Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 3 Motivation Theories
Organisational behaviour is influences by different perspectives and concepts which are associated with the organisation and management. Different structure and culture are defined by taking the example of the CAPCO and NHS. The relationship between the structure and culture and their impacts over the organisational performances and operations are discussed through taking CAPCO as example. Different factors which influence the individual behaviours are defined. The effectiveness of different leadership styles and approaches in different organisations are illustrated. Organisational theories and their impacts over the practices of management are explained. Different approaches of management of CAPCO are evaluated. The impacts of leadership styles over the motivational aspects are discussed and comparison has been drawn on the two motivational theories. The necessity of the managers in applying the motivational theories in organisational environment has been explained. Group behaviour, group dynamics, factors which inhibit and promote team development in CAPCO, have been analysed. The impact of the technologies on team functioning is evaluated by considering the example of CAPCO.
Organisations are instituted for meeting the need of the organisational goals with efficient work specification, departmentalisation, work allocations, supervision of the work, allocation of roles and responsibilities as per the levels of the structure. The structure of the organisation directs the human resources towards the organisational aims. Organisation structures help the organisation to implement the strategic objectives and related activities within different levels of the organisation. (Maloney, 2015) Establishment of organisational structure indicates the arrangement of different duties, lines of power, rights and communications within the organisational environment. The organisational structure described the flow of roles and responsibilities within different levels of the management. Corporate strategies, different trends within the market are impactful over the organisational structure. Complexity within the tasks, size of the organisation and human resources within it, aim of the organisation also impacts over the structure of the organisation. There are different positive and negative effects of structure on the organisational operations. Two types of structures are mainly associated with the organisational structure:
Tall structure: in this structure the hierarchy of the organisation has been separated into different multiple levels. There is a large chain of command in this structure. This structure is traditional in nature and the power is held by the organisational authority. Benefits of this structure lies in the coordination and efficiency. Roles and responsibilities are defined clearly within this structure. As a result the management of the organisation can run the business with proper strategic implementation. It ensures effective command. From the top layer to bottom there has been a long chain of command. Though this structure places efficiency in the completion of the work the structure also impacts negatively on the handling any conflict situation or implementing any changes as the communication is difficult in this structure. (Maloney, 2015)
Flat structure: within this structure there are fewer layers with on layer of management. As a result the chain of command has been short from the top layer to the bottom. The span of control within this structure has been wide. The chain of command is direct. This structure has been beneficial for the organisations as the economic costs are lower having fewer employees. The staffs can be operated with the direct supervision. Limitation within the height of the structure would place hindrance in the growth. (Maloney, 2015)
Culture of an organisation is based on the values, beliefs, business environment of the organisation and the people. Through the culture the organisations influence the people and motivate them. (Furnham, 2012).
CAPCO organisation has been dealing in the financial service sector. The organisation places focus on the innovation and the industrial culture. The organisation is operating the business through flat structure. By considering variety of skills requirements in different projects matrix structure is also adapted in different situation by the organisation. This structure is team driven flat organisational structure with non-hierarchical approaches. Through this structure the management creates a motivated culture. The culture of the organisation is people centric as they place empowerment in the workforce. Within the culture the organisation is placing independence and involves the people in the decision making. The culture of CAPCO celebrates integrity, individuality and openness in access. There are four key pillars within the culture of CAPCO:
Through the structure and culture CAPCO fosters flexibility and creativity for working through risk handling. Through these structure and culture the employees are empowered to meet the challenging needs of changing financial service industry. (businesscasestudies.co.uk., 2016). NHS operates their practices through the hierarchical tall structure with different layers being owned by government. There are different committees and boards within the organisation. The command flows from the top management and passes through different levels to reach to the bottom level. Through this structure the organisation is efficiently managing the wide range of employees, doctors, staffs, nurses in different locations. The organisation has placed role culture within the working with leading people in business environment. (Speroff, Nwosu, Greevy, Weinger, Talbot, Wall, Deshpande, France, Ely, Burgess and Englebright, 2010)
With less middle management and flat structure the organisation CAPCO has a strong culture. The employees can directly communicate with the higher management. As the organisation has placed empowerment within employees, they perform through innovation and creativity. The employees improve their performances through the research and development. The employees are effectively motivated through the flat organisational structure and people oriented culture of CAPCO. The managers effectively supervise the performances of the employees and motivate them towards the improvements. The culture of the organisation empowers the staffs as the culture is more democratic in nature and places flexibility within the working environment. CAPCO places strong values and integrity within the working environment which encourages the employees and engages them within the organisational objectives. The culture and flat structure of the organisation also motivates the people in providing satisfactory services to the clients. The empowerment within the culture invokes the employees to place loyalty within the work.
As CAPCO also follows the flat organisation structure the operatives are able to communicate with the managers directly. As a result the employees are able to take significant roles in the decisions making processes. The employees of CAPCO are motivated through the bottom up leadership approaches of the culture of CAPCO. The management places open access to the all the individuals. Within the leadership approaches CAPCO places a little bureaucracy with a little hierarchical structure for complex tasks completion as suggested by the UK Chief Executive Officer of CAPCO. The culture of CAPCO encourages the employees through supporting the independent thinking. (businesscasestudies.co.uk., 2016). This also incorporates the belongingness of the employees within the firm. The innovative and entrepreneurial culture supports the flat structure and supports the employees through providing freedom in realising their aspirations.
Through the flat structure the organisation can perform effectively in the rapidly changing market structure and respond to the changing trends within the market of Finance services. With the proper performances and efficient culture and structure CAPCO has 75% share in the financial service market and 14.7% client base in the global market. (businesscasestudies.co.uk., 2016). CAPCO has arranged talent programmes to improve the performances of the employees. The culture also improves the organisational behaviours within the workforce. The four keys within the culture of CAPCO have been increasing the aspirations of the employees and placing the organisation in a strong place in the market. The organisation is also including the team working culture in the work place. Through share purpose and common goals the employees and members of the teams are committed towards the achievement of the targets. (Storey, 2013)
The behaviours of the individuals are influenced by different factors within the business environment. Individual behaves within an organisation differently in different situations. The job roles and responsibilities are impactful on the behaviours of the individuals. In different conflicting situation different behaviours are seen from different individuals. CAPCO considers the employees as the internal stakeholders. (Furnham, 2012).Within CAPCO there are different factors which are impacting on the behaviours of the individuals:
Through proper leadership skills the organisations can influence the working of the human resources. Efficient leadership skills and styles are necessary for the organisation to make proper planning in the working and implementing the strategic vision and mission. Leaders with their effective leadership skills and styles lead the human resources towards the efficacy and achievements of the organisational goals. There are different leadership skills and styles. These leaders influence the working of the human resources in different ways. Through efficient leadership skills and styles the leaders encourage collative measures within the workforce to for accomplishing the desired goals. Through proper communication the leaders motivates the subordinates. (Perry, 2011) Proper communication within the leaders and staffs is the reflection of efficiency of leadership skills.
CAPCO places proper leadership skills and style for influencing the employees and their performances. The efficient leadership skills in CAPCO have been leading the human resource towards the success of the organisation. The leadership qualities which are taken in account by CAPCO are enhancing the services to the client. Lance Levy, the CEO of CAPCO has placed democratic leadership qualities to lead the wide range of employees and staff. The leadership features of CEO of CAPCO has been focusing order the enhancement of the employee performances and motivating the employees. Lance Levy has placed collaboration within the working environment in order to influence the team working in workforce. The democratic leadership features of Lance Levy are properly motivating the employees and engaging the human resources within the organisational decision making processes. CAPCO also placed focus over the bureaucratic style in handling complex projects. This leadership style of CAPCO also encourages creativity and innovation within the leadership. (businesscasestudies.co.uk., 2016).
Comparing with the democratic leadership style NHS has been performing bureaucratic style of leadership. The traditional bureaucratic style of leadership has been placing their focus over the administration of the people. A strict hierarchy has been formed within the organisation. (Storey, 2013) Official duties of doctors, nurses and other staffs are fixed under the hierarchy of leadership. Immutable rules and regulations are being followed within the organisation in order to manage a line of specialities. Considering the recent trends the organisation has been adding proper motivation for directing the teams and individuals to work effectively. (Storey, 2013)
Organisational theories are the approaches to the analysis of the organisational components. Within the theories of organisation there are perspectives over rationale system labour division, modernise theory, etc. (Parikh, 2016). The organisational behaviours along with different manage approaches are associated with the organisational theories. Different organisational theories impact over the organisational approaches in different manner.
Scientific management theory: scientific approaches are associated with this management theory. The flow of work and performances are monitored and the initiatives are the main focus of this theory. Through increasing the productivity in scientific way this management approach tries to decrease the operational costs and reduce the errors within the operations. In order to bring proper changes within the organisational approaches the scientific management theory places focuses over the job roles and responsibilities. (Mullins, 2016). By evaluating the job profile and the related skills the responsibilities are provided to the employees in this management system. CAPCO also places this management approaches as the job roles are provided by the organisation through analysing the capabilities of the employees. This management system also places focus over the training and development in order to increase the efficacy of the human resources. CAPCO management system analyse the individual capabilities for providing proper development aspects. Appropriate communication is placed within this management approaches to motivate the employees and provide appropriate flow of information. CAPCO adapts the effective communicational approaches for directing the employees. The scientific management approaches are also chosen in the employment of the human resources within the organisation. By selecting proper human resources the management of CAPCO accomplish the predefined practices. Economy growth of the organisation is also another objective of this management system. (businesscasestudies.co.uk., 2016).
Human relations theory: human relations are mainly focused within this management theory. This management approach has referred that the organisation should be concerned over the social approaches and relations. (Perry, 2011) The management theory places proper attention over the people who are associated with the organisation. Proper training and motivations are provided to employees to have better performances. For retaining the skilled employees this management theory improves the relations within the employees and management. Through training and proper recruitment the high turnover can be reduced.
CAPCO organisation has been mainly placing human relation approaches in the management. Informal system within the human relation approaches are adapted by CPACO management. The staffs and employees are involved within the decision making processes. The communicational channels are implemented by the organisation for having proper relationship within the organisation. (Perry, 2011) Through empowering the employees the organisation is implementing independent thinking in the human relation approaches. CAPCO has been placing their focus over the team working and collaborative approaches. Through cultivating the abilities within the employees and increasing their productivity the organisation has been improving their services and also changing the approaches as per the market situation. Through this approach CAPCO is having a motivated human resource which is positively contributing through generating relevant ideas and innovative skills within team work. By following this approach the organisation involves the people within the decision making process and innovation and creativity are encouraged. CAPCO promotes motivation and leadership for placing proper human relation. (businesscasestudies.co.uk., 2016).
Burueacratic approach: within this approach of management the hierarchical structure and culture is followed by the organisational management system. The hierarchy has been followed while placing roles and responsibilities in the work flow. NHS has been following the traditional bureaucratic approaches for maintaining the rules and regulations of the health care and implementing those within the organisational performances. A strict hierarchy has been maintained within the organisational structure of NHS. Rules and policies which are associated with the performances and employment are strictly defined among the employees. Though the discipline has been maintained throughout the organisational performances the motivational level of the staffs is negatively affected. Decision making processes are conducted through following the rules and regulations. (Mullins, 2016).
Various leadership styles have distinct impacts on the motivation of employees within period of change. Let us analyse the different styles.
Autocratic Leadership: A form of dictatorship can be associated with this kind of leadership where the entire liberty of decision making and governance lies with the leader. No kind of means are adopted to ensure that employee suggestions are taken into account or even considered in the first place. A strict hierarchy is present and the command of the leaders is expected to be blindly followed by the subordinates. As a result, the employees are highly rigid and saturated during periods of change and hardly any levels of motivation or morale can be associated with the employees. (Bhatti, 2012)
Democratic Leadership: Democratic leaders allow the free flow of employee ideas and suggestions and every individual is entitled to share his piece of mind. Often in organisations where the work load is immense, this kind of leadership is undertaken so that every individual can find the purpose to work. Although it does not guarantee high levels of motivation at all times, certainly more levels of motivation can be associated in comparison to the autocratic style.
Bureaucratic Leadership: A bureaucratic leader always ensures that all company related affairs, mode of operations, style of working, etc should conform to and comply with the pre-determined set of company policies and norms. Guidelines are determined so that employees can work within it. Not too much emphasis is given by the leader on considering employee ideas and suggestions and not too many functions are assigned to enhance the motivation of the employees.
Transactional Leadership: The employees under this leadership stay motivated as they are stimulated by extra incentives or rewards but only on the completion of the prescribed work or on achieving excellence. Thus this is more of a give and take policy and this result in employees staying motivated to achieve excellence in order to win that extra buck. However the drawback is that employees might think that the company as well as the leader are both just output and result oriented. (Paterson, 2013)
Transformational Leadership: A transformational leader, as the name suggests, transforms his attributes according to the given situation and works towards the establishment of motivation among the employees. He might come to the level of the individual in order to assist him in his work and this overall motivates the employees during periods of change as everyone appreciates the intention of the transformational leader.
The two motivational theories that are taken into account here is Maslow’s Hierarchy of needs and Herzberg’s two factor theory.
Maslow’s Hierarchy of Needs
Maslow stated that there are five levels of needs with regards to motivation and he gave distinct names to each level. The first level is known as physiological need. According to Maslow, the first stimulation of demand in a human mind is the attainment of basic needs like clothes, food, etc for his survival. With regards to an organisational setting, the first level can be fulfilled by providing the employee with a proper working environment, office equipment, etc. The second level has been recognised as the security needs where the individual will crave for certain levels of security like health insurance, anti-theft, etc. (Kaur, 2013)
In an organisational setting, an employee can be catered to for the fulfilment of the second level of need by ensuring that he has a stable job, a fixed salary, safe working conditions, etc. The third level of need recognised by Maslow is known as the love & belonging need where an individual is stimulated by the needs of love, appreciation, togetherness, etc. This need can be met in an organisation by establishing a transparent relationship between the top management and the employees, timely appraisals which are non-monetary in nature, transformational leadership, etc. The fourth level can be associated with self esteem needs where an individual wants to fulfil his needs related to high prestige and status. In an organisation this need can be met by conducting timely promotions, recognition, etc. The fifth and final stage is known as self actualisation and deals with the time when an individual has attained full potential. This need can be met when an employee is promoted to the post of a chairman or managing director, etc.
Herzberg’s two factor theory
Herzberg stated that in an organisation there are 2 set of factors. One causes dissatisfaction among the employees and one attains satisfaction. He called the former dis-satisfiers and the latter as motivators. The set of factors that hampers motivation by attaining dis-satisfaction include irregularities with salary, non-conformity of the employees with the company guidelines, conflict in the relationship within peers, etc. (Hiriyappa, 2015) The set of factors that contribute to the motivation include factors like employee recognition and appraisal on excellence in work, high level quality in work, etc. Thus this is how Herzberg’s two factor theory can be applied to an organisational setting. This entire theory is also known as the Hygiene theory and is a very renowned theory of motivation as well.
The necessity of managers to understand and apply motivation theories within the workplace are the following.
Output: The motivational theories should be applied in order to ensure that optimum levels of motivation exist in the organisation. This is directly related to the total output generated. If employees remain low on morale and lack motivation, then they will not be able to give their best inputs and as a result the output generated will be affected. This is one of the primary reasons why motivation theories should be applied within the workplace. (Manzoor, 2016)
Organisational culture: It is very important that in order to ensure that efficiency and effectiveness is maintained in the work, the residing culture has to be pertinent. The proper culture required within an organisation can only be determined if the motivational theories are applied in an organisational setting. Proper culture ensures that the employees remain motivated at workplace and work to the best of their abilities.
Division of Work: One of the main aspects of management is that work should be delegated properly so that people can be efficient in their operations. People will be high on morale and will exhibit high levels of motivation only when they are given a set of responsibilities that they would be willing to take or are capable enough to do the job. Thus application of organisational theories is must for the proper division of work.
Incentives: Once the organisational theories are applied, one will understand the importance of incentives and rewards. The kind of rewards that will satisfy the employees can also be understood on the application of theories. Incentives and rewards are very important in establishing the motivation of the employees. Without the prevalence of incentives, employees may get saturated with regular pay and might not work with that added zeal and enthusiasm.
Personal Development: Unless Maslow’s hierarchy is applied in an organisation, the levels of needs driving the employees will not be understood. Once this is done, then measures can be taken to develop pertinent development and training programmes that is important for their personal and professional development. Once the organisation takes steps to ensure the development of the employees, high levels of motivation can then be associated with the employees as they will feel that the company does care about their development and this will eventually also help the company earn a lot of employee loyalty along with the high levels of motivation. (Manzoor, 2016)
Group behaviour can be related to the set of characteristics exhibited by the team as a whole while working together with shared and differentiated opinions working towards the attainment of mutual company objectives. Groupthink is a kind of group behaviour where the collective quest for harmony may lead to deviant decision making. Groupshift is a phenomenon where purposely the position or designation of a particular individual or more is exaggerated into a superficial entity. De-individuation is a phenomenon in which an individual or more or the entire team loses its ability of awareness and that results mostly from the inability to evaluate one’s own self. (Wang, 2011)
These entire three phenomenon may be prevalent in CAPCO as well as there is a lot of room for group work or team work in the organisation. The prevalence of the matrix structure ensures that people have to work in groups and that too people from different departments have to come together to work in groups. This means people with different skill sets and speciality come together and works for the attainment of common organisational goals and objectives. The work that requires a lot of expertise and exclusivity from various perspectives requires people coming in from their respective departments and showering their knowledge. This results from the matrix structure and is an example of a formal group that is present inside CAPCO. (Wang, 2011)
In other cases also, people come together and give their own insights and ideas about what they think is pertinent according to them. These cases relate to instances like collaborative thinking, brainstorming sessions, interactive sessions where all members of the team have to discuss matters related to their field of study. Besides, it has to be understood that CAPCO is an organisation that comprises of a workforce which is highly competent in their field of interests and innovation is one thing that is given the top most priority. For this purpose in order to enhance and increase the levels of innovation, it is important that people from various backgrounds get together and discuss the mode of operations that will lead to greater efficiency in production. This is an instance where informal groups are formed. (Businesscasestudies.co.uk, 2016) Thus we see that the prevalence of groups is quite a regular phenomenon in CAPCO and where there is a group, there has to be periodic conflicts like group think, Groupshift and de-individuation. The important thing lies in cutting across all barriers and resolving the problem at hand.
The following factors will promote or inhibit the development of effective teamwork within CAPCO.
SMART Goals: The determination of SMART targets or goals will help the team in coming together and looking to achieve the determined set of objectives. S stands for specific, M stands for measurable, A denotes attainability, R signifies relevance and T stands for timely.
Culture: The culture that presides in an organisation can determine whether or not the prevalence of team work is possible or not. The matrix and flat organisational structure and culture of CAPCO makes sure of the fact that teamwork is possible within the organisation as people from various departments come together and work towards mutual objectives. (Tinuke, 2013)
Trust & loyalty: It is significant that employees learn to work with each other and for each other as well. For this to happen the team has to develop and the way this can happen is if the team members can establish trust, faith and loyalty among themselves. Unless this aspect is carefully determined, it will not be possible to attain efficiency and enhance the levels of production.
Barriers: Teams should be formed regardless of any obstruction or barriers. Different kinds of barriers include religious barriers, ethnic barriers, verbal, etc. If development in a team is the eventual objective, then it has to be ensured that the barriers are removed. If the team functions amidst the prevalence of barriers, then neither will the members be comfortable working in the environment nor will efficiency in production and output be achieved. Hence, removal of barriers is mandatory.
Purpose with leadership: Wayward or aimless leadership can be detrimental for the organisation, in this case CAPCO. Favourable styles of leadership can be associated inside CAPCO but it has to be seen whether these styles are exhibited with a clearly prescribed objective. The leadership should be committed in nature and should have a purpose. If this is not achieved, then the inability of the leader will rub onto the employees and eventually will give rise to an inefficient work force inside CAPCO. (Salas & Cohen, 2013)
Work Load: One of the reasons that CAPCO comprises of such a competent workforce is because of the fact that the company thrives on innovation and the amount of work to be done is quite a lot. In order to finish the vastness of the work, it is imperative that the team comes together and divides the work equally in accordance to their field of interest and specialization. This is one of the primary factors that promote the development of teamwork inside CAPCO.
The latest technology has been adopted that solves the following purposes and the impact of technology can be analysed from the following.
Payments: The adoption of latest technologies have meant that payments or settlements can be done easily now without much hassle. Earlier the process of payment was rather long and tiring. Now technologies Blockchain allows improved and efficient means of making payments. The establishment of M-Pesa also reduces team effort as all mobile related solutions can be acquired through M-Pesa which saves the team a lot of hassle. (CAPCO, 2016)
Digital: The advent of internet technology over the last two decades have meant that people or employees can now be inter-connected with each other even without being physically present in a particular place. Coordination can be done among teams by joining a local area network via internet.
Virtual: One major development is the ability to plan and schedule virtually through a computer or any internet enabled device. The adoption of a new technology called Groupware enables the team members working within CAPCO to schedule interviews and meetings virtually without being having to be physically present at all times. Plans and meetings can be coordinated from anywhere in the world and this indeed is a massive development in the aspect of technology.
Mobile: One can’t help but acknowledge the advancement that has taken place in the mobile technology aspect. CAPCO team interacts during non-office hours through various mobile apps and messengers that help them stay in touch and inter connected easily without any hassle or trouble at all. Company app can also be developed in the future that would allow all members of not only the team but also the company come together on one common platform and discuss company related matters. Not only is it cost-effective but also is easy and efficient to use.
It has to be kept in mind that technology is one thing that will keep growing and keep enhancing with time. CAPCO has to understand what the technologies are that will benefit them and adopt means to ensure that those technologies are developed for the operations of the company.
This study backed by effective research tells us why there is a marked difference between classical and human relations theory and why human relations theory is widely accepted today. We also understand the flat organisational structure that is prevalent in CAPCO and the fact that the work load of the company ensures the prevalence of team work and thrive on innovation. The various styles of leadership that have been discussed include autocratic, democratic, bureaucratic, etc,
We get to know why and how Maslow’s Hierarchy and Herzberg’s two factor theory can be applied to the organisational setting and an analysis have been done on the kinds of group behaviour. The various factors that promote the development of team work within CAPCO include SMART goals, trust & loyalty, workload, etc. The various technologies that have an impact on the team work in CAPCO have also been identified with mention being made of technologies like Blockchain, etc.
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