Organizational Behavior: A Case Study of Reliance Industries Limited: Organizational Behaviour

By Djordje Teofilovic

This is a contributed book developed by Djordje Teofilovic and his students from India. It analyzes Reliance Industries Limited through the lenses of organizational behavior (OB).

 

Chapter contributors:

Aarushi Madnani, Indian Institute of Management, Rohtak, Haryana, India

Battini Rahul Tej, Indian Institute of Management, Rohtak, Haryana, India

Divyansh Agarwal, Indian Institute of Management, Rohtak, Haryana, India

Yashasvi Sharma, Indian Institute of Management, Rohtak, Haryana, India

Sargam Singhal, Indian Institute of Management, Rohtak, Haryana, India

Jeet Sachdeva, Indian Institute of Management, Rohtak, Haryana, India

Upasana Devi, Indian Institute of Management, Rohtak, Haryana, India

Priyal Jain, Indian Institute of Management, Rohtak, Haryana, India

Riya Katiyar, Indian Institute of Management, Rohtak, Haryana, India

Mridul Nohani, Indian Institute of Management, Rohtak, Haryana, India

Kishan P Hariharan, Indian Institute of Management, Rohtak, Haryana, India

Tanisha Jain, Indian Institute of Management, Rohtak, Haryana, India

Sanya Laxmey, Indian Institute of Management, Rohtak, Haryana, India

Srishti Sulhan, Indian Institute of Management, Rohtak, Haryana, India

Lily Gupta, Indian Institute of Management, Rohtak, Haryana, India

Sri Harshitha, Indian Institute of Management, Rohtak, Haryana, India

Kavvya Yagnik, Indian Institute of Management, Rohtak, Haryana, India

Aarushi Madnani, Indian Institute of Management, Rohtak, Haryana, India

Chitraditya Negi, Indian Institute of Management, Rohtak, Haryana, India

Nayantara S Manoj, Indian Institute of Management, Rohtak, Haryana, India

Kerena Biju Mathew, Indian Institute of Management, Rohtak, Haryana, India

Abhayjeet Kumar Lal, Indian Institute of Management, Rohtak, Haryana, India

Nandini Gupta, Indian Institute of Management, Rohtak, Haryana, India

Swayam Arora, Indian Institute of Management, Rohtak, Haryana, India

Raj Kamal Kushwaha, Indian Institute of Management, Rohtak, Haryana, India

Devireddy Vaishnavi, Indian Institute of Management, Rohtak, Haryana, India

• Language: English
• Publisher: Eleon Publishing
• Release date: Jun 28, 2023
• ISBN: 9781990546099

Book preview

Editor

Djordje Teofilovic is a marketing professional. Born and raised in Serbia while formally educated in the United States. An educator since 2005 in various roles and subjects from the business/social sciences area. Small business owner and entrepreneur; Eleon Publishing is the latest start-up. Associated with the International Institute of Marketing Professionals (IIMP) since 2009.

Authored book What Serbs Must Do to Survive. Particularly passionate about strategy. Self-proclaimed guru of Template Marketing. Business Instructor at Trios College, Toronto, Canada, and Indian Institute of Management, Rohtak, India. 

Contributors

Aarushi Madnani, Indian Institute of Management, Rohtak, Haryana, India

Battini Rahul Tej, Indian Institute of Management, Rohtak, Haryana, India

Divyansh Agarwal, Indian Institute of Management, Rohtak, Haryana, India

Yashasvi Sharma, Indian Institute of Management, Rohtak, Haryana, India

Sargam Singhal, Indian Institute of Management, Rohtak, Haryana, India

Jeet Sachdeva, Indian Institute of Management, Rohtak, Haryana, India

Upasana Devi, Indian Institute of Management, Rohtak, Haryana, India

Priyal Jain, Indian Institute of Management, Rohtak, Haryana, India

Riya Katiyar, Indian Institute of Management, Rohtak, Haryana, India

Mridul Nohani, Indian Institute of Management, Rohtak, Haryana, India

Kishan P Hariharan, Indian Institute of Management, Rohtak, Haryana, India

Tanisha Jain, Indian Institute of Management, Rohtak, Haryana, India

Sanya Laxmey, Indian Institute of Management, Rohtak, Haryana, India

Srishti Sulhan, Indian Institute of Management, Rohtak, Haryana, India

Lily Gupta, Indian Institute of Management, Rohtak, Haryana, India

Sri Harshitha, Indian Institute of Management, Rohtak, Haryana, India

Kavvya Yagnik, Indian Institute of Management, Rohtak, Haryana, India

Aarushi Madnani, Indian Institute of Management, Rohtak, Haryana, India

Chitraditya Negi, Indian Institute of Management, Rohtak, Haryana, India

Nayantara S Manoj, Indian Institute of Management, Rohtak, Haryana, India

Kerena Biju Mathew, Indian Institute of Management, Rohtak, Haryana, India

Abhayjeet Kumar Lal, Indian Institute of Management, Rohtak, Haryana, India

Nandini Gupta, Indian Institute of Management, Rohtak, Haryana, India

Swayam Arora, Indian Institute of Management, Rohtak, Haryana, India

Raj Kamal Kushwaha, Indian Institute of Management, Rohtak, Haryana, India

Devireddy Vaishnavi, Indian Institute of Management, Rohtak, Haryana, India

Table of Contents

Editor............ ................................................................................................3

Contributors....................................................................................................4

Explaining Organizational Behavior.........................................................................6

Reliance Industries: Background..........................................................................17

Environment..................................................................................................27

Technology...................................................................................................32

Culture ........................................................................................................46

Learning.......................................................................................................55

Teamworking.................................................................................................66

Work Design..................................................................................................75

Organization Design.........................................................................................84

Change.........................................................................................................98

Leadership....................................................................................................110

Decision Making............................................................................................119

Conflict......................................................................................................130

Power and Politics..........................................................................................140

Explaining Organizational Behavior

Aarushi Madnani and Battini Rahul Tej

Organizational behavior studies the behavior of employees and management to solve organizational issues, particularly those involving people. This entails looking at the organization as a whole, individual human behavior, and how individuals interact in an organizational setting.

Organizational behavior can be categorized as an interdisciplinary approach that incorporates knowledge from other disciplines like psychology, sociology, anthropology, political science, and economics. It studies an organization’s functions based on the behavior and conduct of its personnel while using a psychological approach to determine an organization’s operations (Fields & Bocarnea, 2005). Organizational behavior considers all the factors that influence how an organization operates. Moreover, it has been developed and modified to understand human behavior in a socio-psychological context. Since socialization significantly impacts individuals' and groups' attitudes and social behaviors, sociology contributes to organizational behavior by researching interpersonal dynamics such as leadership, team dynamics, and communication. Furthermore, anthropology aids in the comprehension of cultural influences on organizational behavior, as well as the implications of value systems, norms, attitudes, cohesiveness, and interaction. Political scientists study how or why people gain power, as well as political behavior, decision-making, friction, conflict, and group behavior, all of which are key areas of discussion in organizational behavior. Lastly, organizational behavior also focuses on topics such as labor market dynamics, productivity, human capital planning and forecasting, and cost-benefit analysis to positively influence and guide employee behavior and optimize organizational efficiency (HotChalk, 2022).

Organizational behavior theories and principles are frequently applied to increase organizations’ overall efficiency. Organizational behavior researchers are primarily interested in determining the presence of employee motivation, job alienation, organizational commitment, or other work-related variables to better understand how these characteristics explain employee work behaviors and how they are influenced by other factors like working conditions, company policies, or human resource programs (Student Paper: Waterford Institute of Technology, 2022).

Organizational behavior has great importance in today’s corporate culture. Organizational behavior may be better understood and predicted by studying organizational behavior as it aids in comprehending the nature and actions of individuals inside an organization (Student Paper, Republic of the Maldives, 2022). Moreover, it is critical to encourage personnel and sustain interrelationships inside the organization. Organizational behavior study elucidates how employees behave and perform at work. It assists in building awareness of the factors that might encourage employees, improve their performance, and assist employers in developing a strong and trustworthy connection with their workforce.

The origins of organizational behavior may be traced back to the early twentieth century when behavioral theorists sought to enhance factory output. Organizational behavior is a relatively recent subject of study that emerged during the Industrial Revolution. The introduction of technological advances and the adoption of new industry practices, including greater mechanization, factories, and, automation generated a completely new workplace in the 1760s. The industrial revolution ushered in tremendous social and cultural upheaval, as well as new organizational structures. The following schools of thought emerged as a result of three rounds of evolution: Theories of Classical Management, Neo-Classical Management, and Modern Management Theories.

Influential Theories of OB

Scientific Management Theory, Human Relations Theory, X & Y Management Theory, and Bureaucracy Theory are some of the most influential OB theories to date. Fredrick Taylor's Scientific Management Theory aimed to promote organizational efficiency by increasing individual productivity. Taylor's study concentrated on routine, repetitive chores rather than complicated, problem-solving activities. Every duty was meticulously defined and quantified as he felt that by standardizing these jobs, they may well be made more efficient. Taylor used time metrics to uncover savings and cut down on wasted effort in ordinary chores (Gordon, 2022). He also worked to improve the efficiency of the equipment or resources used in these everyday chores. He was able to increase the efficiency of individual work by adapting equipment or technologies. Taylor also offered a system of rewards and punishments to encourage efficient practice. Employees who learned to use more effective approaches were rewarded for their increased productivity while employees who refused or were unable to adjust were reprimanded. This approach is based on the premise that specialization boosts production and that workers should be eager to do specialized tasks as part of the broader organizational processes (Gordon, 2022).

Elton Mayo, a Harvard University psychologist from Australia, established the Human Relations Theory through a series of studies known as the Hawthorne Experiments. According to the findings, group dynamics influence individual work productivity and performance, and managers should recognize that employees have different preferences and thus, they should be dealt with accordingly. Furthermore, individuals aren't solely driven by financial rewards, finding meaning in one's work is also vital, and employees are more open to change when given the chance to participate.

Douglas McGregor proposed Theory X and Theory Y in 1960, implying two characteristics of human behavior at work, or, to put it another way, two different perspectives of individuals employees: one is negative, referred to as Theory X, and the other is positive, referred to as Theory Y (Student Paper: Coventry University, 2022). Theory X depicts workers' nature and behavior at work in a pessimistic light, whereas Theory Y depicts employees' nature and behavior in a positive one. If we compare it to Maslow's theory, we can state that Theory X is based on the premise that employees prioritize physiological and safety requirements, whereas Theory X is based on the assumption that employees prioritize social, esteem, and self-actualization needs. Theory Y, in McGregor's opinion, is more logical and reasonable than Theory X (Harappa, 2021). As a result, he promoted amicable team relationships, responsible and exciting tasks, and everyone's participation in the decision-making process.

The employment of strict control and oversight is encouraged by Theory X as employees are averse to organizational changes. On the other hand, Theory Y suggests that managers should develop and foster an organizational environment that allows individuals to exercise initiative and self-direction. Employees should be provided with an opportunity to contribute to the success of Theory Y through the distribution of power, cooperation, and participatory decision-making in an organization. It integrates and ties workers' needs and ambitions with the company's goals and objectives (Student Paper: SRH Holding, 2022).

According to German scientist and sociologist Max Weber, bureaucracy is a highly regulated, codified, and impersonal organization. He also established the concept that an organization's hierarchical structure, as well as its rules, regulations, and lines of power, must be clearly stated (Student Paper: The University of South Pacific, 2022). According to bureaucratic theory, bureaucracy is the foundation for every organization's methodical construction and is aimed to assure efficiency and economic effectiveness. It paves the way for the management and administration to focus on an organization's power structure, labor specialization, a formal system of rules and regulations, a well-defined hierarchy within the organization, and impersonality in the implementation of rules are all characteristics of bureaucracy, according to Weber. After studying new organizational forms, he identified bureaucracy as an ideal style of organization based on rational-legal principles and maximizing technological efficiency.

Modern Evolution of Organizational Behavior

Organizations do not exist in a vacuum since they are part of the dynamic social and technological spheres of the time. And the idea of ‘constant change’ has been growing in its relevance throughout the 21st century while it reached its crescendo during the late 2010s. Wildly impacting world events like the Covid-19 pandemic inadvertently and permanently alter the ways things are done. Hence, the study of Organizational Behavior finds it essential for the theoretical understanding of organizational functionality to address and inculcate these shifts. 

Handling Cultural Shifts

The concern of culture as an organizational concept has newfound importance in the age of rampant global integration. The workforce and the stakeholders of the organizations aren’t confined to a singular demographic and social stratum. OB studies have always had an emphasis on culture as a driving force and determinant of organizational beliefs, but the theories primarily focus on the cultural values confined to the working space in the view of the particular region and demographic. With ideas of diversity and inclusivity gaining more weight in the recent past, the scope of OB is expanding to examine the role cultural backgrounds and sensitivity play in operational efficiency on a micro and macro level.

The state of technology is one of the most influential factors in organizational behavior. Aspects such as communication and data management are constantly impacted by the growing means as a result of business innovations based on the internet and other digital platforms. The workforce and operations need to be capable