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Industrial Data

versão impressa ISSN 1560-9146versão On-line ISSN 1810-9993

Ind. data vol.26 no.2 Lima jul./dic. 2023  Epub 20-Dez-2023

http://dx.doi.org/10.15381/idata.v26i2.24826 

Production and Management

Organizational Behavior and Agile Methodologies in an Insurance Company located in San Isidro (Lima- Peru), 2022

Rodrigo Reyes Freitas1  * 
http://orcid.org/0000-0003-4661-940x

Antonio Roberto Huachaca Urbina2 
http://orcid.org/0000-0003-4784-6524

1Degree in Business Administration from Universidad Científica del Sur (Lima, Peru). Currently working as executive at Pacífico Seguros (Lima, Peru). E-mail: rodrigoreyesfreitas@gmail.com

2Doctor in Education Science from Universidad Científica Del Sur (Lima, Peru). Currently working as professor at Universidad Científica del Sur (Lima, Peru). E-mail: ahuachaca@cientifica.edu.pe

ABSTRACT

Agile methodologies make possible and encourage change in companies, as today, companies that resist change are doomed to fail. Therefore, the objective of this work is to demonstrate that there is a direct and significant relationship between organizational behavior and agile methodologies in an insurance company located in San Isidro. The research was correlational, with a quantitative approach and a non-experimental design. The convenience sample consisted of 30 employees, who were asked to complete a Likert-type questionnaire with a scale from 1 to 5. It was possible to conclude that a direct and significant relationship exists between organizational behavior and agile methodologies, as well as a strong and positive correlation between them, with a Spearman’s coefficient of 0.8650.

Keywords: agile methodologies; organizational behavior; motivation; human talent; teamwork

INTRODUCTION

Currently, the development of companies is influenced by several factors, such as competition, changing consumer behavior and improvements in technology. Despite all these factors, human talent remains the most important resource. Therefore, in their eagerness to stay up to date, companies offer a fundamental change in the way they lead, plan, and obtain results. Agile methodologies not only seek to react or accept change, but to empower employees to make change happen, to offer them new ways of working, to turn them into integral professionals and empower them (Project Management Institute, 2021).

Constant change is increasingly common in international organizations. According to Arenas and Bayón (2020), human talent, organizational change and organizational behavior are already common terms in the business world: it is people who make the change happen, and the success of the change depends on them alone. Transformation and reinvention are the key to the future.

The object of the research is one of the most important insurance companies in the Peruvian market, which started its path towards agile methodologies in 2016. It has been identified that the participation of people within the agile teams has decreased and is not the same as in its beginnings, probably due to the lack of motivation or boosters that drive them to want to once again be part of the change. The above reflects facts related to organizational behavior and agile methodologies.

International authors such as Galizzi (2019) concluded that the variables of organizational behavior must be hierarchized: first are shared values; second, skills, knowledge and attitudes; third, motivation; and, finally, peer trust. The author supported the relevance of interpersonal relationships in organizational behavior, that is, team trust. On the other hand, Escobar (2019) comments that the implementation of agile methodologies should be initiated by the leaders of the organization through a set of values and principles within its organizational culture. The important role that leaders play in an organization is acknowledged, especially when changes such as agile methodologies are introduced. In turn, Hadida and Troilo (2020) indicate that society, individuals, and organizations live in times of dizzying changes and persistent innovation that create the need for agile, creative, and collaborative responses. This confirms, once again, the ongoing change that is taking place today and to which the business sector is no exception.

Among national authors, Marino (2017) concluded, after analyzing one of the most important financial institutions in Peru, that the support of senior business management is key for an agile model to be formalized. The author supports monitoring activities by ensuring that the model is applied, and by verifying the benefits obtained. On the other hand, Sanchez (2021) argues that organizational behavior is related to work motivation, which is the main source that allows employees to communicate better and be more empathetic and assertive within the organization. According to the author, work motivation is fundamental in strengthening a team so that it is prepared for any change that may exist in the organization. This conclusion is strengthened by Madero and Olivas (2016), who state that a collaborator who presents emotional well-being, as a result of interpersonal relationships and adequate communication processes, increases his efficiency and remains stable in the organization. The authors explain the importance of human talent, since the organization depends on organizational behavior, especially if it intends to make transcendental changes in it.

Based on the above, the purpose of this study was to determine the relationship between organizational behavior and agile methodologies in the company under study. For a more specific analysis, variable 1, organizational behavior, was subdivided into three dimensions: interpersonal relationships, communication processes and motivation. Likewise, variable 2, agile methodologies, was also subdivided into three dimensions: individuals, leadership, and working conditions. As specific objectives, it was sought to analyze the relationship between variable 2 with each of the dimensions of variable 1.

At a theoretical level, the justification of this study considers, among other authors, the contributions of Lasa et al. (2020). It seeks to contribute to the research line of agile methodologies within the Business Sciences since this variable is not well known in Peru. Moreover, the purpose of this research is to give a precise and concise scope on the meaning and implication that agile methodologies have in organizational change. This study intends to contribute to the solution of the problem of the company under study and to serve as a reference for other companies seeking to start their way towards agile methodologies, mainly those in the insurance industry. Regarding the methodological justification, based on Hernández and Mendoza (2018), the research was correlational in scope since it was intended to establish the level of association between the study variables. On the other hand, a questionnaire designed under the Likert scale was developed, which was subjected to psychometric evaluations of validity and reliability. The limitation of this work lies in the fact that there was no direct relationship with the teams that practice agile methodologies. However, it was found that the teams are homogeneous, which means that they all work under the same guidelines. This meant that it was sufficient to contact the leader of one of the teams to fill out the questionnaire for it to be representative.

Organizational Behavior

Organizational behavior should be constantly studied and analyzed by team leaders in organizations, as it explains the influence that the actions of employees have on the achievement of objectives, which is crucial for companies and should be reviewed in more detail. According to Consuelo et al. (2018), the definition of organizational behavior can be summarized as el impacto de los individuos y grupos en el comportamiento de las organizaciones al aplicar sus conocimientos en la eficacia [the impact of individuals and groups on the behavior of organizations by applying their knowledge in effectiveness] (p. 93). Now, this impact can be positive or negative: it will depend on the top management of the organization.

According to Fierro (2013), positive organizational behavior does not consider the collaborator only as a means to increase productivity and meet the objectives of the organization. On the contrary, it seeks to include aspects such as happiness, health, and motivation. The idea is to form a solid work team in an integral manner.

Of the three previously mentioned aspects, motivation is the most valuable, since, according to Madero and Olivas (2016), they are psychological forces that work within people and determine their levels of effort and persistence. Without effort and persistence, employees would not be able to exploit their full potential and would run the risk of being replaced. This is why it is so important for a team to feel motivated and empowered and to have healthy and integral interpersonal relationships.

As indicated by Arias et al. (2018), interpersonal relationships are real-life connections and communication between people who reflect and perceive. Understanding how to interact in a work team is vital to follow the path of positive organizational behavior. This is not a simple task, since all individuals have different points of view and must reach common ground, as well as negotiate the decisions taken as a team. If a healthy coexistence is maintained, this type of exchanges should not represent a major inconvenience.

From the above, it is deduced that organizational behavior is the most valuable component for companies and that motivation and interpersonal relationships are the key for it to manifest itself positively and contribute to the fulfillment of goals and objectives, which, in the end, is the primary reason for the creation of a company.

Agile Methodologies

Before introducing the concept of agile methodologies, it is necessary to validate how a team applies agility in its projects.

What does it mean to be agile? According to Hadida and Troilo (2020), to be agile is to know how to respond successfully to changes in situations of uncertainty and constant transformation. An agile work team adapts and empowers in an integral way, which is crucial due to the continuous change experienced by companies, the environment, the internet, technology in the lives of individuals, and the evolution of customers who are increasingly demanding. Agility is here to stay. There are different types of agile methodologies, such as Scrum, Kanban, and Lean, among others.

According to Lasa et al. (2020), the methodology most widely used by companies, because it is the most systematized, is the Scrum methodology. Scrum is a rugby action that consists of recovering a ball that was out of play and in which order to do so, the team works as a unit and seeks to outmaneuver the players of the other team. Consolidating teamwork and promoting transversality between the different areas of the company offers greater competitiveness. Scrum proposes a framework that allows for innovation through multidisciplinary teams that seek to obtain valuable results in short iterations (sprints) and stay in constant communication with the end customer.

In order to carry out these new ways of working, new leaders are needed. According to Fischman (2016), transformational leadership is a new type of leadership whose main objective is to move followers toward transcendental causes and stimulate them by increasing their level of need, morality, and empowerment. The leader must not only look like a leader, the leader must be one. It is irresponsible to think that work teams can become self-managing and practice agility in their companies without the constant support of their leaders.

In turn, certain working conditions drive the ability of an organization to be more agile. According to Lapicki and Terlato (2021), the first driver is dynamism, which consists of speed in making decisions in the organization and thus minimizing the time of processes and procedures. The second driver is innovation, which is the organization’s ability to adapt to change by finding new, simpler, and more efficient ways of working, as well as to anticipate market demand by developing new products or services. Finally, the third driver is collaboration: the organization must always facilitate teamwork.

In summary, agile methodology is the new way of working demanded by the market, because being agile does not only refer to its original meaning, which implies speed or quickness. Being agile is anticipating what the customer might want, it is the constant delivery of results, it is working in a team as a unit and it is empowering all the collaborators of the organization regardless of their rank.

METHODOLOGY

Based on Hernández and Mendoza (2018), the scope taken by the research was correlational, as it aimed to establish the level of association between the study variables, quantitative, and had a cross-sectional non-experimental design.

Due to the size of the population (350) and considering that these were homogeneous teams, convenience sampling was used. Thirty collaborators were chosen from the operations team of the company under study, which works under agile methodologies, for being the most generous team to contribute to the research. For data collection, the survey technique was used and the instrument was a questionnaire of 30 questions (15 for each study variable) of Likert type, with a scale from 1 to 5, covering a set of questions related to the variables and dimensions of the study presented.

Regarding the quality and effectiveness of the instrument, the judgment of experts was applied for validity by consulting three professors from the School of Business Sciences. For reliability, Cronbach’s alpha coefficient was used, where 0.880 was obtained for the items of the organizational behavior variable and 0.920 for those of the agile methodologies variable.

Descriptive and inferential statistics were used for the analysis of the information. Concerning the latter, the normality test was performed to determine the appropriate statistical technique to detect disparity in the hypotheses. Data analysis and transformation were performed in Python 3.0 Release.

RESULTS

The validity and reliability of the instrument were verified by the judgment of three experts, professors of the School of Business Sciences, and by the Cronbach’s alpha coefficient test, respectively (see Figures 1 and 2).

Source: Extracted from Python 3.0 Release.

Figure 1 Cronbach’s Alpha Coefficient for the Organizational Behavior Variable. 

Source: Extracted from Python 3.0 Release.

Figure 2 Cronbach’s Alpha Coefficient for the Agile Methodologies Variable. 

After conducting the survey with a Likert-type questionnaire, with a scale of 1 to 5 and comprised of 30 questions (15 for each variable), the following results were obtained:

Descriptive Results

  • Gender: 50% of the respondents were male and 50% were female. It is worth mentioning that the instrument chose not to use a third option (“I prefer not to say”).

  • Age: 53.3% were 26 to 35 years old, 40% were 36 years old and older, and only 6.6% were 18 to 25 years old.

  • Level of education: 76.6% of respondents indicated that their educational degree is undergraduate, 13.3% have a master’s degree, 6.6% checked higher technical, and finally 3.3% have at least a postgraduate degree.

Normality Test

Since a convenience sample of 30 participants was used, the Shapiro-Wilk test was applied to the study variables. In order to show the results in a more understandable way, graphs obtained directly from Python 3.0 Release are presented, from which it is concluded that the data do not correspond to a normal distribution (see Figure 3).

Source: Q-Q plots.

Figure 3 Non-Normal Distribution of the Variables Under Study. 

To perform the test, the rounded mean of the component of each item was used; that is, an average was calculated since there were components that had the same items. Once the results were ranked, it can be observed on the Q-Q plots that the distribution is not normal. Based on this result, the ideal test for contrasting the hypotheses of these characteristics was performed: Spearman’s correlation coefficient.

Hypothesis Contrast

Table 1 presents the hypotheses formulated for this research:

Table 1 Research Hypotheses

General Hypothesis
There is a direct and significant relationship between organizational behavior and agile methodologies in an insurance company located in San Isidro (Lima-Peru), 2022.
Specific Hypotheses
There is a favorable relationship between interpersonal relationships and agile methodologies in an insurance company located in San Isidro (Lima-Peru), 2022.
There is a positive relationship between communication processes and agile methodologies in an insurance company located in San Isidro (Lima-Peru), 2022.
There is a direct relationship between motivation and agile methodologies in an insurance company located in San Isidro (Lima-Peru), 2022.

Once the hypotheses have been tested using Spearman’s correlation coefficient, it is observed that the general hypothesis and the specific hypotheses have a strong and positive correlation (see Table 2).

Table 2 Contrast of Research Hypotheses. 

Variables n Rho p-value < 0.5 Interpretation
General Hypothesis Variable 1: Organizational Behavior 30 0.865 0.007 Strong and positive correlation
Variable 2: Agile Methodologies
Dimensions of Variable 1 vs. Variable 2 n Rho p-value < 0.5 Interpretation
Specific Hypotheses Interpersonal Relationships and Agile Methodologies 30 0.776 0.004 Strong and positive correlation
Communication Processes and Agile Methodologies 30 0.839 0.001 Strong and positive correlation
Motivation and Agile Methodologies 30 0.761 0.001 Strong and positive correlation

DISCUSSION

Based on the findings, the general hypothesis is accepted, which states that there is a direct and significant relationship between organizational behavior and agile methodologies in an insurance company. The result obtained not only showed that there is not only a relationship, but also a strong and positive correlation. These results are consistent with Lasa et al. (2020), who indicate that teamwork in organizations and cross-disciplinary knowledge among collaborators from different areas of a company offer greater competitiveness.

In this study, a strong and positive correlation was observed between agile methodologies, which are related to change, and interpersonal relationships, which refer to the ways of connecting and communicating among coworkers. As previously mentioned, interpersonal relationships are one of the most relevant factors in organizational behavior. It is the employees who must actively participate in any change because if they refuse in any way, the change will not take place, at least not in an optimal way. An opposite scenario is presented by Galizzi (2019), who, observing the results of his research, concludes that communication and trust are difficult between people at the same hierarchical level, as well as little integration throughout the organization and a lack of support in the change process. The author found a shortcoming in the unit of analysis of his research, poor interpersonal relationships and a low level of motivation. This contrasts with the result of this research.

In this research, a strong and positive correlation between communication processes and agile methodologies was validated. That is, there is open and consolidated communication with each of the team members, which is key when substantial changes are desired in organizations. If collaborators do not have active listening, it is unlikely that they can process the change required by the employer. In contrast to the present research, Galizzi (2019) verifies that only 67% of his sample considers themselves encouraged to apply what they have learned in various training and staff communications. Thus, the author concludes that the company must improve this aspect to strengthen the change process.

This study found a strong and positive correlation between motivation and agile methodologies. When there is work motivation, the organizational behavior is more visible to top management. In other words, they begin to place more emphasis on it, either for organizational changes or to continue with the processes and procedures already established. An author who supports this is Sanchez (2021), whose work shows as a result that there is a high correlation between work motivation and organizational behavior.

On the other hand, Baron et al. (2020) conclude that organizational changes have a negative influence on individual and group behavior when there is a complicated work environment. This should serve as a warning for the insurance company. Although they currently enjoy a positive organizational behavior in agile teams, the work environment should not be neglected, as this could have dire consequences for any organizational change, such as, in this case, that of agile methodologies.

CONCLUSIONS

After the research was conducted, it was confirmed that there is a direct and significant relationship between organizational behavior and agile methodologies, with a strong and positive correlation. The same happens with the dimensions of organizational behavior, interpersonal relationships, communication processes, and motivation. This could indicate that the insurance company is optimally managing its agile teams, but still has not found a way to involve its employees in new agile projects.

Regarding the first specific hypothesis, which states that there is a relationship between interpersonal relationships and agile methodologies, it is concluded that the insurance company should not neglect the trust between peers that has been perceived in the agile team analyzed in this work. One of the fundamental pillars of agile methodologies is teamwork, which is why interpersonal relationships are so relevant to this case.

From the second specific hypothesis, which states that there is a relationship between communication processes and agile methodologies, it is understood that communication processes are basic for openness to dialogue and that organizational changes should always be communicated to all employees as it was done by the unit of analysis of this research. Now, just as the communication processes within the agile teams are optimal, constant training on agility should be provided to all employees regardless of their rank. Furthermore, change should be presented in a dynamic and attractive way so that employees show willingness to participate in new agile projects.

Regarding the third and last specific hypothesis, which states that there is a relationship between motivation and agile methodologies, it can be deduced that leaders do encourage their collaborators to work on agile projects since they coordinate times to seek their integral growth. A leader not only validates that the tasks have been accomplished, but empowers, motivates, and accompanies the team. This quality of leaders is one of the most important motivational factors and should be promoted by agile teams, since this way participants will return to participate in projects, which is the objective of the insurance company.

The descriptive results suggest that the organization should recruit younger personnel, such as interns, for example. These results indicate that 40% of employees in agile teams are over 36 years old. Agile teams are more attractive when there is a balance of members of different ages that include younger people.

On the other hand, participation in agile projects should be encouraged with some recognition or award (to be determined by the insurance company) for the best project. Healthy competition could be one of the motivators.

It is also recommended that the entity carry out dynamics, for example, a role-playing game or interviews in pairs, in other words, actions that enhance interpersonal relationships within the teams.

At the same time, it is recommended to carry out constant training on the value added to a team when participating in an agile project and even to certify collaborators regardless of their rank. This could be a motivator for teams to participate again in agile projects.

Finally, further research continuing with this line of research should be causal correlational in order to identify which variable impacts agile methodologies and discover the reason why teams have stopped participating in so many projects. This should be done after verifying the relationship between the two variables and the degree of correlation between them.

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Received: March 03, 2023; Accepted: March 29, 2023

*Corresponding autor: rodrigoreyesfreitas@gmail.com

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