A Comprehensive Report on Organizational Behavior at LG Electronics

This report provides an in-depth analysis of organizational behavior within LG Electronics. It examines how the company's culture, politics, and power structures influence individual and team performance, referencing Handy's Culture and French and Raven's types of power. The report delves into motivation theories, including Maslow's hierarchy of needs and expectancy theory, to understand employee behavior. Furthermore, it explores effective and ineffective team dynamics, referencing Belbin's team roles and Tuckman's stages of team development. The study highlights the application of these concepts in a real-world business context, providing valuable insights into organizational behavior principles and their practical implications within LG Electronics. The report concludes with a discussion of key concepts and philosophies of organizational behavior.

ORGANIZATIONAL BEHAVIOR

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Analyze how an organization’s culture, politics and power influence individual and team
behavior and performance...........................................................................................................3
LO 2.................................................................................................................................................5
P 2 Theories of Motivation..........................................................................................................5
LO 3.................................................................................................................................................7
P 3 Teams that are effective and teams that are ineffective.........................................................7
LO 4...............................................................................................................................................10
P 4 Concepts and Philosophies of Organizational Behavior.....................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Organizational behavior is the study of both group and individual performance and activity
within an organization. This area of study examines human behavior in a work environment and
determines its impact on job structure, performance, communication, motivation, leadership, etc.
LG Electronics Inc. is a South Korean multinational electronics company headquartered in
Yeouido-dong, Seoul, South Korea. LG Electronics is part of the fourth-largest chaebol in South
Korea and its global sales reached US$55.91 billion in 2014. This report contains issues such as
Analyze how an organization’s culture, politics and power influence individual and team
behavior and performance. Theories of motivation that is content and process theories. Teams
that are effective and teams that are ineffective. Concepts and Philosophies of Organizational
Behavior (Van Knippenberg and Hogg, 2018).
LO 1
P 1 Analyze how an organization’s culture, politics and power influence individual and team
behavior and performance.
Culture of organization is set on the basis of beliefs and values they follow so that they can
contribute in different areas of market as per that.
Handy’s Culture
Power Culture-
This aspect states that some members of LG who have high power over other leave an
influence in process of working. They fulfill their role of taking decisions for company and be
responsible for it. Employees are analyzed and judged in order to judge the eligibility of power.
Role Culture-
This form of power is given on the basis of position of an individual. For this LG makes
sure that all the rules are being followed. Also there is no confusion to anyone about their role
and duties (Tang, Yam and Koopman, 2020).
Task Culture-

This form helps companies such as LG to divide task to their members on the basis of
their interest as this way they can get better solutions and ways to complete the task and increase
their efficiency. LG finds this culture as more suitable as with the help of it they have been able
to make their quality of products better and members in company have less conflicts.
Person Culture-
This form helps to states that everyone will work in their own way which they consider
brings best results for them. This is treated as a help because many tasks are done without errors
which has helped them to work up with more confidence.
Types of Power by French and Raven-
Legitimate Power-
Higher authorities such as CEO, COO or board of directors have this power and because
of this power people in company are influenced and attracted by it. Also this form of power is
not permanent it keeps on changing on the basis of achievement of expected results.
Reward Power-
This form states that company rewards their employees as per their performance which
can be in the form of raise, evaluation, bonus and incentives. This way employee will remain
motivated and contribute more in their line of business. The value of reward must be high as that
will set the factor of reward for employees. This will help the business of companies such as LG
to get better results as motivated employees perform better which increases their reputation in
market.
Coercive Power-
This form brings negative forces inn culture of business as the work done under this form
of power is done by putting pressure or force on employees. This is done by management as they
believe that with the help of this they will achieve any goal. If by any chance they are not
successful in it then management of companies such as LG punish them (Vasu, Stewart and
Garson, 2017).

Informational Power-
Employees don’t have this sort of power as only top level of management has it. Reason
behind it is that only they are able to keep a secret because if information leaks it can affect their
business.
Expert Power-
Only few people in companies such as LG have this power as it is judged on the basis of
their experience which they have gained by working in that field over the years. Also it is
permanent form of power as it is not a position it is power earned on the basis of knowledge. If
LG is successful in retaining these employees then they will be able to achieve their goals.
Referent Power-
Power of reference arises when top level managers prefers employees on the basis of
work done by them. Although this is not considered right because by choosing those employees
on the basis of reference they can get employees who do not have required skills and are hired on
the basis of reference (Short, McKenny and Reid, 2018).
Chantal’s Characteristics-
With the help of different studies it has been analyzed that if employees have some
political skills it will be helpful to company in managing their task force against the external
environment. Also this way decision making of company will also rise. There are even
drawbacks to this as they will see more manipulations in decisions which are not a good sign for
them. This is why authority must be given to right personality.
LO 2
P 2 Theories of Motivation
Theory given by Maslow helps to understand the need stage of employees and how it
changes with time. This theory is a part of content theory.
Physiological Needs-

This stage focus only on those needs without which survival is not possible such as food,
home, clothing etc. it is treated as universal because of its needs. For the completion of this need
LG provides their employees a place to live and food facilities so that they can work with
motivation.
Safety Needs-
This stage states that employees are concerned about their safety against measures such
as war, natural calamity such as disaster. This is why LG has offered them packages which
covers their insurance, medical cover. This will help them to focus on other areas and care less
about these measures (Ristianti, Putrajaya and Fathurrochman, 2020).
Social Belonging-
In this stage of need development cycle employee demands that they must have relation
in form of friendship with others in company or in their society with their neighbors so that they
can share their life. This is why LG forms teams of employees so that they get to know each
other and with time share their personal as well as professional beliefs with each other.
Self Esteem Needs-
These needs are concerned with the ego of an individual which if not handled well can
affect their reputation. Many of employees wants to get recognition and respect for their work so
that they can feel satisfied. This is why LG has made rule that everyone will get equal respect
irrespective of their work and position which will keep these issues aside.
Self Actualization Needs-
In this stage employee believes that they must get everything up to their potential which
refers to high power in company. For this LG evaluates the decision making and performance of
employees and select them for the position of CEO, COO etc. positions (Morin, McLarnon and
Litalien, 2020).
Process Theory-

There are different forms of theories and theories under it helps to assess the behavior of
employees on which changes can be made.
Expectancy Theory-
This theory focus on determination and hard work of employees through which company
meets their goal. This theory undertakes their behavior on the basis of past decisions of
employees.
Instrumentality-
It works with a different set of approach which is if employees want to get a promotion
they need to serve as per their expectations. On the basis of that company will consider them.
Valence-
This aspect is judged on the basis of things that has value. It is believed that it is
connected with motivation which states that more they achieve more motivated they will get
which will increase more value.
LO 3
P 3 Teams that are effective and teams that are ineffective
Belbin’s Team Roles-
Resource Investigator-
These people are more dedicated and enthusiastic about their nature of work which is
why they never miss out any of their opportunities so they get their products at less rates. LG
deals with them easily as they are extrovert in nature and open to more ideas.
Team Worker-
These people work as a team and believe that if they coordinate with each other they will
tend to grow more. This is because by sharing their experience they can certainly achieve more.
LG needs to keep one thing in mind as to speak things carefully because they get offended easily.

Coordinator-
Approach of these people is traditional because they consider themselves as chairman of
team. They listen everything carefully and divide their task on the basis of that (Manuti and
Giancaspro, 2019).
Shaper-
They have find out a different way to finish the task and that is by challenging their
employees. They believe that with this they will be able to increase their efficiency. They are
considered as an option to take them out from any difficulty being faced by them.
Implementer-
They make changes in plan and then execute them which states that they will find a way
to go ahead from challenges and achieve the goals. LG can easily rely trust on them because of
their past behavior. Although they need to remember that these people are not flexible.
Complete Finisher-
With the help of these people company can work stress free because the aim of these
people is to complete it in an efficient manner. By this they will be able to reduce errors in work
and with that help them to make their services better. They think more than they need to and
delegate the task.
Plants-
They work with new approaches as they are creative in nature. Rate of their success
depends on probability as sometimes they get success and sometimes they don’t. They need to
make their chain of communication better.
Specialist-
These people has been very productive for LG. this is because with the help of them they
have been successful in finding the right solutions to their problems that were rigid. They
complete their work with dignity and will never let the reputation of business go down because
of them.

There is another theory that is given by Bruce Tuckman in 1965 and that has five
elements under it. LG is trying to implement this so that they can develop their way of
communication and bring new strategies in work. There are five stages in this model such as-
Forming-
At this stage employee of company seeks support from others as they need to know if
they are on right path. Reason behind this is that they are new and they are not aware about the
responsibilities they have to work off. This is why it is important that leaders of company
provide them with all the support they need so that they can work towards their aim.
Storming-
Decisions in LG are taken on the basis of analysis because management makes quick
decision for them which is crucial to business. This creates difficulties for members as they will
have to set up strategies as their will be many challenges for them. Focus and attention on leaders
increases because new employees have no one to share to and they are not even properly aware
of uncertainties that business has to look out for (Kumari and Thapliyal, 2017).
Norming-
These are known to be drafted agreements which form regularly in company. This way
they are able to make things clear with their duties. They form the decisions and then after
consent of both parties they draft the agreement. In this form even small tenure decisions are
taken but they are only discussed not drafted.
Performing-
LG have been serving in market for long which states that they have insight about their
performance against the forces of environment. Till this stage employees are cleared with
working of business and their focus is to work as per the aim of company. LG has set their vision
and that is to offer service that is best at less rates so that they can remain ahead of competition.
They believe that they have gained enough experience which boosts their morale so that they can
work without getting any guidance from company.
Adjourning-

This is the last stage of this model but it came very late. This stage is also referred by
other names such as deforming and mourning. By implementing this aspect company will be
able to work on things on which they have never worked up before. Also the purpose of this
aspect is different from others. Apart from this they do not give much attention on development
of team at this stage they leave it on their own (Elswah and Howard, 2020).
LO 4
P 4 Concepts and Philosophies of Organizational Behavior
Path Goal theory-
This theory is clearly assessed on the style that leader follows and behavior that is
suitable to them on the basis of requirements of condition. These way employees get more
flexibility through which they are able to earn and make a place in market. There is no difference
between path goal and Vroom expectancy theory as both of them focus on one thing that is to
make employee clear about the things which is needed to tackle that situation. This theory is
taken in need in order to make employees more comfortable in working as this way they can
serve as per the needs of customer as well as condition of environment which will keep their
business sustainable. With the help of this theory they will be able to assess the path that is right
for their team so that they can set them on a task on the basis of that and that task is not missing
the deadline. Managers will make sure that completed work had no errors in it. Some of the steps
are included in this theory.
Characteristics of Employees-
Not only leaders even employees can judge their superior authorities and if this is being
done then that means structure of business is not properly formed. If leaders are not able to excel
at this then they will not be able to keep their employees satisfied and motivated in work. This
will automatically break their power of retention and employees will tend to look and find work
in different companies of same sector (Borkowski and Meese, 2021).
Task and Characteristics of Environment-

Leaders of LG have to focus on making the path for employees as clear as possible so
that there are no discrepancies in work. Apart from that they need to make sure that if there is
still any problem between it they have the support so that situation can be controlled efficiently.
This way they can reduce their errors and keep their focus on next task so that nothing like it
ever happens again.
Designing of Task-
It is important that they have one goal that is rock solid through which they can reduce
the complexity so that there is no confusion while completing it (Wu and Lee, 2017).
Formulate the system of authority-
This way employees will be able to clearly understand that who their reporting officer is
and who their assisting manager is so that they can maintain the efficiency of work.
Group of Work-
Focus of leaders is to establish and form a strong team so that they can assess members
on the basis of interest so that they can get everyone as per their interest and get better results.
Style and Behavior of leaders-
This aspect assesses that there are some variables in this theory which makes changes in
their pace so that they can serve as per the demand and as per the wants of the situation which is
mostly for improving the level of retention in company. It is important to implement the drivers
of motivation as this way they can get better results at a faster pace which will help them to grow
more and retain their position easily in market (Borkowski and Meese, 2020).
CONCLUSION
From the above studies it has been assessed that LG has offered better quality products at
less rates in comparison with their competition in market. This has helped them to establish their
base of operations in different countries. Apart from that this has even increased the expectations
of their customers as well as employees which are why they need to come up with changes in
their procedures so that they can satisfy their needs and wants. It is important for them to look

after the drivers of motivation as they must be implemented after the analysis of that fulfillment
of need which will keep them motivated as different people have different drivers. Also with this
they will also be able to improve their retention power of employees and lower the rate of
turnover through which they can work on different areas which need their attention. It is
important for the leaders to guide employees of company to the right path so that time that is put
into task is helping them getting substantial amount of return which is what every management
wants and for that it is important that they have reduce the complexity of task. More the levels of
assistance employees are getting in task more the chances are that they will achieve their set and
desired objectives. Leaders need to assess the behavior of employees as per the demand of
condition and judge them on the basis of that as this will help them to invest in them and if they
are right then they will see expected amount of results.