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An Analysis of Case Studies Prepared by

Rafiqul Alam Khan

Rakibul Haque

Department of Finance

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Dhaka, June 05, 2014


All the praise and appreciation to Allah, the most merciful and beneficent who has
enabled us to submit this humble work.
We would like to express our special thanks and honour to our course teacher,
Sonia Munmun, who guide us in every minute whenever we sought, and who
showed us the right track to conduct the study.

Finally, we would be happy if the findings of this study could make any
contribution in the field of business efficiency.

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Table of Content

Chapter 01: Context and Rationale
Preludes: the General Scenario
Rationale of the Study
Methodology: Primary & Secondary Sources
Chapter 02: Framework of Case Study
Chapter: Foundations of Group Behavior
Case Incident 1
Case Incident 2
Chapter: Understanding Work Teams
Case Incident 1
Case Incident 2
Chapter 03: Conclusion & Recommendations

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Organizational Behavior (OB) is the study and application of knowledge about
how people, individuals, and groups act in organizations. It does this by taking
a system approach. That is, it interprets people-organization relationships in terms
of the whole person, whole group, whole organization, and whole social system.
Its purpose is to build better relationships by achieving human objectives,
organizational objectives, and social objectives.
From the definition above, organizational behavior encompasses a wide range of
topics, such as human behavior, change, leadership, teams, etc. Since many of
these topics are covered elsewhere in the leadership guide this paper will focus on
a few parts of OB: elements, models, social systems, work life, action learning,
and change.
In this assignment weve discussed and analyzed four case studies so far. First two
case studies are on foundation of group behavior and the next two case studies
covers the topics of understanding work teams.
A group is two or more people who interact so as to influence one another. It is
important to study groups because groups are everywhere in our society, because
they can profoundly affect individual behavior, and because the behavior of
individuals in a group is key to the group's success or failure. Group is the primary
means by which managers coordinate individual behavior to achieve
organizational goals. Individuals form or join groups because they expect to
satisfy personal needs. Groups are formed by the organization, are composed of
employees at the same level and doing similar jobs, and come together regularly to
share information and discuss organizational issues. The affiliation among
members arises from close social relationships and the enjoyment that comes from
being together. The common bond in groups is the activity in which the members
engage. Interactions among groups involve some of the most complex
relationships in organizations in this modern competitive complex world.

This case study revolves around the concept of team building that is illustrated in
later two Case incidents which also provides positive outlook about team building.
Team building based on this context increases teamwork and productivity. The
combining together of people from diverse skills and capabilities build a strong
synergy that makes their job fulfilling and satisfying. It also discussed maintaining
close contacts of employees in the absence of direct contact with one another.
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Preludes: The General Scenario

In order to complete the BBA program we have to complete a course called
Organizational Behavior. In completing the course our course instructor gives us
an assignment on some case studies focusing on group behavior and work teams.
By preparing the report we will be able to gather knowledge about the different
types of Business organizations use of group traits and work team oriented culture.

Rationale of the Study

As our course teacher has given to prepare this assignment, we have tried our level
best to prepare it. After completing the study it will be clear To know about how to complete a case study.
To know the preferences of the business organizations how they conforms
with Organizational Behavior.
To know about group behavior and culture of work team.
To increase our professionalism in job sector.

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Primary Objectives:
WE have done this assignment because our course teacher gave this topic as our home
topics. We have tried our best to make it relevant. We have tried our best to prepare this
assignment perfectly and correctly. If our course teacher satisfied, our primary objective
will be successful.

Secondary Objectives:
Analyzing how to behave in an organizational environment.
At the same time the role of groups and work teams in an organization.
Comparison between the present and past situation of group behavior and
work teams.
To know the strategies that the organization allows to consider as their
group traits and work team behavior.
To exercise group development model.
To know about the key roles of team.

MethodologyMethodology is the process or purpose of collecting data and information, which

are required in connecting with findings tools for best possible outcome.
There are various approaches to collect data for the report. But we should carefully
select the way according to nature of the report. We have designed the study
carefully planned to yield result that are objective as possible. The main lookout of
the report is to find out the evolvement of foundations of group behavior, to
understand the work teams. In this section, we would like to emphasis on study
process that we have conduct while we were preparing the report. This process
consists of the following steps.

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Sources of data
Here the secondary sources of information were used. The secondary sources are:
Web sites

Limitation of the study

We have tried our best to prepare this report perfectly. But we are not completely
satisfied. We have faced many problems. These problems have created lots of
difficulties for us.
Some problems/ limitations were yet present there:


Some information provided on these cases are not clear to us. We mean while
taking decision it contains both positive and negative results. Thats results an
ambiguity among us.

Lack of information:
The Book does not contain all the information we needed. So, the report lacks

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Chapter 2

Chapter Name: Foundations of Group Behavior

Defining Groups
Two or more individuals interacting and interdependent, who have come together
to achieve particular objectives.

Classifying Groups
Formal Group:
Defined by the organizations structure with designated work assignments
establishing tasks

Informal Group:
Alliances that are neither formally structured nor organizationally determined
Appear naturally in response to the need for social contact
Deeply affect behavior and performance

Sub classification of Groups

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Formal Groups
Command Group
A group composed of the individuals who report directly to a given
Task Group
Those working together to complete a job or task in an organization but
not limited by hierarchical boundaries

Informal Groups
Interest Group
Members work together to attain a specific objective with which each is
Friendship Group
Those brought together because they share one or more common

Five Stages of Group Development Model

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Group Properties

Group Property 1: Roles

A set of expected behavior patterns attributed to someone occupying a

given position in a social unit

Group Property 2: Norms

Acceptable standards of behavior within a group that are shared by the

groups members

Group Property 3: Status

A socially defined position or rank given to groups or group members by others
it differentiates group members
Important factor in understanding behavior
Significant motivator
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Group Property 4: Size

Twelve or more members is a large group

Seven or fewer is a small group

Group Property 5: Cohesiveness

Degree to which group members are attracted to each other and are motivated to
stay in the group

Group Decision Making Phenomena

a. Situations where group pressures for conformity deter the group from
critically appraising unusual, minority, or unpopular views
b. Hinders performance

c. When discussing a given set of alternatives and arriving at a solution,
group members tend to exaggerate the initial positions that they hold.
This causes a shift to more conservative or more risky behavior.

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Case Study
Case Incident 1
Maggie Becker, 24, is a marketing manager for Kavu, a chain of coffee shops, in
eastern Ohio. Recently, Maggies wealthy uncle passed away and left to Maggie,
his only niece, INR 5 million. Maggie consider her current salary to be adequate to
meet her current living expenses, so that when she buys a house shell have a nice
nest egg on which to draw. One of Maggies neighbors, Brian, is a financial
advisor. Brian told Maggie there was a virtually endless array of investment
option. She asked him to present her with two of the best options, and this is what
he came up with:
1. A very low risk AAA municipal bond fund. With this option, based on the
information Brian provided, Maggie estimates that after 5 years she stands
virtually zero chance of losing money, with an expected gain of
approximately30 percent.
2. A moderate-risk mutual fund. Based on the information Brian provided he,
Maggie estimates that with this option she stands a 50 percent chance of
making a $40,000 gain but also a 50 percent chance of losing $20,000.
Maggie prides herself on being rational and objective in her thinking. However,
shes unsure of what to do in this case. Brian refuses to help her, telling her that
shes already limited herself by asking for only two options. While driving to her
parents house for the weekend, Maggie finds herself vacillating between the two
options. Her older is also visiting the folks this weekend, so Maggie decides to
gather her family around the table after dinner, lay out the two options, and go
with their decision You know the old saying-two heads are better than one, she
says to herself, so four heads should be even better.

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Solution with Queries Based on case

1. Has Maggie made a good decision about the way she is going to make the

No, Maggie has not made a good decision about the she is going to
make the decision. She wants to invest the money to buy a house in
which shell have a nice nest egg on which to draw. But the array of
investment options is virtually endless.
2. Which investment would you choose? Why?

I would choose in investing a very low-risk AAA municipal bond fund.

Because, in this fund I must be benefited after 5 years by getting
approximately $7,000. While there are zero chance of loss.
3. Which investment do you think most people would choose?

I think most people would choose in investing a very low-risk AAA

municipal bond fund as there is no chance of loss. The people will be
the beneficiary by investing in this fund. On the other hand, individual
decision always towards on conservatism.
4. Based on what you have learned about groupshift, which investment do you
think Maggies family will choose?

Based on what I have learned about groupshift, I think Maggies family

will choose to invest in a moderate- risk mutual fund in which there is a
50 percent chance of losing $20,000. Because, group decisions free any

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single member from accountability for the groups final choice, so

greater risks can be taken.

Case Incident 2
It is sometimes easy to forget that humans are not unlike other animals. Economist
John Maynard Keynes recognized this when he commented, Most, probably, of
our decisions to do something positive, the full consequences of which will be
drawn out over many days to come, can only be taken as the result of animal
spiritsa spontaneous urge to action rather than inaction, and not as the outcome
of a weighted average of quantitative benefits multiplied by quantitative
When such animal spirits are particularly dangerous at the collective level. One
animals decision to charge over a cliff is a tragedy for the animal, but it may also
lead the entire herd over the cliff.
You may be wondering how this is applicable to organizational behavior. Consider
the recent housing bubble and its subsequent and enduring collapse, or the dotcom implosion of the turn of the century. As housing prices rose ever higher,
people discounted risk. Homeowners and investors rushed to buy properties
because everyone else was doing it. Banks rushed to provide loans with little due
diligence because, well, everyone else was doing it. Banks didnt want to get left
behind. Everybody lowered their underwriting standards, no matter who they are,
said Regions Bank executive Michael Menk. As bankers thats who we are; we
follow the herd. Similar problems led to a run up in prices for internet-based
companies during the early twenty-first century, and some wonder whether the
current valuations of social networking sites are following a similar trend of

Yale Economist Robert Shiller called this herd behavior and cited research
showing people often rely heavily on the behavior of groups in formulating
decisions about what they should do. A recent study in behavioral finance
confirmed herd behavior in investment decisions and showed that analysts were
especially likely to follow other analysts behavior when they had private
information that was less accurate or reliable.

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Solution with Queries Based on case

1. Some research suggests heard behavior increases as the size of the group
increases. Why do you think this might be the case?


Yes herd behavior increases as the size of the group increases. As the group
of the size increases group will follow certain norms. If one of the persons
find any benefits from any resources then everyone in the group try to gain
benefit from same resource. If any member added to group, he/she need
acceptance by group. Thus the member is susceptible to conforming to the
group norms. There are considerable evidence that the group can place
strong pressure on individual member to change their attitude and behavior
to conform to the group standards. Every individual try to compare with
other group members and try to be equal with them. As a result, increase
herd behavior as group increases.
2. One researcher argues that pack behavior comes about because it has
benefits. What is the upside of such behavior?

In certain ways pack behavior have benefits. Pack behavior was seen most
commonly in an exclusive circle of people with a common purpose. The
pack will be leaded by a individual in a group who can restrict the other
individuals in the group. Leader will have more responsibilities wit in the
pack and about the pack. Leader will make every one comfort in the pack.
All the members will follow the pack leader and leader will use certain
methods to keep the followers in line.
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2. Shiller argues that herd behavior can go both ways: It explains the housing
bubble, but it also explains the bust. As they see others bidding down home
prices to abnormally low levels. Do you agree with Shiller?

Yes I agree with Shiller. We can also observe herd behavior go both ways
in share market. For example if there was any negative news regarding a
company then people immediately begin sell off shares of the stock. In
other way if any good news about a company was reported in the news then
people start buying the company shares which will drive up the stock price.
3. How might organizations combat the problems resulting from heard behavior?

Herd behavior in organizations was mostly seen in groups. If anyone in

group is lazy or inept, then seeing them others will also reestablish equality
by reducing their effort. As if all individuals in whole group reduce their
effort, productivity will reduce. This is because group results cannot be
attributed to any single person, the relationship between an individuals
input and group output is clouded. There are several ways to prevent this
Set group goals, so the group has a common purpose to strive towards;
Increase intergroup competitions, which again focuses on the shared
outcome; 3). Engage in peer evaluation so each person evaluates each other
persons contribution;
Select members who have high motivation and prefer to work in group, and
If possible, base group rewards in part on each members unique

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Chapter Name: Understanding Work Teams

Team is an organized way to do the task in a formatted manner in an

Why have team become popular

Great way to use employee talents
Teams are more flexible and responsive to changes in the environment
Can quickly assemble, deploy, refocus, and disband
Facilitate employee involvement
Increase employee participation in decision making
Democratize an organization and increase motivation
Difference between groups and teams
Work Group
a. A group that interacts primarily to share information and to make decisions
to help each group member perform within his or her area of responsibility
b. No joint effort required
Work Team
c. Generates positive synergy through coordinated effort. The individual
efforts result in a performance that is greater than the sum of the individual

Types of Teams
Problem-Solving Teams
Groups of 5 to 12 employees from the same department who meet for a few
hours each week to discuss ways of improving quality, efficiency, and the work

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Self-Managed Work Teams

Groups of 10 to 15 people who take on the responsibilities of their former
Cross-Functional Teams
Employees from about the same hierarchical level, but from different work
areas, who come together to accomplish a task
Very common
Task forces
Virtual Teams
Teams that use computer technology to tie together physically dispersed
members in order to achieve a common goal.

Key roles of Teams

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Case Study
Case Incident 1
Many companies proudly promote their team culture. At Toyota, the promotion
seems sincere.
Teamwork is one of Toyotas core value, along with trust, continuous
improvement, long term thinking, standardization, innovation and problem
solving. The firms value statement says the following: To ensure the success of
our company, each team member has the responsibility to work together, and
communicate honestly, share ideas, and ensure team member understanding.
So how does Toyotas culture reflects its emphasis on teamwork?
First, although individualism is a prominent value in western culture, it is
deemphasized at Toyota. In its place is an emphasis on system, in which people
and products are seen as interwined valued streams and people are trained to be
problem solver so as to make the product system leaner and better.

Second, before hiring, Toyota tests candidates to ensure they are not only
competent and technically skilled but also oriented toward teamwork-able to trust
their team, be comfortable solving problems collaboratively, and motivated to
achieve collective outcomes.
Third, and not surprisingly, Toyotas structures its work around teams. Every
Toyota employee knows the Adage All of us are smarter than any of us. Teams
are used not only in the production process but also at every level and in every
function: In sales and marketing, in finance, in engineering, in design and at the
executive level.
Fourth, Toyota considers the team to be the power center of the organizations. The
leader serves the team, not the other way around. When asked whether he would
feature himself in advertisements the way other automakers had (most famously,
Dr. A, Daimlers CEO Dieter Zetshce), Toyota USAs CEO, Yuki Funo, said,
No. We want to show everybody in the company. The heroes. Not one single
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Solution with Queries Based on case

1. Do you think Toyota has succeed because of its team oriented culture, or do you
think it would have succeed without it?
Yes, I think Toyota has succeeded because of its tam-oriented culture. We can
say that on the basis of their statement Which is to ensure the success of our
company, each team member has the responsibility to work together and
communicate honestly, share ideas, and ensure team-member understanding.
From the above lines, we can say that team-oriented culture is mainly
responsible for their success.

2. Do you think you would be comfortable working in Toyotas culture? Why or

Why not?
Yes, of course. Not only I think but believe I would be comfortable working
in Toyotas culture. Because they practice teamwork. Teamwork is one of
Toyotas core values. Along with trust, continuous improvement, long term
thinking, standardization, innovation and problem solving. It becomes very
easy if a team perform a work or task which is followed by the Toyotas. So, I
prefer that it will be very comfortable for me to work in Toyotas culture.

3. In response to the recession and the firms first ever quarterly loss, Toyotas
managers accepted a 10% pay cut in 2009 to avoid employee layoffs. Do you
think such a response is a good means of promoting camaraderie? What are the
risks in such a plan?

No, I do not think that such a response is a good means of promoting

camaraderie. For the reason of pay cut, there are some risks involved in
such a plan which are

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Firstly, for the pay cut during recession and the firms first
ever quarterly loss, the employees can be dissatisfied. And as
a result, their performance will be gradually lower.
Secondly, if managers accepted a 10 percent pay cut, skilled
employee leave the organization for doing better jobs on other
Finally as a reason of pay cut employees dislike work,
become lazy and do not want to take responsibility.
4. Recently, DCH Group, a company comprised of 33 auto dealerships,
decided to adapt Toyotas culture to its own, particularly its emphasis on
teamwork. DCHs CEO Susan Scarola said, Trying to bring it down to
day-to-day operations is tough. It was not something that everybody
immediately embraced, even at the senior level. Do you think the culture
will work in what is typically the dog-eat-dog world of auto dealerships?
Why or why not?
Yes, I think the team culture will work in what is typically the dogeat-dog world of auto dealers. There are some reasons
*Team culture is a culture in which people and products are seen as
interwined value streams and people are trained to be problem
solvers so as to make the product system learner and better.
In teamwork culture people can be able to trust their team, solve
problem collaboratively and motivated to achieve collective
Teams are used not only in the production process but also at every
level and in every function in sales and markets, in finance.

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Case Incident 2
Historically, IBM was one of the most tradition-bound companies on the planet. It
was famous for its written and unwritten rules%u2014such as its no-layoff policy,
its focus on individual promotions and achievement, the expectation of lifetime
service at the company, and its requirement of suits and white shirts at work.
How times have changed.
IBM has clients in 170 countries and now does two-thirds of its business outside
the United States. As a result it has overturned virtually all aspects of its old
culture. On relatively new focus is in the teamwork area. While IBM, like almost
all large organizations, uses work teams extensively, the way it does so is unique.
To instill in its managers an appreciation of local culture, and as a means of
opening up emerging markets, IBM send hundreds of its employees to month-long
volunteer project teams in regions of the world where most big companies don't do
business. Al Chakra, a software development manager located in Raleigh, North
Carolina, was sent to join Green Forest, a furniture manufacturing team in
Timisoara, Romania. With Chakra were IBM employees from five other countries.
Together, the tea helped Green Forest become more computer savvy to help its
business. In return for the IBM team's assistance, Green Forest was charged, well,
This is hardly pure altruism at work. IB calculates these multicultural,
multinational teams are good investments for several reasons. First, they help lay
the groundwork for opening up business in emerging economies, many of which
might be expected to enjoy greater future growth than mature markets. Stanley
Litow, the IBM VP who oversees the program, also thinks it helps IBMers
develop multicultural team skills and an appreciation of local markets. He notes,
"We want to build a leadership cadre that learns about these places and also learns
to exchange their diverse backgrounds and skills." Among the countries where
IBM has sent its multicultural teams are Turkey, Tanzania, Vietnam, Ghana, and
the Philippines.
As for Chakra, he was thrilled to be selected for the team. "I felt like I won the
lottery," he said. He advised Green Forest on how to become a paperless company
in 3 years a recommended computer systems to boost productivity and increase
exports to western Europe.

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Another team member, Bronwyn Grantham, an Australian who works at IBM in

London, advised Green Forest about sales strategies. Describing her team
experience, Grantham said, "I've never worked so closely with a team of IBMers
from such a wide range of competencies."

Solution with Queries Based on case

1. If you calculate the person-hours devoted to IBMs team projects, they
amount to more than one 180,000 hours of management time each year. Do
you think this is a wise investment of IBMs human resources? Why or
Why not?
I think this is a wise investment because of several reasonsa. It builds a leadership cadre that leans about various places and also
learns to exchange their diverse backgrounds and skills.
b. They help lay the ground work for opening up businesses in emerging
2. Why do you think IBMs culture changed from formal, stable, and
individualistic to informal, impermanent and team oriented?
IBM has clients in 170 countries and now does two-thirds of its business
outside the United States. As a result, it has overturned virtually all aspects
of its old culture to cope with multicultural working environment.
3. Would you like to work on one of IBMs multicultural, multinational
project teams? Why or Why not?
Yes I would like to work on one of IBMs multicultural, multinational
teams for the following reasons-

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a. It will enable to work closely with a team of IBMers from such a wide
range of competencies.
b. The company brand name increases the weight of our CV.
c. It will build a leadership cadre that helps leans about various places and
also learns to exchange their diverse backgrounds and skills.
4. Multicultural project teams often face problems with communication,
expectations and values. How do you think some of these challenges can be

The Challenges can be overcome by following the several stepsStep 1
Run meetings to expose the working team to other cultures. Introducing
working team who will be working together in a non-threatening
environment enables a good working relationship long term. Learning
about another culture's language, rules and norms for acceptable behavior
helps prepare the team to deal with situations as they arise. Changing
preconceptions can lead to more conducive working relationships.
Step 2
Conducting activities to demonstrate how dependent we are on language.
For example, dedicate a day to being silent. Have each employee develop a
contract stating what they hope to learn, how long they will remain silent
(what exceptions can be made) and how they plan to cope without speaking
all day. After experiencing a day with limited communication, participants
can typically relate to being in a foreign environment more easily.
Step 3
Providing workshops, tips and techniques for communicating effectively in
multi-cultural work environments. People act according to the values of
their own culture. Others from another culture might interpret behavior
differently. Practicing such strategies as active listening (paraphrasing what
is said to ensure understanding can be achieved) and using multiple forms
of communication, such as written, audio and visual, can enhance employee
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involvement in assuring that conflicts do not arise because of cultural

misunderstandings due to lack of awareness.
Step 4
Coach work team to mediate conflicts related to cultural
misunderstandings. Provide opportunities for employees to respond to
situations from viewpoints different than their own. Divide a group of
people into pairs to conduct role-playing exercises that allow participants to
acknowledge culture difference exist. Encourage each pair to think about a
conflict they have experienced recently due to cultural differences. Have
each participant describe what they might find offensive or unusual. Let
each participant suggest how the problem would be handled in their own
culture. Together, have the participants develop a resolution to the problem.
Have each pair report to the larger group on their experiences.

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Chapter 3
The organization's base rests on management's philosophy, values, vision and
goals. This in turn drives the organizational culture which is composed of the
formal organization, informal organization, and the social environment. The
culture determines the type of leadership, communication, and group dynamics
within the organization. The workers perceive this as the quality of work life
which directs their degree of motivation. The final outcomes are performance,
individual satisfaction, and personal growth and development. All these elements
combine to build the model or framework that the organization operates from.
Group Behavior and Work as a team in an organization play an important role in
the whole system. Teamwork communication is an essential trait among members
of the team. Communication builds stronger ties and the bonds are knitted tightly.
Barriers of communication oftentimes cause misinterpretation that is why; each
team member should realize the value of keeping an open mind and a listening
heart. Obstacles are never hard for a team who work with one mind and body.
Success is inevitable and can be achieved successively once a team has embraced
the spirit of teamwork.

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After studying those cases weve came up these findings. These are stated below.
Group behavior emanates from the causes that contribute to the groups
effectiveness. As groups function and interact with other groups, they develop
their own unique set of characteristics including structure, cohesiveness, roles,
norms and processes. As a result, groups may cooperate or compete with other
groups, and intergroup competition can lead to conflict.
Working as a team needs expertise. Each person in the team should supplement
and complement each other. Due to individual differences one or two members of
the team may be slower than the rest, but the spirit of camaraderie among them
will serve as the strength of the entire group. Team members are not competitors
rather they are allied forces with each other. The goal might seem impossible to
achieve however, the purpose of the team is to make the impossible, possible.

1. Organizational Behavior, Stephen P. Robbins & Timothy A. Judge, 13e.
2. Organizational Behavior, Group role & teamwork, Harvard Business
1. www.wikipedia .org

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