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Sample Report On

ORGANIZATIONAL BEHAVIOR

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TABLE OF CONTENTS INTRODUCTION ...........................................................................................................................4

ACTIVITY 1 ....................................................................................................................................4

A. Evaluation of leadership theories ............................................................................................4

B. Impact of managerial styles on organizational effectiveness ..................................................5

C. Motivational theory can inform employee motivation ............................................................5

D. Theories relating to work relationships and interaction ..........................................................7

ACTIVITY 2 ...................................................................................................................................8

Analysis of the characteristics of different organizational structures ..........................................8

Importance of organizational culture theory in developing organizational effectiveness ...........9

Organizations can facilitate innovation and creativity .................................................................9

Importance of learning in organizations ....................................................................................10

Effectiveness of team working ................................................................................................... 11

Effective management of change in organizations .................................................................... 11

ACTIVITY 3 ..................................................................................................................................12

Culture and structure of the TESCO, including an evaluation of how they impact on its

effectiveness ...............................................................................................................................12

ACTIVITY 4 ..................................................................................................................................13

Approaches to organizational decision making .........................................................................13

Management approaches to risk and uncertainty in decision making .......................................13

Effectiveness of organizational decisions in Tesco ....................................................................14

CONCLUSION ..............................................................................................................................14

REFERENCES ..............................................................................................................................16

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ILLUSTRATION INDEX

Illustration 1: Maslow's hierarchy of needs .....................................................................................6

Illustration 2: Herzberg's motivational theory .................................................................................7

Illustration 3: Organizational structure ..........................................................................................13

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INTRODUCTION

Organizational behavior plays an important role in which individuals and groups can

interact within entity. This behavior creates a healthy working environment in company that can

be positive or negative (Quick, 2007). An important goal of organizational behavior is to

improve the effectiveness of company and the extent to which it is productive and satisfies the

demand of its customers.

The present report focuses on the brief evaluation of leadership theories. However, the

report also focuses on the impact of managerial styles on organization’s running. Various

organizational culture and structural theories are discussed in the report. The study provides an

evaluation of effectiveness of team working along with discussing the approaches of decision

making and the process which can be used to cope up with the risk and uncertainty.

ACTIVITY 1

A. Evaluation of leadership theories

Leadership is a process that influence group of people towards the realization of goals.

Theories of leadership are as follows:

Autocratic leadership Styles: This style clearly defines the division between leaders and

workers of organizations. Leader keeps strict and close control on employees to ensure that

whether policies and procedures are duly followed or not. Under this leadership style leader and

followers have no communication and interaction as workers just follow the instructions of

leader (Barling, Clegg and Cooper, 2008). The autocratic leadership style allows the managers to

make decisions alone without the interruption of other workers. This leadership style benefits the

employees who require close supervision. However, it has been evaluated that although the given

type of leadership style help manager in making the quick decision about its enterprise but it

causes direct impact upon the motivation level of employees. Due to this, high quality of services

will not be being delivered by the firm.

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Democratic leadership style: Under this, leader is sharing the decision making power

with employees but the final decision is only in the hands of leader. It motivates the employees

because they make contribution to the decision making process (Jackson and Parry, 2011). This

style helps the organization when there is a short time to take the decisions. Democratic styles

help team members to have high job satisfaction and productivity. But, the given style will be

proved as ineffective when manager have to make some quick decision. It is due to the fact in the

circumstance when manager have to make some major decision in faster way at that time it will

become difficult for it with regard to gather the views and opinions of other workers in an

effective way.

Laissez-faire leadership style: This style is considered as the least effective option. Under

this style, all the rights and power to make decisions in the organization are fully given to the

workers. Leaders do not provide any direction to the workers or followers which many times,

lead to reduced production and increasing costs (Huse, 2008). This style can only be used when

there are highly skilled, experienced and educated followers. However, it is evaluated that

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effectiveness of given style will be occur when firm possess the team of skilled and competent

employees upon which the manager of firm can rely.

B. Impact of managerial styles on organizational effectiveness

Various managerial styles which affect the organizational growth are discussed below:

Affiliative Style: Its primary objective is to create compatibility among the employees and

managers. Under this style, they focus on people at first and secondly on task. In other words,

they focus on making good relations among employees and making them happy. This type of

style is effective when there are conflicts in the organization. However, it has been evaluated that

the effectiveness of the organization also depends upon the given aspect that how quickly it can

achieve the goals and objectives of firm. However, by using the given approach the goals and

objectives of firm cannot be met in a faster way.

Pacesetting style: Under this style, the objective is to finish the tasks and to set a high

standard of excellence (Lee, 2001). Completing the task on time is the objective of Pacesetting

style. Managers perform various tasks by themselves and they expect followers to follow their

steps. This style is effective when the employees are highly motivated and only a little direction

is required. By using the given style objective of firm can be met within the limited time frame.

But, the manager that comply with the given type of style do not give feedback to its employees.

Due to this, the effectiveness of the performance as being given by workers cannot be enhanced.

Coaching style: This style focuses on the development of employees so that they will

help in the future. It helps and encourages employees to develop their strengths and the ways in

which they can improve their performance (Johnson and Steinman, 2009). Coaching is given to

the employees who are not performing well or if there is a change in the way of doing things.

But, use of given form of style by leader will lead to invest lots of managers crucial time and

because of it effectiveness of the firm will get hampered.

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C. Motivational theory can inform employee motivation

Motivational theories which can inform employee motivation in an organization are:

Maslow’s Hierarchy of Needs: This motivational theory drives employee motivation to

satisfy these needs. Satisfying the need of customers is the main goal for an employee.

Physiological needs: These are the basic needs like food, shelter and clothes. These needs

have to be fulfilled first. These needs are thought to be the most important needs for an

employee.

Safety needs: They stand on the second level in Maslow’s hierarchy of needs which

includes security like personal, money, health, accidents or illness of employees (Huse,

2008). These needs arise when the physiological needs are fulfilled.

Love and belongings: These include deals with family, friends or any other relations.

When the first two needs are fulfilled then love and belongings arises in employees.

Illustration 1: Maslow's hierarchy of needs

(Source: Maslow’s Hierarchy of Needs – How to Motivate Your Staff,

2010)

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Esteem: These needs are defined as the need for status, recognition, attention or strength.

Employee often engages in organization so that they may have a unique recognition (Lee,

2001).

Self-actualization: This is the highest level of Maslow’s hierarchy of needs. Self-

actualizing people are self-aware and concerned with the personal growth. They are less

concerned with the opinions of others and interested in fulfilling their potential (Maslow’s

Hierarchy of Needs – How to Motivate Your Staff, 2010).

Herzberg's motivational theory: This theory says that there are certain factors that causes

job satisfaction as well as causes job dissatisfaction among the employees.

This theory contains two factors which are hygiene and motivation factors. These two

factors affect the employees in a way to make them satisfied or dissatisfied. Job satisfaction

factors may include achievement, recognition, growth etc. Whereas job dissatisfaction factors

Illustration 2: Herzberg's motivational theory

Source (Collins, 2015)

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include supervision, policy, salary, work conditions, rules and regulations etc. (Quick, 2007).

Hygiene factors are all about making an employee feel comfortable, secure and happy.

D. Theories relating to work relationships and interaction

Some theories which relate to work relationships and interaction are discussed below:

Uncertainty Reductions Theory: The uncertainty reductions theory is based on the

approach which says that individuals should try to reduce the uncertainty about others by

collecting information that is linked with them and it can be done by changing their perception as

well. Knowing about someone can help an individual to judge the behavior of him easily

(Jackson and Parry, 2011). This theory says that two strangers go through several stages in order

to form a strong bond. The stages include:

The first stage is that in which they get to know about each other’s family, education and

background.

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The second stage involves sharing attitudes and beliefs and both of them feel comfortable

while talking (People at work, 2012).

The last stage is the one where the two individuals decide either to move ahead or else go

back to their ways.

Social exchange theory: This theory states that individuals continuously measure whether

the relationship is giving them more than or at least as much as they are putting into it. Since this

is a relational theory, so costs can be concluded by having poor communication or sacrificing the

interests to please the other individuals (Nelson and Cooper, 2007).

ACTIVITY 2

Analysis of the characteristics of different organizational structures

Every organization has a goal and its structure is one of the key units that affect the goal

of enterprise (Johnson and Steinman, 2009). Organizational structure is designed in such a

manner that serves as an instrument to execute the social goal.

Characteristics of different types of organization structures are:-

Line organizational structure: It is the oldest and simplest form of structure. Under this,

the line of authority flows vertically from top to bottom. The chief executive holds all the

responsibilities and delegates it to the subordinates (Wilson, 2013). Each subordinate is

answerable to only its superior. A proper hierarchy is maintained. Its main advantage is that it

promotes fast decision making and it is very easy to understand.

Department line organization: All the activities of organization are divided into several

departments. This form is very simple to understand and to implement also. Each and every

person knows about the senior to whom they are responsible. Under this form, the adjustments

and changes can be done easily.

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Functional organizational structure: Under this, all the activities which are performing

the same functions are grouped together such as marketing, finance, production etc. Division of

labor is done properly so that proper production would be done.

Line and staff organization structure: This system combines advantage of both line as

well as functional organization structure. Under this, the quality of decision is very good as it is

said to be a combination than chances of conflicts between line as well as functional structure

arises.

Importance of organizational culture theory in developing organizational effectiveness

Organizational culture refers to the beliefs, principles and values that the individuals of

an organization share. Culture is a determining factor in the success of organization. Ways in

which culture theory helps in developing organizational effectiveness are:

Involvement: Effective organizations empower their people, build teams and develop

human capability at all levels (Huse, 2008). Executives, managers and employees are committed

to their work. People at all levels feel that their work is directly connected to the goals of

enterprise. However, before carrying out the involvement of employees in the decision making

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process of enterprise it is being required by the managers that they must check their skills and

competencies. This is because, if the information with respect to the given factor will not be

gathered at that time effectiveness of the firm will be impacted in a negative way.

Consistency: Organizations also tend to be effective because they have a healthy culture

that is highly consistent, well coordinated and well integrated that helps employees to work with

higher productivity. This type of coordination helps the organization to achieve its goals

effectively and efficiently. However, for the firm it became difficult to maintain consistency

within firm if some changes will occur in the external environment. This is because, in the given

circumstance the corporation will have to change its working pattern as per the factors which are

prevailing in the external environment.

Adaptability: Organizations that are well integrated are often the most difficult ones to

change. Internal integration and external adaptation both are important (Yoruk and Raosevis,

2002). Adaptable organizations are motivated by their customers, take risks and learn from their

mistakes along with having the capability and experience at creating change.

Organizations can facilitate innovation and creativity:

Effective managers facilitate and promote the innovation in an organization. Innovation is

a necessity for a company to achieve success in the ever-growing competitive environment

(Suresh and Venkatammal, 2010). The different roles of a manager can be grouped into five key

management functions which are:

Planning: It refers to deciding the objectives or goals of organization. Managers need to

build proper and appropriate goals so that employees can be focused in one direction and

would know about their target. Planning plays a very important role in an organization.

Organizing: It means putting plans into operation and organizing resources of the

organization such as labor force, capital and money so that production can take place

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easily. Proper organizing of resources helps the organization to achieve goals effectively

and efficiently.

Motivating: It means meeting the social and basic needs of employees so that they would

feel comfortable. The managers use both financial and non-financial types of incentives

which help employees to achieve the objectives of organization (Johnson, and Steinman,

2009). Motivation helps the employees to generate more interest. Monetary incentives

motivate employees more as compared to non-financial incentives.

Controlling: Managers must measure and evaluate the performance to guarantee that it

would meet the requirement of plan (Dick and et.al., 2006). If the goals have not been

achieved then corrective measures have to be taken. When an employee is not performing

well then the managers need to provide him with a proper feedback which improves his

performance in the organization.

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Coordinating: Bringing all the groups in organization together is coordinating. This helps

the employees to remember that they are working for the common goals. Coordinating

helps the employees when they are not able to achieve the goals properly. Besides this,

there are some ways identified which can be used by manager of firm with an aim to

facilitate innovation and creativity. In this regard, it is suggested to the manager that it

must organize different type of training and development program for its employees.

Through this way, significant improvement in the innovative skills of workers can be

carried out. In addition to this, creativity in employees can also be facilitated by giving

them an environment which provides them an opportunity with regard to freely present

their views and opinions in front of other workers in an effectual manner.

Importance of learning in organizations

Learning is a necessary process which helps the organization to achieve its objectives and

improves its performance. It helps employees to expand the knowledge base but many employers

find the development opportunities expensive (Collins, 2015). Despite of potential drawbacks,

learning and development provides both the organization and the employees with benefits that

make the cost and time a worthwhile investment.

Learning helps employees to overcome with their weaknesses. It helps to improve the

performance of workforce. Learning can be gained by having proper training and development

sessions. Training can be provided on “on the job” and “off the job” (Lok and Crawford, 2004).

On the job training is considered to be more relevant while off the job training is done by the

professional trainers.

Learning is the most important factor for an organization. As there is a rapid change in

the technology, so learning helps employees to adopt the new technology and deal with it in a

perfect manner. If the organization is keen to improve the productivity, efficiency and

profitability then they would have to look at more diverse learning and development activities

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which will help them to maximize their potential. Learning needs are defined at three levels

which are of organization, groups and individuals.

Effectiveness of team working

Teamwork has an impressive effect on the organizational performance. An effective team

can help the organization to achieve fabulous results and the resources present in company

provide the base in conducting operations which enhances the business efficiency. An effective

team is able to gather the information from each member and such data can be easily used for

conducting crucial operations of the firm. Importance of team work is:

Teamwork enables you to accomplish the tasks faster and more efficiently than tackling

the projects individually.

Teamwork is important in an organization because it provides employees with an

opportunity to create bond with each other which will improve their relations among

themselves (Nelson and Cooper, 2007).

Work groups and teams develop systems that allow them to complete the tasks efficiently

and quickly.

Working in teams allows the staff members to feel comfortable in giving ideas and

suggestions.

Teams help each other to improve the performance and work together to improve their

professional development.

Besides this, there are some disadvantages associated with the team working type of

approach which is being practiced by many firms. Lack of recognition of work which is being

performed by individual employees is being regarded as the major disadvantage of team

working. This leads to reduce the satisfaction level among workers and due to this direct impact

will be seen upon the sales and profits of enterprise. Furthermore, difference in the working

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method of different individual is being regarded as another limitation of team working. This is

because, the given thing will lead to develop conflicting situation between team members and

because of this goal of team will be hampered.

Effective management of change in organization

Change management plays an important role in the organization since the task of

managing change in the firm is not an easy one. Managing the change refers to making changes

in a planned and systematic manner. Change management provides a way to evaluate the

challenges and respond to these efficiently. It allows the organization to measure overall impact

of the change on its performance. Change management clarifies the roles and responsibilities of

all those people who are participating in the change effort (Sadri and Lees, 2001). Employees

who have freely adopted the change management without any resistance are allotted with

additional responsibility of guiding and supporting others. This will help the firm to run properly.

A good change management system increases the employee’s morale and there will be reduction

in the recruitment and holding costs.

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ACTIVITY 3

Culture and structure of TESCO including the evaluation of the way in which they affect its

effectiveness

Illustration 3: Organizational structure

(Source: People at work, 2012)

Tesco has the potential to gain competitive advantage over its strong competitors and also

have strength to attract the customers (Yoruk and Raosevis, 2002). Tesco’s organizational

structure is simple but they have huge labor force. The firm is using advanced technology that

helps company to minimize the human errors. Tesco's organizational culture represents the

values, believes and principles of members. Organizational culture affects the way in which

people and groups interact with each other and with clients and others.

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The culture of Tesco is market oriented. This means that throughout the operations of

Tesco, it ensures that whether respect, integrity and responsibility are maintained or not. Tesco

believes that they should treat their customers in the way that they would be happy when treated.

Besides, Tesco believes that customers should be approaches in a right manner since they are the

key to the success of business as it considers customers as the king of market.

The culture and structure of Tesco helps company to achieve the customer satisfaction

effectively and efficiently. All the employees of organization need to follow the structure and

culture properly. Culture and structure affects the effectiveness of Tesco by helping the

organization to achieve its goals and objectives.

ACTIVITY 4

Approaches to organizational decision making

Three decision making approaches to be considered are as follows:

Rational approach: It is represented as step by step decision making. This approach

defines the success factors, search information and logically looks at the way in which

each alternative meets each success factor (Barling, Clegg and Cooper, 2008). Decision

making is planned. With this approach, outcomes of the final choice are taken into

consideration.

Intuitive Decision Making Approach: It relies on emotions and feelings which

characterizes this approach. Intuition decision making approach means non-sequential

information-processing mode (Lok and Crawford, 2004). It says that people in a good

mood gravitate towards intuitive styles while people in a bad mood tend to become more

deliberative.

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Random or Luck Approach: In this approach, a decision is made on impulse without

wasting even a single second on thinking (Dick and et.al., 2006). This approach helps the

organization when they have to take fast decisions in future.

Management approaches to risk and uncertainty in decision making

Uncertainty is a state of having limited knowledge of current conditions or future

outcomes in an organization (Sadri and Lees, 2001). Managers often deal with uncertainty in

their work so as to minimize the risk. They must develop the skills and judgment which are

necessary for reducing the uncertainty that is associated with the business. Managing uncertainty

in decision-making depends on identifying, quantifying and analyzing the factors that causes

uncertainty in the organization.

Firstly, firm has to find out the type of uncertainty in the organization. There are mainly

five types of risks i.e. strategic, financial, operational and legal and other risks. Then to

find out which type of risk is creating issues in the organization.

When the risk is identified then managers need to find out the cost which is involved in

the risk (Lok and Crawford, 2004). Mainly financial risks has to be calculated properly so

that there will be less chances of human errors.

Lastly, when the risk is identified and quantified then it needs to be managed properly, so

that it will be easy for the organization to overcome with the risk.

Effectiveness of organizational decisions in Tesco

Evaluation of approach as follows:

The rational approach to decisions is based on scientifically obtained data that reduces

the chances of errors, damage, assumptions and all major causes for poor judgments. Such an

information and knowledge based approach promotes consistent and high quality decisions and

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reduces the risk and uncertainties that are associated with the decisions. The rational method

helps the decision-making process with discipline, consistency and logic (Collins, 2015).

The rational decision making process requires careful consideration data which takes

time. Now a days, changes are taking place at a very fast-pace and the opportunity of getting

success is low that is the reason because of which efficiency of rational model is declining

(Johnson and Steinman, 2009). This model is mostly in making long-term policy and decisions

rather than short-term operational judgments. This is one of the effective method through which

managers at Tesco are able to take effective decisions by judging different aspects. Here, effects

of decisions are also evaluated that certainly helps in taking most effectual and corrective

actions. Based on it, company is able to attain its objectives in desired manner. On the other

hand, there are certain shortcomings of rational based approach of decision making. One, it is

very time consuming process as decision maker need to take decision by reviewing each and

every aspect of the scenario. Second, it requires taking input from different individuals and group

based decision need to be taken which is not feasible at the time when requires taking quick

decisions.

CONCLUSION

From the above report, it can be concluded that the present report focuses on the way in

which organizational behavior helps the organization to get success in the market with

sustainability. Along with that, it has been assessed that by leadership theories, organization can

learn the way in which a leader can react towards its followers. Under this report, importance of

culture is discussed along with the way in which it affects the efficiency of employees. Further,

report has discussed the importance of learning and development as well as importance of

training in increasing the employee’s efficiency.

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REFERENCES Books

Barling, J., Clegg, S. R. and Cooper, C. L., 2008. The SAGE Handbook of Organizational

Behavior: Volume Two: Macro Approaches. Sage.

Huse, M., 2008. The value creating board: Corporate governance and organizational behaviour.

Routledge.

Jackson, B. and Parry, K., 2011. A very short fairly interesting and reasonably cheap book about

studying leadership. Sage.

Nelson, D. and Cooper, C. L., 2007. Positive organizational behavior. Sage.

Quick, J. C., 2007. Managing organizational behaviour in Canada. Thomson Nelson.

Wilson, F. M., 2013. Organizational behaviour and work: a critical introduction. Oxford

University Press.

Journals

Johnson, R. E. and Steinman, L., 2009. Use of implicit measures for organizational research: An

empirical example. Canadian Journal of Behavioural Science/Revue canadienne des

sciences du comportement.41(4). pp. 202.

Lee, H. J., 2001. Willingness and capacity: the determinants of prosocial organizational

behaviour among nurses in the UK. International Journal of Human Resource

Management. 12(6). pp. 1029-1048.

Lok, P. and Crawford, J., 2004. The effect of organisational culture and leadership style on job

satisfaction and organisational commitment: A cross-national comparison. Journal of

management development. 23(4). pp. 321-338.

Luthans, F. and et.al., 2008. More evidence on the value of Chinese workers' psychological

capital: A potentially unlimited competitive resource?. The International Journal of

Human Resource Management. 19(5). pp. 818-827.

Murphy, G., Athanasou, J. and King, N., 2002. Job satisfaction and organizational citizenship

behaviour: A study of Australian human-service professionals. Journal of Managerial

Psychology. 17(4). pp. 287-297.

Sadri, G. and Lees, B., 2001. Developing corporate culture as a competitive advantage. Journal

of Management Development. 20(10). pp. 853-859.

Suresh, S. and Venkatammal, P., 2010. Antecedents of organizational citizenship behaviour.

Journal of the Indian academy of applied psychology. 36(2). pp. 276-286.

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E-mail: [email protected]

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provide best writing services to students.

Dick, V. and et.al., 2006. Identity and the extra mile: Relationships between organizational

identification and organizational citizenship behaviour. British Journal of Management,

17(4). pp. 283-301.

Online

Collins, K., 2015. Motivating Employees. [Online]. Available through:

<http://catalog.flatworldknowledge.com/bookhub/7?e=collins-ch07_s03>. [Accessed on

17th August 2015].

Maslow’s Hierarchy of Needs – How to Motivate Your Staff. 2010. [Online]. Available through:

<http://www.callofthewild.co.uk/library/theory/maslows-hierarchy-of-needs-how-to-

motivate-your-staff/>. [Accessed on17th August 2015].

People at work. 2012. [Online]. Available through:

<http://www.slideshare.net/thejuniorcert/people-at-work-employers-empoyees>.

[Accessed on17th August 2015].

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