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Unit 3 Assignment on Organisational Behaviour - Capco Ltd
Organisational behaviour is a field, which through checks the impact of people, groups and framework has on attitude within an organisation. The motive is to apply the knowledge to improve the effectiveness of the organisation. An organisation has sub-organisations and downwards. This depends on the firm size and on to the particular level. However, organisational behaviour is known as an applied behavioural science, which is set upon the endowment of behavioural distribution. The most significant social sciences are applied to the organisational behaviour such as psychology, social psychology, sociology, political science and anthropology. Here in this assessment, the structural and cultural difference and comparison between CAPCO and Sainsbury’s with their technology will be discussed. CAPCO and Sainsbury's have different leadership and different organisational behaviour. The organisational behaviour of the two companies will be discussed. The two motivational theories, Maslow's theory and Herzberg's theory are compared and discussed. CAPCO is built up 15 years ago and is a leading multinational consultancy. On the other hand, Sainsbury’s was built up in 1869 and is the second largest sequence of supermarkets in the UK. Sainsbury's have 161,000 employees whereas, CAPCO have only 2,000 employees.
1.1 Comparison and contrast of CAPCO’s structure and culture with Sainsbury’s Technologies
CAPCO is a leading company founded 15 years ago. Over 2000 employees are placed under this company providing consultancy and management services to financial resources industry. Work of any organisation is supported by its internal, extensive infrastructure. Organisation is needed to provide services or goods. According to Robbins and Judge (2012, p.232), organisational structure is formed of key elements such as Work Specialisation, Departmentalisation, Chain of Command, Span of Control, Centralisation and Decentralisation and Formalisation. Each of the key elements is to be discussed and compared with Sainsbury’s. Organisational structure can have both positive and negative effects. Therefore, the structure plays an important role in any organisation.
The supermarket chain Sainsbury’s has organisational structure built in accordance to the way it operates and its culture. The organisational structure of Sainsbury’s follows the traditional way of hierarchism. (Refer to Appendix 2). There is line or series of people at each level. For example, a senior manager is responsible for line manager and consequently the line manager sits above the sales managers. It therefore consists of many different layers and a top to bottom approach. Long chain of commands follows from the very top level to lowest level. On contrary, CAPCO follows a flat level of organisational structure. The command from top to bottom is quite short while span of control is wide. Such types of structure are followed because it helps in accomplishing specific projects (engageforsuccess.org, 2016).
According to Harris et al. (2013, p.129), organisational culture has seven characteristics such as risk taking, attention to detail, outcome, people and team orientation, aggressiveness and stability. The supermarket giant recruits people of different backgrounds. This company follows ethical rules as customers are of numerous geographical backgrounds. Simultaneously, CAPCO aspire openness, flexibility and integration among its employees. This company allows the employees to acquire factors like challenge, growth and performance. The employees therefore can build up on risk taking and creativity further helping the company in challenging needs of financial world.
1.2 Explanation of relationship between CAPCO’s structure and culture
According to Mullins (2009, p.56), organisational structure and culture are interrelated. The organisation and its employees share a common goal. Collective culture has positive impacts on the employee's’ performances which overall affects the work of any organisation. CAPCO follows a flat structure of organisational structure. CAPCO believes in innovative performances and therefore operates on matrix structures. Since work performed here is group based, therefore, the employees are divided among specific teams. They are free to share, innovate and perform independently. The structure followed by the company highly motivates and empowers the workforce. The culture of the company supports openness, which gives the employees access to advice and coaching whenever they require. This company is provided with different kinds of projects that requires variety of skills. The group of employees that previously has worked on a project can move on with a completely different set of people for their next project.
As per Mullins (2009, p.342), has individuals seldom work in isolated cases. They rather prefer groups they can commutate to. Members of this group need to work out in cooperation to deliver the set of problems. As the company supports open access, where the employee is free to ask any type of question and suggest improvements and innovative ideas. Managers, HR or a specialist get involved in such groups and the flat organisational structure helps in this team driven effort. CAPCO provides long term vision. Work environment provides growth, increase performance and have innovative ideas. This supports the company principles and its organisational structure and culture go hand in hand to provide the best ideas, challenges and changing needs of the company. This makes both the employees and the managers feel comfortable to work and to work with.
1.3 Discussion of the factors that influence particular behaviour of CAPCO
Numerous factors influence the particular behaviour of any company. In CAPCO, the chief factors that affect the particular behaviour are team management, communication channels and social media preferences. According to Brooks (2008, p.587), certain behavioural factors influence social groups. Team management is one such factor that can be evaluated in this context. Workplace teams need to be formal since people from different backgrounds and geographical places come here to work on specific different projects. Teams working on social events are mainly informal in nature. The employees should have respect and supports for each other. The employees should possess high commitment to achieve goals. They should be clear on the work to be done and one’s role in the team. This factor influences the overall work of the company. As per Reilly (2012, p.130), organisations behave in accordance to an array of some forces that influence the organisation. Strategic orientation and cognitive processes of the managers play key roles. Since the managers are included in the teams thus their communication and strength, skills and sharing affect the company’s behaviour as well. Working with leading is an integral factor of this company. A team of people comprising of varieties have strong knowledge in the subject work on the specific process to make it successful. This can be followed by communication channels. No team is devoid of communication. Communication should be open and interactive. This factor is influenced by the span of control. According to Brooks (2008, p.569), a number of employees can be controlled efficiently by one person in this case a manager. CAPCO follows open line of communication. The local and regional offices host many forums to innovate and integrate new ideas among its employees. Such cases help the employees to reach the leadership teams with their entrepreneurial ideas. Another factor that influences the behaviour of this company is social media. This factor influences the communication gap to attract applicants. Linkedin benefits the company in training programmes and recruitment services.
2.1 Comparison of effectiveness of different leaderships of CAPCO and Sainsbury’s
This section explores the comparison of effectiveness of different leaderships of the two companies. Leadership style affects all the organisations of the world. According to Osuchukwu (2016, p.232), there are seven different styles of leadership that differs with every organisation. They are opportunistic, strategist, diplomat, expert, alchemist and individualist. The leadership style undertaken by CAPCO is the achiever. This kind of leadership allows interaction with the team members and focuses on team orientation. They are open to feedbacks and push on achieving goals. However, CAPCO expects its employers to be innovative. CAPCO launches in Thought leadership and innovative research. Participative leadership is considered best option when evaluating the leadership styles followed by this company. This management offers guidance to its team members while accepting different inputs and innovative ideas from their individual team members or staff. This encourages them to work and communicate freely increasing the total output of the company. This leadership allows enough feedbacks and suggestions and the managers make the final decision (McMillan, 2010, p.15). On contrary, Sainsbury's faced leadership problems, which led the manager to focus on a different approach. They follow individual responsibility however, also include team delivery. The managers are asked to respect the team members, keeping the process simple and lastly increase the efficiency every day. Previously they followed an autocratic style of leadership. This led to the disconnected communication between the managers and the team members. Therefore, the company reviewed their leadership into delegative style of leadership. According to Malos (2012, p.424), the managers now rarely makes decisions and they are left for the team members. The managers seldom offers any guidance and the decisions are made by trusted team members. This leadership style has its own negative effects. The lines between the authorities are blurred and can result to decreased motivation.
2.2 Influence of organisational theories on the management practice
Management is influenced by two theories of Frederick Taylor’s Scientific Management theory and Human relations Theory both of which are thoroughly discussed below. According to Taylor (2010, p.547), management involves three types of duties. The first rule is to select, train and guide a workman. Second rule suggests heartily cooperation among all team members and team leaders and managers. The last rule states that there should be equal division of work among all members. The organisations apply this theory in proper management of the teams. This company is solely based on team works and proper team orientations. The foremost and logical desires and aims of all managers are to establish an environment where group goals can be accomplished. They also make sure that there is reduced level of dissatisfaction, time wastage and money. Cooperation among team members and the team leaders is essential to complete any task without any miscommunication. Lastly, the management makes sure every work or task is equally divided among the team members. Otherwise, it may lead to dissatisfaction and no job satisfaction (Bloisi et al. 2006, p.245).
The second theory that the managers apply in management practice is Human relations theory. According to Mullins (2009, p.53), Human relation theory is needed for motivation. Elton Mayo began his movement of this theory in the early 1920s during the industrial movement. The basics of this theory lie in the desires of people to be a part of a supportive team which facilitates growth and development. Individual motivations, recognition and attention align perfectly with this theory. The most productive results require the usage of relationships. Belonging, significance, value and respect at workplace motivate any employee to be more productive and innovative. Therefore, the managers of any organisation need to treat their employees with respect for their increased productivity and quality of work.
2.3 Evaluation of different approaches to management in CAPCO and Sainsbury’s
Different approaches to management include scientific management approach, human relations approach, classical administration approach, bureaucratic approach, systems approach and contingency approach. According to Mullins (2009, p.46), active management and team orientation are the basic principles of any organisation. CAPCO fully depends upon human relation management approach and science management approach. Since, CAPCO is a consultancy to the financial industry; most of the projects require the proper usage of teams. Therefore, team management requires cooperation, collaboration and coordination to perform the projects. Most times the teams that are formed are of various people from various backgrounds possessing knowledge of the topic they have to work on. Human relation approach is also a requirement for this company. Any team needs to have respect, value and attention to every employee. The work is properly subdivided among its team members so that everyone can work properly. Complexity is an attribute to any project. Thus, to perform the project with higher quality and productivity, both the approaches are followed by the employees. The managers make sure that the proper application of the two approaches happen for coordination and communication (Botchkarev and Finnigan, 2014, p.1420).
According to Hughes and Merton (1996, p.5), Sainsbury’s depends heavily on customer satisfaction. Therefore, their management approach differs from CAPCO. Therefore, they follow the classical management approach. They focus on productivity, efficiency and output of the workers. Since, the company follows a hierarchical structure as discussed above and a division of labour into smaller teams takes place. On contrary to CAPCO, the output matters more for this company rather than quality and orientation of the team and the team members.
3.1 Discussion of the impact of different leadership styles on motivation within change period
Leadership refers to motivate, inspire and influence the subordinates. The significance of management is to apply human resource management effectively and well-organised to achieve organisational targets. For the better outcome, the managers need to motivate the employees. Therefore, the employees need efficient leadership styles. This leadership style will affect the company and the performance of the company. Different type of leadership is autocratic style of leadership, democratic style of leadership, laissez faire leadership style, transformational, transcription and situational leadership.
Transformational leadership is the leadership, in which the leaders or the managers get involved deeply and raise the interest of their subordinates. They try to generate the awareness and receipt the task and mission of the group. As per Almansour (2012, p.162), If the leader creates any needs within subordinates for their own self interest and for the well being of the others, this also happens. A routine performance agreement is done in between the leader and the followers to exchange the necessary with the followers in the routine performance. In this role of leadership, the leaders motivate their employees to identify the needs and change the needs as per requirement. The leaders need to develop the challenges and attractive versions with their employees together.
Situational leadership includes the efficient and pliable leaders, who have the social understanding and information to contrast their behaviour with the situational demands. This helps the efficient leader to show his efficiency of broaden variety and behavioural response range (Hersey et al. 2010, p.420). In this type of leadership, the leader needs to identify the most significant tasks at first. After that, the task needs to make understand the employees and have to decide that which leadership style is matching with the task. The leader should support and give direction to the employees to perform the tasks with inspiration.
3.2 Comparison between two motivational theories
Maslow’s theory: As per Maslow, in an organisation, people get motivated when their needs are presented in a hierarchical order. This hierarchical order prevents the employees form the other factors that are not included in the hierarchical order or included in the below of the order. The source of the motivation is unsatisfied needs whereas an unsatisfied need never create any tension and also does not motivate the employee (Pardee, 2012, p.24). Maslow’s need of hierarchy system have five levels, which are psychological needs, safety needs, social needs, ego needs and self-actualization needs. In any organisation, these kinds of needs are not so much necessary, whereas these needs may be classified as self-direction, motivation, self-control and maturity. In any workplace, the employees should have self-control and should motivate them owns elf. However, Maslow theory is helpful to identify the needs or motives.
Herzberg theory: Herzberg theory is a two factor theories. It is applied for the work motivation. However, the theory has high controversy. As per Stello (2011, p.232), two different sectors can affect job satisfaction and job dissatisfaction in organisations. The same factor cannot affect the job satisfaction and dissatisfaction. Herzberg has made gist belief that is based on hypothesis and research design. As per the Herzberg two factor theories, the managers may follow some methods to achieve job enlargement, empowerment and job enrichment. Job enlargement is where the employees are given a variety of tasks that can make the work more interesting. The workers may be given some complex work with a large unit member, which is a big challenge to solve. This can motivate the employees to give increase their power of thinking and work. The empowerment of the employees may be delegated to motivate them to make their own decision to perform a work.
In CAPCO, the Herzberg theory is used as money is not the main factor of motivation.
3.3 Explanation of the management necessity to understand and apply motivation theories
A manager needs to spend time to motivate the employees as the employees work for the organisation and bring success for the company. In the year of 1988, eighty six percent organisations had to struggle to attract new employees, whereas fifty eight percent organisations had to face challenges to retain the recent employees (Burton, 2012, p.233). Nevertheless, the study is quite old but it is relevant to the topic. If the management do not apply any motivational theory for the employees the development of the company may hamper. Therefore, the management needs to apply motivational theory for the employees. The employees need to get appreciated by the managers for their good work or the organisation may give them incentives for their good work. The employees need to be motivated for their own personal reason and for the organisation. In a study it is seen that only eighty six percent employees are satisfied with their job, as their companies are motivating them properly. However, thirty three percent employees feel that they are not motivated completely and they have reached to the end of their career.
As per Lunenburg (2011, p.5), motivation is predisposition for the behaviour in a purposeful manner for the achievement of specific needs and the inner force of the employees will encourage them to perform the job with full concentration. The organisation can motivate the employees by two ways- financial motivation and non-financial motivation. By applying the financial motivation, the employers may offer the employees to join in a profit sharing programme. Employers can empower the employees to motivate them. The employers need to change the organisational culture and create an employee friendly culture, which is very essential to motivate the employees.
4.1 Explanation of nature of groups and group behaviour within CAPCO
To achieve a common target, two or more employees and managers form groups. In CAPCO, Tuckman's theory is used to form groups. (Refer to Appendix 3). The management forms formal group, where some employees are grouped so that they may achieve their fixed goals. The management allocate some fixed jobs for each employee of that group. Formal groups have two sectors, command groups and task groups. In command groups, the management allocate fixed jobs for the employees whereas, the task group do jobs on the temporary basis (). As well as, like formal groups, the employees form informal groups in between them. This kind of decision making helps the employees to be friendly with each other and understand each other to perform a job. The informal group is made for temporary period.
CAPCO follows the five stages of group development. The first step of group development is forming. In this step, the employees need to identify and understand the behaviour of group and adjust as per the needs of the group. In the second stage storming, the members discuss about the leadership and get a clear idea about the position of individuals (Kozlowski and Bell, 2013, p.565). The next step is norming, in which the employees need to build a good relationship with the other team members for good coordination. In performing stage, the group members need to show commitment and dedication to their tasks. The last stage is adjourning stage, in which the individual employee needs to perform his or her own task with efficiency.
4.2 Discussion of the factors to promote or inhibit the effective teamwork development within CAPCO
For the achievement of the high quality target, the team needs efficient team members and team leader. To form an effective team some factors need to maintain. An effective work needs good communication, good coordination and good leadership. Good leadership can make the task easier for the team and may achieve good outcomes (Excellence, 2004, p.232). In CAPCO, the leadership is good as they get positive working environment. In CAPCO, democratic leadership is maintained and the needs of individual get priority. As per the leadership style, the manager has the right to promote high quality moral value. The employees are given proper training so that the communication level of them may increase and reveal their personal opinion easily as per requirement. Poor communication can hamper the coordination and bond in between the employees. The process of diversity planning can be used by the company to manage all the challenges at the time of performing any task. The diversity planning process helps to gain creative and innovative ideas and thus raise the awareness level in between the employees.
The team workers use an effective and efficient way to avoid collision in between the co-workers. Thus the workers maintain a good environment in the workplace. The management held meeting, which needs to do on daily basis for the development of CAPCO. In this way, the management may be able to reduce all the problems that arise daily with a particular agreement in between management and employees. However, the management of CAPCO gives priority to the needs of the employees. The team workers may expect a good level of outcomes from the management to fulfil all reasonable demands of them.
4.3 Impact of technology on team functioning within CAPCO
In recent days technology has developed a lot and has a great influence in the workplace of an organisation. With the development of technology the companies has gotten a great opportunity to raise the productivity and also the profit. At CAPCO, IT plays an important role in the improvement of the productivity of the company. The team workers can develop time management. On the starting of the day the team manager can set goals for the other team members (Driskell et al. 2013, p.297). The team needs to alarm set for a particular task and also made database, where they will record all the records of their works. The team or group may make online forums, where they will be able to express all of their opinion easily and the management needs to check the forum to understand the demands of the employees. The experienced employees may teach the new employees via video conference and train them. The team may arrange a To-do list for their entire day work. This will make the tasks easier.
CAPCO may arrange online training programmes to train the new workers. To increase the awareness level, the management may include the necessary information in to the database system of CAPCO. By this way, the employees will be able to be up to dated and modify their faults. However, the technologies also have some negative effects as well as the positive effects. Many of the employees are not able to access the technologies and they will also not be able to up to date themselves (Raulea and Raulea, 2010, p.695). As all the data are accessed via internet and has a particular link, the chance of hacking is more. Thus, the company may face a big loss. CAPCO can use the technologies to develop their performance level by using e-mails and online group discussion.
This case study has evaluated and critically appraised the financial consultancy company CAPCO. The objectives of this study are to address, exhibit and analyse the relations between the organisational behaviour and cultural and structural organisations of the company. These factors are compared with another company, the supermarket giant Sainsbury’s. The relationship between CAPCO’s cultural and structural relationship is also evaluated and investigated. It has shown that the integration between the two factors is necessary for the organisation to balance between work culture and structural organisation. Different leadership styles applied by the two companies are explored and concluded that they follow completely different styles to attain the work. The management approaches and theories concluded that the applications of different theories are applied in each case. Discussion of two motivational theories and the way the managers apply has a positive effect on the employees. The workers try to avoid collision at workplace thereby maintains a good environment. Lastly, it may be concluded that CAPCO use technologies to develop their performance level. Thus, CAPCO has effectively applied the above discussed theories and models to improve their productivity of work.
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