Managing organizational behavior is an approach to create effective human behavior in the organization. It investigates the actions and attitude of the employee towards each other and organization. It affects the individual and organizational performance and may create complexities in the organizational culture. I have chosen the case study of HealthSouth Corporation that covers the impact of ethical leadership on employee job performance and the company growth. HealthSouth Corporation is providing health care services and based in the United States. The organization is serving the nation with the team of best employees. It is specialized in different health care services such as stroke, neurological disorders, cardiac, and pulmonary. The case study has described that the behavior of the company leaders was unethical, and it affected the organizational culture. The organization was found in a corporate accounting scandal that affected the reputation of HealthSouth Corporation.
The scandal was reported in 2002 that affected the senior accounts and finance employees. The leadership was directly involved in that scandal that caused a huge loss to the organization. The company founder and chief executive officer Richard M. Scrushy failed to create the corporate culture in the organization, and he directed the employees to report falsely grossly exaggerated company earnings in order to meet the expectation of the shareholders. He has delivered illegal instruction to the employees and created earning fraud. Richard M. Scrushy has sold $75 million in stock and overstated the organization income by as much as 4700%. The company’s CEO Richard M. Scrushy was charged with accounting fraud in 2003 and was found to be in violation of different policies. He targeted the senior accountants and finance people to perform that illegal activity.
Richard M. Scrushy was found in violation of the Sarbanes-Oxley Act, and he was acquitted of all criminal charges that affected the company reputation . It affected the job satisfaction and organizational commitment of employees in HealthSouth Corporation. Job satisfaction is associated with employee attitude towards the specific job. It reflects the pleasure, happiness, and achievement of an individual while performing any job. The organizational commitment describes then employee’s psychological attachment to the company. It shows the loyalty and dedication of an individual to the organization. The fraud occurred in the health care organization that was a prime and respectable organization in the service industry. Therefore, I am interested in the case to understand the unethical behavior of leadership. The discussion comprises of various parts that describe the effect of organizational behavior on job satisfaction, organizational commitment, motivation, and job performance.
Relationship between job satisfaction, organizational commitment, staff turnover, andabsenteeism
It is noted that organizational behavior is related to work attitudes such as job satisfaction, organizational commitment, staff turnover, and absenteeism. The relationship between work attitudes has been studied extensively and different research has been conducted to identify it. It is reported that the unethical leadership Richard M. Scrushy affected the performance of the employees and organization. It generated negative sentiments and attitude in the organizational culture. It created an unethical culture and reduced the motivation among the employees that affected the company’s performance. The research has found that job satisfaction is strongly and inversely related to the employee’s intention to leave the organization. The employees’ turnover and absenteeism have increased due to low job satisfaction and it affected the organizational performance.
The satisfied employees perform their jobs with loyalty and dedication and they are less likely to seek the new job with the new organization. The organizational culture is directly associated with job satisfaction, organizational commitment, and employee turnover. It is an important aspect of organizational behavior that ensures the effective functions of the organization. The positive relationship exists between job satisfaction and organizational commitment. The high job satisfaction and organizational commitment have shown the negative and significant relationship with the turnover intention .
The healthy and effective organizational culture has influenced the employees to stay with the organization and perform efficiently. While on another hand, unethical culture had decreased the level of satisfaction and generated negative result such as it was reported in the case of HealthSouth Corporation. The positive relationship exists job satisfaction and organizational commitment and the negative relationship is found in turnover intention and job satisfaction .
The organizational commitment is a stable attitude that affects the performance of the organization. The satisfied employees are more committed to the job performance and organizational growth. They are loyal, honest, and dedicated employees and less likely to leave the organization. They have created a good relationship with management, customer, and other employees. They have learned more efficiently and perform different activities in an efficient manner. The less satisfied employees always remain absent from the current job and looking for new job. The management is directly involved in increasing the job satisfaction and organizational commitment among the employees. The working strain and ineffective working condition have decreased the job satisfaction and it increased absenteeism in the organization .
Impact of globalization and technology on workforce and nature of work
Globalization has placed the significant impact on the business and introduces new and innovative technology. It changes the nature of work and introduced new techniques to perform different activities. HealthSouth Corporation was a fast growing organization and leading provider of rehabilitation services in the region. The organization took various steps to introduce new technologies and create a corporate culture to satisfy the employees. The organization focused on inclusion of effective communication and providing feedback.
Globalization generated various opportunities for the organization to use innovative technology. It generated positive changes in the organizational culture of in HealthSouth Corporation that increased employees’ satisfaction and commitment. The organizations have provided new machinery and another medical device to the surgeon and other staff that increased their learning capabilities. The employees accepted the changing nature of work in a positive manner that increased the organizational performance.
HealthSouth Corporation arranged different and development programs to increase the employee's abilities towards usage of innovative technology. The globalization introduced new information and communication technologies that increased the interaction and created good relationship among the employees. The organization has developed various approaches to improve the organizational culture and create an innovative environment. Globalization has explored new opportunities for employees in the hospitals .
Technological innovation also played an important role in the development of in HealthSouth Corporation. It reduced physical work and mental workload. The new machinery increased facilities for the patients and brings new opportunities for doctors, nurses, and other staff to enhance their skills and performance. The employees had a positive attitude towards new changes that created an ethical culture in the organization. The organization introduced most advanced and innovative technology for comprehensive rehabilitation.
The human resources professionals in HealthSouth Corporation ensured the effective use of technology through the contribution of all employees. Technology increased the effective and speed of operations and created healthy working environment in the organization. It helped the management to identify the performance of every individual and took effective decision for promotion, increment, rewards, and provide other benefits to the employees. It increased the loyalty, trust, and respect in the organizational culture that enhanced employees’ satisfaction and commitment . However, on the other hand, employees had faced various challenges and complexities to using the new technological instruments.
Factors affecting the job satisfaction and organizational commitment
The human resources practices, employees personality, managers style, and organizational work environment is directly related to the employees’ job satisfaction and organizational commitment. The leadership plays an important role in managing the organizational culture and improving the employees’ performance. The effective leaders can increase the organizational performance through efficient use of human capital and share decision-making. The managerial style plays the significant role in creating effective communication line in the organization. The unethical behavior of managers affected the organizational culture and reduced employees’ job satisfaction. It created a negative relationship between the managers and employees that increased dissatisfaction in the workplace. The bad behavior of managers can reduce employees’ performance, create stress and depression in the organizational culture that can increase employee turnover .
Human resources (HR) practices play a vital role in managing the employees’ attitude and increasing their job satisfaction and organizational commitment. HR is directly involved managing, controlling, and organizing the employees’ behavior in the organization. It creates different policies and ensures the healthy working environment. It performs different activities for growth and development of employees such as training and development, performance appraisal, and others. It uses different techniques to increase the employees’ motivation such as compensation and benefits, rewards, equal treatment, promotions, and others. The negative practices can increase complexities among the organizational culture that can reduce employees job satisfaction and organizational commitment. It can generate negative results and generate various issues in the organizational environment . The organization has faced various challenges such as diversity, cultural differences, technological changes, and social and political changes that directly affected the employees’ job satisfaction (Nelson & Quick, 2015).
The organizational working environment is directly associated with the employee performance and their job satisfaction and organizational commitments. The complex and unethical organizational culture directly affect employees well being and it decreases employee job satisfaction that increases absenteeism and employees turn over. The negative working condition reduces employees’ happiness that affects the organizational commitment. Unmotivated employees are unable to perform in an effective manner to achieve the company objectives. Different organizations are applying unethical practices in the culture and employees are performing extra hour’s duties that decreasing job satisfaction and organizational commitment. The personality and values of employees play an important role in organizational growth. The desirable work related attitude can increase employees’ motivation, productivity, and happiness. The negative attitude decreases the job satisfaction and generates bad results .
Conclusion
I have learned different aspects of job attitude, organizational commitment, and job satisfaction. The case study has provided information about the unethical behavior of leadership in the health care industry. The management plays the significant role in creating the corporate culture to employees’ job satisfaction and organizational commitment. After reading the case study of HealthSouth Corporation, I have found that the leadership failed to create ethical and transparent organizational culture for a variety of reasons such as the pressure of achievement, increased the satisfaction of investors and others. Employees’ commitment and job satisfaction depend on the leadership style of management. The unethical behavior of the company CEO has affected the different employees from finance and accounts department that affected the reputation of the organization. The leadership was failed to run the operations smoothly and effectively and accounting fraud was identified. Richard M. Scrushy failed to develop the dominant leadership style that decreased job satisfaction and motivation among the employees. He has failed to create the strategic plan and make an effective decision through the collaboration of all employees. I have learned that the management of HealthSouth Corporation has not invested in human capital to develop their skill and it is worried about the earning hence, it was involved in the accounting fraud.
The management should focus the organizational culture and behavior of all employees and the managers. The ethical culture would increase the employee's motivation and performance and provide new opportunities for growth. The motivated employees are important assets who play the significant role in the development of the organization. The management needs to create effective strategies to increase its revenue. It should ensure the equal employment opportunities within in the organizational culture and manage the employee's attitude effectively. It should provide different benefits to increase the employee satisfaction such as good salaries, contingent rewards, promotions, interpersonal relationships, good working conditions and others. The organization should focus the effective communication to create a agood relationship in the organizational culture. The organization should create effective policies and consider the behavior of every individual. It should ensure that every employee is behaving in an effective manner. It would increase job satisfaction, commitment, dedication, and loyalty among the hospital employees.
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