Name: Mahmudur Rahman

Student ID: 22214003

Part A
Question 3

Answer: To understand the importance of the concept of iceberg model towards organizational behavior
we have to visualize the scenario. Just like an iceberg an organization has visible and invisible portion.
These portion could be some patterns or theories regarding the organization’s benefit or drawbacks. Only
by recognizing and identifying these patterns, it will allow us to understand the ways of the organization in
a proper manner and take necessary steps to ensure the well-being of the organization and the employees
who put effort in making it so. Now, like I mentioned before an organization has visible and invisible parts
like an iceberg and we should know how to assess these parts properly.

A company’s corporate brand, values, and behaviors are visible to all. But like an iceberg, organizations
are also driven by often unseen behaviors, and leaders have to go beyond visible factors such as turnover
rates and disengaged staff. They have to dig deeper and identify less invisible elements such as employee
resistance to change or misalignment between a company’s culture and strategy. Organizations can use the
Iceberg Model to develop a deeper understanding of cultural differences and behavioral competence in
teams. This will help understand how to solve complex problems by changing aspects of behavior that may
be hidden but are still important.

The iceberg model can be divided into more specific aspects to navigate through organizational behavior
in order to understand employee sentiment better which will lead us to the ultimate goal of running a
successful organization with content and satisfied employees as well as meeting company goals. In other
words, it will help us maintain a balance between employee satisfaction and workloads to ensure a healthy
environment for both parties. There are three aspects of the iceberg model that I would like to discuss
thoroughly.

1. Visible practice:

The very first step of using the Iceberg Model is to focus on events or visible organizational practices.
For instance, a person from one culture who visits a different culture might get a cultural shock upon
noticing the difference in dressing styles, food choices, lifestyles, and the way people greet each other.
Understanding the variation in cultural practices helps one develop a deeper understanding of people
and behavior, both at work and life in general. This point over cultural shock can be implemented over
organizational culture as well. A newly appointed employee can be overwhelmed by the new
organizational culture. The visible practices in the workspace could be new to them. So it is imperative
for the newcomers to identify and understand the organization’s beliefs, values, workers’ attitude and
the expectation of the organization. Because most of the time these things are developed subconsciously
by an individual. However, to fit in an organization one has to address these values consciously to
operate in a suitable manner.

2. Patterns and habits:

According to the Iceberg Model of Culture, behaviors often follow a pattern. Finding patterns can make
it easier to work together or bring about change. For example, an organization’s employees are late
every day, but the team leader cannot understand why. It’s only when she digs deeper that she discovers
 a pattern: they stayed at work for a late evening meeting every day which often went over the allotted
time. So they came to work late the following day. So as a leader one has to know how to breakdown
the practice of the employees and notice the habits that allows that practice to flow. If the practice is
not essential or good for the growth of the organization, she would have to implement new habits and
routine so that employees can work according to that routine towards the goal of organizational growth.
Here looking for invisible patterns helped the team leader get to the root of the problem. She shifted
the daily meeting to the morning and ensured her team left the office on time.

3. Mental Models:

All of us continue to believe some things about ourselves even though we recognize that they may not
be true. These beliefs can be about you or the world around you. They can lead to negative emotions
like stress, anxiety, and frustration.

For example, when someone believes that they cannot do something because no one from their family
has ever done it before, they hold a limiting belief. For this limiting beliefs must be addressed with an
individual first. He or she should understand how the world works around them and what sort of
experience they are going through. What course of action brings out what sorts of outcome should be
on the mind of an individual while operating. For example, if someone belongs to an agricultural family,
it is not necessary that they have to become farmers. If they can understand business properly they might
be able to get a decent job in a business sector or an agricultural based business.
For a large-scale change that requires a cultural and behavioral shift, it is necessary to change the mental
models of individuals.

Cultural differences can often lead to problems while working in multicultural teams and doing business in
international markets. However, the Iceberg Model of problem solving can help you overcome these
challenges. By understanding the cultural iceberg theory, we can get to the root causes of the problems.
Similarly, the Iceberg Model of Culture can help understand and transform human behavior on a large scale.
It is imperative to understand and analyze human behavior in order to run a successful organization. So
identifying those underlying traits in human behavior would simplify the process of implementing new
approach and methods both from managerial and individual point of view.

Part B

Answer i)

Let us discuss the merits and demerits of the managers’ decision. First of all, if we look into the merits of
the decision we would have to address few issues. If the job posting of the younger, male employee has
nothing to do with nepotism, bribe, gender discrimination or internal affairs and it has been done solely
based on the success and talents of Paul then this decision might be good for the company considering the
fact that Paul is much younger than Nancy. A motivated younger employee would go to the extent that an
older person might not consider. If a younger choice of an employee carries such qualities like discipline,
punctuality, stress handling, hard-worker, professional he should obviously be rewarded. A choice like this
could take the job to the next level. The motivated employee, Paul, would happily try to keep the best
interest of the company all the time and with this opportunity been given he would feel much more
comfortable in doing the hard work and putting extra hours and thought for his own benefit as well as the
company’s. As a young updated mind I believe he would be more capable of implementing new ideas in
an effective manner. Sometimes a change is what is necessary. So posting a young individual in this job
would bring a change and new energy in the department which can be a positive outcome for the company.

Now let us put emphasis on the demerits of the decision which is more crucial to understand. The company
cannot oversee the fact that even though they think Paul is more eligible for the post Nancy has worked
there for more than a decade. It would not have been possible if she did not feel comfortable in that company
or the company was dissatisfied with her. If a person works somewhere for that long period of time I believe
she did it with loyalty and dignity. She maintained all sorts of norms and culture of the company and gave
a very significant amount of life in that company. An employee like this has to be rewarded because it
would take a lot of time and luck to find an employee this dedicated towards company values. So the main
demerit of the decision is that it could break Nancy’s spirit to work there and she might quit to find a better
job and with that kind of experience it is safe to say that if the company has any kind of rival company they
would hire her in a heartbeat. With 12 years of experience in shipping logistics and methods Nancy can
land a job very easily if she does not feel appreciated or rewarded. So the managers must consider this
scenario before making that decision of giving Paul the post because it would be very natural of Nancy to
feel heartbroken or unappreciated and this might cause her to quit her job. So if she does so the company
should consider whether the company is ready to deal with the departure of an employee with this much
experience or not.
I believe the company could have made a smarter decision based on the information is given here. From
the scenario given I can interpret that it was quite natural of Nancy to think that she would get the job
offering because she is senior and have four more years of experience than Paul in this company. So to
motivate Nancy properly the managers should have given her the job position only if she is qualified for
this position. This would be rewarding the loyalty. However, the company should not forget about Paul
either. Paul also has worked there a very significant amount of time which might be less than Nancy’s but
surely is not negligible. He should be rewarded with a raise or some other benefits that company offers.
Later on the company should have focused on building a stronger team. A team that would be motivated
by the company values. By giving the people what they deserve the company could have boosted
professional values both in Nancy and Paul. The information given in the case study clearly shows that
although they rewarded the highly qualified Paul, they surely neglected Nancy’s situation all the way. She
was dedicated to that company for more than 12 years and it is quite a shocking outcome from her point of
view that she has been neglected completely. So the managers should be better than this at their positions.
They surely can motivate someone by giving them a surprise promotion but they should have also kept in
mind that they are not giving an expected promotion. This would make that person, Nancy, feel
unappreciated and unrecognized. The role of a manager or a team leader isn’t easy. Not only do they
shoulder the responsibility of the entire team, but are also required to give them direction. Motivation is the
most effective way to influence job satisfaction at the workplace. The role of motivation is to understand
someone’s needs and help them find the best way to utilize their true potential. A motivated employee will
be willing to put more effort into their work. Motivation ensures that employees are loyal to the
organization. This, in turn, reduces turnover rates and helps to retain the best of the workforce. When people
remain engaged in their professional roles and are happy about the outcomes, they’re more likely to fulfill
targets with greater enthusiasm. Nancy here is the perfect example of a loyal employee and a little effort on
the motivation from the company end could have made her very happy. And I believe with Peter gone
company could have built a very strong professional bond between Nancy and Paul if both of them were
rewarded according to their wish or demand. I do not think with Nancy in the picture Paul would have
thought that he is the one who is getting promoted. What happened here is surprise and shock at the same
time. Paul is the surprised one getting this promotion over Nancy and Nancy is the one who is shocked by
this decision. So if we look closely it is a win-lose situation from the company’s point of view as Nancy
has been a dedicated worker and an ideal company would definitely put her best interest in consideration.
Motivation is an internal feeling, that is, it defines the psychological state of a person. It is a continuous
process and we should make sure that it is not disturbed. A person should be encouraged completely.
Everybody wants to stay in a protected environment with minimal danger so that they can have a peaceful
life. Safety needs basically includes protection from physiological danger like accident and having
economic security like bank accounts, health insurance. In an enterprise, it includes job security, salary
increment, etc. The managerial practice to satisfy this involves offering pension scheme, provident fund,
gratuity etc. The concept of roles is applicable to all employees within an organization as well as to their
life outside the organization. A role is a set of expected behavior patterns attributed to the one who occupies
the position demanded by the social unit. Individuals play multiple roles at the same time. Employees
attempt to understand what kind of behavior is expected from them. So keeping this point in mind the
managers should understand what role suits Nancy and Paul the best and motivate them to work as a team
with the benefits they both desire. Motivation is essentially the underlying drive of individuals to
accomplish tasks and goals. There are many factors that can influence employee motivation including
organizational structure, integrity of company operations, and company culture. In the workplace, it is
especially important to motivate employees so that they meet their full potential. Whether you’re a manager
with decades of experience or a new hire finishing their first week on the job, motivation is a vital element
that can help retain good employees and let them reach their full potential. Motivation is one of the forces
that lead to performance. Motivation is defined as the desire to achieve a goal or a certain performance
level, leading to goal-directed behavior. When we refer to someone as being motivated, we mean that the
person is trying hard to accomplish a certain task. Motivation is clearly important if someone is to perform
well. However, it is not sufficient. Having the skills and knowledge required to perform the job is also
important and is sometimes the key predictor of effectiveness. So I would like to say if Nancy has the proper
skills the senior managers should definitely reconsider her position in this company because she has
definitely shown dedication throughout this whole time and with a little reconsider and motivation she
would be able to take her duties to the next level.

Part B
Answer ii)
There are different theories of motivation in organizational behavior to help us understand the basic
demands and necessity of an individual as a part of an organization. Let us study these theories to allow us
to assess the situation of Nancy and Paul.
Maslow’s Hierarchy of Needs Theory

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a
classical depiction of human motivation. This theory is based on the assumption that there is a hierarchy of
five needs within each individual. The urgency of these needs varies. Maslow postulated that people are
motivated when their needs are fulfilled. Once our base needs and desires are met, we are motivated to do
more. For example, if you are someone who values a good work-life balance and your organization offers
you a part-time opportunity, you’ll happily take the offer and fulfill your responsibilities to the best of your
abilities. According to the theory, the lowest level of unmet needs in the hierarchy is the prime motivator
of behavior. If and when this level is satisfied, needs at the next level in the hierarchy will begin to motivate
behavior. Under this theory, individual growth is key to an organization's success. Maslow's hierarchy of
needs is a theory of psychology explaining human motivation based on the pursuit of different levels of
needs. The theory states that humans are motivated to fulfill their needs in a hierarchical order. This order
begins with the most basic needs before moving on to more advanced needs. These five needs are as
follows-

1. Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other
words, physiological needs are the needs for basic amenities of life. The first of the id-driven lower
needs on Maslow's hierarchy are physiological needs. These most basic human survival needs
 include food and water, sufficient rest, clothing and shelter, overall health, and reproduction.
Maslow states that these basic physiological needs must be addressed before humans move on to
the next level of fulfillment. In the case study given the managers should try to ensure these
physiological needs in both Nancy and Paul’s cases.
2. Safety needs- Safety needs include physical, environmental and emotional safety and protection.
For instance- Job security, financial security, protection from animals, family security, health
security, etc.
3. Social needs- Social needs include the need for love, affection, care, belongingness, and friendship.
4. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence,
competence, achievement and freedom) and external esteem needs (recognition, power, status,
attention and admiration).
5. Self-actualization need- This include the urge to become what you are capable of becoming / what
you have the potential to become. It includes the need for growth and self-contentment. It also
includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The
self- actualization needs are never fully satiable. As an individual grows psychologically,
opportunities keep cropping up to continue growing.

Now keeping in mind these basic needs let us think from a managerial point of view on the case of Nancy
and Paul. As far as the physiological needs are concerned, the managers should give employees appropriate
salaries to purchase the basic necessities of life. Breaks and eating opportunities should be given to
employees. In case of safety needs, the managers should provide the employees job security, safe and
hygienic work environment, and retirement benefits so as to retain them. To ensure the social needs, the
management should encourage teamwork and organize social events. As far as esteem needs are concerned,
the managers can appreciate and reward employees on accomplishing and exceeding their targets. The
management can give the deserved employee higher job rank / position in the organization. As far as self-
actualization needs are concerned, the managers can give the employees challenging jobs in which the
employees’ skills and competencies are fully utilized. Moreover, growth opportunities can be given to them
so that they can reach the peak.

Herzberg’s Two-Factor Theory

Frederick Herzberg, an American psychologist who became an influential figure in business management,
introduced the Two-Factor Theory, also known as the Motivator-Hygiene Theory. This theory comprises
two parts—hygiene factors and motivation factors. Hygiene factors, such as working conditions, salary
and job security, ensure that employees are satisfied. Motivation factors, such as recognition, responsibility
and opportunities for growth, ensure that people are encouraged to better their performance. Herzberg
believed that to achieve success organizations should strive to maintain a healthy balance between the two.
According to Herzberg, there are some job factors that result in satisfaction while there are other job factors
that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and
the opposite of “Dissatisfaction” is “No Dissatisfaction”. Now let us consider the given scenario according
to this theory of motivation. Herzberg classified these job factors into two categories-

Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these
factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are
those factors which when adequate/reasonable in a job, pacify the employees and do not make them
dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfies or
maintenance factors as they are required to avoid dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the physiological needs which the individuals
wanted and expected to be fulfilled. Hygiene factors include:
 • Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
• Company Policies and administrative policies - The company policies should not be too rigid. They
should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans (medical), benefits for the
family members, employee help programs, etc.
• Physical Working conditions - The working conditions should be safe, clean and hygienic. The
work equipment should be updated and well-maintained.
• Status - The employees’ status within the organization should be familiar and retained.
• Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
• Job Security - The organization must provide job security to the employees.
• Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators.
The motivational factors yield positive satisfaction. These factors are inherent to work. These
factors motivate the employees for a superior performance. These factors are called satisfiers. These
are factors involved in performing the job. Employees find these factors intrinsically rewarding.
The motivators symbolized the psychological needs that were perceived as an additional benefit.
Motivational factors include:
• Recognition - The employees should be praised and recognized for their accomplishments by the
managers. The given scenario emphasizes on the fact that Nancy did not get the recognition she
thinks she deserves.
• Sense of achievement - The employees must have a sense of achievement. This depends on the job.
There must be a fruit of some sort in the job. Here Nancy has been deprived of the sense of
achievement.
• Growth and promotional opportunities - There must be growth and advancement opportunities in
an organization to motivate the employees to perform well.
• Responsibility - The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain accountability.
• Meaningfulness of the work - The work itself should be meaningful, interesting and challenging
for the employee to perform and to get motivated.

Theory X and Theory Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behavior
at work, or in other words, two different views of individuals (employees): one of which is negative, called
as Theory X and the other is positive, so called as Theory Y. According to McGregor, the perception of
managers on the nature of individuals is based on various assumptions.

Assumptions of Theory X

• An average employee intrinsically does not like work and tries to escape it whenever possible.
Since the employee does not want to work, he must be persuaded, compelled, or warned with
punishment so as to achieve organizational goals. A close supervision is required on part of
managers. The managers adopt a more dictatorial style. Many employees rank job security on top,
and they have little or no aspiration/ ambition.
• Employees generally dislike responsibilities.
• Employees resist change.
• An average employee needs formal direction.
Assumptions of Theory Y

• Employees can perceive their job as relaxing and normal. They exercise their physical and mental
efforts in an inherent manner in their jobs.
• Employees may not require only threat, external control and coercion to work, but they can use
self-direction and self-control if they are dedicated and sincere to achieve the organizational
objectives.
• If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to
organization.
• An average employee can learn to admit and recognize the responsibility. In fact, he can even learn
to obtain responsibility.
• The employees have skills and capabilities. Their logical capabilities should be fully utilized. In
other words, the creativity, resourcefulness and innovative potentiality of the employees can be
utilized to solve organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behavior at work,
while Theory Y presents an optimistic view of the employees’ nature and behavior at work. If correlate it
with Maslow’s theory, we can say that Theory X is based on the assumption that the employees emphasize
on the physiological needs and the safety needs; while Theory X is based on the assumption that the social
needs, esteem needs and the self-actualization needs dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged cordial
team relations, responsible and stimulating jobs, and participation of all in decision-making process. So
seeing all these assumptions we can advise that the manager can reevaluate the company’s tendencies
whether they are following theory X or theory Y and I would highly suggest them to apply theory Y in
order to sort out the issue of Nancy and Paul to promote positive growth between the employees and the
employer.