicating that a challenging role, suited to Elisa’s experience, should open up within a year. Given this expectation, Elisa performed admirably in her position over the next 15 months. All of Elisa’s clients approved of her efforts (evidenced by higher client satisfaction ratings), and Elisa displayed organizational citizenship behaviour (OCB) by being available outside of the work hours to provide additional support to her clients. These events set the stage for Elisa’s high expectations when a new Director of Training position opened up. But Elisa felt let down when she wasn’t allowed to attend the interview, and they did not offer her any credible rationale. All four organizational justice dimensions were affected directly by the VP of Sales (potentially on account of a legitimate power misuse) and indirectly by the lack of involvement of the HR manager (perceived as lack of organization support). Elisa didn’t perceive the fairness of the outcome (distributive injustice) nor the fairness of the process (procedural injustice) employed for the new role. Moreover, she didn’t perceive the offered rationale to be truthful (informational injustice). She felt they did not treat her with dignity & respect, with the VP of Sales not meeting her or giving her a chance to prove her worth (interpersonal injustice) (Langton et al., 2019, p.p. 147-148). These inequities can demoralize an employee and impact their task performance levels and OCB – as evidenced in the case study with Elisa leaving early and deciding not to respond to an important client until the start of the new business week. 2. The second root problem would be the lack of motivation from an expectancy theory standpoint. Expectancy theory postulates that employees will continue to put in considerable effort if they believe the effort will be evaluated justly, the performance evaluation will result in reward, and that the reward is valuable in the eyes of the employee (Langton et al., 2019, p. Submission by Team 3

5 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

134). In this case study, the HR manager provided Elisa with the expectation that a senior role, commensurate with Elisa’s experience profile, would open in a year. Elisa hence put in significant efforts in her designated position and provided exceptional support to her clients. The case study highlights that Elisa’s direct supervisor appreciated her efforts but doesn’t mention if the supervisor formally documented or shared Elisa’s performance evaluation. Finally, Elisa is not allowed to apply to the role citing a lack of sales experience within the current company. In this case, Elisa believed her performance was commendable (high expectancy), and the perceived promotion to Director of Training was a reward that Elisa valued (high valence). But when they circumvented the process, and Elisa was not allowed to interview, it led to a breakdown in the performance to reward link (low instrumentality). This delinking led to Elisa believing that her efforts would not be valued justly and hence didn’t make sense in her expending additional effort instead of just putting in the required effort. It leads to the scenario where Elisa has set out-of-office availability expectations with a new large client and then decides to only take it up during the new business week. This action would lead to a client satisfaction issue as the client is oblivious to the firm’s or Elisa’s emotions and would treat this defined expectation not being met as dissatisfaction. 3. The third root problem would be the lack of clear expectation setting on Elisa’s part, the HR manager, the supervisor, and the VP of sales. Elisa was aware that she was taking up a junior role and was confident that she could perform at a level that would allow her to take up a challenging role in due course. The interviewing HR manager also confirmed that Elisa’s prior experience, combined with her initial effort in the company, could result in a better position. But they did not formally document this initial communication, which was the first instance of lack of expectation setting. Elisa’s supervisor was happy with the increased customer ratings, but there is no formal documentation evidence. Nor is there evidence that the supervisor was interacting with Elisa to understand her aspirations and set expectations and clear goals (Langton et al., 2019, p. 138). Elisa too, didn’t manage her impression formally. She expended additional effort that resulted in customer delight but did not exemplify the effort to her supervisor or HR (Langton et al., 2019, p. 296). This would be the second instance of not setting expectations. Finally, the VP of sales and HR raised a position on the internal job posting site. They should have called out the mandatory company sales experience requirement (reason provided by VP to not allow Elisa to interview). They should have also highlighted what additional situations could enable an employee to attempt a new position (HR should have seen that Elisa was a good fit and provided a fitment exception). This was the third instance of expectation not being set correctly. All three instances, combined with the inequity and expectancy issues, lead to the case study's situation.

Submission by Team 3

6 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Secondary Problems (Symptoms) and Impacts (2-3 pages incl. Primary) There primary problems listed in the previous section have caused several secondary issues in this case study. The VP of sales, Elisa, Elisa’s latest client, Elisa’s supervisor, and the HR manager are the principal stakeholders dealing with the secondary issues and their impacts. The most significant secondary issue is Elisa’s demotivation. She perceives that the organization has been unfair to her, which has a direct negative impact on the OCB Elisa displayed thus far. The MARS model outlines how motivation, ability, role perception, and situational factors are essential for an employee’s overall sense of engagement. A downward bearing on any variable (in this case, role perception & situational factors) can lead to a decline in OCB (McShane, Von Glinow, 2018, p. 36). The negative impact results in Elisa ignoring a commitment she made to a new important client regarding additional support & off-hours availability. The client can get dissatisfied, resulting in a diminished satisfaction rating at the least or an escalation to the company VP or CEO, given this is the first instance. Either result is not beneficial to the organization. The demotivation is also driving an attitudinal change for Elisa. Her present cognitive attitude seems fixated on not getting the Directorship. Her affective attitude appears to focus on the process injustice and possibly a feeling that the company is not investing in her. This has resulted in a behavioural change that shifts from OCB to an attitude that requisite effort is sufficient if the additional effort does not translate into suitable extrinsic rewards (Langton et al., 2019, p. 89). A more severe impact could be the fact that this might push Elisa to the destructive-passive quadrant of the EVLN behaviour model and result in Neglect on the part of Elisa (Langton et al., 2019, p. 94). This behaviour is something that HR and the supervisor should be cautious of and ensure they approach Elisa to discuss what happened and reset expectations for the near-term. If they do not act in time, they risk losing out on Elisa to a competitor. The unfair process & outcome could also result in Elisa feeling discriminated against given the legitimate power misuse by the VP of sales. Elisa would no longer feel engaged at the organization or trust the leadership. She could potentially no longer display her expert power (Langton et al., 2019, p. 278), which had previously impressed clients and her supervisor. This lack of engagement can result in the organization losing out on one of their key performers and affect their future sales & performance. The situation could also impact the motivation levels of Elisa’s peers. They recognize Elisa’s expert power (a colleague highlighted the new opening as a good fit for Elisa). If the perception sets in that the rewards are not forthcoming when you put in exceptional efforts, then that can demotivate or create a sense of disengagement for the entire sales team. The unit’s extrinsic aspirations may no longer be relevant, and they would collectively feel a lack of the self-esteem Submission by Team 3

7 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

(recognition) and self-actualization (results) aspects of Maslow’s hierarchy (Langton et al., 2019, p.p. 126-128).

Submission by Team 3

8 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Alternatives for Resolving the Primary (Root) Problems (12 pages) Identify at least 2 alternative solutions to each primary/root problem. Root Cause problems are fundamental to the organization & may require major changes – i.e. structure, culture, policies, practice & people. Link OB concepts and theory to demonstrate the anticipated benefits (pros) or costs (cons) for each alternative. This can occur in a chart format provide in your Case Study Sample.

Primary (Root) Problem

Alternative Solution

Benefits (Pros)

Costs (Cons)

Root Problem #1

Alternative 1.a.

Benefits of 1.a.

Costs of 1.a.

Lack of Organizational Justice

HR process should be revaluated and set up as a transparent process for the overall organization benefits.

Elisa’s Expectations regarding the interview process and the promotion would be clear and she would have not set more expectations.

Employees will not have a clear vision about the HR process, and they will not believe in fair treatment at organization.

Alternative 1.b.

Benefits of 1.b

Costs of 1.b.

Supervisor could have step in and recommend Elisa for the interview process based on her performance at work having as a scientific evidence.

Elisa would be motivated because her efforts and hard work are being considered by her supervisor for the new position. She would have been considered as an exception.

On whole the employees will feel demotivated based on the Elisa’s experience and they will not believe in performance and reward relationship at work.

Submission by Team 3

9 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

Root Problem #2

Alternative 2.a

Benefits 2.a.

Costs.2.a

Lack of Motivation

HR should have set up a pre-defined promotion process.

This would have help Elisa in understanding the promotion process without having more expectations.

Employees will not have a clear idea about how the promotion process works in an organization. Such non-transparent process would lead employee lack in achieving their target.

Alternative.2.b

Benefits.2.b

Costs 2.b

Supervisor should have set up a goal setting process and continuous feedback based on employee performance to make them understand where they stand out.

Better goal setting process would have assisted Elisa to analyze where she can place efforts efficiently. Continuous feedback would have assisted her to understand how her effort is being recognized by the supervisor.

Without the proper goal setting theory employee will not have an idea about their targets which would result in demotivation.

Submission by Team 3

Organization would fail to influence the extrinsic motivation factor to achieve overall success.

10 Applying Organizational Behaviour Principles to Case 7: Promotion from Within Recommendations (1-2 pages)

For each root/primary problem, choose the best alternative and make a recommendation on how to action this. Choose the best alternative to solve each primary problem. If you have 3 primary problems, you should have 3 recommendations – one that you believe is the best to solve each problem. Demonstrate why these recommendations have the most anticipated benefits.

1. Organization should develop a process to follow the principle of Equity theory:

Elisa is a potential employee who got demotivated because of her efforts are not being recognized which has resulted in poor organizational Justice. Also, she is not considered to attend the interview for the new position. This clearly illustrates that the organization has not been following the fair employee treatment policy. As stated in Langton, “Equity theory suggests that employees are sensitive to various fairness issues at the workplace, and that affects employee motivation” (Langton, Robbins and Judge, 2019). Fairness is a significant factor in organizational justice concerning how an organization deals with issues related to employee perceptions. The process and policies should be defined as transparent to motivate the employee. When an employee feels that the hard work is not being recognized by the supervisor that leads to demotivation at work, lack of productivity, increased absenteeism, and high employee turnover. As a result, we would recommend that Elisa's organization should follow the principles of “Equity Theory” that benefits organization's overall performance and productivity.

2. Organization should design a Goal-setting theory Process: As Elisa was not provided with proper feedback, proper goals are not being set, and lack of commitment from the top management. We would recommend the company to apply “Goalsetting theory” in the organization as the best alternative. As stated by Edwin Locke, goal-setting shows the effects on the specificity, feedbacks and challenges on the performance of an organization[CITATION edw19 \p 138 \l 16393 ]. For justifying the goal-setting more appropriately, organization could implement Management by Objectives (MBO) process in this situation. It can bring the specific order in the organization. MBO will help in setting the specific individual goal which can be tracked and reviewed. As stated in Langton, Organization must incorporate SMART goal setting which would be attainable, Realistic, support the organisation

Submission by Team 3

11 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

vision and lastly, time bounded [CITATION lan191 \p 139 \l 16393 ]. Elisa and other employees can focus more on increasing the efficiency of their work. Also, it will act as an important intrinsic and extrinsic motivational factor. This will enhance their belief on organizational performance - reward and performance – personal goals relationship processes. 3. The organization should develop an exact expectancy theory: There was a lack of clear expectation setting as before setting up an expectation regarding something. It is apparent to be mutual from both the ends. A company should understand the expectations of their employees. Similarly, the company's expectations should be written and be crystal clear. It must simplistically define what the employee's role is within the organization. Apart from that, explaining to employees their positions and expected contributions to the organization is vital for setting clear explanations. HR and supervisors should act more responsible for their employee's expectancy regarding work goals and deciding rewards with proper documentation. For justifying this expectancy theory efficiently, the organization could execute Victor Vroom's Expectancy Theory which represents that employees will be motivated to exert a high level of effort will lead to good performance and eventually lead to organizational rewards, such as salary increase and intrinsic bounces (Langton, Robbins, & judge, 2019, p.). Expectancy is a predator to work performance, motivation, and job satisfaction. A clear understanding of expectations from both ends benefits the employees and the business.

4.

Submission by Team 3

12 Applying Organizational Behaviour Principles to Case 7: Promotion from Within

References Langton, N., Robbins, S., Judge. T. (2019). Canadian Organizational Behaviour (8th ed.). Canada: Pearson Canada Inc. McShane, S., Von Glinow, M. A. (2018). Organizational Behavior: Emerging Knowledge. Global Reality (8th ed.). McGraw-Hill Education. https://www.academia.edu/42075301/ORGANIZATIONAL_BEHAVIOR_ORGANIZATIONAL _BEHAVIOR_EMERGING_KNOWLEDGE_GLOBAL_REALITY_eighth_edition

Submission by Team 3...