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Diploma in Business
Unit Number and Title
Unit 3 Organizational Behaviour
The detailed concept of organizational behaviour enables us to understand the attitudes and the behaviour of the people working of the organizations in the most effective way. Organizational behaviour is the elucubration of the behaviour and the actions of the people of the organization in the context of organizational structure. The organizational behaviour is the vast and important concept of studying the organization in the consideration of work culture to better understand the organization world and to provide maximum productivity to the organization. It is not only the study of the organization structure but it clearly determines and analyse the human behaviour in the organization within the organization culture and the organizational structure. It is the study of human interaction within the organizational structure, the study of different organizational culture and achievement of goals and objectives within those cultures.
Organization behaviour is the vast subject to make understand the organization about different aspects of the organization which can affect the organization and how these organizations can affect deal with the situations and the circumstances which affect the organization. The organizational behaviour comprises of different theories and approaches to the organization which the organization by using it in appropriate situation achieve maximum efficiency and effectiveness in the work of people of the organization. organizational behaviour we will discuss the different organizational behaviour and the culture which will be comparing different organization. We will compare the CAPCO and the L.E.K. Consulting Company for our study.
The CAPCO is the financial service consulting company which also provides management and IT consulting services. It is the global business and technology located all over the world covering the North America, Asia, Europe, and Africa. CAPCO is the big financial service institutions which is employs more than 3000 employees from all over the world and operates with 23 offices across the globe. This big financial service institution provides six financial services which are: investment management, wealth management, banking and finance, capital markets, risk and compliance, insurance technology. The company contains 75% of the total clients of financial institutions across the globe. The L.E.K. Consulting is one of the leading management consulting institutions. It is the global business with the headquarters in London and Boston. The company is the providing its services across the globe as well as employs 1200+ employees all over the world offices of the company. The company owns 21 offices all over the world and offers the financial management services to the world (Raab, 2016). Let us compare the two organizations by discussing their organizational structure and cultures.
Organizational structure of CAPCO: The organizational structure refers to the design of the organization working environment in which the people of the organization interacts with each other and works within the design of the working environment comfortably. The organization structure is the shape of the organization in which employees if the organization are organised and relate with other employees. Organizational structure should be effective and worth full to achieve the maximum goals and objectives of the organization in the most efficient and effective way to achieve the maximum productivity and it should also be comfortable to the people to work in the organization with much ease and less efforts. Organizational structure varies by different factors such as size, aim, tasks to be performed, culture and the external environment. There are different types of organizational structures such as:
CAPCO is the big organization which operates in the organizational structure of team work. The company has a big different team of variety of people working with them. This is the company which operates or works with the various people from different countries and culture to perform the tasks to achieve the organizational objectives. Team work in the organization provides the different ideas, opinions, skills, strengths and experience of different and various people of the organization to provide the maximum productivity and results to the organization. The team work provides the new and creative ideas for the operations of the organization because of the variety of human resource of the organization for better and excellent results. For better performance of the organization it is needed to create the teams of limited members and with different skills in the different members (Raab, 2016). Every team for the effective working of the tasks and achieving the goals comprise different qualities in the CAPCO such as discussed here:
The organization structure of L.E.K. is totally depended upon the business strategy and on matrix structure. The leading organization in the business of financial services is adopting the communication strategy to the organization for better achievement of the results and the objectives of the organization. The company operates on the very important strategy to avoid the hurdles of hierarchical structure which delays in the communication of the company. The company by adopting the communication strategy in the matrix structure of the organization provides the employees and the people of the organization the better environment and improves the quality of tasks by specialise performances of the tasks by the skilled and specialised people of the organization (Raab, 2016).
The matrix structure of the organization provides the business unit an advantage of assigning the tasks to the skilled and specialized people to perform the tasks in the most efficient and effective way in the given time. The matrix structure defines the task and the people of the organization according to their skills and specialization which helps the employee to perform the task effectively and provide the overall growth to the organization by team effort.
Similarities between the CAPCO and L.E.K. financial services consulting organizations:
Differences between the CAPCO and L.E.K. financial services consulting organizations:
Organizational culture is the beliefs and ideas of the people of the organization and on which the organization works is the organizational culture. The organizational culture should always match with the culture of its people. Sharing common organizational culture makes the organization a better place for the people working in that environment. Better organization environment helps the organization to enhance the performance of the people and increase the efficiency of the overall organization by achieving the tasks of the organization. A common culture also enables motivation among the employees for working more and maximum for nurturing the culture of the organization. Common culture among the employees encourages the employees of the organization to be responsible and importance of belongingness.
Organizational structure is the shaping of the organization in the manner to achieve the optimum targets of the organization. The organizational structure is the design of the structure which determines the roles and responsibilities of the organizational people and their channels from which they can interact or contact with the different personnel. Organizational structure includes two types of structures; they are formal structure and informal structure. The formal structure comprises of different channels and modes and is divided in the departments and groups and another one is informal structure which have no particular channels and structure to relate the people of the organization and to provide the interaction among them (Ogbu, Mlawa & Oyeyinka, 2014).
The relationship between the organizational culture and organizational structure is that the organizational structure is the integral part of the organizational culture. Organizational culture is the tremendous subject of study and the structure of organization is its part. Organization structure covers the methods and the procedures required to achieve the tasks of the organization and the organizational culture is the overall environment of the organization in which it works. The organizational culture includes the organizational structure and gives the organization the environment in which it operates and works to achieve the targets of the organization in the effective and efficient way.
The impact on the organization performance due to the organizational culture and organizational relationship is that it provides the help to the employees to perform better and enhance the overall productivity of the organization to get the maximum results. The organizational performance is improved by the relationship of the organizational culture and structure because organizational culture provides the comfortable and effective and motivational environment to the employees 0of the organization and encourage the people of the organization to work optimum and achieve the maximum results in the positive and comfortable environment and the organizational structure provides the organization the systematic structure or the design if the organizational activities which are to be performed in the effective way by using the organizational structure. The specialization of the employees are considered and assigned the tasks accordingly to achieve the best results in each task and the effective result of the organizational goals. So basically, The impact of their relationship of organizational culture and structure is that it enhances performance, motivate employees and encourage to work efficiently and effectively by providing the comfortable and understandable environment with systemized structure of the organization in which the roles and the responsibilities of the organization is perfectly assigned to the employees for clear objectives and the goals of the organization (Ogbu, Mlawa & Oyeyinka, 2014).
Every individual have different attributes and they differ from other employees of the organization. The organization has different employees reflecting different identities and behaviour which affects the organization. The factors which influence the individual behaviour of the organization CAPCO are discussed here under:
Personalities- The personalities refer to the character of the person working in the organization. The organization hasdifferent people having different personalities which influence the individual behaviour in the organization.The personalities of the people have different character and different behaviour in the organization.
Abilities-Abilities are the different traits or the characteristics of the person which are learned or generated by the person from the environment or are in built in the person from birth. The organization comprises of the different people with different abilities in them. These abilities are:
Attitude- Attitude refers to the behaviour or action of the person working in the organization developed from the environment and is result of the situation of the environment of the organization. It is the person cognitive process developed in the individual with the time.
Perception- It is the process of converting the stimuli in the meaningful information. It is anything we feel and see in the environment and transform that in the meaningful information. This is the factor influence or affects the behaviour of the individual in the organization and at workplace.
Race and culture- Race and culture of the individual also affect the individual behaviour in the organisation. There are different people from different areas and different cultures and backgrounds. Race is the racial expression of the person of the organization which is varied among the people which influence the person behaviour in the organization.
Gender-The gender is the factor which differentiates the women and men in the organization which is the factor influence the organization and individual behaviour (Business Wire, 2016).
Every organization needs to adopt different leadership styles to lead the organization and its people in the different management situations. The organization adopts the leadership styles to guide the organization in the better way and to achieve the organizational objectives and the goals in the manner to maximise the results and the targets achievement rate of the organization. There are different leadership styles which are followed by the organization are; autocratic style, participative style, delegate style and corporate culture style. The CAPCO organization also adopts the leadership style to balance the activities of the people of the organization. This organization adopts the style of corporate culture style that is risk culture style. Risk culture style is the leadership style in which the leader leads the organization taking into consideration all the risks of the organization which it can face in the future. This leadership style culture helps the CAPCO in the forecasting process of the risks associated with the organization and the measures to deal with the risks. This leadership style ensures the risk marketing management in the organization and provides the better management (Kutler, 2010).
L.E.K. is the one of the leading organization which needs the tough leadership in the organization to manage the resources in a better way. The leaders need to have the great skills among them which can make the organization better. This company works on the leadership which maximises the profit growth of the organization. It focuses on the business profit and its main aim to achieve maximum profit by providing the maximum services to the clients all over the world. The company leads the employees in achieving the tasks more efficiently and maximising the productivity to gain maximum profit and the growth of the organization. This leadership of the organization ensures the maximisation of the profits and the maximum growth of the organization and ensures the efforts of the employees towards the achievement of the organizational growth and profitability.
If we compare the effectiveness of both the business organizations we can conclude that both the business organizations are operating on the effective leadership but different leadership skills. The CAPCO is following the risk culture style of leadership which have its effect managing the risks and minimising the risks of the organization which saves the whole business unit for future hurdles and risks that can affect the organization. And the L.E.K. organization apply the profit maximising and business growth leadership to the organization which is again an effective leading style which ensures the maximum profits and the growth to the organization within the quality product and services served to the its clients all over the world. Comparison between these two organizations is just that the one is working and operating its organization to secure the future and another is taking its operations to maximise the present profit and the growth to the organization (Kooli, Gregoriou & Kraeussl, 2011).
Organizational theories are the study of the working of the organization. Theories of the organization help the people of the organization in adopting the best approach using these theories to balance the organizational work and better management. There are majorly three types of theories which explain the organization and its structure which are explained below in detail:
1. Classical organization theory- It is the theory which includes the following approaches
2. Neo-classical theory-This theory is based on human relations approach. It has a concept of group and individual behaviour in achieving the productivity of the organization. There are three principles of Neo-Classical approach are individual, group and participative people of management. It focuses on the organization interest in the work and happy and creative work place.
3. Modern theories-Modern theories explain and observe organization as an adaptive system which can adjust in every changing environment. This theory includes the approaches to management which are systems approach, socio-technical approach, and the contingency or situational approach (Haslett, 2010) .
These theories of the management have an effect on management practices. Their approaches and the principles help the management in improving the performance of the organization and the overall productivity. The classical management theory is an effective theory which has its positive effect on the organizations. The scientific management theory increases the productivity of the organizations and its workers and also provides the systematic workflow in the organization. It enhances the efficiency in the working of the tasks and provides the better results. It provides the specialization in work which increases the effectivity of the work and reduces the risks of errors. Weber’s bureaucratic approach of classical theory influences the practice of management by benefiting the work specialization, standardization and helps the management in assigning the tasks according to the different aspects for better and effective results. Administrative approach of the classical approach helps the management by benefiting with 14 principles which defines the roles and responsibilities, command that is one person one boss and the unity of action, span of control and scalar chain helps the management in putting an organization into the link of all the members of the organization within the hierarchy (Groysberg, 2010).
The impact of Neo-Classical approach on the management and its practice is that it increases the quality of human relations and provides the organisation with the better interaction among the employees, the impact of which is the increased performance, enhanced productivity and growth of the organization as well as its members and also improves human relations within the organization. The modern management theory also impacts the management and its practices in the positive aspect of contract. As the world is continuously changing and the changing world require the changes in the organization accordingly, this theory of organization believes that the organization should have an adaptive approach which should accept all the changes as well as survive in those changes with the increase performance and productivity (CQ-Roll Call, 2015).
Every organization or the company use the different approaches to management to work efficiently and effectively in the corporate world. By adopting the approaches to management organization gets benefit in achieving the various aspects of an ideal management. The approach of management used by the CAPCO is changing change. This organization believes in the changing of the management with the changes in the environment. The CAPCPO is working on the modern approach to management in which the changes in the organization are adaptive and accepted by the organization and its people. This is the excellent initiative of the organization in managing the resources according to the changes in the environment. This will help the company to grow in the changing business world and increase the ability to work in different environments. For CAPCO it is necessary to work in the changing environment because it operates in more than one country and has its existence across the boundaries as well as the company needs to understand the cultural diversity around the world and have to operate in different workplaces. This approach helps the management of CAPCO to always accept the changes and improves their abilities (Duc & Schorderet, 2010).
The L.E.K. consulting company is also very big firm which needs the management theories and its approaches to be applied in the management practices to improve and systemize the management and its resources. The company operates on the experience and specialized approach which enables it to achieve the targets efficiently and effectively. The company focuses on the problems of the clients and their solution. This organization believes that the specialized and skilled employees will help the clients in overcoming the problems they face. They have a great approach which helps them to better understand the problems of their clients and resolve their problems effectively and on time. The company is on the right track and is adopting the correct approach for improving the handling process of clients and in achieving the maximum client satisfaction. Overall, both the companies are working their operations on the effective and useful approaches and a great achievement can be dragged by their management practices (Diniz, Cernev & Nascimento, 2016).
Different leadership styles have different impact on the motivation of the employees. This impact on the motivation is discussed here:
Motivation refers to the behaviour of the person related to the people’s action, desire and needs. Motivation is the inner drive of doing a particular thing as the impact of the specific action. Motivational theories are the approaches or the principles which can increase the motivation among the employees and helps the organization to enhance their performance. There are two major motivational theories which are Maslow and Herzberg theories of motivation. They are compared below:
Motivation theories have their own importance in managing the organization in a proper way to motivate and enhance the performance of the employees. The major work of the managers is to get work done from the employees in an effective and efficient way. The employees will work for the organization only if they get benefits from the organization and they develop interest in the organizational work. To encourage employees for the work it is important for the managers to understand the motivational factors and theories and apply them in the organization for the better results. The managers need to understand the motivation and its theories for understanding the needs of the employees and satisfaction level. Importance of motivation theories in the organization:
The groups are of different types in the organization. Different groups have different nature or characteristics. Some of the groups have mutual understanding and agrees on the same task. Some of the groups have different opinions of the people and some groups have self-managed teams.
Every organization consisting of huge employed people have various diversified crowd and different groups and teams among then. The variety of teams has the different people and different group behaviours. The CAPCO is the socially diverse organization having its operations in the different countries and with different variety of people in the organization. This makes the groups of the organization more diverse and the teams working in the organization are different in nature and culture. Different people have different nature andcharacteristics which differentiates the groups of the organization. The group behaviour is judged by the behaviour of the people of the groups and their actions to a particular thing. The group behaviour of the CAPCO is diversified and is not particular (Nash, 2013).
The effective team work is needed in the organization to improve the performance and the productivity of the employees in the organization. The factors which may promote the effective teamwork of the employees in the organization should be evaluated by the organization for effective productivity and efficiency in the completion of the tasks. The CAPCO is the large firm which operates in the various parts of the world. The organization will collapse if proper and effective teamwork is not achieved in the working as the large firm cannot be operated by the organization having less effective team. The company may promote and achieve the effective teamwork through various actions such as:
The team work should not be the intense or stressful activity; it should include fun elements to keep maintaining the interest in the working of the team for attaining the maximum and effective results by the teams (Brown & Nash, 2013).
Technology has the positive impact on the organization working. Technology has the power of changing the working of the organization and to make its working easy and fast. With the use of technology companies has achieved various great tasks within the ease and efficiency. Technology can improve the overall efficiency of the organization and its impact is the much effective than before the technology. The trend of technology has brought the human efforts to the minimum in the today’s organization. Technology has brought many changes to the organization and is helping the organization in the fast and easy management. For the large organization it is needed to utilize the technology to the fullest for better results and performance of the organization.
The CAPCO is the organization having the technological effects in the organization. Its impact on the organization is that technology helped the company in achieving the results and the performance effectively and efficiently. This has increased the working ability of the people and also improved the productivity of each individual as well as the overall organization. The technology has influence the organization work and team functioning of the CAPCO as it helped in achieving the targets with more ease and comfort as well as on time due to use of mobile phones, emails, messages, transportation, and fast services online and many other facilities. This enabled the company in achieving the greater team targets with lesser team efforts. (Beck, 2013)
By the above research we have the done on the case study of the financial organization CAPCO and comparing another organization with the CAPCO we can conclude that the CAPCO organization has the perfect organisational structure for its working and operations which also consider the organizational culture and respect the different cultures of the organization. The company is the example of effective leadership skills to manage the various groups and teams across the borders in Avery effective way. This company varies its work among the different people and different countries. The company is doing a lot for the motivation of the employees and encourage them with the incentives to work more and to achieve more to increase the productivity of the organization as a whole. The company also adopt the change management which enable the improvement of the skills among the workers to work in the diverse situations and conditions and generates flexibility in the organization.
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