Human Organizational Behavior

Leadership is less about your needs, and more about the needs of the people and the organization you are leading. Leadership styles are not something to be tried on like so many suits, to see which fits. Rather, they should be adapted to the particular demands of the situation, the particular requirements of the people involved and the particular challenges facing the organization. Our group chose Case 1 Restructure at Bunga Raya Bank for analysis. Briefly, Case 1 is about the different leadership used by Yusuf Chang and Latifa Hamid in Bunga Raya Bank. In this report, we analyzed their both differences and we answered the questions given.

Question 1
Elaborate the main team issues you can note in the case. The main team issues as we can note in the case study is the leadership style that was used by Yusuf Chang. Yusuf Chang is known for his directive leadership style which he want things his way. Yusuf Chang leadership style is an autocratic leadership style. According to Greenberg (2011) in his book Behavior in Organizations, autocratic leadership style is a style of leadership in which the leader makes the decision based on their own decision. From the case study, Yusuf Chang had decided to downsize and completely close several branches the bank according to the Board’s recommendation. When analyzing the Bunga Raya Bank’s financial position, Yusuf had done it quietly and without any input from anyone. Then he jumps to a conclusion that in order to increase profits further, he will downsize and closed several branches. The characteristics of autocratic leader are someone who made all the decisions, order the employee precisely on what to do, desired, and quite literally.

Another main team issues that we can note in this case study is the analytical and the decision making process. The analytical model of the decision making process consist of three main phases which is Decision Formulation, Decision Consideration and lastly is the Decision Implementation. Although Yusuf Chang had followed the Analytical Model of the Decision-Making Process, but the decision he had made could affect loss of jobs or relocation of employees and even affect the Bunga Raya Bank’s customers. In the Decision Formulation phase, Yusuf had analyzed the Bunga Raya Bank’s financial position to identify the problem.

Then, through the Decision Consideration phase, Yusuf had come out with an idea to use the technology and Internet banking as an option to be promoted more to customers and allowing the changes to take place with the downsize of the employee. Then, in the Decision Implementation phase, Yusuf had decided and belief that downsize and closed several branches is the best solution to increase the Bunga Raya Bank’s profit. Although Yusuf knows the impact of his decision and what will Latifa reaction is, but Yusuf also concerned that his appointed role is to increase profits and that is what he intends to do.

Besides that, the main team issues as we can note in the case study is the communication between the higher managerial and the employees of the organization. Yusuf did not do the process of telling the employee about his decision to downsize and closed several branches by himself. But he did ask Latifa to arrange a meeting to discuss the matter – or rather, to present the operational strategy loosely detailing how this will take place because Latifa is the one who is closest to the staff and customers.

This phenomenon is also known as MUM effect. According to Greenberg (2011), the MUM effect is the reluctance to spread bad news, shown either by not passes on the message at all or by delegating the task to someone else. In the case study, Yusuf ask Latifa for helps him to arrange the meeting and discuss the matter and address it with the employees and the customers. Yusuf ask Latifa could be due to the different position that they hold in the organization. Although Latifa is unlikely to be equally familiar with the problem, her word doesn’t carry the same weight as if from Yusuf words.

Question 2
Based on the case, elaborate the difference on Yusuf ‘s and Latifa’s approach in communicating the changes to their staff. In order to assist changes in the organization, it is important for manager to have good approach in communicating changes to the staff. Good approach may lead to the success of the changes because the employees can adapt themselves to the changes due to their readiness to change. In the other hand, bad approach may lead to failure because the employees cannot receive the changes that have been made. Based on the case, Yusuf and Latifa have different approach in communicating the changes to their staff. From what have that stated on the case study, Yusuf practices directive leadership style.

In making decisions, a person who belongs to this kind of decision style model are tend to make rapid decisions because they only use small amount of information and not considering others alternative. It can be said that he is selfish leader because he only concerned about his self when doing something. As an example, he has analyzed the Bunga Raya Bank’s financial without input from anyone that work there and more badly he came out with his own solution. Unlike Yusuf, Latifa was not selfish person. She practiced behavioral style she concerned about the organization and concerned about co-worker. This type of person are open to accept others suggestions. It can be seen that she is a good listener because she will spent her time listening to staff’s problem. Besides that, she also involved with bank operation since she also spending her time to travel in order to ensure the branches are doing well and for staff and customers satisfaction.

We can see that Latifa’s approach is more reach out to the staff and customer while Yusuf’s approach is more in action without approaching staff and customer. Here we can say that Latifa’s approach is more to communicate with employees and customer. Communications between leader among employees and customer was good in order to retain their loyalty. On the other hand, communication was important in order to address the changing so the employees and customers would not be in shock after the changing. As mention before, Yusuf is a directive leadership style which wants everything to be settles as soon as possible because they have difficulties accepting the slow. Based on the case, he only planned the change but the action to the changes was leaved to Latifa. He wants Latifa to do the approach within 6 months without thinking about consequences that Latifa may faces. In addition, Yusuf are using top-down decision making in addressing the organization changes.

Top-down decision making is a process of where upper management reaching independent solutions to change organization. At this situation, Yusuf as a top management does not give the employees an authority to make any decision or their opinion. This type of decision making can affect the whole organization. Besides that, Yusuf was influenced by the rewards that was provided if he able to make the changes. It can be seen that Yusuf and Latifa has different approach in communicating the changes. The differences are caused by their style of leadership and their style of making decision. Latifa’s approach is better than Yusuf’s approach because her approach is more humane than Yusuf’s which callous and inhumane. Besides that, Yusuf only make decision but Latifa who’s the one who implement the changes plan to employees and customer.

Question 3
Yusuf is a directive leader – he wants the job done, and done in his time frame. However, he obviously has not thought the whole process through and has decided to leave that to Latifa because of her excellent rapport with the banking staff. What advice would you give to Latifa about handling the situation? Terminate employee’s job is probably one of the least enjoyable moment to every manager. When they always meet, work together, and be friend, they can feel the sense of “family” in the organization. Its same goes to Latifa when she had been told by Mr. Yusof to handle downsizing and closure of 70 regional branches of Bunga Raya Bank. Latifa already has a good relationship with the employee and she also has many admirers.

It will be a hard moment for Latifa. But as staff in the organization, Latifa has her own responsibility to do her job like what her boss wanted. My advice to Latifa to handle this situation is to have a strong emotion and mental. First step, make a proper plan first on how to complete one by one task in short period. She has to check employee performance appraisal and make an observation on how employee works at each department to ensure which employee better stay or which employee are not needed anymore. She also have to think future about which task can combine and can reduce utilize of worker. It can be strong reasons why she wants to let go some employee in the organization. When she done with the first step, she can make an appointment with others supervisors to discuss about her opinion and their opinion too whether they felt the same way or not. If supervisors agree with Latifa’s plan, the way to her act future is more smoothly because she can imagine what she has to do.

Make a close relationship with employee such as communicate widely and frequently with them. This is to ensure that they don’t know things going poorly as well as they don’t even shock when they know what was happen in. Latifa also can run motivation class for employee about how to think positively about what will happen in the future and give them motivation to always be strong whenever they go. This is because, when it comes to dismiss/letting go employee, it’s closely related to emotional event. So when they know they have to go, they really need emotional effort to be strong. So after this suggestion has been done, Latifa has to discuss properly with the selected employee that have been chosen to leave the company.

While do discussion, Latifa have to ask employee whether they want company to give them compensation or they want to leave without it. This is based on volunteering to leave the company same as Malaysia Airlines volunteer leave programme (VLC). Under this programme, employee have no choice to leave the company even though they hard to do so. So with these steps, employee will agree what company’s want. Inform to employee early was a professionalism manner, so that they can be prepared and ready with other job when they leave their current job now. They don’t have to worry about how they can survive after they have been terminated. Closes any branches will affect the reputation of the company and the customer’s loyalty to Bunga Raya bank.

This is because, the sense of inconvenience to customers will make customer’s “taste” split to others bank that can give tip-top services to them and will ease their business. So in the other hand, Latifa can changes Mr Yusof plan to not closure any branches and terminated any employee as what Mr yusof has mention before. With the little time-left, Latifa can give a chance for her “family” to raise their profits in very limited time such as in only 2 month given. If they can raise the profit until achieving company goal, motivate them to maintain it. So that Mr. Yusof might change his mind in last minute to not close any branches and also not do downsizing. Mr Yusof takes rough action like that before this because of economy and not very good profit in past few years. If employee can help him to settled this problem, he will be such a good boss to others.

Question 4
Discuss Yusuf ‘s and Latifa’s differences in their approach to Leadership. Justify your answer. There are some differences of an approach to leadership between Yusuf and Latifa. The difference between them is how they approach their staff in work to solve certain problems and come out with new decisions. Yusuf is known as a directive leader. He always made decisions by himself without asking other staff opinion. He does not involve other staff to have a meeting. He also does not showing his good leadership skill. For him, it is not important to ask for others suggestion because he by himself can create a good solution to solve the problem of Bunga Raya Bank.

Yusuf does not organize his method on how to solve the problem. He started making decisions and does not ask other staff about what actually the causes of the problem in the bank. His decisions also will give a negative effect to the staff. Based on his attitude, he will lack in information to solve the problems. In addition, it is awkward for him to approach the staff and customers because he rare to spend his time with them. They will feel uncomfortable with him and this will affect a good relationship between a leader and staff.

An approach to leadership that has in Latifa is she has a good method to solve the problem. She has a good leadership skill. She always spends her time with staff and customers and always taking care about their satisfaction. Hence, by having a good relationship with staff and customers, Latifa can identify the actual problems that happened recently among the staff and in organization. She also always gave an opportunity to the staff to talk to her anything about them and from this situation, she will be able get any good suggestion from the staff.

Besides that, Latifa is someone who will think deeply before take an action towards her staff and customers and this attitude has so much different with Yusuf. He dare to do anything towards the staff and always thinks about the profit. His leadership skill has gives an implication towards himself. He asked Latifa to help him to solve the problem by approaching the staff and customers because Latifa is the most closest to the staff and customers. Other than that, she has many experiences worked in Bunga Raya Bank. Thus, she know well on how to handle everything in the organization.

Question 5
How would you see the conflict between Yusuf and Latifa be solved? Conflict is inevitable among humans. When two or more social entities (i.e., individuals, groups, organizations, and nations) come in contact with one another in attaining their objectives, their relationships may become incompatible or inconsistent. Relationships among such entities may become inconsistent when two or more of them desire a similar resource that is in short supply; when they have partially exclusive behavioral preferences regarding their joint action; or when they have different attitudes, values, beliefs, and skills. “Conflict is the perception of differences of interests among people” (Thompson, 1998, p. 4). Conflict can be major source of stress in the organization. It also the beginning of chain of reactions that can have harmful effect. Yusuf and Latifa are virtue in differences in their jobs.

Such as Yusuf as CEO of bank and Latifa as Group Operation Manager (GOM) in the same bank as Yusuf. Latifah and Yusuf have caught between the need to satisfy their staff members while simultaneously meeting the demands of their own superiors in maintaining budget, downsizing and closure of the branches. When the conflicts arise, common way to resolve them is to work together to find the solution that is acceptable to all parties invokes .Yusuf and Latifa can solved theirs conflicts by taking several steps to avoiding the negative consequences based on their result. In other words, ensuring that the pay offs for universal cooperation are greater than those for universal deprecation.

Firstly, increasing the level of communication between members. It involves collaboration between the parties (i.e., openness, exchange of information, and examination of differences to reach a solution acceptable to both parties). “The first rule . . . for obtaining integration is to put your cards on the table, face the real issue, uncover the conflict, bring the whole thing into the open” (Follett, 1926/1940, p. 38). Gray (1989) describes this as Nature of Conflict 29 collaborating—“a process through which parties who see different aspects of a problem can constructively explore their differences and search for solutions that go beyond their own limited vision of what is possible” (p. 5). Prein (1976) suggested that this style has two distinctive elements: confrontation and problem solving.

Confrontation involves open communication, clearing up misunderstanding, and analyzing the underlying causes of conflict. This is a prerequisite for problem solving, which involves identification of, and solution to, the real problem(s) to provide maximum satisfaction of concerns of both parties. Then, Yusuf and Latifa should recognize conflicts stemming from faulty organization systems. They have to consider how to avoid problems rather than assign blame for them. It more helpful to ask: how can we make things better?” By discussing both misunderstandings thoroughly. According to research cited by Cascioibid, organization can plan better and make more effective choices when they include the six principles as they weigh the benefits of implementing a strategy of forced layoffs.

Such as ensure that the layoffs are implemented after careful consideration of the roles slated for elimination and the employees in those roles, clearly identify both short‐term strategies such as reduced hours, unpaid leaves, sabbaticals and long‐term strategies including organizational redesign during a drive to reduce overall staff costs, or pay equal attention to the employees. Last but not least, Yusuf and Latifa can use win-win solutions techniques for solving theirs conflicts. Win-win solutions can resolute conflicts between Yusuf and Latifa which they will get what they want. Such as avoid making unreasonable offers, it can be show the offers that make by the Board’s expectations to Yusuf. It not reasonable for layoff certain co workers just to getting a bonus. Yusuf and Latifa can seeking common ground by focusing on the areas of agreement between them it may helps bring they together on the areas of disagreements. For example, negotiating by downsizing and closured branches.

As conclusion, by taking several steps in managing conflicts and taking effective solution may helps reducing the conflicts on organization like what been showed by Yusuf and Latifa. It also helps both of them taking appropriate decisions and thinking reasonable before decide layoff some employees and closing some branches which will give negative impact on them. Yusuf should listen to others opinions and do not take things only in his ways. And Latifa should considering the long term strategies on organization professionally. She should know the company policies and professionally helps in the superiors decisions

Question 6
Taking this issue as an important lesson for your organization to enjoy a better teamwork culture, what are the diversity management programs you would suggest to get your employees bond as a team? As the world becoming more mobile and diverse, diversity has taken on a new importance in the workplace. With the globalizing economy and the increase in multinational corporations, diversity management no longer refers solely to the heterogeneity of the workforce compositions across nations. Diversity management refers to the voluntary organizations actions that are designed to create greater inclusion of employees from various backgrounds into the formal and informal organizational structures through deliberate policies and programs (Corporate training materials.com, 2013).

It is a strategy that is intended to foster and maintain a positive workplace environment. To enhance the teamwork culture, the organization could send the employees to the cultural competency training program. During the training program, they could learn about different culture, norms and believes. Hence, this way could avoid the miscommunications between the employees since they learn the rules of ‘do and don’t’ in each culture. For example, Japanese prefer politeness and indirect messages rather than German people who prefer the direct approach. This program is effective for the companies which hire expatriates and employees who come from different background. During the training, people will also learn about cultural norms in different cultures so they know how to address people respectfully and are aware of issues they may need to integrate into their interactions.

Generally, diversity training seeks to emphasize the advantages of employing people with various backgrounds and talents in order to provide a well-rounded working environment (www.geekseek.com, 2013). The underlying principle of diversity management has to do with acceptance. While individuals retain their own sense of values and ethics, diversity management encourages people to recognize that not everyone is alike. Rather than being intimidated or prejudiced by those differences, employees are encouraged to accept the fact that there are diverse interests, diverse values, and diverse physical and emotional characteristics present within the office environment. Further, the diversity present in the office does not have to hamper productivity or create conflict. Instead, the diversity may function as helpful attributes that promote the attainment of the goals and objectives of the department.

One of the main advantages of a strong diversity management program is that it tends to encourage the development of latent skills and talents among employees. Individuals who may have felt unable to move forward in the company due to factors such as race, gender or sexual orientation find that these attributes are no longer issues. When this happens, employees begin to feel valued and are more willing to step outside their comfort zones and enhance their skill sets for the benefit of the departmental team, the company as a whole and for the individual as well. Oftentimes, there is an inherent language barrier, misinterpretation of customs, or differing social norms that create difficulties in the interaction of cultures. Training can be the key to successful business transactions. Within the workplace, diversity training can also be used to combat ethnocentrism, racism, sexism, ageism, and overall exclusion.

The leaders play a very important role in managing the diverse employees in the organization. This is because to implement new rules, values and norms, usually the employees will follow the leaders. For example, leader who wants the employees to come early must show the good example by doing so first so that the employees will be motivated to come early too. Thus, the leader should not make the judgments, discrimination and look down to each of the employees especially to those who come from different background like gender and races. This also could create a harmony environment in the organization and could make the employees feel that they have an equal chance to prove their abilities in doing job.

In addition, the leader should show the appreciation to the employees with different background when they give their ideas, views and comments. It could promote recognition and respect for the individual differences found among a group of employees. The idea of this management style is to encourage employees to be comfortable with diversity in the workplace and develop an appreciation for differences in race, gender, background, sexual orientation or any other factors that may not be shared by everyone working in the same area of the company.