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Case Study of OPITO as a Demonstration of Organizational Management

Paper Type: Free Essay Subject: Business
Wordcount: 3347 words Published: 1st Jan 2015

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Organizational Behavior is the study of individuals and their behavior within the context of the organization in a workplace setting. It is an interdisciplinary field that includes sociology, psychology, communication and management. 

Explain of the definition on this, wherein Organizational behavior is a field study, it does mean has three determinants of behavior in organizations ; individual, group, structure theirs collaborate to applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organization work more effectively. there are some goal of the organization behavior which we can easily understand from the following figure.

figure 1.1

Goals of organizational behavior

Describe understand

(How people behave) (Any people behave as they do)

Predict control

(Which one productive or absent) (To control humanworkactivity)

Organizational behavior (employee’s behavior): organizational behavior refers to the study of the individual in organization that how it feels and reacts in the environment of the organization: we can explain the behavior of the organization in the words of Buchanan:

“The study of the structure, functioning, and performing of organization, and the behavior of groups and individuals within them” (David Buchanan, p. 2.)

Is Organizational Behavior an Important Role of a Manager

Is Organizational Behavior Important to the Role of a Manager?

Why is it that approximately 40 percent of new management hires fail within their first 18 months as manager? Is it because they do not possess the technical skills to achieve their job functions? No, the reason for failure is contributed to the fact they were unable to build good relationships with peers and subordinates (cited A. Fisher). Many managers have the ability to perform their jobs on the technical level; however, they never develop the interpersonal skills which would help them become an effective leader. The study of organizational behavior in business will assist managers to understand their individual employee’s values, attitudes and job satisfaction which will assist the manager in building stronger interpersonal skills in turn making the organization more successful.

Inclosing, Organizational behavior studies the attitudes and behaviors of today’s workers and tries to determine the best ways to effectively manage and change them. In order for a company to be successful, management must strive to build friendly work environment, conducive to develop employees capable of managing their work efficiently.

Organization culture:/corporate culture.

To explaining the culture of organization or corporate culture we can define this the collection of relatively uniform values, beliefes,customs, traditions and practice which are shared by an organization members and which are transmitted from one generation of employees to the next”(Buchanan p.512)

Culture includes language, ideas, beliefs, customs, codes, institutions, tools, techniques, and works of art, rituals, and ceremonies, among other elements. The existence and use of culture depends upon ability possessed by humans alone. The classic definition of culture was provided by the 19th-century English anthropologist Edward Burnett Tylor in the first paragraph of his Primitive Culture (1871): Culture . . . is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society. In Anthropology (1881) Tylor made it clear that man alone possesses culture

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Organizational culture can be described in a few ways. Marvin Bower & McKinseys has defined culture as “the way we do things around here”. It is about how people behave and treat each other within the organization. Getting a right culture is important also creation and maintenance of a strong culture within the organization is a major concern of many HRM strategies. Moreover, wide ranges of social, competitive and economic pressures are driving the needs for change in the organization.

Values: anything which have some worth, these are childhood learning, moral and social percepts etc.

Organization believe: it is the acceptance of the situation and organization with in it

The concept of the organization culture rise by many social scholar, but the main contribution which is given to two main publication in 1980 namely by tom petr and Robert waterman in 1982. in their book. After that credit goes to Terrence deal and Allan Kennedy they wrote the book the corporate culture and they clearly explain the concept of culture on their book.


Now we can see from case study that the oil and gas academy how they treat the behavior and culture of the company:

The major thing or we may say the major benefits of the opito is to form a supply chain from that supply chain they are able to understand the behavior of the employees and the working condition of the employees, as the behavior and culture play very important role for achieving the overall objectives, so the opito starts their work form universities and colleges to attract new talented entrants into the organization. The opito learning supply chain has change the behavior and culture of the organization and now they are seeking the objective to achieve.they have designed a unique patern of their own culture and organizational behavior through this system the opito now are better position to understand the behavior of the individual and his response to organization The organization culture may also be define as the culture which expressed in its self-image, inner workings, interactions with the outside world, and future expectations. We can exibit cultue also from the following diagram. Figure


there are several factors which affect the culture as well as the behavior of the employees in the organization they are as under:Factors which influence the behavior of employees may be external and internal factors

Internal factors include the leadership style, culture of the orgtanzation, and organizational structure. A Whle external factor includes the social and family life of the individual and other social dominant factors such as other businesses etc.

The factor which influence the culture of the organization includes the following

a) Changing in the management activities may greatly influence the corporate culture

b) Employees play vital role in the development of the organization it they also disturb or made change in the existing level of the employees these may also suffer and influence the organization culture.

c) Different type strategies may also affect the culture of the company

d) Geographical location may also affect the culture of the organization.

Changing in management activities

Figure 1.3

Organizational culture different strategies

Employees change

Geographical location

As far as opito case study concern they management using a variety of techniques to have a good and sound culture in that oil and gas company, they have adopted a variety of ways to understand the individual and to form such type of culture, knowing organization culture is very essential for the manger because with out understanding the culture, manager can not in a position to better control the organization as we are seeing form case study that how opito are struggling towards their goals.

Leadership approach to management and its human resource policies:

The Journey of a Thousand Miles Begins With the Very First Step.”-Chinese Proverb

Leadership: different authors have defined the world leadership in different ways, but in simple words the term leadership means” is nothing but to encourage people to do work, with not only willingness, but willingness to do work with zeal and confidence.

Leaders have the power to make people do what they want and need them to do. By the strength of their personalities, they are able to motivate others to accomplish goals that they would otherwise never have even considered pursuing. Leaders can actually influence the beliefs, actions and feelings of their followers.

The Seven Approaches to Leadership








As from above we are seeing the six approached to leadership but we will discuss most common approaches,Leader must be able to evaluate the human and organizational context and be able to decide what behavior will best fit the situation there are several theories about the leadership behavior

contingency theory or approach:

path goal approach

situational leadership approach

1) Contingency theory or approach: the theory or approach presented by Fred E fiedler ,this approach states, that leader must adjust his or her style according to the nature of the organization context, such as the nature of task, and according to the attribute of the employees who carrying out the work..

2) Path goal approach: according to this approach a leader is to clarify and set goals with subordinates, help them to find the best path for achieving the goals and remove the obstacles.

This theory presents four leadership behavior and style

supportive leadership

participative leadership

directive leadership

Achievement oriented leadership.

Situational leadership approach: this theory/approach is also known as managerial grid.

Leadership styles:

Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. leadership styles are as under.

1) Authoritarian or autocratic

2) Participative or democratic

3) Delegative or Free Reign

Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to stick with one style.

Authoritarian style of leadership: This style is used when leaders tell their employees what they want done and how they want it accomplished, without getting the advice of their followers.

Authoritarian (autocratic)

I want both of you to.

Participative or democratic style of leadership. This style involves the leader including one or more employees in the decision making process (determining what to do and how to do it). However, the leader maintains the final decision making authority. Using this style is not a sign of weakness; rather it is a sign of strength that your employees will respect.

Participative (democratic)

Let’s work together to solve this:

Delegative (free reign) leadership style:

In this style, the leader allows the employees to make the decisions. However, the leader is still responsible for the decisions that are made. This is used when employees are able to analyze the situation and determine what needs to be done and how to do it. You cannot do everything! You must set priorities and delegate certain tasks. Delegative (free reign)

You two take care of the problem while I go. . .

We can also understand all the style from the following diagram as under.

A good leader can use all these style depending on different forces between leader, follower and situation.diagramically we may present it by the following way.


As It clear from the above diagram that the forces may affect the leadership style and the leader my use one of them by keeping view the situation of the organization.

As the case of OPITO they are using the fayol management principles

Good leadership, such as, planning, organizing,dircting,controlling and the environment of the oil and gas company different form other industries so they have arranged such environment in which at each level the employees are leading my professionals,Many managers are also leaders, but people in the oil and gas industry are encouraged to show leadership at every level.

There are several example exists in organization in which variety of organization facing problem due to poor leadership quality, as we sum up from the above discussion that leadership play very vital role in the best management of the organization, here also we can see the case of OPITO that how they are using their leadership, they form for each section and department a separate manager who best controlling the activities of the company, they are familiar about the ups and down and the leadership global problem so they managed their activities accordingly, here another example of the week leadership of deloitte touch tomhastu limited who has invested a huge amount in this regard to know clearly about the week aspect of leadership to improve the company overall activities.


Human resource policies of leadership that how to best manage the work force with in organization and how to get done work with other, require some solid hr policies by the leaders, as before the emerge of scientific management the proper work distribution and and discipline about work were not specify clearly but when scientific management emerge by Frederick Winslow Taylor in 1977 while he was working in a steel company he studied the various condition of working that why some employees are working not interestingly, so they introduced new techniques by applying that techniques he understand that we can easily achieved our objectives, standardization and discipline if we follow the following rules and policies:

the job should be planned by management(leader) and doing of this should be left to workers

the job should be broken down into its elements and these element should be distributed in workers

the selection of workers should be to their fitness for job and not on friendship.

Training should be given to selected workers.

Monitor the worker to ensure the work.

The payment to workers should be based on the piece of work, which they have performed, and produced.

These above rules and policies of the Taylor must be follow by the functional leadership style to implement in the organization to control the activity of the organization now the question is that what is functional leadership we can briefly explain in the following way,

Functional leadership: this type of leadership which are responsible for the advices to line authority and must be accepted by line manager, we can explain this by the following figure also,

General Manager figure 1.4

Personal dept 1 finance dept

Dept 1 head dept 2 head dept 3 head

As now we can study how the opito has use their leadership and how they are achieving their objectives, the opito using the fayol suggested principles and also they are using for motivation the Abraham Maslow need of hierarchy.


To explaining the culture of organization or corporate culture we can define this the collection of relatively uniform values, beliefes,customs, traditions and practice which are shared by an organization members and which are transmitted from one generation of employees to the next”(Buchanan p.512)

According to, Richard Hagberg, Ph.D. HCG, and Julie HeifetzPh.D. HCG (Corporate Culture 2000) understanding and assessing your organization’s culture can mean the difference between success and failure in today’s fast changing business environment.

According to Toolpack Consulting, LLC, (Organizational Culture 2003) Organizational culture can be loosely defined as the shared assumptions, beliefs, and “normal behaviors” of a group. They also say these are powerful influences on the way people live and act, and they define what is “normal” and how to sanction those who are not “normal.” To a large degree what we do is determined by our culture.

Perception: is the dynamic psychological process responsible for attending to, organizing and interpreting sensory data. Perception can be very useful in a variety of organization settings, for example with the design of aircraft instrumentation and displays for pilots and in the conduct of selection interviews for new employees.

Organization attitude: is a tendency to respond in certain way favorably or unfavorably to objects persons or situations.

Models of the corporate culture:

From the culture perspective, all organization are held to possess cultures, such as we have studied in the case of OPITO oil and gas academy, having a variety of cultue, due to their nature of business, but if is only a minority which have strong that is highly visible ones, which clearly distinguish them from other companies, and which affect the behavior of their employees. To explain how a strong culture is created we shall consider it under four headings,


Constituents of org, culture


Transmission system

Formal informal

It is clear form the above figure that how different things combine to form organization culture, but here the question arise again that person attitudes.,perception,behavior, is very necessary to form organization culture as we have seen from the case study of oil and gas company opito. How they have combined their workforce team to done work and how they are using different management techniques to solve the problems.

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Each organization has its own distinctive culture. It is a combination of the founders, past leadership, current leadership, crises, events, history, and size (Newstrom, Davis, 1993). This result in rites: the routines, rituals, and the “way we do things.” These rites impact individual behavior on what it takes to be in good standing (the norm) and direct the appropriate behavior for each circumstance.

The climate is the feel of the organization, the individual and shared perceptions and attitudes of the organization’s members (Ivancevich, Konopaske, Matteson, 2007). While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, traditions, and customs; climate is a short-term phenomenon created by the current leadership. Climate represents the beliefs about the “feel of the organization” by its members. This individual perception of the “feel of the organization” comes from what the people believe about the activities that occur in the organization. These activities influence both individual and team motivation and satisfaction, this statement is true because it is very important for manger to have a complete awareness about the individual behavior and attitudes, because if no manager not no the perception and attitudes of the employees so he can not manage his business or organization successfully, as we have seen from case study that how opito are knowing the attitudes and behavior of the employees they form a separate supply chain through that they are able to best manage the employees. they have developed a leadership style at each level of the organization they are applying the authoritative and democratic leadership style which giving best support to the company on managing the organization activities and helpful for the management understanding of the employees behavior and attitudes, and perception in the company, as we as the opito have applied the fayol principles of management which give support in this behalf.


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