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The problem we are facing today is managing the people in the organizations. Organizational structure and organizational culture are highly related to performance factors. In this report, we will study organizational culture and structure with respect to CAPCO as the primary context, various motivational theories its learning and applicability in the organizations and why it is important for the managers to know about the motivational factors which motivates the employees so that they become productive, how having a good culture positively impacts the business of the organization, also factors which influence the behavior of the employees will be discussed, how groups are formed and various stages of group formation are also discussed. Leaders are the ones who impact the performance of the employees in positive way different types of leadership styles and organizational structures are discussed with respect to CAPCO so as to check the overall impact of the macro factors over the employees of the organization. Ho technology affects the working of the organization and helps benefit the employees and organization are also the part of the learning.
There are different organizational structures and cultures, which differs from company to company here at CAPCO they follow flat structure of hierarchy in their organization, this kind of structure is most suited to evolve the culture of employee engagement, besides this there are various other structures such as simple structure which is low on functional departmentalization, has wide span of control, and employee engagement is less when compared to other structures like function Structure where the hierarchy is based on the functional areas, this has lesser span of control, but high chances of employee engagement.
Comparing CAPCO to BRITISH AIRWAYS which follows functional as well as Management by Area structure the reason for the sale is the presence of business across the globe, instead of relying on the span of control the teams are working in Ad hoc groups which makes the decision making process dynamic and increases transparency. Both, these organizations have different cultures, CAPCO as a modern financial services company follows a culture which is rich in terms of employee satisfaction, individuals thrive in the organization not only in their home country but also in host countries because it promotes a healthy working business environment, the cooperative nature of the finance investment executives enables the employees to the autocracy to take decisions. (Business Case Studies, 2016)
British airways on the other hand has very strict culture and is one of the most successful organizations because of it, the practices they follow are dealing fairly with the customers, maintaining standards, updating the database and re enforcing the tasks done in order meet the customer demands In the most efficient way. (Mullins, 2010)
The flat organization structure and the modern management practices at CAPCO promote employee relations and engagement, the structure enables the managers to possess wide span of control thus which is resulting into increase the independency of the employees over their superiors for little things whereas culture of maintaining transparency, concept of Ad hoc teams enables employees to take independent decisions which give a sense of satisfaction to them also motivates them to perform in order to be rewarded,
One more important aspect of culture at CAPCO is the reward system they follow to motivate the employees to maintain a very healthy relationship with the clients the increasing demand for the financial services in the economy has enabled the company to cope up with increasing costs of client procurement and competition among the firms employees follows the lead efficiently, since the organization follows an informal culture employees stay in jolly mood which enhances the creativity, they formulate new methods on how to increase the net profit of the organization. Workforce diversity and culture of change effects the performance a lot adaptive culture is a very important at capco the process of meetings and orientation helps the workforce to cope up with the rapid changing environment globally, working together and trusting each other are the key aspects of the culture.
Thus we can conclude that organizational structure and culture impacts the performance the employees in case of Capco it has impacted in a very positive manner however, the kind of structure that the organization follows if proper control is not is accessed it can go haywire because of wider span of control.(Robbins,2013)
Factors that influence employee behavior at CAPCO are.
Job security: According to the Maslow’s need hierarchy theory after physiological needs comes the security needs, Job security is the most important factor which influences the actions and performance of the employees at work place if the employees feels that job is secure they can work peacefully as it assures them of a secure future where as if it is missing they cannot work promptly and hampers their performance at the job.
Job Environment: a well conducive environment is a prime factor in efficient working since the culture at Capco promotes a very health and safety environment the employees don’t stress out moreover it helps the employee to cultivate practices which are stress busting but efficient and promotes the result oriented culture which focuses on the results and help achieving organizational goals.
Pay rates: the most motivational factor is the money or the monetary aspect or reward attached with the job, at capco the pay rates are always in sync with the industry standard so as retain the employees which are performing well, and to reduce turnover which reduces the cost of training of the employees and the cost of recruitment, also the practice of golden handshake is followed, employees who perform exceptionally well are rewarded more in order to keep them motivated to perform well in future also.
Respect: employees at capco are mostly finance people who knows their job well, and everybody wants respect at their workplace a person who is not respected by its superiors and sub ordinates is always demotivated and doesn’t perform his job well, at Capco the culture of trusting each other and adjusting helps promote a very conducive environment to work and succeed in their respective culture.
These are some major factors which influences the behaviour of any individual in an organization. (Davoren, 2016)
Leadership can be defined as an ability to transform any idea into reality, and leadership style are the approaches the top managers or the superiors take in order to accomplish the organizational goals by motivating the employees without sacrificing on their personal goals, at CAPCO various leadership styles depending upon the situations as per the need Like coercive style, authoritarian style, and affiliated style. Coercive style is used as in when the employees are not willing to work, authoritative style of leadership is used when the top management has made their mind on something and wants to do it without any if and buts, affiliate style of leadership is used when the top management seeks the input from the medium and low level employees based on the situation the leadership in capco used the appropriate styles.
Different leaderships have great impact on organization and its growth. It supports in shaping the fortunes of the organization.
CEO of CAPCO typically follows these:
Organizational theories are used to increase proficiency, decreased expenses and rising gains that are always the priority of the company. With the increasing globalization, different theories have been developed to boost the organizations.
There are lots of theories on management which define the organizational structure and formation; these typically explain the type of organization. Some organizational theories are.
Capco follows administrative approach this is was proposed by Henry Feyol. Which focused on several principles of management.
Line and staff
Organizational theory helps the business in various situations and adhering to on organization style can help the organization in creating a working environment which is stable and robust in order to promote a conducive working environment.
Weber's bureaucratic approach sees the organization as a society. The organization is based on the principles of:
The scientific management approach is based on the concept of planning standardization, specialization and simplification efficiency.
Taylor developed the following four principles of scientific management for improving productivity:
There are basically three managerial approaches. These are:
Active management approach follows a very simple and direct chain of command whereas the passive approach follows a linear yet hierarchy approach managers in active are much more participative as compared to passive approach. Cultivating approach is more focused on self-learning and development in the organization through experience, whereas capacity building approach is more focused towards the training organization provides training and skill workshops to employees to be more efficient. Steering approach focuses on the demand and needs of the employees and drives that way whereas high control approach defines the kind of culture and managerial approach the employees need to follow is more of an autocratic command. From the case it can be easily understood that the approach in Capco is participative there is no complex structure rather a flat structure where employees’ report to their direct superiors or line managers, this kind of approach requires good people skills.
High control approaches are very common in organizations, British airways is on such example of the same, it is collaborative and outcome based approach it focuses on participatory design and depreciation. Organizations like CAPCO and BRITISH AIRWAYS uses different management approaches in order to achieve goals and targets. In order to promote effective organizational structure and relationships, these approaches helps in analyzing the work environment outside the organization.
One of the most serious problems for the management of an organization is to keep the employees motivated so that the productivity does not suffer and they effectively does the task, since there are various leadership styles which are followed in capco and various other companies, what might be a motivation for one person may not be for other, some of the motivation factors are money, power, recognition and affiliation depending from time to time the factors of motivation changes from person to person, at some point he may get motivated by money and some other by recognition as a manager it is important to recognize the motivational factors,
There are several approaches available for leaders to lead the changes, many of them based on the employee freedom and leaders authority, at the time of change these are the various options which a leader uses at capco to motivate, When the changes are about to happen at capco the employees are given freedom to deal with the change and take decisions also they can redirect their subordinates on what to do, this is known as authoritarian approach. If the top management wants to go for consultive approach the staff as well as employees are called up for the for the meeting and discussed on points which are impacting the organization and possible solution to it is found out, this enables the employees to better connect with the organization. The management in often uses the team work approach where in employees are given task which they have to perform, they are then asked to take proper control over it so that the get the sense of responsibility this motivates them.
Capco use the approaches, because here the employees feel that they are important and thus they are motivated. No matter which style is followed the importance for this for the leaders is to-
The two of the most widely used motivational theories in the world Is Maslow’s need hierarchy theory and Herzberg two factor theory,
Maslow’s need hierarchy theory
According to Maslow the needs at the lower level are the top priority and before the person moves to next level the needs at lower level needs to be fulfilled, if the need at lower level is not fulfilled the person will not move to higher level, coming back to lower level of motivation according to Maslow is possible if the needs at higher level are not fulfilled.
Herzberg two factor theory
According to Herzberg two type of factors are responsible for the motivation,
To reach the organizational goals managers needs to increase productivity and to increase productivity they need to motivate employees which are highly productive, but motivating the employees is the most difficult and complex task for a manager after understanding how vital motivation is, the managers need to select the proper motivational theory in order to motivate them. These theories are useful because managers have to encourage the employees for their good problems, if there is no incentive for the employees for their good performance such as status, pay, rewards bonuses, recognition, thy feel the need to work because they will get rewarded for their work if they are absent employees will not be willing to work so the need of motivation theory becomes more important.
Since motivated employees are tend to be more satisfied they retain themselves with the organization thus reducing the turnover also helping the organization to reduce the cost of recruitment, since most of the companies prefer their past employees on the key managerial positions satisfied employees are most important part of the succession plans of the organization. Motivational theories explain the nature and behavior of employees and the reasons of their reactions. They define the reasons such as why few employees are more committed than others and how to motivate them accordingly.
Since employees are the direct touch, it actually affects the thinking of customers as them employees are the mediator between customers and company due to which this assumption affects a lot in forming the perception about the company, a satisfied employee will seriously do his work and try to satisfy the customer as well which increases the profits, a dissatisfied employee will always be annoyed and may not serve the customer well which forms a bad reputation for the company. (Aswathappa, 2011)
Groups are usually made to get results in an organization. The members have some specified tasks and have some specified set of work to do. They are socially independent of each other. Like any other organizations, several types of groups may exist in Capco. They can be formal or informal, primary or secondary groups etc.
Formal group:These kind of groups are formed by the organization itself. They are formed to achieve some specified task. The management create these types of groups to complete a particular objective, each member of the group have some assigned roles and responsibilities which they need to fulfill to achieve the goals.
They can be further divided into two sub class,
A command groups have a fixed position in organizational. On the other hand, task groups are formed for a particular specified tasks. These types of groups are temporary in nature. These groups have small impact on organization if it gets compared with informal groups. It is to keep in mind that it has a great impact on organizational performance. If the group formed is not suitable the overall organization effectiveness may suffer.
Informal group: Informal groups are formed not by the organization but by the employees themselves
There are two types of informal group:
Friendship group: riendship group is a group of persons who are in bond with each other in pure friendship. They may have something in common like age, belief or attitude. Friendship groups are basically formed to release the stress from within the employees that they have accumulated over time, it is most seen some friendships also help in building the culture of the organization.
Interest group: Interest groups are formed intentionally and are not permanent. These groups have huge impact on overall business. It helped capco for the betterment of the overall organizational structure. An informal group can contribute a lot in enriching the culture in capco. It has great influence in organizational performance. (Business Case Studies, 2016)
Lots of problems arise when working in a team in any organization as different members will be from different places and will have different ideas and conclusion about things, so they should focus more on trust and effective team work. There are various factors which promote the development of effective team work in capco or in any organization which are:
Communication: the most important factor of conflict when working in team is the communication between the group members. At CAPCO it is important for the employees to communicate with each other freely and openly. It is always silence which destroys a healthy relationship amongst the peers. The members are free to share their ideas and information and suggest changes in the organization.
Trust: Trust is an essential for an organization without which it seems very difficult to function it is important as a part of the culture of capco to communicate with the employees and promote the culture of trust within the employees, if it is missing they won’t share the information and will not be willing to share risks. Which in turn will create differences which would give negative vibes within the organization and hamper the working of the organization which may lead to losses.
Leadership: the most important factor is the leadership style followed by the leader in the organization it guides them and help solves all the problems and communication gaps which a new employee may be facing, handle the conflicts and solve them. Good leader is the one who helps the employee achieve their own individual goals along with the organizational goals.
Positive attitude: positive attitude is must when working in groups as it is for sure that problems are going to arise when working in groups if everybody becomes negative and stop doing what they were supposed to do will lead to bigger problems, hence it is advisable to maintain a positive attitude. A person can be given knowledge about the work can be trained but it is next to impossible to change the attitude of the person from negative to positive.
Workforce diversity: another main factor is the kind of work force the more diverse the group the more are the problems associated because of different ideologies, but more u get the exposure to different cultures which can help u mould into any kind of situation in future. The more the diversity the more beneficial for the organization, more working styles and best practices of different cultures can be assimilated in order to create a right bag of environment.
These were the main factors over and above CAPCO ensure everybody gets training and development as a part of the motivation for the work. (Wolski, 2016)
Technology has connected the world and has made it smaller and help the business grow beyond the boundaries of the nation it has enabled the people come closer, technology has made the organizations grow their workforce and increase the diversity, moreover much work is done online these days to help reduce the costs and save time. Technology has enabled Capco to continue their work 24/7 without having Distance as a constraint which increases the effectiveness and profits for the organization. It also impacts different functions and objectives of a team like team structure, trust, coordination, cooperation, leadership, communication, friendship, and effectiveness. So Capco first needs to understand the culture of the team members and their background accordingly they should communicate the benefits of technology to each individual as everybody might have different benefits which would be of different use to different people.
According to a research statistics done in California, the impact of technology varies from organization to organization and team to team as each organization is different from one another and all the teams are not same team members in each group have different self-motivating factors different personal goals problems and background with such diversity comes great insecurities, and cultures which in turn have different aspirations from the job. Each team goes through stages of group formation and gradually moves from forming stage to adjourning stage in the organization. So we have found that, in spite of different problems prevailing in the organization and among the groups the team progresses properly and functions smoothly the contribution of each team member increases as they grow stronger and experienced and mix up with the members moreover the technology makes the members specialized in their respective fields which garner them respect as that specialization is unique to them, one thing that must be get in focus by CAPCO is the distance that they think is not necessary for the progress of the organization they need to reduce the distance among the geographical areas so as to increase the efficiency by asserting more control over the employees. (Gupta, 2010).
Learning the individual behavior in an organization and developing them effectively and efficiently is a prime factor for the successful business venture. It is only possible if there is trust and coordination among the team in an organization that is only possible by cultivating such type of culture and structure which overall is effective. From this point of view, we may say that CAPCO as a whole has a good culture and practices which promote the employee satisfaction, the structure they follow is flat which gives the power to make decisions in the hand of the employees which motivates them, the company is one right task and follow right industry practices and has an efficient reward system to motivate the employees, and increase the profits of the organization which is the prime goal of any business.
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