Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 3 Aspects of Organizational Behavior CAPCO
The study of organizational behavior can be described as analyzing of the structure, functions, and employee behavior of an organization. The behavioral study is related to employees as a group and as an individual. The range of organizational behavior is inter-disciplinary with its roots dug deep into sociology and psychology. The study of organizational behavior relates sociology with the use of word ‘organization’ which itself constitute to social collectivity. Through unit 3 aspects of organizational behavior CAPCO assignment the various aspects of organizational behavior will be discussed consider the case study of CAPCO.
CAPCO is into financial service business aiming in bringing a transformation into the future of finance and generating a flexible market based on transparency, trust and capital strength. CAPCO specializes in banking, wealth and investment management, finance, capital markets etc.
The structure of an organization can be described as an arrangement use for defining the hierarchy within an organization further identifying each job and its functions and where it is reported. An organization’s structure is evolved for establishing how it must operate and concurrently assist the company in attaining the business goals and walk towards its futuristic growth. Moreover, the structure is illuminated with the help of an organizational chart.
Compare and contrast structures:
A functional structure is helpful in aligning the positions within an organization based on employees’ skills and activities. This kind of structure promotes a transparent command chain and allows the employees in understanding their job responsibilities thereby, allowing them to focus on their individual roles.
In a divisional structure, generally the manager makes a division within the departments at workplace according to its importance to the business and is further helpful in cultivating a structure needed for meeting the market needs. This structure contributes in giving quick responses to the local market conditions.
A geographical structure usually can be seen in organizations having global business networks and thereby, deliberate management of time is essential to go hand in hand with that of the structure’s design. Moreover, this kind of structure is helpful in managing people, time and money in an efficient way.
A matrix structure allows an employee to report to two managing authorities namely
Functional manager and
Project manager. The functions of a Functional Manager flows in downward direction whereas in case of the Project Manager, functions flow sideward. Matrix structure is apt for organizations with diverse business interest.
One can define the culture of an organization as a way its members can relate with each other, their work and the outer world when compared to other organizations. Culture can either enable or act as a hindrance in the organization’s strategy.
Compare and contrast cultures:
In an organization with power culture, only certain employees hold the power and employees need to follow the rules, regulations and the decisions made by the power holders
The performances of employees are evaluated based on their achievements.
The role culture is based on rules and is immensely controlled by everyone knowing about their roles and responsibilities
In a task culture, specialist groups are formed for dealing with complicated conditions which needs specific skills. Also the power within the team is not defined and often depends on the mix of teammates and project status.
In a person culture employees have the tendency of placing themselves above the organization.
Power culture is helpful in making quick decisions although there may be times when the decision made cannot be implemented for long-term interests
In this kind of culture, an employee’s power in the workplace is determined by his/her position in the hierarchy.
The effectiveness of the culture depends of the dynamics of the team. A right blend of leadership, skills and personalities only can be productive and creative for the team
In this kind of a culture employees tries and compete with each other from proving themselves better than the other
Basically a very strong culture nevertheless can turn harmful hastily. Take for example, power culture is often blamed for the debacle of Enron, Lehman Brothers and RBS.
A role culture is built over the specified organizational structures mostly tall with a long command chain. A major drawback is slow decision-making process.
The process of decision-makings can either be slow or quick
Depending upon the gravity of the situation.
Organisation’s with person culture is just an assemblage of individuals who are working directly or indirectly for the same organisation.
An organization’s culture and its structure are dependent on each other and in the world of business, one can see the structure determining the behaviors, attitudes, dispositions and ethics further needed for creating the work culture. In case, the structure is hierarchical where the power of decision making remains with topmost management, its consequences can be seen in the culture with lack of freedom and autonomy at the lower levels. However, if the structure is decentralized where both power and authority is shared with employees in every level, the culture is likely to be more independent, personalized and liable. Every organization for operating efficiently sets a structure which is a hierarchy of people and its functions. An organization’s structure describes its character and the core values. Depending on the values and business nature, an organization gravitates in adopting a structure for the purpose of management. In certain unprecedented cases, it has been found that departments and teams within an organization follow a completely varied organizational structure from the one followed by the organization itself. For answering this question we will compare CAPCO’s functional structure with the matrix structure of Google. (Keyton, 2010)
CAPCO’s Functional Structure
Google’s Matrix Structure
The organizational structure at CAPCO is functional where decisions are made by a centralized body within the organization and employee groups are formed on the basis of their specializations which further helps in establishing a level of efficiency in performances.
Google’s organizational structure is matrix where the team or project manager is the most valued position and is authorized in taking decisions, assigning resources and managing the project.
Apart from this, CAPCO’s functional structure is immensely structured helping in eliminating the scope of any miscommunication amid the employees. (Keyton, 2010)
Groups are eventually formed by considering a similar background or skills needed for the execution of a project. The structure promotes flexibility in groups which can be changed for bringing out a desirable outcome. (Keyton, 2010)
CAPCO’s functional structure promotes specialization, better control, reduced work load, higher employee efficiency, flexibility and easier staffing.
Google’s matrix structure focuses on single project and is highly flexible. It promotes effective chain of command and better usage of services.
The functional structure of CAPCO has a CEO with 3 subordinates for regulating all the departments and employees.
The matrix structure of Google helps the management in dividing the structure on the basis of functions and divisions. Google as a divisional structure can be divided over products, markets or geographical region.
An organization’s culture can be described as a way the employees relate with each other as compared to their competitors. Culture is a consistent and perceptible pattern of behaviour within organizations. The culture of an organization comprises of its assumptions, values and norms of the employees and their behaviours.
CAPCO’s Role Culture
Google’s Task Culture
CAPCO follows role culture where the organization is various functions and every employee within the function is charge of a certain role and has benefited CAPCO in establishing specialization and since every employee focuses on his/her role, there has been a relative increase in productivity. (Keyton, 2010)
Google’s task culture is eventually relies on an approach based on teamwork for completing a certain task lead by a leader. This kind of culture has helped Google in keeping the employees motivated as they are empowered of taking decisions. Task culture allows prompt decisions and has helped Google in remaining competitive in the global market.
CAPCO’s culture and structure directly influences its overall performance. The flexible organisational structure of an organization ensures that the operations and functions are executed smoothly with the help of enhancement in collaboration and cooperation amid the various departments of the company. The implementation of a flatter organisational structure has helped CAPCO in ensuring a wider span of control eventually helpful in minimizing the communication gap and establishing a kind of communication amid the management and employees that is both clear and effective. (Zheng, Yang and McLean, 2010) Apart from the structure, CAPCO’s matrix organisational culture has helped it in to work successful projects that need specialized employees skills. The use of this kind of organisational culture also further helps in improving the scope of knowledge amid other employees. CAPCO’s flat organisational structure has not only helped in empowering the employees but simultaneously motivates them in giving their best performances and driving the organization towards its desirable growth and success. Whereas CAPCO’s matrix organisational culture has helped in facilitating flexibility and creativity in the workplace and make improvements in the inter-personal and intrapersonal relationships in the organisation that helps the management in reducing the rate of employee conflicts. It has been observed that CAPCO’s organizational structure and culture has helped in facilitating team building and ensuring successful accomplishments of the predefined goals of the business. (Zheng, Yang and McLean, 2010)
An employee’s behaviour at CAPCO is influenced by various factors and discussed below are a few such factors:
A leader or manager with the help of leadership styles can show the employees a proper direction for reaching the goals further ensuring an adequate implementation of plans and simultaneously motivating them in working harder for attaining the company’s preset goals. (Anderson and Anderson, 2010)
Stated below are the leadership styles and their effectiveness on CAPCO and Google:
Organizational theory can be defined as the study of the designs, structures of an organization, organization’s relationship with its external environment and the managers and technocrats behaviour with the workplace. Moreover, it recommends the ways through the help of which an organization can survive the swift changes. One can define management as a process of planning, organizing, directing and controlling the employees within an organization for achieving its preset purposes and goals. Furthermore, this process is supported by the organizational theories that eventually focus on the study of structures, designs, patterns and relationships of the organization for surviving the change and attain its purposes.
Organisational theories have an important role to play in underpinning the practice of management at CAPCO.
Different approaches to management used by CAPCO and Google are evaluated based on positive and negative areas:
Different styles of leadership and its link with motivation:
Leaders or managers through their broad knowledge, competency and specialised skills leave a significant influence on the team members. It is the responsibility of the leader/manager for motivating the employees in a way for meeting the management’s expectations. Take for example, we assume that CAPCO is undergoing a period of change through staff rotation where few employee are being shifted to a new team to enhance their skills of multi-tasking. For successful execution of this change, CAPCO needs to adopt participative style of leadership where management will eventually reach to the employees to explain the change and its need. The orientation about the change will help in clearing doubts or confusions amid team members. Once the orientation is done, employees can be invited to share their opinions about the change. With this style CAPCO can effectively briefly explain the team the benefits this change will have on increasing their skills, competencies and generate confidence in them. McGregor’s motivational theory can be connected in this respect where motivated employees will make added efforts and will also influence their co-workers in following the change giving CAPCO an added advantage. (Zhang, and Bartol, 2010)
With the help of transformational leadership CAPCO can effectively influence the team in following the company’s goals and objectives. The change is eventually interlinked with the business goals and employees pursue the same as a result of a communication structure that is clear and transparent. Furthermore, training and development provided at CAPCO will prepare the employees in facing the unpredictable challenges that can occur in practicing the change. When this style is related with McGregor’s motivational theory it will keep the employees satisfied and happy in accepting the change as needed by CAPCO for attaining company’s objectives and goals. However, dissatisfied employee will evade from taking responsibilities and will show their displeasure towards the change. If CAPCO considers the transactional leadership, then management will design a structure of reward or penalty for the change. (Zhang, and Bartol, 2010)
There are basically two types of motivation theories namely Content theories: Maslow, Herzberg, McClellands, Alderfer ERG Theory and Process Theories: Goal, expectancy, equity, reinforcement
Application of Maslow’s motivational theory in the organizational setting of CAPCO:
At CAPCO, an employee’s basic physiological and safety needs are satisfied by giving employment and job security enabling them to arrange for the very basic needs of a human like foods, cloths, shelter for their loving ones. CPACO needs to take care of the employees’ psychological needs which are based on relationships for keeping their motivational levels high. It is important for developing amiable and healthy professional relations at workplace allowing the employees in giving their 100% best performance. For motivating the employees CAPCO has introduced performance based appraisals, rewards and recognition events and incentives based on targets. Arrangement of a stable incentive structure keeps the employees motivated with the fulfilment of their needs eventually enhancing their productivity levels.
Application of Herzberg theory at Google:
At Google change can bring a certain amount of confusion amid employees which might even make them resistant towards the change. Hence, motivator factors have a significant role to play in accepting the change that has been implemented in the workplace, as it will result into increased learning, more responsibility, higher recognition and growth in career. Thus implementation of Herzberg theory would be more useful compared to Maslow because Google has hygiene factors at place so there is no need for reinforcement of these needs. Hence, focus should be made on strengthening motivator factors that have influence on work motivation.
Conferring to the authors Maehr and Meyer, motivation theories can be defined as a theoretical framework stimulating an employees or an individual’s behaviour and concurrently drives them in attaining the desirable results thereby, escalating their level of productivity.
Herzberg two-factor theory: stresses on the factors of motivator like advancement, growth, responsibility and recognition that are needed for stimulating satisfaction within employees while the factor of hygiene such as are salary, promotion, administration, working condition and working relationships has no direct influence over motivation but its absence creates dissatisfaction amid the employees.
Instinct theory of motivation: relates the behaviour of individual or an employee with the biological tendencies that are ingrained and thereby, such behaviours are in general driven by the intuitions that are driven towards goals and keeps the employees motivated.
In order to improve an employee’s performance at work, it is important that the manager develop their knowledge that eventually revolves around the theories of motivation and its utilization at workplace. Managers must understand that by using the motivational theories , they not only can motivate the members in a team by improving their knowledge and enhancing their professional skills but concurrently can instil sincerity towards work. Multiple factors are involved in employee motivation and thereby, a manager needs to determine the driving factors of every employee. It is equally for the managers in keeping the employees motivated and wins over their trust for implementing an organizational change at the workplace in order to overcome competition and rapidly changing demands of the market. This will further allow the employees to openly and willingly accept the changes needed for its long-term success. Thus there is a closed circle relationship between motivation, performance, productivity, profitability and remuneration within workplace. (Parker, Bindl and Strauss, 2010)
Conferring to author Alvin Zander one can define a group as a social assemblage of individuals as an employee in a workplace that eventually is both interdependent and inter-related to one another with similar interests. On the other hand, group behaviour is a kind of behaviour that is originated from the causes eventually governing effectiveness take for example, good leadership, well defined roles, tasks delegation, group cohesiveness etc. within the group.
One can view nature of the group from four varied approaches namely:
Roles in group: A task oriented role is performed by groups for ensuring that the tasks that are allotted to them are accomplished whereas the maintenance role are usually executed by members with a group for ensuring good social relations.
At CAPCO, various types of groups operate in its internal environment which can be typically categorized into formal groups and informal groups. Formal group is further subdivided into task and command group where employees belonging to the task group usually comprise of employees at lower level such as executives, clerks who are mainly accountable for day to day tasks execution whereas command group comprises of the leaders largely involved in the process of strategic decision makings and are also responsible to plan CAPCO’s areas of improvement in nearby future and company’s CSR activities. Task group members are responsible for effective and efficient execution of the plan. They are bound to adhere to the direction provided by command group and execute tasks allotted to them. (Champoux, 2010)
Informal group, on the other hand combines of friendship group and interest group where CAPCO’s interest group is an amalgam of employees, customers, stakeholders or shareholders who are significantly considered for the company’s existence. The members of interest group are in general, benefitted from salaries, services or products including profit earned by CAPCO. Other than this, CAPCO’s friendship group covers the employees operating in different management levels and are responsible for monitoring execution of the tasks revolving around the business. Friendship group’s prime focus is on ensuring the improvement of CAPCO’s performance for being successful in the long run and simultaneously enhancing employees’ satisfaction levels related to work. (Champoux, 2010)
Conferring to author M Rasing, one can define team work as a kind of process that is reciprocal in nature further allowing a normal person in achieving extraordinary results either as an individual or an employee.
Teams or groups within CAPCO are considered the building blocks playing a momentous role in developing the company’s performance. Various factors are involved in facilitating or inhibiting teamwork in CAPCO.
The term technology advances can be described as new inventions further influencing developments by concurrently bringing in both new improvements and risks.
Automated systems are helpful in removing the need of a human hand for accomplishing a given task. This technique is mostly utilized in areas of production and industries for enhancing the level of productivity and simultaneously lessen the operational cost. Take for example, ATMs i.e. Automated Teller Machine has further wiped out hand-operated job of a teller It has been observed that technological advances have brought in numerous advantages such as advancement in communication, information processing and its access, enhanced productivity, innovation and creativity. It also has certain disadvantages like reduction in face to face interaction resulting into social isolation, increase in unemployment as a result of increased automated systems and more dependency on unreal intelligence.
Use of technology at CAPCO has helped in smoothing the organisation’s functioning however, its implementation involves certain cost. In long term prospect, the investment made will give more return that incurred as a result of effective communication, saving of time, printing cost can be cut down and effective evaluation of employees’ performances can be done. Impact of technology on team functioning in CAPCO can be measured seen when the consultants can easily visit their customers for providing them better financial services and advices at the comforts of their homes. (Ahuja, 2010) During a client visit if a situation arises where the consultant needs to discuss an issue with the superior, he/she she can easily communicate with the help of the smart phones. Use of technology has also made it relatively easier for recording employees’ activity. Various technologies like SAP has made it easier to keep a record of customer database and use of accounting software has helped in maintaining the financial expenses and figuring out the budget eventually directing the team about its expenses. Teams are responsible for managing customer details which can now be easily recorded and retrieved with the use of technology and can also be protected with the help of the privacy features. Measuring team’s performance can also be done with the use of technology. The manager administers appraisal tools for collecting employees’ feedbacks that can be secured with the help of a technology enabled voting system. (Ahuja, 2010)
At the end of this project I would state that the main purpose of this report mainly focuses on understanding organisational behaviour through the case study of CAPCO which operates into financial services. Several aspects of CAPCO have been emphasized throughout this report. The role of employee motivation on the upliftment of the CAPCO’s performance has been discussed. Apart from employee motivation, the need of identifying teamwork and group behaviour for establishing a structured process within CAPCO is highlighted. Need of the leadership, application of different leadership styles and its impact of CAPCO’s productivity has also been discussed.
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