MJX Company, which manufactures electronics, has experienced declining profits over 5 years from $16.5 million to $7 million due to organizational problems including poor employee relationships, lack of teamwork, and ineffective marketing strategies. An analysis of MJX using organizational behavior theory could help identify why employee relations deteriorated and profits declined in order to develop an effective change management plan. The plan would need to consider MJX's culture, leadership, communication, employee motivation and satisfaction to successfully address the identified problems.
Applying Organizational Behavior Theory to Improve Employee Relations and Profits at MJX Company
1. Running head: APPLYING ORGANIZATIONAL BEHAVIOR
THEORY 1
APPLYING ORGANIZATIONAL BEHAVIOR THEORY
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Applying Organizational Behavior Theory
Applying Organizational Behavior Theory
Introduction
Various organizations usually have various
organizational problems that in most cases involve both
employees and even the management. The common problems
usually faced by different organizations include individual
employee issues, team problems and even organization wide
company. In this assignment we are going to consider the
organizational behavior theory to address the various problems
within an organization. As an organizational change consultant,
I have noted that MJX Company has in the recent past been
experiencing all the three types of problems mentioned above.
In our attempt to do this, we answer the following questions.
2. 1. Define a problem, past or present for that organization.
MJX is a company specializing in electronics
manufacture. It has been in existence since the early 1990s. It
produces laptops, personal computers, desktops, mobile phones,
televisions refrigerators among other valuable electronics. In
the recent past the company has been exposed to a series of
challenging financial down falls coupled with a serious
collection of numerous organizational problems. Some of the
key problems recently witnessed include drastic drop in the
levels of teamwork spirit, poorer employee relationships and
frequent personal differences and side shows usually witnessed
at the work place. The marketing strategies of the organization
have also since failed exposing the organization to a consistent
loss-making period.
2. Using a combination of trade industry materials and/or
personal communication with industry leaders/managers, justify
the problem (i.e., provide enough detail to prove the existence
and significance of the problem). Use appropriate academic
peer-reviewed literature to support your argument.
Research conducted by Ipsos on the current situation of
the company reflects a huge chunk of dissatisfaction with the
company’s current status among both the employees and the
managing partners. At least 70% of the employees or the
managers or those affiliated to MJX feel that there is something
wrong at the company currently. Internal fights and exchange of
insults have been constant occurrence among different
employees of the company. This is an indication that the
employee relations have since become worse.
It has also been noted that team work that used to be the
core of MJX has since been a long gone story. The employees
no longer feel motivated to involve in team way of solving
problems. This has been greatly contributed by the poorer inter-
employee relations that have since taken course of action in the
3. company. Consequently, a drastic drop in the net profits over
the previous 5 years has been noted. The data given below
represent the net profits for the past 10 years in million.
Year
net annual profit in million $
year 2004
12.3
year 2005
13.1
year 2006
16.2
year 2007
15.9
year 2008
16.5
year 2009
16.3
year 2010
13.6
year 2011
13
year 2012
12.4
year 2013
10.1
year 2014
7
A plot of the dataset shows a steady decrease in net annual
profits for the company as shown below.
4.
5. 3. Using organizational behavior theory, discuss how the theory
might be applied practically to manage employee behavior to
bring about positive, constructive change to the noted problem.
Organizational behavior theory is a theory that studies an
organization from different multiple viewpoints. These
viewpoints could the behavior within the organization and the
relationship of the organization with other organizations. These
organizational behavior theories can be classified into either
micro organizational behavior theory or macro organizational
behavior theory. Micro organizational behavior theory refers to
the study of an individual or a group within an organization’s
setting. Macro organizational theory refers to the study of the
entire organization and industry. It includes the various
strategies and proposals to ensure it overcomes the challenges
the challenges.
Concept like decision making, leadership styles, team
building techniques, job satisfaction and motivation are some of
the areas explained in the organizational theories. Micro
organizational behavior can help us study the operations within
the organization and strategize on how to solve the
organization’s issues. A clear study should be conducted to
check what could have been the cause of the poor relations
between the various employees of MJX.
When it comes to the attempt to check the reason for the
profit reduction, MJX should conduct macro organizational
study to ensure what could have worsened its relations with
other companies. This could be one of the main reasons for the
drastic fall in the net annual profits for the previous five years.
4. Explicitly include in your case a discussion of the following
aspects of systems theory:
6. a. The climate and types of cultures likely to be encountered,
and the types of systems to be considered based on the
organization’s cultural climate
1. Mission connection: this refers to how committed the
organization is to meeting its mission and vision.
2. Leadership styles: this refers to the management skills and
strategies aimed at ensuring the organization’s activities run
smoothly.
3. Reporting structure: refers to the organization’s hierarchal
structure or style.
4. Language and communication: gives a clear description of the
organization’s method of information delivery and the jargons
associated with the organization.
b. Employee motivation, including factors of motivation (such
as planning and communication) and the types of motivation
present within the organization
The motivation of the employees is a very crucial aspect
of an organization’s success. The organization’s employees if
motivated will ensure they perform to their best. This could be
done by way of incentives or even better salaries.
Communication of important issues and planning of various
company programs should be done in such a way that it includes
all the relevant members.
c. Possible employee satisfaction issues regarding development
and implementation of a change plan to address the noted
problem
I would recommend a study be conducted at MJX to
check on all the issues discussed above. It should check on the
possible causes of the profit reduction in the company.
References
7. Schein, E. H. (2010). Organizational Culture and Leadership.
New York, NY: John Wiley & Sons.
Harorimana, D. (2010). Cultural implications of knowledge
sharing, management and transfer: Identifying competitive
advantage. Hershey, PA: Information Science Reference.
Harorimana, D. (2010). Cultural implications of knowledge
sharing, management and transfer: Identifying competitive
advantage. Hershey, PA: Information Science Reference.
Fisher, R. L. (2005). The research productivity of scientists:
How gender, organization culture, and the problem choice
process influence the productivity of scientists. Dallas [u.a.:
Univ. Press of America.
net annual profit in million $ year 2004 year 2005 year 2006
year 2007 year 2008 year 2009 year 2010 year 2011 year
2012 year 2013 year 2014 12.3 13.1 16.2 15.9 16.5 16.3 13.6 13
12.4 10.1 7 net annual profit in million $ year 2004
year 2005 year 2006 year 2007 year 2008 year 2009 year
2010 year 2011 year 2012 year 2013 year 2014 12.3 13.1 16.2
15.9 16.5 16.3 13.6 13 12.4 10.1 7