Organizational Behavior: A Case Study of BC Hydro
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Organizational Behavior: A Case Study of BC Hydro
Introduction
The BC Hydro and Power Authority, simply referred to as BC Hydro is an electricity utility firm based in British Columbia, Canada. It is headquartered in Vancouver, and it is the major distributor of electricity in the province of British Columbia, serving close to two million customers. The company is a provincial Crown corporation, and thus it reports directly to the British Columbia Ministry of energy and mining. Therefore, its activities are regulated by the British Columbia Utilities Commission. The gazetted role of BC Hydro is to generate or purchase electricity and distribute or sell it to the residents of British Columbia. It currently has 32 hydropower generation facilities and three thermal power generation facilities.
BC Hydro was established in 1961 by the British Columbia government, with a mandate to generate, transmit, and distribute electricity to the residents of British Columbia. The company is a result of the amalgamation of BC Electric Company and the BC Power Commission. Before the merging of the two companies, BC Electric Company was operating privately. The BC Power Comission had been established in 1945 to merge all power generating firms in British Columbia. Since 1961, BC Hydro has continued to grow its capacity of production in its hydroelectric producing facilities. Currently, it has over 6000 employees and a production capacity of over 13000 megawatts.
BC Hydro has always been touted as one of the most effectively run organizations in British Columbia. Although it is a Crow Provincial corporation, its organizational culture has been a point of reference for many other Canadian firms. The management framework of the company is guided by the legislative act that established the BC Hydro and the British Columbia Utilities Comission (BCUC). The current CEO is Chris O’Riley and he has held that position since 2017. The financial performance of the company has always been healthy, with the company retaining a debt /equity ratio of 80:20. With the adoption of modern technology, the effectiveness of the company’s services has dramatically increased over the years. The company has consistently been rated highly by BC residents. It has also been at the forefront of fulfilling its corporate responsibilities. A good example is the rolling out of a program in 2020 to enable its customers to apply for a COVID-19 relief fund, in the wake of a global health emergency. However, the company has faced accusations of neglect of environmental laws by continuing production means that release greenhouse gases. However, the company has established a plan that will enable it to shift entirely to sustainable green power production in the foreseeable future. This paper analyses the concept of organizational behavior with respect to BC Hydro, owing to the fact that it is among the most effective companies in British Columbia.
The Concept of Organizational Behavior
Organizational behavior can be defined as the study of the behaviors of people in an organizational setup, the interface between the organization and human behavior, and the organization itself. Particularly, it involves the study of how an organization can influence the behaviors of its employees and also how these employees can influence the organization. It is a very wide and multidisciplinary concept that is devoted to understanding group and individual behavior, organizational dynamics, and interpersonal processes. This makes organizational behavior a vital aspect of all management functions. For managers to meet organizational goals, they have to understand human behaviors that are inherent to the success of any group of people
The main goal of organizational behavior is to develop better conceptualizations of organizational life and revitalize the organization theory. The fact that organizational behavior is a multidisciplinary field means that other fields such as psychology, engineering, psychology, and economics have an effect on it. The origin of organizational studies can be traced back to Max Weber. The industrial revolution in the late 18th century contributed a lot to the early studies on organizational behavior. With increased mechanization and the resulting cultural and social changes as a result of the industrial revolution, there was more need to study the emerging organizational forms. Max Weber, a sociologist, described bureaucracy as a typical form of organization that emphasized on rational-legal organizational principles and maximum technical efficiency. In the 1890s, a new field of scientific management emerged, making the focus on organizational behavior studies more important. In the early 1930s, there was a surge in the number of Human Relations Movements, revolutionizing the concept of organizational behavior even further. Researches by people such as Abraham Mas Low, Benard Chester, Frederick Herzberg, Victor Vroom, David Mc Cellan, and Mary Parker Follett contributed significantly to the development of organizational behavior as an academic discipline.
The concepts of organizational behavior and organizational change are usually correlated. However, there remains a debate on the importance of organizational change. With regard to organizational behavior, there is a general agreement by all researchers that organizational behavior is composed of core ideas of motivation, the behavior of leaders in the organization, group structure, interpersonal communication, and the processes of learning, conflict management, and attitude development in employees. In general, organizational behavior aims at improving job satisfaction among employees, building organizational culture, understanding employees better, developing teamwork, enhancing productivity, and improving leadership and conflict resolution in the organization.
Situation Analysis
Internal factors at BC Hydro
Organizational structure
The management of the BC Hydro composes of a CEO, who is the main accounting officer of the company. There are numerous departments, including a human resource department, that are headed by directors. Therefore, there is an established hierarchy of power, and the flow of communication and policy decisions follows a standardized formant at BC Hydro. The current CEO of BC Hydor is Chris O’ Riley. Generally, the organizational structure of BC Hydro is a blend of several types of organizational structure, meaning that it is a hybrid structure. To establish effective organizational behavior in an organization, it is vital that the top management is part of all the process. BC Hydro has been praised for its effective and focused leadership, although there have also been some concerns about the decisions taken by the top management in some instances. This is further complicated by the fact that the company is not a private entity, meaning that some decisions may be influenced by the Government of British Columbia.
Power smart division
The power smart initiative is a component of BC hydro that is responsible for enhancing the effective use of energy in the province, and the enhancement of conservation culture in the British Columbia province. Power Smart has consistently offered energy-saving programs to customers, in the process saving significant amounts of power. In essence, Power Smart has been offering financial incentives to customers who efficiently use power. This is a very important aspect of building organizational behavior among employees of the organization. Recently, the company has been trying to cut power wastage as one of the strategies towards achieving full green energy production. Therefore, for the program to be successful, it has to be first owned by the employees.
Decision making
BC Hydro is a full-pledged crown corporation in the Canadian province of British Columbia. This means that decision making in the company is not a straight forward affair. However, the board of directors still maintains an influential role in the making of key decisions in the company. However, since most of its operations are based on a legislative act, it means that there is a limit on what the directors and the employees can do. In developing good organizational behavior, the effectiveness of decision-making processes is very important. This is because poor decision making can affect group morale and affect the teamwork spirit among employees. There have been calls for the privatization of BC Hydro, with the proponents arguing that government bureaucracy could significantly contribute to negative organizational behavior.
Industrial marketing
The industrial marketing division is mandated to help in the development and implementation of programs that allow the effective provision of power to large scale consumers in British Columbia. The industrial marketing team at BC HydroHydro has traditionally been composed of seven members. They are all product managers with skills in marketing and engineering. The entire team in the industrial marketing department is headed by an industrial marketing manager, who sits at the company’s board. This again shows the diversified nature of the organizational structure of BC hydro. Currently, there is an internal policy in this department that requires that incentive energy-saving programs should be the basic operating principle of the department. In essence, the department offers cash incentives or waivers to high voltage consumers who roll out e energy-saving systems in their industrial premises. In addition, the industrial marketing employees often interact with employees of other departments so as to make sure that programs initiated by the top management are implemented. However, it is worth noting that they have little to no impact on the decisions made, simply because the legislative act that established the company does not recognize them as part of the decisions making team. This can significantly affect their morale and promote the development of negative organizational behavior.
BC Hydro Corporate Structure
The BC Hydro company is fully owned and operated by the government of British Columbia. However, rules, procedures, work mechanisms, processes, and policies are usually developed and standardized by the within the company. The corporation uniquely combines functional and divisional organizational structure to enable the integration of the company at the corporate level. The corporate management of BC Hydro is responsible for budget making and strategic planning. However, its decisions on these aspects are based on the individual performance of the individual divisions of the company. In simple terms, the various divisions of the corporation are regarded as integrated units, with the organizational goals tending to be subdivided further into divisional or departmental goals. This encourages bureaucracy in the corporation, and it has b33n identified as one of the threats to the development of effective organizational culture and good organizational behavior in the company.
Communication
From the ongoing, it is evident that the organizational structure of BC hydro is hybrid, mainly due to the fact that it is a Crown organization, owned by the government of British Columbia. This essentially means that the flow of information and decision making processes are very rigid. A good example is the Industrial Marketing division, where the junior employees have nearly no influence in the decision making processes. In addition, the complex organizational structure and the control by the government of British Columbia mean that communication is not as effective as it would have been if the company was fully privatized. Although the company has not faced any significant complaints on its communications system, there is a need to streamline it in line with the principles of effective communication in a business environment. This is because a breakdown in the communication system could lead to low morale and less commitment towards organizational goals, potentially
External factors
Government interference
BC Hydro is a government-owned entity, and this presents many challenges to the management and employees of the organization. Due to this single fact about the corporation, it means that all employees, including the top management, are limited in some way due to the legal mechanisms behind the formation of the corporation. In simple terms, al decisions made must conform to the requirements of the legislative act that established the corporation and government directives. This could potentially be an inhibitor to team spirit, innovation, and leadership effectiveness. This is because no single employee has a right to autonomously roll out programs, regardless of how innovative they are without the input of the government of British Columbia. This could also potentially give an edge to private power suppliers, who are more likely to be flexible in their decision-making processes, in the process making it possible to hastily roll out measures geared towards enhancing effectiveness in services delivery. Also, studies have shown that employees tend to be satisfied in their jobs more in a workplace that is less bureaucratic. While privatizing public corporations has its challenges, it can be an option especially where employees feel restrained in their ability to make independent decisions, due to government control. Overall, workplaces that emphasize on enhancing job satisfaction of employees and work flexibility are likely to see positive organizational culture and more efficient achievement of organizational goals.
Brand identity
The identity of a brand has been identified as one of the ways employees feel committed to the organizational goals in a company. This can lead to more positive organizational behavior among employees as they generally feel satisfied in their jobs. BC Hydro is the biggest electricity producing and transmitting company in British Columbia. It has a near-monopoly control of the electricity supply industry in British Columbia, and its services have always received positive reviews from most people in BC. This is a very important aspect since the company’s brand is popular in the entire British Columbia. Essentially, employees of the company will feel more committed to their jobs since their brand is well established. This can cause a significant improvement in organizational behavior and culture.
Environmental factors
The need for BC hydro to shift totally to green energy production continues to increase. This is one of the corporate responsibility goals of the company since it has a moral and social responsibility to reduce greenhouse gas emissions in its production facilities. On a number of occasions, the company has been caught in a controversy over the location of the Burrard Generating Station. It is located near Port Moody and it has been targeted by environmentalists who argue that it contributes to the production of greenhouse gases in the Vancouver region. However, it has been remodeled to run on natural gas, and it also operates only when necessary. In the contemporary world, global climate change is a concern that most people are aware of. In addition, it is the responsibility of all people to make sure that the environment is conserved for the future of the planet. Therefore, if BC Hydro does not shift to total green energy production, it could potentially lead to a fallout with its employees as they demand more environmentally sustainable means of power generation. This could significantly affect organizational behavior and commitment toward organizational goals.
Technology
There is no doubt that the world is becoming more modernized, with new technologies in all sectors being rolled out. In the power generation and transmission industry, technology is revolutionizing the way different activities are carried out. In the contemporary world, it is inherent for employees to perform tasks more easily and efficiently where equipment and all systems are based on modern technology. With this aspect, BC Hydro has adopted some of the finest technologies in the generation, transmission, distribution, and billing of electricity. Reviews by employees at the company show that most of them are satisfied with the levels of technology employed by the firm. Also, the firm has employed some technologies such as the smart meter to enhance the conservation of electricity and the accuracy of electricity bills. With the adoption of modern technology, employees are more likely to attain organizational goals. This can boost the levels of commitment and in general, the perceptions of employees on job satisfaction. However, technology is also associated with a number of drawbacks. A good example is the inability of some employees to run newly acquired equipment as they lack the necessary skills. This can be particularly demoralizing and could potentially lead to job dissatisfaction and a lack of commitment towards group activities.
Problems / opportunities
Some of the problems identified in BC Hydro include :
- Challenges with the adoption of technology- For instance, the inability of some employees to operate new equipment
- Excessive government control, significantly affecting the morale of employees.
- Bureaucracy in the company’s decision-making processes
Opportunities :
The company has an opportunity to take advantage of its popular brand to ensure that experienced employees are not snatched up by competitors. BC Hydro also has the opportunity to implement full green energy production, in line with its strategic plans.
Causes
BC Hydro is owned by the British Columbia government, and this has always brought some challenges, especially from employees who are opposed to government control of the operations of the company. Being a fully pledged Crown cooperation of the Provincial government of British Columbia, BC hydro’s activities are mainly controlled through legislative processes by the regional assembly. Starting with the CEO 9f the company, all directors and employees of the company in someway submit to the ministry of energy in the BC government. If this is to be correlated with studies on organizational behavior in public and private entities, it is evident that it has a negative impact on organizational behavior and culture. Studies have shown that employees generally have a negative attitude towards government control and regulation. This means that some employees may be less committed to the organizational goals, in the process undermining the ability of teams to deliver on group and individual targets. In addition, loyalty to an organization is usually detrimentally affected by excessive government control. This is the reason behind calls by some labor groups and residents of the British Columbia province for the government to allow the privatization of the BC Hydro.
Another challenge that has been identified as a potential threat to the organizational behavior at BC Hydro is the apparent bureaucracy in the decision making processes, mostly due to its hybrid organizational structure and control by the British Columbia government. Generally, employees are less committed to their jobs if the communication systems and decision making processes in an organization are not effective. The organizational structure of BC Hydro is a combination of a functional structure and a divisional structure, mainly due to the need for the company to meet its corporate requirements. This leaves the junior staff members with literally no influence on the decision making process. For instance, in the Industrial Marketing division, only the overall product manager can influence decisions by the top management, but also on a very limited scale. In addition to this flaw in decision making, the government control 9f the policies and activities of the corporation means that the resolution of potential problems is not only a lengthy but a bureaucratic process. This is also evident in the daily activities of the company, as all activities are guided by standards set up by the government of British Columbia. This bureaucracy is can significantly affect the loyalty and the job satisfaction levels of employees, and in the process plummeting the levels of organizational behavior in the company. Bureaucracy is also an inhibitor of innovation, and that is the reason why most of the innovative technologies all over the world mostly originate from the private sector.
The adoption of modern technology is another factor that can significantly affect organizational behavior in a company. BC Hydro is one of the companies in British Columbia that have almost digitized all their operations with the adoption of modern technologies. All the production facilities owned by the company have some of the finest hydroelectric power generation facilities. In addition, their transmission and distribution of power os highly modernized. The monitoring systems and power wastage control technologies are also highly complex and digitized. While this should conventionally be a motivation for the employees, it is also a challenge in some ways. The main reason is the fact that adopting new technologies requires the retraining of employees so that they are able to operate and control all the equipment. This has not always been the case at BC hydro. There have been cases of employees complaining about their inability to deliver on their job expectations since they are unable to work with new and superior technologies. This can significantly affect their morale, self-confidence, and potentially lead to job dissatisfaction. Also, the adoption of new technologies can potentially mean that some positions in a company become redundant, causing the retrenchment of some employees. This can again affect team spirit, and h3nce cause 5he development of negative organizational behavior. However, on a more positive note. The adoption of modern technology should lead to more ease and efficiency in the completion of assigned tasks. No one can deny that technology makes work easier as long as it is applied appropriately.
Despite these potential issues identified, there are some opportunities for the further development of the company as a leader in the power generation industry in British Columbia. Key of these is the roll-out of programs aimed towards enhancing the conservation of energy and the reduction of greenhouse gases emission. BC Hydro has in recent years rolled out a program that encourages high voltage consumers and individual consumers to implement measures that enable them to conserve power. The company goes aa far as awarding incentives to the companies and institutions that roll out power-saving programs. This is in line with a global strategy by governments to minimize the amount of power lost in transmission lines and in business premises, with a view of cutting on the use of thermal-based systems that are responsible for the release of greenhouse gas3s to the atmosphere. Therefore, BC Hydro stands out aa a global leader in the campaign to move towards environmentally sustainable means of power generation and conserve power. Also, the company’s brand is very popular among the residents of British Columbia, since the company has nearly total monopoly control over the power generation and distribution industry. Therefore, it should take this opportunity to streamline all its processes towards effectiveness in production and services delivery.
Alternative solutions
Option 1
The Provincial Government of British Columbia should consider privatizing the company as one of the ways to deal with the bureaucracy associated with the organizational structure of the company and the rigid decision-making process. This can lead to the redesigning of the management of the company to ensure that flow of communication os only towards a single top manager, who can make autonomous decisions without having to consult the government of British Columbia. This can significantly streamline the flow of information between employees of different cadres, as each of them is only answerable to one senior. In addition, it can help streamline the communication system of the company, which could, in turn, lead to more motivation among employees. Also with the privatization of BC hydro, the issue of government bureaucracy will no longer be a problem. This can help increase motivation levels for staff members who feel uncomfortable when working for government institutions due to the traditional bureaucracy that is associated with them. While this privatization is implemented, it is essential that the input of all employees in decision-making processes is recognized. Studies hav3 shown that companies that allow employees of all cadres to participate in decision-making processes experience high levels of motivation, loyalty, and generally jog satisfaction. All these factors can lead to the development of positive organizational behavior and culture.
Option 2
While privatizing the company could potentially lead to the development of better organizational behavior, it is not necessarily the only option that can potentially solve all problems that the company faces. Another possible solution is that the company remains under the government of British Columbia, but with full powers granted to the management team to make all decisions involving the company. This means that the company should not work under any ministry, but be a government department on its own. This can potentially reduce government interference and bureaucracy, to the benefit of the employees. In addition, this will make it possible for employees to roll out innovative measures that can improve the efficacy of services delivery, without the need to go through rigorous procedures associated with government-controlled institutions. Also, the establishment of only one line of command means that communication will flow effectively between various departments and employees. This also means that conflict resolution will be much easier in such a set up as there is an established less bureaucratic system of conflict resolution. Additionally, this will solve issues where employees are caught unawares by adjustments in production, distribution, and monitoring technologies. This is because employees will be able to do only tasks they are capable of, something which in government institutions is hard to implement
Recommendations
This study recommends that BC Hydro be privatized, to eliminate the issues if excessive government control and bureaucracy. Transforming the company into a private entity will most definitely lead to more freedom of employees to participate in the decision making processes of the company. This has the effect of improving employee loyalty and morale, which are very important aspects of organizational behavior. In addition, privatizing the company to encourage innovation, effective flow of communication, and more motivation in most of the employees. This will lead to the development of strong organizational behavior and culture. Also, this study recommends the adoption of a management system that enables the participation of all employees in decision-making processes. This will be important in ensuring that jib satisfaction levels are high. Also, it is recommended that the company ensures that there is adequate training before the rollout of new technologies. This will ensure that cases of unfamiliarity with the working 8f equipment are avoided. Overall, all these strategies combined with the commitment to environmentally sustainable means of power generation and power conservation programs will result in the further growth of the company’s brand.
Conclusion
In conclusion, organizational behavior is very important in the ability of a company to meet its objectives and business goals. Therefore, it is important that business managers put in place measures aimed at boosting employees’ morale, job satisfaction perceptions, self-confidence, ad loyalty to the company. These are important in developing strong organizational behavior. In addition, communication systems and decision-making processes should be very efficient. Therefore, BC Hydro should be more committed to reducing bureaucracy in the company’s system, reduction in government control, and the adoption of a management system that recognizes the role of all employees in decision making. The company should also remain steadfast in its adoption of digital technology, the promotion of power-saving systems, and the reduction in greenhouse gas emissions. All these programs will translate to the improvement in the organizational behavior and culture in the company, which will translate to more productivity, the loyalty of employees, innovation, and more revenues for the company.
References
Weller, C. (2018).Homeschooling could be the smartest way to teach kids in the 21st century — here are 5 reasons why. Business Insider. Retrieved from : https://www.google.com/amp/s/www.businessinsider.com/reasons-homeschooling-is-the-smartest-way-to-teach-kids-today-2018-1%3famp