ob final project (1)
DESCRIPTION
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.TRANSCRIPT
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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.
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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
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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
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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
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• 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.
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• 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
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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
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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 :
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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
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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
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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:
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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 :
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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
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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
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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.
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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.
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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 :
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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
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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
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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
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