Organisational Behaviour December 2025
Q.1: A financial services company is facing high employee turnover, particularly among mid-level professionals. Exit interviews reveal that employees feel their personal objectives are not aligned with organisational goals, and there is a lack of recognition, growth opportunities and inequity Exit interviews indicate a lack of recognition and growth opportunities—this often relates to perceived inequity in effort versus reward. Equity Theory suggests that employees compare their input–output ratio (effort vs. rewards) to that of their peers. When they perceive unfairness, it leads to dissatisfaction and, eventually, turnover. The leadership team is determined to apply any 3 motivational theories from organisational behaviour to redesign jobs, improve employee satisfaction, and enhance retention. How should the leadership team apply these three motivational theories from organisational behaviour to address high employee turnover and improve retention?
Answer:
Introduction:
Employee turnover is one of the most critical challenges faced by organisations, especially in the financial services sector where mid-level professionals play a central role in ensuring client relationships, operational excellence, and business growth. High turnover not only increases hiring and training costs but also disrupts productivity and weakens organisational culture. Exit interviews have revealed that professionals are leaving because their personal objectives are not aligned with organisational goals, and there is a clear lack of recognition, growth opportunities, and equity. This indicates that employees perceive an imbalance between their efforts and the rewards they receive, leading to dissatisfaction. Organisational Behaviour offers several motivational theories that can guide leaders in redesigning jobs, recognising contributions, and ensuring fairness in order to retain talent.
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Q.2: A national retail chain has expanded into new regions, resulting in a workforce with varied backgrounds, ages, and cultures. The company has launched diversity and inclusion initiatives, but managers are struggling to manage cross-cultural conflicts and communication barriers. Some employees feel excluded, while others see diversity as a source of innovation. The executive team wants to understand how organisational behaviour concepts can be leveraged to turn diversity into a competitive advantage. Evaluate the impact of workforce diversity initiatives on organisational behaviour and effectiveness in a rapidly expanding retail chain. Critically assess the challenges and opportunities presented by diversity, and justify which organisational behaviour models or approaches would best support the company’s goals.
Answer:
Introduction:
Workforce diversity has become a central concern for organisations that are expanding into new markets and regions. In the case of a national retail chain, the entry into new geographic territories has naturally led to the inclusion of employees from different cultural, age, and social backgrounds. This creates a mix of perspectives, values, and communication styles that can either strengthen or weaken organisational performance depending on how it is managed. On one hand, diversity can fuel creativity, problem-solving, and innovation by bringing together multiple viewpoints. On the other hand, it can also create barriers to communication, misunderstandings, and conflicts if managers lack the skills or frameworks to handle such differences. For this reason, organisational behaviour concepts become essential in guiding leaders to convert diversity into a strategic advantage.
Q.3 (A): A mid-sized manufacturing company is undergoing a major transformation to stay competitive in a rapidly changing market. Management has noticed significant resistance to new policies and procedures, low morale, and a lack of team spirit among employees. The leadership team recognises the need to develop a favourable organisational culture and motivate teams to align with the new organisational objectives. They seek an innovative organisational development program that can address these challenges holistically. Briefly design a comprehensive organisational development program that can address the given issues.
Answer:
Introduction:
A mid-sized manufacturing company going through transformation faces challenges like resistance to change, low morale, and weak teamwork. These issues can slow down progress and impact competitiveness. To address them, the company needs an organisational development program that not only deals with policies and procedures but also focuses on people and culture. A successful program should improve communication, build trust, and strengthen team spirit while aligning employees with the new goals. By combining leadership development, employee participation, and cultural initiatives, the organisation can create an environment that supports change and long-term growth.
Q.3 (B): A large financial services firm has recently been embroiled in a series of ethical scandals, leading to loss of public trust and internal confusion about acceptable conduct. Employees report uncertainty when facing complex ethical decisions, and management realises that existing codes of conduct are insufficient. The board seeks a creative intervention that will embed ethical behaviour into the organisational culture and guide employees in ambiguous situations. Develop an innovative intervention to address ethical dilemmas and promote ethical behaviour in this organization.
Answer:
Introduction:
When a financial services firm faces ethical scandals, it damages both public trust and employee confidence. Codes of conduct alone are not enough because they often provide generic rules but fail to guide employees through real-life grey areas where the right decision is not obvious. In such times, organizations need creative interventions that embed ethics into daily behaviour rather than treating it as a compliance checklist. A more interactive and culture-driven approach can help employees internalize ethical values, strengthen decision-making skills, and rebuild the organisation’s reputation in a sustainable way.