Cool Design and Marketing (CDM) is a local marketing agency that has grown over the past twenty years and during that period, CDM has expanded in the areas of web design and digital marketing. As part of its rapid expansion, CDM hired a number of new designers as well as marketing executives. Leading the latter is Mr. Low, a senior manager in the marketing division who joined CDM in its early days and worked diligently over the years, often clocking long
hours in the office till late at night.

He expects all his staff to work equally hard. Mr Low wants to know exactly what all his staff are doing and he constantly walks around the office cubicles to check on them and also to check every detail of all the projects that he supervises. The new marketing executives and designers who recently joined CDM quickly realized that it is the culture for everyone in the marketing division to work late together with Mr. Low.

Question

• Explain the formal organization and informal organization, and give examples of the way(s) they are represented in this case.
• Describe the concept of the psychological contract and its significance in organizational behavior. Discuss how the psychological contract can explain how CDM staff feel about their work environment.
• Present the benefits and issues of working from home, with a focus on areas of interest in organizational behavior. It is not necessary to limit your answer to the case.