Executive Report: Organizational Behavior Case Study Analysis (M5)

This report critically evaluates a case study focusing on the transformation journey of a multinational construction company facing challenges in its Industry 4.0 initiative. The analysis identifies key problems, including financial difficulties, inadequate return on investment, and deficiencies in leadershi...Read More

Organisational Behavior
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Executive Summary
The paper helped in evaluating the given case study related to transformation within a company.
It has been noticed that the firm deals with several problems that need to be solved as it creates a
negative impact while executing organizational activities. The occurring of the financial and
planning issues were identified as the major problems from the case. Moreover, it was found that
the eaders within the organization lacked proper leadership and motivational skills that were
required to increase the reliability and effectiveness of the entire organization. There was crucial
requirement to provide proper motivation to the employees in order to enhance the effort and
skill levels which would have helped further in achieving the desired goals for the firm.
However, it is analyzed that the company must maintain effective transformational and
situational leadership styles. It will help the employees to increase their motivational level and
achieve the objectives set by the organization. There are different types of motivational skills
which can be further adopted to enhance the productivity and profitability of the firm. These are
achievement motivation, rewarding motivation, incentive motivation, and competence as well as
learning motivation. Moreover, the company must also adopt effective strategies that will help in
gaining an adequate return on investment (ROI) as well as manage their financial planning. It is
significant for the leaders to focus upon situational leadership model such as delegating,
supporting, coaching and directing. The firm must continue to invest in its portfolio without
giving importance to what the market is doing. The development of financial portfolio and with
appropriate decision-making skills also helps in increasing the growth of the firm. The paper
further concludes that an organization that comprises of effective leaders possess more chances
to survive within the market, reach greatness, sustain its growth momentum and face the
challenges.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the problems in the case study..............................................................................3
Analyzing the causes.......................................................................................................................4
Steps to enhance effective leadership styles, change and solve other organizational problems.....4
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The fundamental objective of the paper is to critically evaluate the case study, which is based on
the transformation journey of a multinational construction company. Transformation within an
organization plays a significant role as it helps organizations to use innovative and new
strategies. However, at the time of transformation, organizations deal with various fundamental
challenges that create barriers while achieving the organizational goals. Hence, the paper will
focus on identifying the problems faced by the firm that creates an adverse effect on the
organizational activities of the company. Therefore, the paper will provide efficient and effective
steps that will help the company to enhance effective leadership styles and overcome
organizational issues.
Identification of the problems in the case study
The problems that have been identified within the case study are the irrelevant return on
investment and were postponed by the management board pending revisions. It states that the
company deals with financial problems and improper planning. However, due to the occurrence
of this issue, the team members experience external locus of control and low self-efficacy. It can
be said that the individuals who are unable to use the opportunity to get involved in challenging
work are often disengaged or bored that results in a decrease in self-efficacy (Choi, Kim and
Kang, 2017:377). Moreover, the motivational level of the organizational staff members was low
because of non-attractive reward system. Through this, it has been analyzed that the management
within the organization fails to motivate their team members. On the other hand, the
transformational and situational leadership within the organization were not clear. As a result,
the leaders within the organization fail to demonstrate effective leadership skills and qualities to
lead a team and manage organizational activities. Such a situation arises as the leaders in the
multinational construction company are unable to make appropriate and effective decisions that
help in achieving organizational goals.
Therefore, these issues created challenges and barriers for the company to enhance its digital
transformation strategy and manage the substantial plan.

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Analyzing the causes
Steps to enhance effective leadership styles, change and solve other organizational
problems
Defining the causes of the problems
The identification of the financial problems and the improper planning were determined as to be
the primary issues that affected the business processes of the organization. Moreover, the firs
also lacked in providing motivation to their staff members which lowered the overall
productivity of the organization. Leadership is determined to be a significant dynamics which is
all about the process of influence. Effectiveness of leadership must lead to empower and enable
the team members of what is to be done. It helps a leader to accomplish its common objectives
and also helps in connecting with their immense potentials (Hickman and Akdere, 2018:1). One
of the crucial issues was that the leaders within the firm lacked adoption of effective leadership
skills to operate the business procedures which finally the decision-making processes of the
organization. However, effective leadership is difficult for both implementing strategies and
setting the right direction effectively to drive organizations or business in the appropriate
direction.
Motivation assertions
The employees within the firm should be motivated by the leaders to boost the overall growth
and performance of the organization. The motivations could be provided in various ways such as
by achievement motivation, incentive motivation, fear motivation, competence and learning
motivation (Lee and Raschke, 2016:162). In order to overcome the problems mentioned in the
case study, the leaders within the company must take effective motivational steps to maintain
their position as a transformational leader. As per Dabke (2016:27) to become an efficient
transformational leader, the top-level managers must develop a supportive environment where
accountability and responsibility are shared among the team members. The leaders are required
to motivate the actions of the employees related to organizational activities instead of personal
interests. The use of achievement motivating could have been done to enhance the effort level of
the employees in enhancing the growth and profitability of the firm. It will help the leaders to

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gain admiration, respect and trust from the team members. The leaders need to influence their
business and performance that creates an impact on their expectations. The most effective step is
to personalize their management style and adapt themselves into different skills, needs and
personalities of the team members (Hsu, Fournier and Srinivasan, 2016:261). It is the
responsibility of the top-level managers to enhance the creativity of the employees, by
motivating and rewarding them for their excellent performance and value independent thinking.
As a result, in this way, the leaders will become successful in increasing high self-efficacy within
an external locus of control (Lee and Raschke, 2016:162). The organizational leaders must
inspire, motivate and guide the organizational members by setting a clear goal, strategy and
vision.
The motivation to the employees can be provided by various ways to the employees. The leaders
must act with ethical standards and integrity to gain positive outcomes. The leaders within the
organization are required to demonstrate a higher level of employee satisfaction and
performance, along with attributes that are essential for surviving in the competitive world or
environment. This helps them to reinvent or revitalize the workplace environment. Enhancing
this leadership skill will help in energizing the employees as well as share passion for the
business with the team members (Aga, Noorderhaven and Vallejo, 2016:806). Moreover,
transformational leadership involves a vision for setting a goal and enhancing organizational
activities. Thus, to become a transformational leader, an individual must incorporate strong
integrity to motivate trust from employees and develop personal skills to inspire staff members to
work together to make the vision become a reality. As a result, it will help the company to
achieve the goal of enhancing digital transformation by making effective decisions by efficient
transformational leaders.
Effective steps to enhance the situational leadership style
To become an efficient situational leader, the top-level managers within the multicultural
construction company must engage in implementing a leadership style to meet the organizational
needs and inspire team members. To adapt themselves to this style, the leaders must be able to
understand the requirement of the team members as well as the organization (Afsar et al.,
2017:307). The leaders within the company must take appropriate steps, such as learn to

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understand the maturity level and emotional states that will help in accomplishing the realistic
expectations of the team members and the organization. The leaders must provide direction and
guidance without giving importance to their emotional baggage. It is also important to enhance
their problem-solving skills that will help the leaders within the case study to solve
organizational problems and challenges. In order to become a successful situational leader, the
leaders are also required to enhance their coaching skills and implement strategies to inspire
team members to be effective and productive (Walasek and Barszcz, 2017:1227). As a result,
this will help the leaders to get engaged in improving or fixing outcomes and resolve conflicts
that arise among the team members.
However, the leaders are highly required to follow situational leadership theory such as Hersey-
Blanchard's situational leadership theory that will help in dealing with different tasks and
maturity levels that occurs within the organization. This theory states that rather than focusing on
workplace aspects, it is important for the leaders to adjust their styles as per their abilities. It also
states that effective leaders are relationship relevant and task-relevant (Leonidou et al.,
2017:585). An effective adoption of this particular leadership theory needs a willingness among
the leaders to remain flexible with each employee and in every situation. It is flexible for the
individuals who seek to adopt a situational leadership style that helps the managers to adopt
management style and also help in enhancing the relationship with the team members (Ozyilmaz,
Erdogan and Karaeminogullari, 2018:181).
Focusing on this connection will help the leaders to make their employees feel valued and result
in a better working environment for the manager as well as the employees. This will help the
employees within the company mentioned in the case study to enhance their self-efficacy and
attain organizational targets (Tortorella and Fogliatto, 2017:946). In order to deal with the
situation that arises within the case study, it can be said that adopting a situational leadership
style help leaders to deal with unmotivated and competent employees. Based on the problem
such as postponing the task, the leaders must apply the strategy of monitoring and providing
good instruction of the whole procedure that is regarded as the best style of leadership in any
situation (Van den Heuvel, Demerouti and Peeters, 2015:511). This will help the leaders to
understand the situation appropriately and systematically.

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Implementing an organizational reward system
Based on this perspective, it has been analyzed that the management within the organization
must focus on implementing the organizational reward system for the employees. The
organizational reward system is considered to be the selection of relevant types of rewards that
are utilized by the organizations. It may include all types of rewards, both extrinsic and intrinsic.
The employees within the company must be given a reward in terms of incentive payments,
promotion, increased pay, fringe benefits, social relationship and formal identification. This may
be achieved by implementing relevant transformational leadership style as it highly focused
towards fulfilling the needs of the employees (Bosse et al., 2017:605). This will make the
organizational employees strive hard, increase the feeling of accomplishment, job satisfaction
and their personal growth. The multinational construction company in the given case study must
learn to understand the expectations and preferences of the employees. By implementing and
offering a reward system, the employees within the organization will be highly motivated and
such motivations will result in gaining desired outcomes. Following the concept of expectancy
theory will help the employees to increase their performance and effort. It is regarded as an
effective way to create an impact on employee commitment by changing the exchange process.
However, performance appraisals whether individual or team facilitate feedback to the
organizational teams or employees (Azman and Ridwan, 2017:5). It helps individuals to define
management expectations, increase efficiency and improve individual performance. As a result,
the reward system is determined to be a fundamental motivational function that possesses far-
reaching consequences for both organizational effectiveness and individual satisfaction.
Increasing self-efficacy
Self-efficacy is determined to be an ability to execute a task effectively, which possess a direct
relationship with the performance. According to Salehzadeh (2017:865) effective situational
leadership style will help the managers within the organization to enhance the performance of
their team members, and such practice helps in increasing the self-efficacy of the employees. To
increase self-efficacy, it is the responsibility of the organizational leaders to make sure that the
job demands are relevant as the complication of the job demands creates a significant impact on
self-efficacy. The employees within the company who will gain mastery in accomplishing

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autonomous, challenging and complex jobs are more likely to increase self-efficacy. Hence, the
leaders within the organization must provide training and professional development practices
through role modelling, mentoring and guided experience (Lee and Raschke, 2016:162). In other
words, the leaders will be able to enhance self-efficacy by providing relevant professional
development opportunities for the employees. By using situational leadership style, the leaders
must enhance self-management training within the organization to maximize expectations related
to self-efficacy (Davis, 2015:179). They must motivate their employees to enhance time-
management skills, be well-organized, delineate clear priorities and set realistic and reasonable
personal expectations and goals.
Steps to change and solve other organizational problems
Effective steps to avoid inadequate return on investment (ROI)
Moreover, it has also been observed that the company mentioned within the case study deals
with inappropriate return on investment which needs to be resolved to gain positive outcomes.
ROI is determined to be the performance measure that is used by organizations to compare the
efficiency of several different investments or analyze the efficiency of an investment. To avoid
the problem mentioned above the company is required to develop a new form of ROI metric,
which is commonly known as Social Return on Investment (SROI) (Turaga, 2017:65). It will
help the company to consider the wider impacts of projects by utilizing additional financial
value. It will also help in understanding the value proposition of a few of the features like
environmental, social and governance (ESG) that are utilized in socially responsible investing
(SRI) practices. Similarly, the company must also take steps to implement marketing statistics
ROI to recognize return attributable to marketing campaigns and advertising (Lau et al.,
2018:20).
On the other hand, to gain adequate ROI, it is significant for the company to generate a huge
investment portfolio and save money regularly. The organization must invest steadily that will
help in improving the investment gains of the firm. It is significant to find lower-cost ways to
find a huge difference in investment performance (Smith, Minor and Brashen, 2018:80). As the
company within the case study is facing problems related to inadequate ROI, it is significant for
the management to diversify its investment portfolio. It will help the company to allocate stock

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to become disproportionately large within the marketplace, which will help in enhancing
portfolio performance for the long-term. Thus, the organization must be prepared in advance to
avoid dealing with such type of complex situations. The company must maintain an adequate
percentage of the investment portfolio in both cash equivalent and fixed-income investments.
They will highly support in minimizing the losses experienced by the company in the
marketplace. In the declining market, the leaders within the organizations must implement
strategies to rebalance their organizational activities to maintain their position. It will allow the
firm to gain a huge advantage when the market recovers (Taba, 2018:65). As a result,
implementing such strategies will help the company to manage its financial problems related to
the investment portfolio as well as execute proper planning.
Conclusion
The paper concluded by evaluating the case study related to a multinational construction
company. It has been analyzed that the company deals with various problems such as inadequate
return on investment due to improper financial planning. Other problems are the external locus
of control and low self-efficacy among the organizational employees. It has been analyzed the
significant reason behind low self-efficacy is due to reduced motivational level of the employees.
Moreover, the organizational leaders within the organization fail to implement effective
leadership styles.
Thus it is stated that the leaders must focus towards enhancing effective leadership styles like
situational and transformational leadership styles. Implementing these leadership styles will help
the leaders in motivating the performance of their employees that in turn, will help them in
achieving organizational goals. It is observed that such leadership style will enable the leaders to
focus upon organizational reward system and implementing strategies to increase the self-
efficacy of the employees. Moreover, the leaders must focus on using relevant leadership
theories to make a substantial plan to execute digital transformation within the organization. It is
also seen that the management within the company must use appropriate strategies to gain
adequate ROI.

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