Factors Affecting Organizational Behavior: Sinclair Oil Corporation (SOC)

Topics: Northrop Grumman, Economics, Sinclair Oil Corporation Pages: 5 (1301 words) Published: November 3, 2006
All companies today have internal and external forces that impact organizational behavior. The purpose of this paper is to explore the impact of internal and external forces on organizational behavior. The four forces we will discuss are, customer demands relating to Sinclair Oil, economic forces outside of Select Portfolio Servicing, restructuring within Nestle, and globalization factors relating to Northrop Grumman.

Customer Demands

Customer demands have a large impact on organizational behavior (OB) of the Sinclair Oil Corporation (SOC). SOC owns and operates three oil refineries, a trucking division, a pipeline division, the retail service stations, and eight hotels and resorts. The diverse nature of the company leads to many different customer demands.

The oil refineries have two types of customers. The first is the retail service stations. The refineries must produce enough finished product each day to supply the service stations in 17 different states. The second type of customer is the federal government. Over the last eight years SOC has held the contract to provide jet fuel to Hill Air Force base. The average amount of finished product produced at the refineries is 600 hundred thousand barrels a day. This output is usually enough to supply the service stations needs and have some oil to put into reserve. Working conditions within the refinery are inherently dangerous, if production cannot keep up with demands operators often begin to feel additional pressure to keep pace; this distress can lead to additional dangers.

There are three different types of hotels and resorts within the SOC/Little America organization. There are roadside properties, which cater to travelers and tourists, the elegant hotels and the ski resorts. Each type of property gears itself and its organizational behavior towards the customer base. The roadside properties, such as Little America Cheyenne, have a more casual approach to the customers; due to the affluent nature at the Grand America the environment is formal. The resorts are highly influenced with a European flair. This help the customers feel a sense of adventure.


While customer demands are one of the primary forces on SOC, economic forces greatly impact the OB of Select Portfolio Servicing (SPS). SPS is a mortgage servicing company. The resource group or hardship group is within the loan resolution department. Loan resolution assists borrowers who have fallen delinquent on their mortgage. The resource group assists customers that have hardship, such as, illness, death, loss of employment for extended periods of time, and property damage. When the economy falters the activities of loan resolution are in higher demand.

Loan resolution and the resource group profit off the economic hardship of their customers. The purpose of loan resolution is to turn loss into profit for their investors. Loan resolution limits or prevents the loss which the investor experiences when a customer defaults.

Loan resolution is paid based off of the percentage of delinquent accounts that they get re-performing, get paid in full, or liquidate for a loss.

With the faulty economy there is more a more work that loan resolution must perform. Loan resolution is understaffed and overworked. The influx of high phone call volumes has caused little time for the resource group to complete their administrative duties. Morale is low department wide, largely due to the administration feeling they are performing two jobs daily. Answering phone calls and trying to complete the work the inbound calls generate cannot be completed eight hours a day. While loan resolution's numbers still satisfy the investors giving them business, the administrative departments, such as, the resource group are becoming stressed and overwhelmed with a never-ending workload.


Economic factors affect companies like SPS and Nestlé alike, but Nestle has chosen restructuring as the answer to its...
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