MGT5OBR: Enhancing Employee Management at Isprito Using OB Theory

This report provides an analysis of key issues concerning employee management at Isprito, an Australian multinational technology company, using organisational behavior theories and concepts. The report identifies issues such as employee behavior, perception, morale, and supervision. It applies theories like Cognitive Dissonance Theory and Attribution Theory to analyze these issues and offers specific, actionable recommendations to improve employee management and organizational performance. Recommendations include understanding employee attitudes, providing training, conducting attitude surveys, and linking behaviors with dissonance to reduce inharmonious behavior. The report aims to assist Isprito in achieving its goals and objectives by fostering harmony, positive job attitudes, and effective leadership within the organization.

RUNNING HEAD: ORGANISATIONAL BEHAVIOR 0

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Table of Contents
Introduction.................................................................................................................................................3
Issue Analysis and recommendation...........................................................................................................4
Key Issues of the Company......................................................................................................................4
Issue analysis using organisational behavior theory or conceptsand recommendations........................6
Conclusion.................................................................................................................................................17
References.................................................................................................................................................19

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Introduction
Organisational behavior is the important part in the field of management because of the
activities which deals with understanding the behavior of the employees it helps in analyzing
various theories which the organization should adopt so in examining and controlling the
behavior of the individual (Kashyap, 2019). As In the present scenario, there are many issues
and challenges faced by the organisation in management of employees, which is difficult to
control. Managing the employees is the attempt made the organization to support the
employees so that they work efficiently to achieve the organizational goal (Employee
Management, 2019). The purpose of this report is to know the key issues concerning the
management of the employees and provide recommendations by using the organizational
behavior theory and concepts in the Australian unit.
Isprito (Fictional Company) is an Australian multinational technology company specialized in
Internet- related services and products. These include software, hardware, online advertising
technologies, search engine, cloud computing. In this report will be discussing the various key
issues company is facing in managing the employees and by using organisational theories and
concepts providing some specific and actionable recommendations so that company achieves
the goal and objectives. As it is considered to be challenging for the business because of the
various different types of employees working in the organisation. The various types of
employees are full time employee, Part time employee, casual employee, Fixed-term employee,
shift workers, outworkers. The employee behavior is based on the two factors that is the
Internal factors and the External factors these factors deals with the motivation, perspective,
superior, peers, organization and knowledge, skills, capacity of the employees (Types of

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employees, 2019). In this various organizational behavior theories is also discussed so that key
issue is analyzed. After analyzing recommendations is given to the Australian unit.
Issue Analysis and recommendation
Key Issues of the Company
 Employee’s behavior - Employee’s behavior refers to the act in which the employees
respond or react in particular situations; there are many forces, which determine the
employee’s behavior. In this two types of factors influences the employee behavior that
are Internal factors which includes attitudes it represents the individual perception
towards some object, capacity and skills to perform the given work. There are many
types of behavior which employee have like accomplishing objective behavior in this
employee sets their own objective and targets within the specify time period, ineffective
behavior it does unrelated and unproductive work, remaining behavior which shows
remaining in the company for the long run, continue work attendance behavior only
takes leaves in the emergency (Employee behavior, 2019).
The same issue occurs in Isprito Company for which the company finds difficult in
manage the employees. As the company install new technology for the employees that
saves time, Due to the differences in the behavior, knowledge of employee some
employees resist to use the new technology, some are excited to learn new things which
creates dissonance among the workers working in the same group.

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 Perception of the employees- It refers to the process in which the person detects the
stimuli and translates it to give the meaning and respond in the given situation. There
are the numbers of factors that gives the shape and sometimes twist the perception
(Employee Perception, 2019).
The process of the perception are-
Accept or receive the stimuli it can be either Internal or External.
Choosing from the received stimuli
Interpreting
Organizing
Respond to the situation (Sarkar, 2017).
Isprito Company also faced this issue as when the new manager was appoint in this
company some employees perceive that as he is new he will not be aware of the
structure and past performance of the company, some perceive that he may be
experienced person because he recruited from the another stronger company. This
issue takes time in settlement because without communication every employee
perceives different things.
 Morale of the employees-It is defined as the feelings, satisfaction and motivation of the
employees, which increases the morale. It means the enthusiasm of the individual in a
particular period. There are many factors, which lead to increase in morale that is
workplace conditions, relationship between employees and employer, recognition,
rewards, promotion, democratic freedom. The morale of the employees can be

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measured by taking workers opinion doing same work, using the company past records,
attitude and skills measurement (Employee morale, 2019).
This issue occurs in Isprito Company because company followed the autocratic style and
delegation of the authority is rare and with the same rewards and recognition the
motivation, satisfaction and morale of the employees decreases which affects their
performance.
 Supervision- supervisor is the person who lead the entire group or the individual person
and evaluates the work done by the subordinates. It is the duty of the supervisor to
manage the employees, prevent the high performer employees from getting the low
results and motivate, guide, make strategies to grow the low performer employee
(Supervision, 2019).
Isprito company is facing this issue, because many employees gets low results even the
high performer employees also getting low results as expected because the supervisor
does not lead their employees in proper manner.
These are the issues occurring in the company while managing the employees, which
decreases the outcomes of the company.
Issue analysis using organisational behavior theory or concepts and recommendations
Organisation is the place where all the people come together in achieving the common goal or
objective. Organisational behavior refers to the study of the elements that influence the
individual or the groups to behave and to manage the working conditions, internal or external
environment. It also defines the study of the human behavior, which helps in identifying early

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warning signal, provides direction, determining the actions of the employees and their impact.
It increases the work atmosphere in the organisation, increases the morale of the employees
and achieves their goal in timely manner (Organizational behaviour theories, 2017).
Organisational behavior theory or concepts
Organisation behavior theory refers to examine the behavior of the individual in the
organization. There are various reasons of applying the organisational behavior theory or
concepts to know the instance of the real world to make the effective decision. As In the
organisation various decisions has to make so that the organisation objective can be achieved.
It helps in understanding the elements of the organizational behavior and also helps in
preventing the key issues occurring in the organisation while managing the employees
(Organizational Behavior Theory in Business, 2019). The various organizational theories or
concepts are-:
 Attitudes- It refers to the interpretation of the sentences, which is either approval or
disapproval concerning stimuli, people, and events. It defines what a people thinks or
perceive about something, which shows the attitude of an individual. As it is considered
the psychological behavior by examining the specific thing (McLeod, 2018). There are
many benefits of having positive attitudes that are creating sound environment, better
relations, decrease in stress, increases the motivation, leadership traits and belief (The
Benefits of a Positive Attitude in the Workplace, 2016).

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Cognitive Dissonance Theory- This theory describes the relationship between the
attitudes and behavior with the dissonance. It shows that Individual Behavior and
perception changes which is not consistence and not compatible which decrease the
harmony between the people or the things. It also has various issue because every
individual have different evaluation of the circumstances this is very important to
manage because it is the behavior and attitude only which makes the situation favorable
and unfavorable according to individual perception. If the individual attitudes are not
compatible with that of the superior there, will be lack of harmony and discomfort
within the organization and also reduces the motivation level among the employees
(Organizational behaviour theories, 2017). The three fundamental principles of the
theory are two factors, which influence the power o the dissonance that is the amount
of dissonance faith and the significance fond with each faith. Some ways to improve the
dissonance are make less dissonant faith, adding greater harmony that is more
significant than the inharmonious faith, change the harmonious faith so that it will not
remain consistent. The scope of this theory is adopted in all the situations that are in
making the attitude and in changing them in finding conclusion and resolving the
problems (Cognitive dissonance theory , 2019). This suggests that there are many
procedures to ignore the mismatch, tensions and avoids dissonance in the organization
as in this the person cannot perceive cognitive dissonance physically so it is considered
subjective in character (Cognitive Dissonance Theory, 2019). Theory also deals with the
disagreeable attitudes that arise between the two conflicting feeling or behavior. As this
theory is relevant for the management of employees in Isprito company because in this

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company issue arises related to the differences in the attitudes and behaviors of the
employees, which lead dissonance among them.
Recommendations- In this company installation of the new technology will leads the
different behaviors, attitudes among the employees for this company has to adopt the
cognitive dissonance theory, which suggests that the employer should understand the
attitudes, and behaviors of the different employees as needs are different of different
individual. Through this their will remain harmony in the organisation and their will be
good relations between the employers and the employees as employers. The company
can also provides them the training and understands them that it is for their benefit
this will also lead in maintaining the harmony in the organisation and positive job
attitudes so that The Company can also conduct the attitude survey to know the
behavior of different employees. This company could understand the values of
differences in the employees while selecting them, and see whether the selected person
is fit for the job or not, as the amount to which the personality is matching with the jobs
it will leads to more satisfaction among the employees. Through this the attitudes of the
employees doing the same job have somewhat same rather than conflicting this also
resolve this issue because through this employees cannot resist the change and its leads
to harmony in the company. The company also resolves the dissonance by making lesser
faith in dissonance, adding the more harmony, which is considered more important than
the inharmonious faith, changing the dissonance so that it will not remain consistent in
the organisation. As installation of the new machinery in the company leads dissonance
this is because of attitude differences employees which is not acceptable. Through a

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theory the company can link the behaviors with the dissonance and construct the ways
in reducing the inharmonious behavior in the company, it will help the company to give
new learning to the employees who are resisting the change and to those also who all
are excited to work with the new installation technology. This theory also helps the
company in knowing the attitudes change them if they are not favorable, resolving the
problems and finding the conclusions.
 Perception & Decision Theory – It refers to the process by which the person gives
response to the stimuli, situation by putting in order, interpreting their sensory ideas.
There are many factors, which influence perception, are attitudes, strength, extent,
capacity, time, belief (Perception, 2019) .
Attribution Theory- It suggests that when the behavior is perceived, it determine
whether the behavior is internally or externally happen. Internally means under the
individual control and forces which are from the outside in which individual obtained to
behave according to the situation (Organizational behaviour theories, 2017). As it is
done in three stages that is detecting the behavior of the individual, then analyzing that
the behavior is conscious, final stage is to know the causes of the behavior
(ATTRIBUTION THEORY, 2019). This theory is applicable in this company because when
new manager recruits in the company everyone has different perception towards him.
This will help the company to understand from where this behavior occur and reason of
the behavior (Attribution Theory Applications in Organizations, 2019).

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Decision making is considered as an important part of the organization because the
employees have to make decision continuously it deals with selecting the best out of
various alternatives by examining carefully (Decision-Making: Meaning and Definition,
2017).
The model refers that the person has to act rationally in order to increase the results is
called Rational Decision- making model. In this model, first problem is defined, recognize
the decision basis, weight the basis, create various alternatives, rate each one of them
with the basis and determine best decision. This theory will help the company to make
correct decision about the perception of the employees (Chand, 2019).
Perception &Decision making is also have issue because the employees interpret what
they observe and the employer needs to identify that employee’s response what they
perceive not to the reality. As the individual has to make decision continuously wrong
decision will leads in decreasing the outcomes of the organisation (Organizational
behaviour theories, 2017).
Recommendations- As the employees always act what they perceive not to the
actuality, as in this company employees perception of the employees was different
towards the new manager. For this the company can adopt the attribution theory. It
helps in observing the individual behavior and try to decide from where it is caused
either from internally or from externally by this company can manage the employees.
The company can also make clear introduction about the new manager to all the

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employees so that the perception to the some extent remain same be and through this
theory the company can also focus on the employees so that the supervisor understand
what employees are perceiving about the new managers. This will also helps in
understanding that what employees are expecting from the new manager. The
company through this theory company can solve this issue when it understand from
where this behavior occur and understand the employees according to that this will this
may also helps in increasing the positive perception towards others. The company can
also adopt the decision-making theory to make the optimal decision because this helps
in understanding the problem and evaluation of the alternatives so that the best option
is selected and strategies made after analyzing the problem in depth. As Isprito appoints
new manager by this every employees has different perception towards it. In this
without communication, they perceive different things. This theory helps the company
in knowing the behavior from where it is occurred and defines the reason after this
behavior according to this company makes the decisions by analyzing the problem in
detail and evaluate various alternatives so that the best can be chosen to control the
behavior so that company can run smoothly and achieve outcomes
 Motivation- it is the process which considered the individual’s reasons for acting in such
a manner, it also refers the individual strength and direction of efforts towards achieving
the organizational goal or objective, as motivation is considered as very important
because the satisfied employee will leads to maximum outcomes. It is attain by
combining the numbers of components in the organisation. There are two types of