1

Organizational behavior

Final project

Submitted By:Tayyaba Bangash (L1S11BBAM0081)Arooj imtiaz (L1S11BBAM0082)Arslan Hameed (L1S11BBAM0101)Ijaz ahmed

Submitted To:Prof. Mariam saleem

Submission Date:10/06/14

Acknowledgement

I would like to express my special thanks of gratitude to my teacher Mariam saleem

who gave me the golden opportunity to do this wonderful project on the organizational

behavior concepts , which also helped me in applying practically all the learned concepts

and we came to know about so many new things I am really thankful to them.

Secondly i would also like to thank my class fellows and acquaintances who helped me a

lot in finalizing this project within the limited time frame.

2

Content

Acknowledgments……………………………………………………………2

Table of content ……………………………………………………………..3

Executive Summary………………………………………………………….4

Introduction of the organization…………………………………………….5

o History………………………………………………………………..5

o Mission Statement……………………………………………………5

o Vision Statement……………………………………………………...6

o Core Values / Objectives……………………………………………..6

o Products / Services…………………………………………………….7

o Organizational Structure………………………………………………8

o Major Competitors………………………………………………….....8

Problems that organization is facing which are related to OB……………….9

Relate problems in detail with OB concepts at………………………………..9

o Individual level………………………………………………………….

o Group level or ………………………………………………………….

o Organizational level……………………………………………………..17

Recommendations for solving those problem at ………………………………18

o Individual level……………………………………………..

o Group level ………………………………………………….

o Organizational level…………………………………………..20

Conclusion……………………………………………………………21

References……………………………………………………………..21

3

Executive Summary

This report analyzes all the organizational behavior concepts studied in this course. The

organization in consideration is a renowned pharmaceutical company, Highnoon labs .

We have applied various concepts of organizational behavior in relation to problems we

identify in the company each problem is related at three levels individual, group and

organizational level , and we give solutions accordingly

4

Introduction

o History

Highnoon was incorporated as a private limited company in 1984 in the historical and

culturally rich city Lahore, called the heart of Pakistan. From the very beginning

Highnoon embarked on a relentless pursuit of excellence led by its visionary Chairman.

Leading from the front, he developed a culture of commitment, fierce competitiveness

and distinction in every area of company’s operation. Strategic alliances with some of the

best-known names in the global pharmaceutical industry itre forged. Highnoon has since

then, marched ahead introducing state of the art products and setting new trends in the

industry. Highnoon’s therapeutic focus in Cardiology, Gastroenterology and Psychiatry

has led to the development of franchises, which are now the most admired in the

healthcare industry. These are the company’s highly prized assets, a symbol of its

enterprising approach. Innovation has been a highly sought after attribute at High noon

all along. From the very first product to the very recent introductions, speak volumes of

the ingenuity behind product selection and portfolio development. The organizational

structure allows the employees the freedom, which is necessary to further initiative and

creativity, take appropriate decisions and implement these with conviction. This approach

has enabled High noon to bring forth world-class capabilities in marketing, sales,

research and development and production. Highnoon has seen phenomenal growth, which

has fascinated people home and abroad. Highnoon converted to public limited company,

and listed on Karachi and Lahore bourses in 1997. Highnoon Laboratories Limited was

the sole agent of Solvay Pharmaceuticals (Germany) till June 2011. Highnoon continues

on its path to discovery, scaling new heights and see new higher challenges. Highnoon

the success story, carries on.

o Mission statement

We strive to maintain excellence in our business practices with the objective to benefit:

• Medical Community

• Consumers

5

• Stakeholders

• Employees

• And to improve the Quality of Life by providing Quality Products

Consistently.

o Vision statement

At Highnoon Laboratories we understand the duties of being a responsible corporate

citizen and stand true to our conviction and promise to work for the betterment and

prosperity of our people.

“HIGHNOON FOR A HEALTHIER NATION”

o Objectives

The management has set for itself the following objectives. These are the hallmarks of

our journey towards a Healthier Nation:

• Excel in meeting customer needs.

• Maintain leadership in national pharmaceutical industry.

• Gain confidence of Doctors, Pharmacists and Consumers who use

our products.

• Seek employee involvement, continuous improvement and

enhanced performance goals.

6

• Enhance export business.

o Products/services

Medicines, nutrition products and pharma products

Aerotec rabecid

Avotin Skilax

Tagip Loprin

Alcac Ipratec

Prospan Tagip

Kestine Cyrocin

Blokium Cidine

Inhibitol Pidogrel

Rosulin Oxaquin

o Organizational structure

7

Work specialization:

There is high degree of work specialization in highnoon. Highly specialized person have

been hired according to the required experience and background used for this purpose.

Chain of command:

Highnoon has a strict chain of command. Line management strictly followed by a

company. No one is allowed to talk consultant or higher authority directly. There is a

proper system who report to whom.

Span of control:

Highnoon has a narrow span of control. It refers that a number of employees a

subordinate has. In highnoon, there are approx. 2 to 5 employees working under one

manager.

Departmentalization:

Highnoon is highly departmentalized. It has applied departmentalization according to

function. It means that people with common knowledge, skills working in common unit.

Centralization / decentralization:

Highnoon is centralized rather than decentralized. Every decision and policy is made by

the top management or MD. It has a top to down management.

o Major competitors

• Getz pharma

• GSK

• CCL

• Saami

Problems that organization is facing

1. Delay in decision making

8

2. Dependency on old brands

3. Less presence of higher management in field

4. Frequent re-structuring which divert employee focus on work and brands

5. Less aggressive approach compare to market need

o Problems :

1# dependency on old brands

Dependency on old brand one main reason menchanistic structure less innovative , no

empowerment to employee This problem leads to many other problems in regard of

organization behavior ,

Related to individual level

Attitude :

Cognition

No power in anything strongly effect their perception what they start thinking

about their organization most of the employees think in bad way about their organization

,they view literally lead them to be demotivated or dissatisfy from their jobs

Effective :

Base on their thinking employee develop a bad image of their organization in

their mind and start disliking their organization , this sometimes lead them to deviant

work place behavior

Job satisfaction :

9

As highnoon is highly dependent on their old brands and have very

tight control over their employees this leads to low job satisfaction of the employee

working there , as they think no opportunity and innovation in their jobs duties and less

motivational factors leads them to be dissatisfied from their jobs

Logical empowerment :

Employees in highnoon have no right to have any word in decision

making one of biggest reason of demotivation to any individual their logical

empowerment (authority ) is equal to have no authority at all which some times increase

their turnover rate

Risk aversion ;

People who have authority to take decision is top management in highnoon

they have employee which have risk aversion type personality who avoid to take risk in

any activity , products , this leads high noon high dependency toward their old brands

Deviant workplace behavior (DWB):

Depending upon their disliking to organization some

employee start showing DWB absentess , less commitment to organization , sometimes

ethical issues emerged

big five model

extraversion :

people who have extraversion personality in highnoon they feel dissatisfy

when they are restricted to their circle of work especially with regards to their new ideas

and part in decision making , and these kind of employee are more likely to be

demotivated

three dimension of attitude

10

continuance;

many first line workers feel uncomfortable

working under such controlled environment from top management but still working their

due to their social and economical problems

Relate to organizational level:

Centralization:

Company have mechanistic and organic both structure but their

centralization comes to a very highly strike level which ultimately effect in negative way

employees performance along with their creativity regarding brand and products,

Related to group level

Group think ;

Those departments which have organic structure and have independence of

ideas they are roaming around group shift if any of them have good idea than just to cope

up with their group thought they do not try to give his/her idea a complete shape

2# frequent re-structuring which divert employee focus on

work and brands

Related to individual level

emotions :

employee work in different structure sometimes organic and sometimes

mechanistic this effect employee stress level , highly centralized and highly decentralized

always make their working style to change accordingly, for some employee in both

11

situations it is easy to cope up but for many employee their stress regarding work

increase , they feel stressed anxiety regarding work

Big five model

Openness to experience :

Due to frequent change in structure everything which is related

to work change working condition , style , working hours etc. employees of high noon

have high resistance to change and they have less openness to experience personality ,

they do not accept so frequent change in their working condition and regulations which

effect their work and brands

Workforce life :

So much changing disturb both life of home as well as work , he feel

stress and demotivated toward his work , too much of work and time make them to lose

interest in their jobs

Job involvement :

High noon have very diversify workforce people of different

personalities , norms , value , diverse workforce also have people who likely to accept

frequent changes , so much change make that kind of employees demotivated and they

start losing interest in their job their involvement with their jobs are less in return their

absentee and turnover increase

Mc-Cleland’s theory of need

Need of affiliation:

12

So much change in structure in high noon usually change groups into

large and small category , sometimes project base group are made workers have high

conflict level at works due to sudden change in their groups and teams employee

sometimes do not feel comfortable to work in every time new team or group so their need

of affiliation ( belongingness and friends ) is disturbed at work place which in result

dissatisfy employees

Related to group level

Team leadership :

high level of conflict in workforce leads employees to verbal fights so

ultimately in that kind of team and group there is lack of team leadership to make conflict

resolve and build team interaction with each other

hoof steads five value dimension

individualism & collectivism :

every person is different from each other due to high rate of

change in structure , two main conflict arise some employee like working in group and

some like to do alone , up and down of structure make employee confused and disturb

their working style , they perform bad if their category of working style changes and bad

performance become their fate

3# less aggressive approach compare to market need

Related to individual level

Emotions :

13

Employee who are working for more than 10 years they are tired of their

jobs company try no new things in order to avoid risk they provide the employee with

same routine work which ultimately make their jobs bore many of employees feel bore at

their jobs due to no new challenge ahead

Risk aversion :

Manager of the high noon have risk aversion personality they try to

avoid risk associated with new product , they think if they launch new product in market

there may be existing products will be affected , again big reason for them to have less

aggressive approach against any market need

Attribution theory

Consistency ;

Organization less aggressive approach one reason is the organization

perform consistency is moderate progress they are not looking forward to increase in

progress through different ways

Over confidence biased :

Managerial teams of high noon are actually overestimate their

abilities , they think their achievement is better than any time so they show no concern

toward any market loose threat

Self-determination theory :

Workers who are working their they feel powerless when most

of the decision are taken by upper management some workers want to do something in

regard of market need but when they feel they are controlled by their mangers their

motivation vanished , and problem of market need still there

Related to organization level

14

Innovation :

High resistance toward new technology by seniority and new techniques to

promote their product , organization facing horrible big market share losing by his

competitors

Related to group level

Social loafing :

Employees of high noon have different structure in this respect they

have many large and small group , as this situation company need a very active response

from the project given groups but due to some employee who practice social loafing they

make burden on others in group , this all things results in late project and sometime not in

time launch of products again big hurdle for company in less aggressive toward market

need

4# Delay in decision making

Most of the decisions that get made reflect only the problems that decision makers see in

the high noon. Problems don’t come with flashing neon lights to identify themselves. One

person’s Problem may even be another person’s acceptable status quo we are concerned

with decision making in the high noon . Decision makers want to appear competent and

“on top of problems. “This motivates them to focus attention on problems that are visible

to others.

related to individual level

Escalation of commitment

Some decision makers escalate commitment to a failing course of action. Escalation of

commitment is an increased commitment to a previous decision despite negative

information. Individuals escalate commitment to a failing course of action when they

view themselves as responsible for the failure. That is, they “throw good money after

15

bad” to demonstrate that their initial decision was not wrong and to avoid having to admit

they made a mistake. Many organizations have suffered large losses because a manager

was determined to prove his or her original decision was right by continuing to commit

resources to what was a lost cause from the beginning.

Ignoring the Base Rate

Yet another judgment error that people make is ignoring the base rate, which is ignoring

the statistical likelihood that an event might happen. For instance, if you were planning to

become an entrepreneur, and were asked whether your business would succeed, you

would almost undoubtedly respond with a resounding “yes.” Individuals believe they will

beat the odds, even when, in the case of founding a business, the failure rate is close to 90

percent.

The Rational Decision-Making Process

The rational decision maker makes consistent, value-maximizing choices within specified

Constraints in the high noon. These choices are made following a six-step rational

decision making Model.

I. Define problem

II. Identify the decision criteria

III. Allocate the weights to criteria

IV. Develop the alternative

V. Evaluate the alternative

VI. Select the best alternative

It is long procedures to collect information regarding the problem and time consuming

method that’s why delay in decision making in the high noon.

5# Less presence of higher management in field

Employees are absent in the field because high noon is following centralized approaches

very strong and rigged environment strict structure rule and regulation are strictly

followed no flexibility and high specialization and decision are made on top levels no

participation decision making therefore employees are unsatisfied and less motivate in

the field.

16

According to psychologist Abraham Maslow, workers need to feel a sense of

belonging to an organization ( Maslow's Hierarchy of Needs).

Related to individual level

Job involvement

An employee is not engaged in and enthusiastic about performing their work. Managers

are typically well aware that efforts to promote job involvement among employees tend

to pay off substantially since employees will not be to assist in furthering their company's

objective. A very less opportunity to show our interest in job work in the high noon.

Logical empowerment

Employees of high noon have less power to effect decisions of the company. Therefore

turnover rate are very high in the field.

Organization commitment

Employees are very low committed toward high noon and employees are not loyal to the

high noon. Filling and emotions are not attached with the company goals.

Continuance commitment

In the high noon no better reward systems for employees in term of economics and

financial reward.

Employees engagement

Engage employees enthusiastic about their work and so takes positive action to further

the organization's reputation and interests. But in the high noon employees have no

positive attitude toward their work and no put more effort to achieve organization goals.

Perceived organization support

In which employees believe that their organization values their contributions and cares

about their well - being  and fulfills socioemotional needs and employees try to tend to

perform better to received rewards and favorable treatment. But in the high noon no

reward system fair and equal distribution in the field.

17

o Recommendation for these problems

1# dependency on old brands

Individual level

employee need of power should be fulfill to make employees have some say in

making anything new and in changing the products

Group level

high noon need a charismatic and visionary leadership in group so it can make

employee motivate to achieve more than a goal

performance norm is needed in group so that everybody should have

responsibility of performing in a group

Organization level

by making decentralized organization they can progress well in new product and

brands employee feel more motivated and new idea can come up

2# frequent re-structuring which divert employee focus on work

and brands

Individual level :

18

need to have flexible nature to cope up with any kind of organizational structure

either mechanistic or organic or both

Group level

team leadership is required to make conflict resolved if any of the them arise due to

different structures changes

Organization level

too much of restructuring make employees demotivated organization need to

review its polices

organization need to put people according to their nature in both kind of

structures ,this can avoid demotivation among them

3# less aggressive approach compare to market need

Individual level ;

employee need to have organizational commitment although they feel bore but

still need to stay

mangers need have confidence over their decision and need to lessen their risk

aversion personality

employees need to overcome their factor of self-determination theory which give

their intrinsic factor encouragement

Group level

they need to work on group performance so that social loafing factor become less

19

Organization level

organization need to be learning organization so that they become ever ready to

learn things

4# Delay in decision making

Individual level

they need to make more rational decision and use quick reactive approach for

any decision making

need to give power to employees for good and quick decisions

5# Less presence of higher management in field

Individual level :

Performance reward should be given to employee in order to motivate them so

that they try to be more responsible at their work

try to give employee feeling of belongingness to the organization to develop

their interest in field

organizational commitment of the employee need to improve so that they can be

more committed to their work and company

o Conclusion:

High noon facing many problems which are related to all level of organizational

behavior , whenever company is made a big dimension of any company is its employee ,

employee make groups, team and they make company to work , so when company

20

making any kind of changes they need to have look over their employee diversity level

specially for big companies ,

We concluded that structure of the company is the key element for all of the above

mention problems by looking at nature of the employees company must select their

structure this approach help high noon to cope up with these problem because in our view

it satisfy at all level either individual, group, or organization level , people behave in way

they are treated so for every good reaction good action is required

o References

http://catalogue.pearsoned.ca/assets/hip/us/hip_us_pearsonhighered/samplechapter/

0131971107.pdf

http://www.paksearch.com/Annual/Annual00/HIGHNO~3.htm

http://www.highnoon-labs.com/

http://www.sehatpakistan.com/d/highnoon_laboratories_ltd-33000.html

http://pubsonline.informs.org/doi/abs/10.1287/orsc.12.1.19.10119

http://content.healthaffairs.org/content/23/1/10.short

http://www.sciencedirect.com/science/article/pii/S0048733300000949

21

22