1

ORGANIZATIONAL BEHAVIOR

LETTER OF TRANSMITTAL
May 31, 2008
Mr. Retd. Cdr. Tabassum
Teacher, Organizational Behavior
Bahria University
Karachi.
Sir:
We herewith present our Term Report authorized by you as a requirement for this
course.
In this report, we have tried to provide analysis on organizational behavior of NIB Bank.
We hope we have covered all that was required for the report.
If there be any clarification demanded, we would appreciate a call from you to our group
members.
Sincerely,
Maaz Khalid
Muhammad Usman Badar
Muhammad Zain

ORGANIZATIONAL BEHAVIOR

ACKNOWLEDGEMENT
In the name of Allah, the most beneficent and merciful who gave us strength and
knowledge to complete this report. This report is a part of our course Organizational
Behavior. This has proved to be a great experience. This report is a combine effort of,
Maaz Khalid, Muhammad Usman Badar and Muhammad Zain.
We would like to express our gratitude to our organizational behavior teacher Mr. Retd.
Cdr. Tabassum, who gave us this opportunity to fulfill this report. We would also like to
thank our colleagues who participated in a focus group session. They gave us many
helpful comments which helped us a lot in preparing our report.

ORGANIZATIONAL BEHAVIOR

HISTORY OF THE NIB BANK:

NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was incorporated in March
2003 as a public limited company. It started operations in October 2003 when all assets,
liabilities, rights and obligations of the former National Development Leasing
Corporation (NDLC) and Pakistan operations of IFIC were amalgamated with and into
the bank with a paid up capital of Rs.1.2bn. In April 2004 the Pakistan operations of
Credit Agricole Indosuez were also amalgamated with and into NIB. In March 2005
Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis
Investments.
This shareholding was further enhanced to over 70% in June '05 following an increase
in NIB's paid up capital to Rs.3.4bn.
NIB Bank has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th
quarter of 2007. Total assets have grown from Rs.9bn in December 2003 to Rs.87bn
(excluding acquisition of PICIC through rights) as of September 30 2007, a CAGR of
85%. Loan growth has been equally rapid, increasing from Rs.7bn to Rs.43bn in the
same period (a CAGR of 64%), resulting from successes in both the commercial and
consumer business.
Deposits for the same period have grown at a CAGR of 95%, reaching Rs.45.3bn. The
overall client base of NIB has also witnessed a tremendous growth in the same period
as of September 2007; from a few thousand to over one hundred thousand.NIB Bank's
vision is to rank amongst the top 5 banks in the country.
Therefore towards end of June 2007 it acquired majority shares of PICIC with the aim of
merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited
into NIB . The acquisition was financed through the country's largest private sector
rights issue, with resultant increase in NIB's paid up capital to Rs.21.4bn. The PICIC
acquisition has bought with it another subsidiary "PICIC AMC" and an affiliate "PICIC
Insurance". NIB already has a shareholding in NAFA, an Asset Management Company
(AMC); thus its asset management business will now also be increased, with
diversification in the insurance business.

ORGANIZATIONAL BEHAVIOR

The legal merger of PICIC, NIB & PCBL took place on December 31, 2007, once all
regulatory approvals were in place. NIB Bank is led by Khawaja Iqbal Hassan,
supported by four business heads and ten business enabling function heads. The
merger has resulted in a vastly expanded network of 240 branches and total assets of
over Rs.185bn. Consequently NIB has the second highest paid up capital of around
Rs.27.5bn and ranks number 7 amongst commercial banks in terms of distribution
network. Merger synergies will accrue through lower cost deposits, enhanced customer
service delivery channels and overall improved efficiencies. These would provide a
competitive edge in the face of increasing competition. Temasek Holdings remains the
largest single investor in NIB Bank.
This merger is one step forward in consolidating the banking sector as envisioned by
State Bank of Pakistan and enhancing FDI as per the Government of Pakistan's
objectives. The powerful franchise of the three merged entities has now been brought
together to form a large and powerful bank. Going forward management is confident
that the combined bank will be a top performer delivering a wide range of financial
services through an extensive branch network. The asset management arms and
insurance affiliate are also expected to perform well and provide an attractive dividend
stream.

ORGANIZATIONAL BEHAVIOR

GOAL SETTING THEORY:

Goal setting theory was born out of Aristotles theory of final causality and then
researched in greater detail by Edwin A. Locke in the 1960s to understand how goals
can influence an individuals performance. The basic theory behind goal setting is that
human behavior is galvanized and governed by goals and ambition. Today, goal setting
theory is very important not only for those studying organizational psychology, but for
anyone seeking to increase productivity, enhance performance and reach for greater
heights of success. Goals are able to motivate and spur you to meet your ambitions
because it helps you focus your efforts on that objective. Every objective we have
requires a list of tasks to be executed. By setting goals, were able to persist with the list
of tasks and are compelled to develop strategies in order to reach our objective. The
incredible results achieved with the goal setting theory explain why its not just colleges,
universities and sports institutions that use it to obtain results, but in businesses too
where survival is based on ensuring positive outcomes.
Having objectives is not the issue, but striving to attain them is. Following are the points
that help you to achieve goals:

State your goals in specific terms. Understand what your goals are and know
why youre selecting these goals.
Make your goals attainable. There is no point setting goals you believe are
unattainable. The best way to do this is to break your goals down into actionable
steps.
Measure your goals. Set a timeframe, or a milestone that can put the pressure
on you to meet your objectives.

ANALYSIS:
To what extent you and your colleagues feel that the company sets challenging goals for
itself and expects quality performance and outstanding production?
Answer Log Table:
Low standards
Scores

1
-

2
-

3
-

4
-

5
4

6
1
2

7
3
1

8
11
5

9
7
4

10
3
9

High standards
E
D

ORGANIZATIONAL BEHAVIOR

When we asked the question relating to goal setting theory from employees in general
we got responses which led us to decide that employees wanted to decrease the
standard of goals set for them by management. But after the thorough analysis of
individuals we found about 72% employees who were satisfied with the standards of
goals set for them and not only this some them wanted to improve standards of goals
with little difference according to our provided scale. The rest of 28% employees feel to
decrease the standard of goals.
Now the question arises why in general the answer was different instead of having
majority satisfied with the standards. The reason is that those 32% employees who
wanted to decrease the standard marked greater difference on the scale we provided
which affected the final result but the analysis shows that the majority is satisfied with
standard of the goal sets for them.
But very few of the employees answers led us to decide that employees wanted to
decrease the standard of goals set for them by management.
But too much difficult goals can also de-motivate many employees. Company should set
there goals that there employees expect to achieve.

ORGANIZATIONAL BEHAVIOR

EMPLOYEE INVOLVEMENT PROGRAMS:

A participative process that uses the entire capacity of employees and is designed to
encourage increase commitment to the organization success. Employee involvement
programs include the following.

Participative management
Representative Participation
Quality circles
Employee Stock Ownership Plans.

Participative Management:
An open form of management where employees have a strong decision-making role.
Participative management is developed by managers who actively seek a strong
cooperative relationship with their employees. The advantages of participative
management include increased productivity, improved quality, and reduced costs.

ANALYSIS:
To what extent you and your colleagues feel that you can make decisions and solve problems
without checking with your managers?
No responsibility
Scores

1
-

2
-

3
4
-

4
2
-

5
7
3

6
9
8

7
3
8

8
6

9
-

10
-

Expected responsibility
E
D

We asked the question from the employees to what extant you and your colleagues feel
that you can make decisions and solve problems without checking with your managers?
Basically this question is related to participative management that is one of the types of
employees involvement program to increase the involvement of employee in decision
making process. After analysis of the questionnaire we found that the current
participation level in NIB Bank is 48% this shows that the employees are authorized to
make decisions for routine works or in normal situations but not in critical situation.
However, the rating scale in our questionnaire suggests that employees wanted to be
trusted and allowed to make decision to further extent by 20% more. Participative
program are also very helpful to increase the moral high and productive of the
employee. In participative management employees are the trusted by the management
and also increase the management confidence on their employees. Participation
increases commitment to decision. Employees are less likely to undermine a decision at
the time of implementation if they share in making that decision and participative
management makes employees job more interesting and meaningful to them and
participative management increased productivity, improved quality and reduced costs.

ORGANIZATIONAL BEHAVIOR

MOTIVATION:
The process that accounts for an individual, intensity, direction and persistent efforts
towards attaining a goal.
Reward systems:
The only way employees will fulfill your dream is to share in the dream. Reward systems
are the mechanisms that make this happen. "However, reward systems are much more
than just bonus plans and stock options. While they often include both of these
incentives, they can also include awards and other recognition, promotions,
reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you.

ANALYSIS:
We asked the question related to rewards that how rewards motivate employees in NIB
Bank and we found that there are different kinds of rewards NIB Bank gives to their
employees which are as follows:

Cash Bonuses
Promotions
Make team leader
ESOP
Increment in salaries
Allowances like (Fuel allowance, mobile allowance)

We found one very different kind of reward in NIB Bank that they motivate their
employees whose performance is not up to the mark by giving them the salaries
equivalent to the market value of the any other employee of same rank so as to
motivate their employee.
We asked the question from the employees related to reward system that to what extent
they are being recognized and rewarded on their good performance and how these
rewards motivate them to work. We ascertained that most of the employees in NIB Bank
are satisfied but very few of employees showed that there are not rewarded for their
performance but the overall result is positive and this shows the level of motivation
employees get from rewards. Many of the employees told us they are being rewarded
after accomplishment of their sales target in such a way that their management take
them to the picnic or invite them for dinner and the rewards like picnic and dinner from
NIBs management is being rewarded most frequently.

ORGANIZATIONAL BEHAVIOR

And other very interesting thing which we found in NIB Bank is that their management
doesnt fire their employees even their performance level is not up to the standard of the
company. For example if an NIBs employee continuously does not achieve its target for
the period of three months the management does not fire that employee and we can
say that this is kind of surety from NIBs management to its employees and this kind of
relaxation motivate employees a lot and employees secure and they are not always
threaten from their management to achieve sales target.
Here we also want to share that in NIB Bank we did not find the employee recognition
programs like (employee of the year, employee of the month) and we feel that this kind
of recognition program can also increase the level of motivation and productivity of
employees of NIB Bank.
But in whole we discover that the employees of NIB Bank are very much satisfied from
rewards that are being given to them and the rewards in NIB Bank is based on the
performance of the employee except one that we mentioned above and in NIB Bank
most of the rewards are given to employees are of monetary nature and Management of
NIB Bank continuously appreciates the good work done by the employees for the
achievement of goals, which motivate the employees to worker harder for the
achievement of goals.

10

ORGANIZATIONAL BEHAVIOR

LEADERSHIP STYLES:
From Mahatma Gandhi to Jack Welch and Martin Luther King to Rudolph Giuliani, there
are as many leadership styles as there are leaders. Fortunately, business people and
psychologists have developed useful, shorthand ways of describing the main leadership
styles that can help aspiring leaders to understand and adapt their own styles and
leadership impact.
Whether you are managing a team at work, captaining your sports team or leading a
major corporation, you leadership style is crucial to your success.
10 of the most frequently talked-about leadership style are as follows:
1. Autocratic leadership
2. Bureaucratic leadership
3. Charismatic leadership
4. Democratic leadership or Participative leadership
5. Laissez-faire leadership
6. People-oriented leadership or Relations-Oriented leadership
7. Servant leadership
8. Task-oriented leadership
9. Transactional leadership
10. Transformational leadership

ANALYSIS:
Key: 1 = Never; 2 = Seldom; 3 = Occasionally; 4 = Often; 5 = Always
S.No.
1
2
3
4
5
6
7
8
9
10

QUESTIONS
Tells group members what they are supposed to do.
Acts friendly with members of the group.
Sets standards of performance for group members.
Helps others feel comfortable in the group.
Makes suggestions about how to solve problems.
Responds favorably to suggestions made by others.
Makes his/her perspective clear to others.
Treats others fairly.
Develops a plan of action for the group.
Behaves in a predictable manner toward group members.

1
-

SCORING
2 3
4
- 4 18
- 3
5
2 5 12
- 4
8
2 4
6
- 6 10
- 2 16
- 2
5
1 14 7
3 12 2

5
3
17
6
13
13
9
7
18
3
8

11

ORGANIZATIONAL BEHAVIOR

We asked different questions relating to the leadership style from NIB Bank employees
to know which leadership style their leader uses and we found that two of the leadership
styles that are task oriented and people oriented or relations-Oriented. The results we
got from employees of NIB Bank that 53% of the employees feel that their managers
are relationship oriented leaders and remaining 47% feels that their managers are task
oriented leaders so this shows that the NIB Bank has got the combination of leaders
that are task oriented and relationship oriented. This shows that NIB Bank have the
leaders that perform better in all situations and can manage their teams more effective
in favorable conditions and also in very unfavorable conditions.

12

ORGANIZATIONAL BEHAVIOR

PATH GOAL THEORY:

Houses PATH GOAL THEORY describes how leaders can motivate their followers to
achieve group and organizational goals and the kinds of behaviors they can engage in
to accomplish that Path Goal theory suggests that effective leaders follow three
guidelines to motivate their followers. The guidelines are based on the expectancy
theory of motivation. Effective leaders who follow these guidelines have highly
motivated subordinates who are likely to meet their work goals and perform at high
levels.
Determine what outcomes subordinates are trying to obtain in the workplace. For
example, what needs are they trying to satisfy, or what goals are they trying to meet?
After gaining this information, the leader must have control over those outcomes or over
the ability to give or withhold the outcomes to subordinates.
Reward subordinates for performing at high levels or achieving their work goals by
giving them desired outcomes.
Make sure the subordinates believe that they can obtain their work goals and perform at
high levels. Leaders can do this by showing subordinates the paths to goal attainment
(hence the name path goal theory), by removing any obstacles that might come along
the way, and by expressing confidence in their subordinates capabilities.
House identified four types of behavior that leaders can engage in to motivate
subordinates:

Directive behavior (similar to initiating structure) lets subordinates know what

tasks need to be performed and how they should be performed.
Supportive behavior (similar to consideration) lets subordinates know their
leaders cares about their well-being and is looking out for them.
Participative behavior enables subordinates to be involved in making decisions
that affect them.
Achievement-oriented behavior pushes subordinates to do their best. Such
behavior includes setting difficult goals for followers, expecting high performance,
and expressing confidence in their capabilities.

13

ORGANIZATIONAL BEHAVIOR

ANALYSIS:
We designed a different questionnaire especially for the TOP MANAGEMENT OF NIB
Bank and the questions were related to PATH GOAL THEORY as the questionnaire
belongs to the top management so we asked four top level managers of NIB Bank to fill
this questionnaire list of their names and designation are given below:
By studying our questionnaire we found different behaviors of leadership and there
contribution in the organizations behavior. We found different results for each behavior
after analyzing the answers of our respondents which are given below:
Directive Leaders Behavior:
The most contributive behavior in leadership behaviors in NIB Bank having 27% share
in leadership behavior was found to be directive behavior which is being frequently used
in the organization we targeted. The benefit of using directive form of leadership which
is characterized by greater control, defining what needs to be done, allocating resources
and establishing clear expectations.
The directive leadership behavior takes a more pragmatic approach to handling affairs
in NIB Bank and is characteristically utilized in corporate turn-around situations.
Supportive Leaders Behavior:
The second most contributory behavior in leadership behaviors in NIB Bank having 26%
share in leadership behaviors was found to be supportive behavior the results obtained
shows that supportive behavior used in NIB Bank is almost the same as the use of
directive leadership behavior with having difference of only 1% which is not a very big
figure.
Participative Leaders Behavior:
Participative leadership behavior is the least used behavior in NIBs culture with having
23% this shows that the NIB Bank leaders do consult with their subordinates while
making a decision but at low frequency as compared to other PATH GOAL leadership
behaviors.
Achievement Oriented Leaders Behavior:
The third most contributory behavior in leadership behaviors in NIB Bank with having
percentage of 24 this shows that the leaders of NIB Bank set challenging goals for their
subordinates with low frequency but they expect from their employees to perform at
their highest level.
The results of our analysis shows that there is no such big difference in leadership
behaviors used in NIB Bank and this is a very good sign for NIB Bank that their leaders
manage their subordinates according to different situations with different leadership
behaviors.

14

ORGANIZATIONAL BEHAVIOR

NORMS:
Norms are shared group expectations about behavior and how members ought to
behave.
Norms provide groups with control and predictability and give members a sense of
security and comfort. Norms are also the way we express values, attitudes and beliefs.
Norms put boundaries on members that may be narrow or wide.
Many norms in organizations originate from management expectation or from work rules
and procedures of the formal organization. They develop and operate in informal
groups. Many central work group norms revolve around productivity. Norms can put
lower and upper limits on productivity. Controlling productivity not only spread the work
ought to more people for a longer period, but also prevents management from rising its
expectation.
Some organizations have norms emphasizing social concern for employees this norm
foster taking care of people who needed or other wise contributing to the quality of an
employees life at work. Management can foster many norms that contribute to
organizational success, such as norms effecting work quality, helpfulness or customer
relation. A norm of secrecy may be critical to keep competitors from stealing ideas.

ANALYSIS:
Norms are of four types. The one we quire about is social norm. The reason of selecting
social norm is that our culture is based on collectivism so the importance of social
norms is very high. The situation of norms in NIBs culture is fair enough according to
the result of our questionnaire most of the employees follows the norms set by the
organization and they are satisfied with them, but we found some employees who are
willing to improve the conditions i.e. norms the calculated value of there willingness is
about 25%. The major factors of social norms are friendliness, trust and mutual support.
According to the employees in NIB Bank the conditions of trust and friendliness are
pretty good and they are willing to increase mutual support.
It is necessary to emphasize on social arrangement norms in country like Pakistan
because of its collectivism culture and these norms helps the organization to get the
participation of their employee in positive manner to achieve the goals set by the
organization these kind of norms also motivates the employees to remain in
organization because of friendly culture in organization social arrangement norms also
helps the employees to interacts with each other in more friendly manner which will
increase trust among them and with there top management.
If these norms are valued by the management then it will positively affect employee
satisfaction and productivity and it will also enhance the organization culture

15

ORGANIZATIONAL BEHAVIOR

CONFORMITY:
Conformity can be defined as a change in a persons behavior or opinions as a result of
real or imagined pressure from a person or a group of people.
Who does Conformity affect?
Conformity can affect people in all different ways, positively and negatively.
In task-specific situations, those who are led to believe they do not have the required
aptitude, their tendency to conform increases.
Individualistic societies are less likely to conform than collectivistic.
How does Conformity work?
An individual will most likely conform if:
The majority consists of experts
The members of the majority are important to the individual
The individual can relate to the majority on some level--there are similarities
between the individual and the group

ANALYSIS:
Through our questionnaire we analyzed the pattern of answers given by employees and
we found many similar answers in regard of questions and it shows greater extend of
conformity among employees of NIB Bank as they have almost marked similar options
given in each questions of our questionnaire. The level of conformity shows there good
relations and understanding with each other which also shows that they will not leave
each other in hard times but on the other hand the high level of conformity indicates the
danger of employees saying always yes to others decision instead of thinking critically
about it and there might be a chance of employee saying yes under pressure in the fear
of loosing group and may result in loss of any useful idea.
After Aschs study about conformity, in the world the conformity is decreasing as the
level of knowledge and awareness are increasing and the result of our questionnaire
shows high level of conformity, we can suggest the reason collectivism culture of
Pakistan

16

ORGANIZATIONAL BEHAVIOR

TEAMS:
A group whose individual efforts result in a performance that is greater than the sum of
the individuals input.
Guideline for team leaders set by NIBs management:
Definition:
Has a natural authority, generates commitment and builds team cohesiveness by setting a
clear vision for the team, reflected in core values.
EFFECTIVE BEHAVIOUR INDICATOR

LESS EFFECTIVE BEHAVIOUR INDICATOR

MORE OF THIS

LESS OF THIS

Communicates frequently a realistic picture of future

plans so people know what has to be done and why?
Arrives at decision by consensus, where appropriate,
to gain team commitment.
Is supportive of the team / individuals and helps in
overcoming problems to achieve targets.
Leads by example; displays behavior which reflects
the desired work norms and values.
Spends time finding out the way individuals want to
be managed and work together; adapts leadership by
style to match.
Maximizes the available resource by constructing
well-balanced teams; acknowledges and helps others
values the unique contributions of each member.
Identifies own leadership style and strengths, adapts
these to specific situations.
Follows up with dissenters or blocker to contain
negativity.

Takes independent decisions and asks the

team to follow instruction without questioning.
Waits for team to ask for information instead of
proactively keeping them informed of the big
picture.
Exhibits high personal energy when initiating
action but does not follow through.
Talks about the theory and principles of
leadership, yet not reflected in behavior.
Uses the abilities of staff for own personal and
career gains; does not share benefits and
praise but passes on criticisms and blame.
Does not seek to identify and discuss the
values of the team to ensure everyone is
working towards a common goal.
Avoid admitting own mistakes or limitations.

17

ORGANIZATIONAL BEHAVIOR

Guidelines for reducing conflicts between team members set by NIBs management:

Definition:
The ability to pull together individuals or parties in conflict by diffusing emotions, identifying the
critical issues and helping got reach a compromise; keeps the focus on common objective to
meet both needs.
EFFECTIVE BEHAVIOUR INDICATOR

LESS EFFECTIVE BEHAVIOUR INDICATOR

MORE OF THIS

LESS OF THIS

Lets conflict escalate before taking any action.

Confronts covert conflict; draws out sensitive issues
or relationships.
Uses
all-round
knowledge
to
manage
interdepartmental and intra-departmental conflicts.
Keeps the focus of conflict resolution on the long
term overall interests of the organization.
Facilitates open discussion between conflicting
parties.
Remains impartial when dealing with others; listen
to arguments of each party.
Adapts approach to the situation and the culture of
the conflicting parties.

Seeks to diffuse conflict after listening to only

some of the parties involved; jumps to conclusions
about others based on earlier situations.
Adopts a singular style or strategy across different
contexts.
Does not identify brewing conflicts from emotional
reactions.
Suggests own solution
identifying the source.

to

conflict

without

Focuses too much on emotional aspects of the

conflict rather than the solutions.
Conveys inconsistent messages to conflicting
parties, thus resulting in the further confusions.

ANALYSIS:
After visited to NIB Bank we discovered that the NIB Bank employees comprised of selfmanaged works teams according to employees responses they feel greater level of
responsibility on their shoulders and they manage the things like planning, scheduling of
work, and assigning task to the member of team, control the pace of the work, make
decisions through discussion between the team members, take actions to solve the
problem and also interact with their customers and we found that the employees called
their colleagues relationship officer rather than sales officer.

18

ORGANIZATIONAL BEHAVIOR

QUALITY MANAGEMENT:

CREATIVITY

Definition:
Is able to conceive original, imaginative and valuable ideas to solve problems and improve
processes.
EFFECTIVE BEHAVIOUR INDICATOR

LESS EFFECTIVE BEHAVIOUR INDICATOR

MORE OF THIS

LESS OF THIS

Develops ideas and thinks through to an innovative

conclusions.
Questions traditional thinking in order to initiate new
perspectives.
Builds on information and ideas provided by others.
Acts quickly
opportunities.

to

grasp

and

develop

Prefers to use tried and tested methods to solve

problems rather than think of new and innovative
solutions.
Sees opportunities as risks; talks about the
dangers and risks rather than the potential
benefits.

novel

Improvises effective solutions when faced with

ambiguous and difficult situations.
Tests out ideas for practicality and feasibility.
Seeks out pools and thinkers and puts them
together to generate ideas; uses tools and
techniques to simulate others creativity.

Actions ideas giving appropriate thought only to

short-term benefits and immediate impact.
Is overly absorbed in own ideas; hence is not as
aware of the environment or important events as
required.
Over relies heavily on past experience; does not
think laterally.

19

ORGANIZATIONAL BEHAVIOR

CONTINUES LEARNING:

Definition:
A strong personal commitment to self-development reflected in an underlying curiosity to know
more about people, things, issues, stretching beyond what is routine or required job knowledge.
EFFECTIVE BEHAVIOUR INDICATOR

LESS EFFECTIVE BEHAVIOUR INDICATOR

MORE OF THIS

LESS OF THIS

Identifies skills needed for the future and takes

steps to develop self and others.
Actively
seeks
professional
opportunities, both inside and
organization.

development
outside the

Seeks opportunities to work with the others of

diverse backgrounds, experience, viewpoints.
Has personally established on-going systems or
habits
for
information
gathering
through
professional memberships, literature and contacts.
Sets clear personal development targets which
focus on behavioral improvements as much as
professional / technical skills.
Volunteers for assignments which contribute to
individual learning goals.
Accepts and seeks feedback from others; learns
from past mistakes.

Over emphasizes the importance of won

professional development at the cost of work
priorities.
Relies too heavily on own knowledge does not
accept constructive feedback.
Sticks to own area of expertise rather than
broadening ones focus.
Develops oneself for tangible rewards rather than
more and grow.
Waits for others to identify own development needs.
Considers skills lifelong; continuously resorts to
tried and tested methods.
Prefers to cover up mistakes rather than seek
feedback and learn.

20

ORGANIZATIONAL BEHAVIOR

CONCLUSION:
After studying and a analyzing the results of our research on the various issues related
to the organizational behavior within the organization that are affecting the performance
of its management and particularly its employee, followed by several general and
specific list of questions we asked and the interviews we conducted during our visit to
the two branches of NIB bank one on Tariq Road and other on I.I Chundrigar Road,
we are able to draw out our conclusions about this report.
NIB Bank is a global bank which is also operating in Pakistan. The organization
behavior regarding goal setting for employees we have concluded that the management
of NIB Bank is effective in setting goals according to the competition in the banking
sector of Pakistan. As the requirement of growing banking sector it is necessary to set
challenging and effective goals so as to become market leaders. Despite of setting
challenging goals the employees of NIB Bank are satisfied with these challenging goals
and performing well to achieve the goals which were provided to them.
The management style in NIB Bank is kind of participative management in which
employees are given chance to share their ideas for decision making so the NIB Bank is
utilizing its employees by getting different ideas from different employees this provides
greater chances for getting better and innovative ideas. Not only this but from this
activity employees feel motivated because they think they also have the authority in
decision making process and they are also a part of an organization. During the
interview of an employee NIB Bank he told us All the employees here are given title of
relationship officer rather than any other designation and at the beginning of each
month the top level management visits every branch and arrange meeting with all the
employees of the branch and discuss the problems faced by every employee and
immediately tries to resolve the problem and this is the major motivating factor for us.
For motivating their employees management uses different types of motivating tools the
innovative ones we found are ESOP (Employees Stock Ownership Plan) and the pay
plan for less productive workers. By providing ESOP the employees gains the
ownership of an organization and work hard not only for their benefit but also to
maximize the profit of the organization. The next thing about the pay plan for less
productive workers the company motivate their employees whose performance is not up
to the mark by giving them the salaries equivalent to the market value of the any other
employee of same rank.
As the motivation and reward systems are up to the expectation of the employees so
the employees are very much satisfied and dont want to leave the organization.

The leadership styles in NIB Bank are mixture of both the task oriented and relationship
oriented but it is little lien towards relationship oriented leadership style. The leaders

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ORGANIZATIONAL BEHAVIOR

behavior consisting of all the leaders behavior provided by Houses Path Goal Theory
having almost same percentages with very low variation.
Overall we concluded NIB Bank inherits strong organizational culture having values for
leaders and as well as for employees and the organization behavior is up to the mark
for any company being in Pakistan.

RECOMMENDATION:
1. NIB Bank should offer training and development sessions for undergraduates;
this will help NIB Bank in future while recruiting employees.
2. NIB Bank should reduce conformity by giving rewards to employees for
suggesting more effective idea in the benefit of the organization this will not only
provide wider range of ideas but also act as a motivational tool for their
employees.
3. NIB Bank should arrange extra curricular activities like cricket matches on inter
bank level to further improve relations between employees as other organizations
are organizing (for example ABN Amro, Mobilink, etc.)
4. NIB should introduce Dress-Down day i.e. employees should be given
permission to wear dresses other than formal dresses on certain days so as to
make them relaxed while work.

Organizational Behavior
Research On Barclays Bank
Business Essay
Published: 23, March 2015
Organizational behavior is a study that looks at the individuals,
employees, and how management teams behave and interact within the
organization in a workplace setting. OB is therefore an interdisciplinary
field that comprises communication, sociology, psychology, and
management. The key issues that influence organizational behavior
include; organizational change, corporate culture within the industry,
organizational development, and customer expectations that usually
shape the organizational values. This research paper tries to explain the
basic but vital principles of organizational behavior in order to equip the

22

ORGANIZATIONAL BEHAVIOR

management teams with adequate theoretical knowledge regarding

essential concepts necessary for the efficient and effective management
their work, and to understand some of the concepts and challenges
related to the management of behavior in organizations. This is done
with focus on Barclays bank, to identify the correlation between
employees and the organizations in which they work. The research
methodologies adopted are online questionnaire, interviews, and the use
of observation of the operation of Barclays bank employees. There is an
increase in the drive by companies to develop mature organizational
behavior and culture, owing to the perceived benefits and success
associated with it that companies enjoy.

Professional

23

ORGANIZATIONAL BEHAVIOR

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Key words: Organizational behavior

Organizational Behavior Research on Barclays Bank
This paper seeks to analyze the organizational behavior adopted by
Barclays bank across the world. Barclays PLC is a British multinational
banking and financial services company, which is headquartered in
London, United Kingdom. Barclays PLC operations in over 50 countries
across Europe, Asia, South America, North America and Africa including
Kenya, with a total number of customers exceeding 48 million globally
and the fourth-largest bank worldwide by asset
(Business.barclays.co.uk, 2013). Barclays is organized in two business
clusters, (1) the corporate and investment banking and wealth and
investment management and (2), retail and business banking.

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ORGANIZATIONAL BEHAVIOR

The corporate and investment banking and wealth and investment

management cluster covers three business units: the corporate banking;
Investment banking; and Wealth and investment management, while the
retail and business banking cluster involve four business units that
include Africa retail and business banking; Barclaycard; Europe retail
and business banking; and UK retail and business banking
(Business.barclays.co.uk, 2013). Most subsidiaries of Barclays PLC
operate under Retail, Corporate, Treasury and Card Services with cross
functional relationships to support the segments of local business and
small to mid-sized enterprises (SME). Barclays financial strength
coupled with extensive local and international resources have positioned
Barclays as the top provider of financial services in the market for the
past several years. Moreover, Barclay's consistent financial performance
has built confidence in their leadership and management among the
Bank's shareholders, as well as the industry in general making it an easy
go brand. For example, the Kenyan subsidiary known as Barclays Bank
of Kenya Limited has been in operation for 95 years, and has
consequently built an extensive network of 117 branches and over 230
ATM's countrywide (Business.barclays.co.uk, 2013). The network is
supported by Internet and mobile banking channels plus a Customer
Service Centre that operates 24 hours a day, 7 days a week.
The multinational nature of Barclays bank and the diverse clusters
operating in different business environment globally present different
challenges to the bank that are related to the industry environment.
Similarly, Barclays bank in this regards is influenced by both local and
international industry environment since decisions made at the
international regions have a direct bearing on the operation of other
subsidiaries around the world. The bank draws its employees across all
nationalities, races, and cultures as a result of the increasing
globalization and interconnectivity where people from different
nationalities are hired to work far away from their countries of birth
bringing with them different values, norms and cultures. To deal with this,
Barclays bank has successfully managed to develop workable and
standard organization behavior and culture that that cuts across the
nationalities to ensure harmonious operations.

Organizational Behavior Principles

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ORGANIZATIONAL BEHAVIOR

The success of multinational organizations is dependent upon the

organizational behavior principles adopted and applied in the respective
subsidiaries. The OB principles that re relevant to this study are
customer responsiveness, personality and organization, work motivation,
job satisfaction and reward management, communication, change
management and leadership.

Customer Responsiveness
Being that Barclays operates in a service industry; their success is fully
attributed to the quality of service and the fast level of responsiveness
when handling customer queries. One of the values adopted by the bank
is the declaration that 'customer first', to mean that customers must be
attended to first before anything else. This has become part of the
organizational behavior, making the bank to strengthen their customer
service department by ensuring that all employees handling customers
are well trained to offer quality service within the shortest time possible.
Every one including the management team is oriented to treat the
customers as the boss in all circumstances.

26

ORGANIZATIONAL BEHAVIOR

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27

ORGANIZATIONAL BEHAVIOR

Customer responsiveness is also achieved through product

diversification to meet the demands of all groups of customers
irrespective of their socio-economic status. This is much evident through
the introduction of flexible and diversified credit card products commonly
known as Barclaycards that match different needs. The market and
customers expectation has been modeled to demand flexible and
cheaper cards that match diverse needs of the members (Barclays.co.uk
2013a). For example, Barclaycard being the first credit card provider in
Britain offers a range of quality products that match the need of all
customers including those who require competitive interest-free product,
or those in need of first credit card at competitive rates. Similarly, there
are low standard-rate credit cards that are preserved for clients with
excellent credit histories. This range of product ensures there is a
suitable product for every category of customers. It is what is missing in
HSBC that needs to be provided to ensure that customers' satisfaction
are met, corporate communication, group behavior, human decision
making.

Personality and Organization

To develop a good organizational behavior, the management need to
understand personality of employees in order to develop a workable
interaction model within the organization. Personality involves
characteristics, qualities, skills, and competencies of employees,
combined with other traits such as grooming and attitude. Personality in
most cases is influence by the environment and the social settings.
However, there are particular universal characteristics which always
emerge in individuals that are acceptable across the board. For
example, customer service executives are expected to be aggressive,
humble and respectful, have a listening ability, assertive and welcoming.
These traits, thoughts, and feelings should be translated into visible
behavior that can attract and retain the customers.

Communication
Clear communication within the organization is very important since it is
essential in inculcating common objective. Failure in communication can
result when clear purpose is not conveyed or when the message is
distorted along the channel of communication followed. Communication

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ORGANIZATIONAL BEHAVIOR

setting can also bar clear conveyance of information as a result of

unclear chain of command. Some of the barriers of effective
communication may include assumptions by the sender who ignores
parts of the information to be relayed, preconception among the
receivers and biases in delivery. It is therefore imperative for the
organization to develop communication culture as part of the
organization behavior (Ashraf, 2012). Such culture clearly stipulates the
chain of command of communication, communication channel and
generally the type of language to be used in any delivery of information,
which must strictly be official. Everyone including the management must
communicate well with all people within the organization irrespective of
being subordinates. This will instill respect and accurate execution of the
command as clearly outlined. Clear communication also plays a major
role in the satisfaction of customer demands and to provide all the
information needed by the customer for decision making

Work Motivation
Full compliance to the organizational culture and behavior is also
influenced by the level of motivation among the staff and the entire
workforce. Motivation brings the intrinsic urge to perform at work place,
and is connected to the psychological and emotional well-being. The
level of motivation among the staff within the organization therefore,
activates behavior or an urge that is directed at a goal (Ashraf,
2012).This means that for the organizations culture and behavior to be
adhered to at all times, the management need to develop a highly
motivated staff that understands and fully embraces the values of the
organization. To achieve the work motivation that has direct impact on
productivity, several factors can be adopted as part of organization
culture to encourage competition among the employees towards
production. Some of the factors include;
Job Enrichment: Jobs need to be designed to offer opportunities for
responsibility growth, achievement, and recognition for good
performance. This involves providing challenging responsibilities that
fully engages the employees through greater utilization of skills and
offers opportunity for personal development.

29

ORGANIZATIONAL BEHAVIOR

Flexi time: This concept is meant to allow employees to occasionally

control their work schedule, such that they decide which work to start
with (Ashraf, 2012). This system makes employees more responsible
and accountable, and eliminates the general feeling that they are
micromanaged to perform.

This Essay is
a Student's Work

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ORGANIZATIONAL BEHAVIOR

This essay has been submitted by a student. This is not an example of

the work written by our professional essay writers.
EXAMPLES OF OUR WORK

Empowerment: This involves giving employees authority in their area of

operation to make decisions and be able to resolve their work related
problems without approval from the management.
Employees stock ownership plan: this method has become a key tool in
attracting, retaining, and motivating workforce in business organizations.
The system allows employees to own the company's stock to be part of
the stockholders and as part of their benefit package. This motivates
employees work harder and protects the organization since their service
directly impacts the performance of the company. Low employees'
productivity means lower value of the stock prices. This strategy was
adopted by Equity Bank, which is currently the fastest growing bank in
the sub-Saharan Africa, thus should be adopted by market leaders like
Barclays bank.

Job Satisfaction and Reward Management

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ORGANIZATIONAL BEHAVIOR

Organization behavior should be one that promotes job satisfaction,

which is the employees' overall attitude towards their jobs. It is the
fulfillment an employee develops after evaluation of a job or job
experience. Job satisfaction can be derived from a number of features
such as the amount of pay, promotion opportunities, the work itself,
supervision, conducive work environment, and relationship with coworkers. Every organization should therefore create a standard
organizational behavior that includes employee promotion on merit,
professional supervision, and standard remuneration of employees
based on productivity and job group. Although different people may
derive satisfaction from different features, the most common elements
are as mentioned above and a wider approach to improve job design,
work organization and general quality of life. In addition to job
satisfaction, effective reward management needs to be developed that
fairly recognizes employees' efforts to reinforce productivity or
adherence to organizational values and behavior standards. Usually, in
case peoples' good behavior are effectively recognized or rewarded
through any means, the desired behavior is usually repeated.
Organizations such as Barclays in this regard need to consider
designing a standards reward system that is sustainable to the business
and make it an organizational culture and behavior promotion tool.

Leadership
This involves controlling and directing individuals, groups and
subordinates within the firm. It includes hiring, training, guiding, and
assessment of processes in order to achieve the best performance from
employees. Organizations that succeed in their operations usually
maximize on the talents and energies of their employees (Ashraf, 2012).
This is because such firms develop competitive advantage against their
rivals as a result of maximum production. Due to the fact that employees
are vital resource to the achievement of the organizational goals,
managers should be careful on how they interact and handle their
subordinates. This means that managers who are knowledgeable and
skilled in organizational behaviors are likely to effectively and efficiently
manage their teams and influence them to fully support the company's
goals.

32

ORGANIZATIONAL BEHAVIOR

Different leadership styles such as autocratic, consultative and free will

may be adopted depending on the situation (Locke, 2009).
Organizational behavior in relation to the leadership style adopted in all
the management levels is very important to the success of the
organization. The management structure adopted by Barclays bank is
usually the vertical line where top management that comprise CEO and
the board of directors issue directives that are implemented at the middle
and lower level. However, before the decision is communicated
downwards, consultation at the tactic level of management takes place,
involving the finance department which is responsible for the strategy
development process, driving business performance and financial
control across Barclays Africa.
Other management functions include human resource, operations,
consumer banking, risk management, corporate banking, treasury
services and card business departments. This also includes the
personnel in each of the departments. It is important for organizations to
note that decisions made collectively are often easier to implement than
forced decisions. Whereas different leadership styles can be adopted in
different situations, organizations mindfully need to create a leadership
culture that has clear distinction of roles and clear definition of
responsibility to enable efficient flow of duties. Leadership must be
concerned and emphasize on people's issues just as the organizational
issues (Locke, 2009). Employees are very important resource that must
be valued if the organization is to succeed, thus their complaints must be
addressed well without ant victimization from the leadership.
Organizations must therefore adopt leadership behavior that respects
the employees, treats them fairly in order to improve their attitude
towards work and the firm in general.

Theoretical Framework
Organizational behavior refers to the study of groups and individual
dynamics within an organization, as well as the nature of the
organizations. The interaction between human resource and the
organization and the interaction amongst employees themselves usually
bring several factors into play and in turn define the organizational
behavior. Presently, different people with diverse cultural values and
backgrounds work together in different institutions. Organizational

33

ORGANIZATIONAL BEHAVIOR

behavior in this respect seeks to bring an understanding and emphasize

the acceptable behavior in organizations in orders to develop
competencies and standards in which people likely to behave. These
finding are therefore, to assist in controlling behaviors that go against the
regulations and objectives of the organizations.
Equally, it is significant to note that in an organization, the social system
comprises all the people, considering how they relate to the rest of the
world. Normally, the behavior of one person has impact on the behavior
of others either directly or indirectly. Culture refers to the conventional
behavior of a society that comprises knowledge, beliefs, customs, and
practices and people depend on culture since it guarantees them
understanding, stability, security, and the ability to react to a given
situation. It shapes human behavior, even if not fully embraced. In an
organization set up, people fear change in culture and behavior for fear
instability, and loss of security.
The operation of organization is usually based on the management's
philosophy, vision and mission, values and goals that guide employees.
These consequently define the organizations culture or behavior, which
is composed of the formal and informal organizations, and borrowed
from the social environment. The organizations culture determines the
type of leadership adopted, communication channels and chain, and
group and individual dynamics within the organization. Existence of such
working environment, culture, and behavior becomes a motivating factor
to the workforce, leading into high performance, individual and group
satisfaction, and personal growth and development. The combination of
these elements constructs the framework that guides the operation of
the organization.

Research Methodology
The choice of research methodology to determine the organizational
behavior adopted by Barclays bank was depended on the objectivity,
reliability and sustainability of the method based on the environment and
nature if the industry. To clearly meet the purpose, three methods were
used alternatively to determine the employees' feelings concerning the
organizations culture and the customers' feelings on whether the
organizations behavior is suitable in the service industry. Online

34

ORGANIZATIONAL BEHAVIOR

questionnaire was used to collect data from 25 employees in different

ranks within the organization equally distributed from the middle
management to the cleaners through clerks. This was after securing their
email addresses, having that time constraints could not allow them to
adequately respond to interview questions. Face to face interview was
also used to specifically interview 15 randomly selected walk-in
customers from across socio-economic class and age bracket with an
intention to gauge if they were satisfied with the reception and service
they received from the bank staff. Their feelings on the general
arrangement within the banking hall and personal grooming of the staff
were also sought. Finally, observation was used to monitor staff
response to customer's enquiries and the speed of service. This
observation was done during my routine visit to the bank to carry out
transactions.
The structured online questionnaires were filled by the respondents at
their convenient times. Prior to the collection of data, authorization was
sought from the bank management, who in turn briefed the security
agencies for the days the data were collected. This arrangement was
done silently without notifying the staff members to ensure that the data
collected in not skewed when employees try to conceal their right
attitude and behavior.
It is also important to note that more information about the profile and
background of Barclays bank was sought from the banks website. This
gave a clear understanding of the banks operations and the actual
values, vision, mission, culture and the organizational behavior that the
bank stand for, to be used gage the level of compliance by the
employees.

Results and Findings

According to the online questionnaire survey that was filled by 25
randomly selected Barclays bank employees from across the socioeconomic class and age bracket, most respondents especially the nonmanagement staff who responded to the questions as indicated in the
appendix section of this paper disapproved the organizations culture and
behavior, while most of those in management positions approved the
organization behavior. One of the reasons for disapproval is that

35

ORGANIZATIONAL BEHAVIOR

management was authoritative in decision instead of being consultative

and felt that their views are not accommodated in the running of the
system.
The interview that involved 15 customers sought to know their view on
Barclays banks organizational behavior. The analysis found that 90% or
the customers interviewed were satisfied by the arrangement of counters
and service points inside the banking hall. Similarly, an overwhelming
majority of 14 customers were of the opinion that the official dressing as
part of their behavior was commendable and should continue, while only
1 felt the type of dress was not concern.
The observations made also confirmed the values of the bank as they
are in the mission statement. The declaration that customer comes first
in their list of priority was evident, especially in relation to how customers
were ushered in and allowed to sit while awaiting to be served.

Are Organizations Behavior principles applied in

Barclays Bank?
The principle of effective reward management is partially applied in the
bank based on the findings. Most junior staff complained that the
difference in salary bracket between the management, the clerks, and
other staff members such as cleaners was very big. It showed that
management teams are paid much higher than the rest, thus the feeling
that effective reward system be adopted. One area reward that if fully
implemented is on earning of bonuses at the end of the year and the
yearly increments according to the collective bargain agreement. This is
however dependent on individual performance as indicated by the
balance score card assessment sheet. Employee recognition based on
particular achievements is done within the banks, both formally and
informally. As indicated in the principle above, reward is a tool that
reinforces good behavior. According to the management, several staff
members are given recognition cards for being best communication
agents, best time managers, and best in minimizing the wastage of
papers. This reward system needs to continue since it encourages other
to work harder to earn bonuses at the end of the year after meeting their
yearly targets and receiving nomination cards that improve profile for

36

ORGANIZATIONAL BEHAVIOR

future promotions. One the standard sustainable reward behavior is

adopted; all sectors are covered without discrimination.
This research found out that measuring job satisfaction has been a
challenging process to most managers. Based on the determinants of
job satisfaction such as amount of pay, promotion opportunities, the work
itself, supervision, conducive work environment, and relationship with coworkers, several employees, several employees are not satisfied with
their jobs, either because of the perception of inequality in the pay
structure, the management being too authoritative and the generally
routine nature of the jobs that offer little opportunity for personal growth.
Customer responsiveness is a principle that is fully applied in the entire
Barclays bank. Based on their value that makes customer first, it was
evident through the observation that customers were well received,
advised, and served within the shortest time possible. Whenever a
customer walks into the bank they are advised by the customer care
representative on which counter to go to for the desired service. This
was also confirmed by the customers themselves who said that they are
satisfied with the manner they are handled by the bank staff. Customer
responsiveness is also proved by the diversified products offered by the
bank that are meant to meet the demands of all customers in all socioeconomic groups. The most outstanding product line is the Barclaycard
that covers all needs from low interest to low interest cards, as well as
those meant for students.
Barclays bank personnel composition is composed of top level
management that involve the CEO and the Board of directors at the local
level, middle management including the branch managers and operation
and departmental managers and the lower level staff including clerks
and sales representatives. Leadership is in this case is well structured
with very clear chain of command from the strategic level to the regional
directors and to local subsidiary branches (Business.barclays.co.uk,
2012). This has clearly assisted in separation of responsibilities and
entrenched accountability systems within the management. In the recent
economic recession, the bank recently adopted restructuring that saw
several employees lose their jobs and adoption of the system where
junior staffs like the clerks, cashiers are employed on a contract basis in

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ORGANIZATIONAL BEHAVIOR

most subsidiaries. This is a human resource policy, accompanied by

lower remuneration structures led to mass exodus of staff.

Conclusion and Recommendations

This research paper looked at the organizational behavior adopted by
Barclays PLC, which is a British multinational banking and financial
services company with it's headquarter in London, United Kingdom.
Barclays PLC operations in over 50 countries across Europe, Asia,
South America, North America and Africa including Kenya, with a total
number of customers exceeding 48 million globally and the fourth-largest
bank worldwide by asset (Business.barclays.co.uk, 2012).
Organizational behavior is concerned with how individuals, employees,
and management behave and interact within the organization in a
workplace setting. It is an interdisciplinary field that comprises
communication, sociology, psychology, and management. The key
issues that influence organizational behavior include organizational
change, corporate culture within the industry, organizational
development, and customer expectations that usually shape the
organizational values. Organizational Behavior Principles are also very
important since they guide companies in setting their organizational
behavior standards. This paper has discussed customer
responsiveness, personality and organization, work motivation, job
satisfaction and reward management, communication, change
management and leadership as major principles of OB.
The methodologies employed in this study are online questionnaire filled
in by employees, face to face interview of customers and observation
methods. The observation methods were instrumental in monitoring how
the staff receive, address, and serve customers if within the
organizational behavior standards. These methods were selected based
on their objectivity, reliability and sustainability of the method based on
the environment and nature if the industry. To clearly meet the purpose,
the three methods were used alternatively to determine the employees'
feelings concerning the organizations culture and the customers' feelings
on whether the organizations behavior is suitable in the service industry.
The study found that most of respondents especially the nonmanagement staff who responded to the questions as indicated in the
appendix section of this paper disapproved the organizations culture and

38

ORGANIZATIONAL BEHAVIOR

behavior, while most of those in management positions approved the

organization behavior.

Recommendations
The success of organizations is dependent upon the organizational
behavior principles adopted and applied in the respective subsidiaries.
The OB principles that are relevant and should be adopted by
organizations include customer responsiveness, personality and
organization, work motivation, job satisfaction and reward management,
communication, change management and leadership.
In order to develop a good organizational behavior, the management
needs to understand personality of employees in order to develop a
workable interaction model within the organization. Personality involves
characteristics, qualities, skills, and competencies of employees,
combined with other traits such as grooming and attitude. Personality in
most cases is influence by the environment and the social settings.
However, there are particular universal characteristics which always
emerge in individuals that are acceptable across the board. For
example, customer service staff members are expected to be
aggressive, humble and respectful, have a listening ability, assertive and
welcoming
Every organization should therefore create a standard organizational
behavior that includes employee promotion on merit, professional
supervision, and standard remuneration of employees based on
productivity and job group