Impact of Employee Behavior on Corporate Performance

This assignment examines the crucial link between employee behavior and a corporation's overall performance. It delves into various challenges modern managers face in addressing employee conduct, such as diversity concerns, communication breakdowns, negative attitudes, demotivation, and high turnover rates. The paper explores effective management strategies to mitigate these issues, including motivational techniques, diversity regulations, strong organizational culture, and constructive approaches to handling negativity. By implementing these strategies, companies can enhance employee productivity and achieve superior performance.

Running head: EMPLOYEE BEHAVIOUR 0
Organisational Behaviour

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Contents
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Introduction
The practice of analysing and maintaining employees’ behaviour in an enterprise is
considered as organisational behaviour. The management can improve the productivity and
job satisfaction of workers by evaluating their behaviour in the company. The positive
behaviour of employees is necessary for a company’s growth because it directly influence
firms’ performance. Therefore, the employees are determined as an integral part and assets of
an organisation. The challenges faced by modern corporations while maintaining their
employees’ behaviour includes motivation, dispute, communication and diversity issues. This
report will evaluate the impact of employees’ behaviour over a corporation’s performance.
Various challenges face by enterprises while assessing and maintaining their employees’
behaviour will be discussed in the report as well. Further, the report will recommend
solutions to the problems faced by management while managing their employees’ behaviour.

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Employee Behaviour Impact on a Company
The employees are considered as a soft asset in the organisation. According to Nelson and
Quick (2017), organisational behaviour is the process of analysing and sustaining the conduct
of employees in a company. The management collects the interaction and feedback of
employees to formulate regulatory policies which assist in the achievement of corporate
goals. The organisational behaviour strategies are a scientific approach which can help in the
prediction of future opportunities and benefit in a company.
As per Kehoe and Wright (2013), the behaviour of employees has a considerable impact on
the performance of an enterprise; a corporation can achieve exceptional growth by improving
their employees’ conduct. Establishment of positive and reliable organisation culture is the
primary requirement for enhancing employee’s productivity. The impact of organisational
culture directly influences the customer satisfaction in a company. For example, if a company
is marketing their services as “world class” but the employees are not performing their best to
fulfill their customer’s requirement then the reputation of such organization will decrease in
the market. Therefore, to improve customer satisfaction rate, it is necessary that employee is
performing with the best productivity.
The decision taken by top-level managers to improve the performance of a corporation is
essential to apply for business activities. As per Avey et al. (2011), employees with negative
behaviour can resist the implementation of the top level manager’s policies which can be
detrimental to a company. It is necessary that a positive and substantial culture is established
in a corporation to ensure the implementation of top-level managers’ policies. The negative
behaviour of an employee can reduce the performance of other employees as well. For
example, if employees have a negative attitude towards his/her job, and they also criticise the
decision made by top-level managers, then the performance of other employees can be
affected by the same behaviour.
Challenges in Maintaining Employee Behaviour
Negative Attitude of Employees
Some of the employees have a negative attitude which can adversely affect other employees’
behaviour and reduce their productivity. As per Reisel et al. (2010), the negative employees

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are difficult to identify from a group of workers, but their attitude has a significant impact on
the company’s performance. The negative attitude employees spread rumors and gossip
regarding other employees who can reduce their reputation, and it leads to dispute between
the employees. The policies established by the top level management are criticised by the
negative workers who make it difficult to apply such changes to the business operation.
Lack of Motivation
Most of the employees are not passionate towards their work, and they did not have any
reason to work besides collecting a salary. Eyal and Roth (2011) provided that the lack of
motivation in employees can be detrimental to company’s growth because it stops any
innovation in the business. Many modern managers find it challenging motivating employees
by monetary rewards which adversely effect on the behaviour of such workers.
Problems in Communication
Communication is the key to success in any organisation, it is necessary that each entity in a
company can say their problem or ideas to the appropriate authority. According to Colquitt et
al. (2011), lack of communication can lead to a different challenge in business include trade
disputes, unmotivated workers, and a decrease in productivity. If employees are not able to
share their opinion or feedback to an appropriate authority than it can adversely influence
their attitude. They did not feel a part of an organisation if they are unable to share their
concerns with the managers. Slow communication channels have a similar impact on the
behaviour of employees because their problem did not get solved within adequate time.
Resistance to Diversity
Many organisational employ talented workers from different countries to improve their
performance. As per Stahl et al. (2010), the employee from different nations faces difficulty
while settling according to company’s structure and resistance from other workers can reduce
their moral to work in such business. Many employees did not like foreign workers because
they believe that such people have taken their job. Making racist comments and
discrimination in a workplace can lead to serious mental health issues, and it reduces the
productivity of works.
Retention Issues
The modern organisation is employee oriented because the demand for qualified employees
has increased significantly. Competitor companies pay high salary packages and benefit to

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attract qualified employees of other corporation. High employees turnover adversely affect
employees behaviour because they did not feel a part of the stable culture. If employees have
a negative response towards the company, and they are waiting to join another enterprise,
then it can adversely influence other employees to work as well.
Recommendations for Problems
Effective Motivation Strategy
The productivity of motivated employees Benefit Company by improving its performance, it
is necessary that employees in a company are motivated towards their work. One of the
primary reasons for motivation is a future opportunity, lack of prospects leads to the
discouragement of employees. The company can provide better future opportunities to their
workers to improve their working. According to Mai (2016), another reason for unmotivated
behaviours of employees is due to non-fulfillment of needs if the requirements of employees
are not fulfilled by their job than they will have a negative attitude towards their job. The
managers can implement Hierarchy Need Theory to analyse the requirement of their
employees. This strategy divide needs into five groups which are biological, security,
belongings, respect and self-actualization. Managers can evaluate their employee’s needs and
fulfill them to improve their behaviour in the company.
Formal Communication Channels
The management should implement communication channels which are fast and directly
connect employees with the appropriate authority. The ability to share ideas and problems
with the proper authority will improve the behaviour of employees because they feel their
worth in the company. The communication strategy also includes regular staff meetings, one-
on-one meeting, and open door strategy. These policies assist in improving employee
management relationship and also reduce trade conflict in a company (Kandlousi, Ali and
Abdollahi 2010).
Handling Negative Behaviours
Negative behaviour of employees should be managed carefully by the management. The
managers should conduct a one-on-one interview with the employees to learn the reason
behind their negative attitude. If the employee is facing any issue, then the manager should

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try to solve their problem by providing them financial or emotional assistance (Webb, Miles
and Sheeran 2012).
Strong Culture
The management is requiring establishing a strong corporate culture to retain qualified
employees in the organisation because it makes them feel a part of the corporation. A
supportive culture can improve the behaviour of employees towards each other and towards
top level management. The value and beliefs of a company must include employee
development because it assists in improving their productivity.
Diversity Structure
The organisation should make diversity a core part of their business culture to avoid any
problems relating to the subject. The diversity structure should provide policies regarding
foreign employees to make their transition more comfortable in the business environment.
The management should strictly punish the racist and discriminating behaviour of employees.
Recently, Google fire their senior software engineer ‘James Damore’ due to his racial memo
over diversity because Google has a strict regulation regarding diversity policy (Romano
2017).

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Conclusion
From the above report, it can be concluded that employees’ behaviour has a significant
impact on a corporation’s performance. Modern managers face various problems while
managing their employees' behaviour such as diversity issues, lack of communication,
negative attitude, discouraged workers and retention problem. There are various strategies
which can be applied by the management to address issues regarding organisation behaviour
such as effective motivation strategy, strict diversity regulations, strong culture, and diversity
structure and handling negative attitude of employees. These strategies benefit the company
by improving worker’s productivity and overall performance of the firm.

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References
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Colquitt, J., Lepine, J.A., Wesson, M.J. and Gellatly, I.R., 2011. Organizational behavior:
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Eyal, O. and Roth, G., 2011. Principals' leadership and teachers' motivation: Self-
determination theory analysis. Journal of Educational Administration, 49(3), pp.256-275.
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Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource
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Mai, J.E., 2016. Looking for information: A survey of research on information seeking, needs,
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Romano, A., 2017. Google has fired the engineer whose anti-diversity memo reflects a
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Webb, T.L., Miles, E. and Sheeran, P., 2012. Dealing with feeling: a meta-analysis of the
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