1. Running head: THE ORGANIZATIONAL BEHAVIOR ANALYSIS 1
The Organizational Behavior Analysis of a Mid-Size Company
Robert Haskins
BUS 610: Organizational Behavior
Dr. Neil Mathur
24 June 2013

2. THE ORGANIZATION BEHAVIOR ANALYSIS 2
Abstract
This report will make an analysis of organizational behavior on the midsized distribution
company. Understanding how the organizational design and structure of the company will take
this analysis of the behaviors of its associates and create decision-making points to consider. A
study into the type of culture, modes of communication, the nature of authority, motivational
techniques, an examination of emotional intelligence, and the emergence of the virtual
organization will establish the means to make these decision making points.

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The Organization Behavior Analysis of a Mid-Size Company
When discussing organizational behavior, one must consider the important aspects of
several academic disciplines including psychology, sociology, communication, and management.
This is because organizational behavior attempts to understand, control, and predict behavior
within the organization. Organizational behavior has been in a state of evolution that begun
since Henry R. Towne presented a paper entitled The Engineer as Economist. Towne argued
that “The study of management was equal in importance to the study of engineering…therefore
the field should create its own body of research and have its own professional organizations”
(Baack, 2012, p. 30). Thus, the birth of scientific management and the management of behavior
started a movement to understand the human element in organizations.
This report will investigate the organizational behavior of a midsize distribution company
using the techniques that have evolved throughout the past century. Examining the type of
culture the company has will offer a closer look into the relationship of senior management and
the workers in the company. An important function in developing the culture and commanding
the behavior of the employees will require effective communication. Effective and efficient
communication is “The principal device for the adequate implementation of administrative and
organizational activities” (Altinöz, 2009, p. 218). A person’s organizational rank will determine
the amount of formal authority they use in their leadership style. “Authority may be conceived
of as the right to influence due to formal organizational rank or position” (Baack, 2012, p. 340).
The Hawthorne Studies discovered that other things than money motivated people and behavior
is related to their attitudes. Thus, a focus on the relationships between people, their needs, and
motivation had begun to shift the emphasis of organizational behavior. This report will examine
the embracing of emotional intelligence in the midsize distribution company by illustrating the

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subtle, some not so subtle, techniques to “Know one’s own emotions and to read others’
emotions as well” (Reilly & Karounos, 2009, p. 3). The midsize distribution company, having
recently expanded to three distribution centers, has begun to embrace the institution of a virtual
organization, streamlining its operations. This report will illustrate some of the issues that will
arise as the company embraces the virtual organization model. Organizational behavior is a
study to understand, predict, and control people’s behavior to get the best results for the
organization. An analysis of organizational behavior will be juxtaposed with a midsize
distribution company to further the learning in this import segment of management.
Type of Culture
In considering the organizational culture of the midsize distribution company, a look into
the type of culture the company has created for the organization by the people that occupy the
culture. Thus, investigating the dominate culture and subculture will give a deeper insight to the
company’s core principles. The core values of the company derive from the family principles the
company has built its reputation. This is the dominate culture of the company as it strives to do
what is best for its clients and associates. The subcultures of the company have become
entrenched into three groups including the office staff, drivers, and warehouse workers.
Although each of these groups has distinct differences, they each play a role in the attractiveness
of the company.
Modes of Communication
Communication in any organization is a critical component to its success. Therefore, a
great deal of energy is expended to ensure that effective and efficient communication is provided
and utilized. Communication is a pillar in the organizational structure of a company and it can

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take place in two forms, informal and formal, and communication has four functions; providing
information, convincing and influencing, training, and unification.
The function of providing information is the basic function of communication and is
necessary “For the individual to have a harmonious relationship with their environment”
(Altinöz, 2009, p. 218). The distribution company has used written and verbal communication to
convey the ideas, tasks, and messages to its employees. A powerful communication function is
convincing and influencing change in the behaviors, opinions, and attitudes of individuals. This
is done at the distribution company by effectively using emotional intelligence, later reviewed in
this report. The culture of effectively communication begins with properly training associates, as
the need for training to achieve the goals of the organization is paramount. Furthermore,
unifying individuals through communication develops an environment the organization can build
at “Preserving these individuals’ psychological integrity and balance” (Altinöz, 2009, p. 219).
The distribution company uses informal and formal modes of communication through written
and verbal means. In addition, acting on the functions of communication will help to create an
organizational structure that other aspects can build on.
Nature of Authority
As this report examines the different pastels of organizational structure, the hierarchal
structure that forms the highest levels of authority will offer a degree of power through influence.
The authority to act over lower employees belongs to management because if the authority is not
granted, direction of the organization can be in flux and eventually create dissention.
Three types of authority, line authority, staff authority, and functional authority, regulates
employee responsibility. “Line authority is direct, formal authority, as indicated by the vertical

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lines of an organization chart. Staff authority consists of the right to advise, or give advice.
Functional authority is the right to direct but not to discipline” (Baack, 2012, p. 311). The
distribution company practices each form of authority and has instituted a top-down authority,
decisions that start from the top and works its way throughout the organization. The reason for
this is speculative but it could be related to the early beginnings of the company as a family
oriented company. However, the founder is known to be a charismatic person and “Obtains the
right to influence those of lower rank through his…personality characteristics and personal will”
(Baack, 2012, p. 312).
Motivational Techniques
M. R. Jones defined motivation as what starts behaviors, what maintains behaviors, and
what stops behaviors (Baack, 2012, p. 100). A study of the theories of motivation allows an
understanding of techniques that can be used to influence and change behavior. The theories of
motivation are grouped according to the factors of internal, external, and the thought processes
that cause the behavior.
Content theories of motivation examine factors within individuals, notably needs,
that lead to behaviors…, operant process theories of motivation explore external
factors, such as rewards given by managers to employees that increase and
decrease behaviors…, cognitive process theories of motivation examine the
thought processes or mental reasoning processes that lead to behaviors (Baack,
2012, p. 102).
Intrinsic and extrinsic techniques are two types of positive motivational methods that
directly correspond to the use of the expectancy theory, the argument that focuses on forces that

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motivate in the workplace environment. “Intrinsic techniques tap the positive satisfaction an
employee gets from the job itself. Extrinsic techniques are rewards an employee gets from the
employer such as money, a promotion, or benefits” (Kamery, 2004, p. 93).
The distribution company has an effective program to motivate its employees working
towards the organizations objectives. An aggressive compensation package that includes
medical, optical, and dental care along with retirement investment options help to give the
employees extrinsic motivation to work even harder. Furthermore, performance incentives help
to drive production quotas higher with each quarter. When a disappointing performance report
occurs, communication between workers and management helps to assess what could be improve
to change the figures.
Embracing the Theory of Emotional Intelligence
Interaction between management and subordinates is easier to navigate when a concerted
effort to understand the emotions they use. Having emotional intelligence is “The ability to
know one’s own emotions and to read others’ emotions as well” (Reilly & Karounos, 2009, p. 3).
Emotional intelligence will require leadership to accept additional effort to know themselves and
others, a list of five components of emotional intelligence that an effective leader exhibits are
self-awareness, self-regulation, motivation, empathy, and social skill.
The leader with self-awareness will have an understanding of their emotions, weaknesses,
needs, and drives, and the effect on other people. These leaders demonstrate “Self-confidence,
realistic self-assessment, and a self-depreciating sense of humor” (Reilly & Karounos, 2009, p.
3). Self-regulation is being able change your mood according to the circumstance, or thinking
before you act. Leaders that employ emotional intelligence will also use motivational techniques

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to display a desire to work for reasons more than for money. “Empathy, the fourth component, is
the ability to understand the emotional makeup of other people, with skill in treating people
according to their emotional reactions” (Reilly & Karounos, 2009, p. 3). Leaders that recognize
and use empathy have a special skill in building relationships with other people that demonstrate
cross-cultural sensitivity. Empathy is a component of emotional intelligence that corresponds to
social skills in building the relationships to allow the ability of emotional intelligence to flourish.
The distribution company’s leaders have recently taken a concerted effort in embracing
emotional intelligence as they found the benefits to recognizing their emotions and others
because it creates an environment within the organization that includes everyone, cross-
culturally, cross-functional teams and department, and an ethical atmosphere throughout the
organization.
Emergence of the Virtual Organization
In the past decade, the midsized distribution company has expanded to include three
distribution centers throughout the country. With this expansion and the emergence of
information technology that helps to grow business exponentially, the shift to include virtual
teams continues to pressure the organization to consider further research into the virtual
organization realm. This report will examine the benefits and pitfalls in this shift into the virtual
organization world. Understanding the pros and cons of virtual organizations will help to create
success and avoid the mistakes in virtual organizations.
For a distribution company interested in using the virtual work environment, logistics is
the first thing to consider. How can logistics be effective in a virtual organization? The first step
is to reorganize the line of thought that the company will no longer operate in a lateral direction

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than a vertical model (Kasper-Fuehrer & Ashkanasy, 2001, p. 239). This major cultural shift
needs to occur before moving on. This will take a level of trust with others because becoming a
virtual organization will require the organization to rely on others (outsourced
suppliers/providers) to become an extension of the organization. This relationship between
suppliers will often have no oversight and the danger to the parent company could result in
financial, reputational, and quality risks. The distribution company prudently kept the level of
risk to a minimum by outsourcing administrative services to trusted professionals. Outside of the
parent company’s warehouse, the two other warehouses are staffed with a minimal, skeleton
crew, trained by the same team members from the parent company. This will help to keep the
standards of the parent company enforced and not having to rely on outsourced, untested, and
substandard company.
The factors that sway decisions in embracing the virtual organization will be a
consideration into the pros and cons of virtual organizations. The advantages of a virtual design
“Provides [organizations] with the ability to move nimbly to exploit a favorable market
opportunity” (Anand & Daft, 2007, p. 239). Moreover, the organization can produce or offer
services that would normally not be possible or available because of distance. The distribution
company has used the tools of the internet, teleconferencing, and highly technical
communication devices to keep the essential component to virtual organizations viable, the
ability to communicate in real time. This leads the report to examine the cons of the virtual
organization. “The major downside of virtual organization design is that it requires a tremendous
amount of communication and understanding to keep it going” (Anand & Daft, 2007, p. 340).
Redundancy occurs when proper communication is misconstrued, misunderstood, and repeated.
Therefore, continual emphases on the methods of communication must not be compromised.

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Maintenance of these devices and avenues will require costs that will need to be considered.
Trust must be maintained because it is trust that will create a breakdown in the same
communication efforts aforementioned. Keeping the associates in the satellite warehouses a
sense of ownership along with unity with the parent company will avoid substandard
performance. Therefore, collaboration with the associates will maintain the cohesiveness that is
required to keep them feeling like a part of the team.
Conclusion
This report compared the analysis of organizational behavior with a midsized distribution
company to make an example of the importance of this segment of management and its effect on
how to begin behavior, continue behavior, and stop behavior. The core values of the distribution
company establish a type of culture and vision that every associate can relate. The modes of
communication have ramifications if not effectively used. The distribution company uses
informal and formal modes of communication through written and verbal means. In addition,
acting on the functions of communication will help to create an organizational structure that
other aspects can build on. This report illustrated the nature of authority, where it comes from,
how it is instituted, and the purpose to implement authority to make things work in the
organization. An investigation into motivational techniques has shown that when used properly,
it can help to start behaviors, maintain behaviors, and stop behaviors. Combining motivational
techniques and emotional intelligence makes for an influential, understanding, and likeable
leader. The emergence of the virtual organization in these past years have successfully been
implemented in the distribution company because of the prudent decisions in avoiding the
pitfalls and benefitting on the advantages of the virtual world of business.

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