Organizational Behavior Issues in Aussieco Essay

Words: 1552
Pages: 7

Aussieco, an Australian company established as a small manufacturing and service operation company in 1962 is now a fully expanded company with 600 employees. The company built its reputation on a single product holding 90 per cent of the Australian market in the 1980. Over the years the market holding has gone down by 30 percent in spite of the product being unique and company facing little competition in the market (Jones,Gal, n.d)
The downturn in Aussieco’s performance is mainly due to issues with the company’s management and organizational behavior. Organizational Behavior refers to ‘the understanding, prediction and management of human behavior in organizations’ (Luthans,2010). It is the study of individuals and their behavior in a
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There is lack of remuneration and pay, less promotional opportunities, bad working conditions. This high level of job dissatisfaction of employees reflects in their low performance, company’s low profits, high employee turnover, high absenteeism and low level of commitment towards the company. The attitude of employees in an organization is largely influenced by the kind of environment the organization posses and further the attitude of employees affects their efficiency and performance at the organizational level. The environment of aussieco is not employee friendly thus employees have a negative attitude. Employee traits can be best explained by the Five factor model. Job performance is highly dependent on an individual’s conscientiousness (i.e dutifulness, persistence, industriousness) and emotional stability (i.e anxiety, security, suspiciousness). In Aussieco employees had low conscientiousness and low emotional stability which affected their overall task performance and contextual performance.

Organizational commitment is an important attitude toward the employers and the company. It is the extent to which we identify with them. Most of the employees, posses’ continuance organizational commitment, which is a calculative approach, where they chose to continue working in the company because they ‘have to’ rather than their want or obligation. This attitude is influenced by perceived costs of leaving the