Business Administration 1220E Lecture 13: Organizational Behaviour: North Cove University Notes
17 May 2018
School
Department
Professor
Root Causes
Structure
Tower has a function structure form
Each department is differentiated by adopting different goals (bonuses)
and focuses
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SPS: revenue growth and client retention
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SOS: profit margins
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Allows for poor intergroup coordination on contracts and an appealing contract
to one department wont appeal to the other
Hurt the company as a whole when a good contract is not agreed upon
due to this
(goals of the company become secondary to the goals of the group)
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Management roles for NCU changes which causes problems for the verbal
agreement as the new leaders were present during negotiations
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Culture
Company pays attention to Client service/satisfaction, partnership, stakeholders
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Performance indicators (client satisfaction) to evaluate its operations
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New space has games (fun, flexible)
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High expectations ("expect tower employees to put their best work forward")
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"Wants to attract good talent and pushing forward the company's vision of
great people, great results"
High pride and dependence on the effort of workers
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Coaching and modelling of a good work ethic within the company
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Criteria for recruitment is only the best
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Goal-orientated: bonuses of each department sets goals for employees to meet
and be rewarded
Can hurt company in long run
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Dictates decision making
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Employees are motivated by the bonus reward system which employees
value more than knowing their clients are satisfied
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Current culture relies heavy on the goal-orientated behavior even more than
the client satisfaction behavior of the company
Collins deliberately drops the quality of the company's service in order to
cut down costs
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Culture built on trust and partnership
Tower employees were appealed so much by NCU's emphasis on trust
and partnership that it allowed them not get essential parts of the deal on
paper
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Necessary changes to close gaps
Alter reward system to not become primary goal of employees
Rely reward system on other measures such as client satisfaction??
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Let reward system be the same among departments to ensure the groups
secondary goals do not interfere with the company's primary goals??
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Leadership
An effective leader must be able to influence those individuals to work toward
achieving the organization's goals
Collins is not a good leader as he cares more about his bonus
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Power & Influence
Company has reward power over Collins and Roberts•
Collins has coercive power over Byrd
Punishes NCU by dropping the quality of its services for not meeting
verbal commitments
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Does not align with company's culture (customer service) to punish them
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Byrd does not have coercive power over Collins
Cant punish tower by terminating contract as they want that and getting a
new contract is harder
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Collins coverts his coercive power into retribution
Made a threat to offered a lower level of service if verbal agreements
were not met and did when the request was not obeyed
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Not good to use this type of influence as company relies on client
retention, commitment and quality of service
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Creates resistant to future contracts and reduces target's levels of
commitment to verbal agreements
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Tower should use reciprocity instead
Best as both parties are mutually dependent on each other and this type
of influence works to satisfy the interests of both parties
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Parties have a few weeks to renegotiate
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North Cove University Notes
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Business Administration 1220E Full Course Notes
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