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Diploma in Business
Unit Number and Title
Unit 3 Organizational Behaviour
Organizational behavior is the analysis of the way an individual communicates into the groups or teams. This analysis is implemented in an attempt for creating much more effective and appropriate corporate organizations. The main point of the analysis of organizational behavior is that a scientific process can be implemented within the management of employees. This analysis contains the different aspects like values, beliefs and assumptions of the workers that perform in the firm(Robbins and Judge, 2007). Apart from this is also includes working environment as well as its policies to the employees of the company. In organizational behaviour assignment report, the organizational behavior of CAPCO has been analyzed by the researcher as it helps in making quite effective and efficient working environment for the employees of CAPCO. The paper also describes the different aspects that are associated to the organizational behavior of CAPCO. CAPCO is a world management consultancy that also focuses in financial services which involves capital markets, wealth or assets management and banking or payments(Khan, 2008). The company also serves their clients from offices in the top corporate centers around Africa, Europe, Asia Pacific and North America. The paper also describes the various aspects which formed the organizational culture as well as organizational structure in CAPCO.
In every business firm, there are numerous workers with different skills and works are allotted to them according to their skills and talents. An organisational structure in a business firm is termed as the allocation of work, and how the coordination is done to achieve the organisational goal. Thus, organisational structure can be described as the allocation of power or authorities to the employees. The organisational structure of any firm depends on many factors, namely, size of the company, type of service it offers, number of employees, etc. CAPCO is a multinational company that provides business and consultancy services(Iqbal, 2011). The company is based in Antwerp, Belgium. The organisational environment of financial company is very complicated as there are various challenges that that company has to surpass to become a successful company. For overcoming this complication work environment, CAPCO have implemented a flat organisational structure. This flat structure supports the company to implement appropriate communication and coordination between the upper and lower division. It is the best organisational structure that can be implemented in a financial service providing company as it allows the employees and managers to get directly connected during the business process.
Figure 1 : Flat Organisational Structure
In relation to it, the organizational structure of one of the largest supermarket of UK is identified as divisional structure. Under this structure, the roles and responsibilities of the employees are ascertained according to the type of product, geographical segmentation and many other factors(Iqbal, 2011). Among these, the management of Tesco utilize geographical territories to distribute the roles and services among the workers.
Figure 2 : Divisional Organisational Structure
Here is provided the Comparison between the organisational structure of CAPCO and Tesco:
CAPCO Flat Organizational Structure
Tesco Divisional Organizational Structure
CAPCO, under this organizational structure have only one layer of managerial communication system that works from the top management to employees. In this structure, the layer of management could not be absent(Iqbal, 2011).
Under divisional organizational structure, there may be more than two layers of management. This indicates that the management level can be sub-categorized in the segments of departmental heads, senior managers and lower level employees.
Flat structure is always appraised for its effective communication solvency. As there is only one level of management present between the top level and employees, the flow of communication is very effective and there are also chances of less error.
The flow of communication is not that strong as the communication has pass multi-layers to reach the last level of employees. There is also a possible chance of errors in this structure.
The Flat structure also has some drawbacks and the major one is the responsibility and liability. Under this structure, CAPCO cannot clearly focus on all units that are present at different nations at the same time.
The liability of every employee is very clear as Tesco can the different levels as the whole organizations. It results in clear accountancy of profits and liability of the company.
In CAPCO, the decision-making process is very effective. In addition to this, the structure of CAPCO can easily analyses the challenges of the environment.
In comparison with CAPCO, the decision-making process of the company is not that strong as the company has to support the decisions at every level.
Organisational culture of CAPCO and Tesco:
Organisational culture can be described as the systems of shared values, principles and beliefs that guide people have to behave properly in an organisation. These are the values that an employee has to consider while and completing the task. The organisational Culture of CAPCO supports the innovation and creativity of their employees. When an individual gets recruited in a company, he or she adopts the principle and beliefs of the organisation. There are mainly four pillars that support the organisational structure of the company. These are opportunity for workers, rewards for good work, training, and challenge at works that can influence and increases their talents. Furthermore, the duty of the workers is fully specified to them before allotting them to any specific task and also provides all the job description to them. Here is the brief comparison between the organisational structure of CAPCO and Tesco:
CAPCO Role culture
Tesco Power culture
Under this culture belief, every individual is asked to take decisions according to their knowledge and their job description is clearly allotted on the basis of their knowledge.
Under this power culture, only the job descriptions are provided to the employees as the decision-making process are only taken up by the top management.
The performance degree of the workers is calculated on the basis of their contribution made in the company. It is calculated on the performance of workers relating to the decision making and problem solving process.
At Tesco, as the decisions are only taken up by the top level management, so the outcomes are also only measured up by these level managements.
The organizational structures and cultures always play a significant role in the development and performance of the employees and the effects of these could be seen on the process of the company. The flat organizational structure of CAPCO helps the company to remove the bureaucracy. It also aids the company in having a bottom-line approach in the corporation that mostly focuses on the works of staffs. In this approach, workers are advised to feel free in giving advice to top level management. As the company is now operating in almost 75% of the total financial institutions, it is really important that the company is listening to its employees and their new ideas. It is also important because these lower level workers have to understand the problems of the clients and to discuss these issues with their seniors. The efficient communication skills and less communication gap between the levels of workers have benefited the company in reducing the problems of the operations and to gain clear knowledge about the problems of their clients. Flat organizational structure has benefited the company by providing fewer gaps in the organization. In the current highly competitive market, CAPCO is now able to maintain a noteworthy growth rate of 14.7% faster than its near competitors which is mainly due to organizational structure and culture that company utilizes. Another major reason for the success of the company is the fact that everyone in the company is doing something to provide notable contribution in the corporation.
The employees behaviours of CAPCO are mainly influenced by factors in the organisation, such as personality of the individual, skills of the individual and the perceptions of the individual. These entire factors combine together to influence the individual behaviours in the company. The personality of the individuals is enhanced by the combination of the entire genetic and environmental factor. The organisational process of CAPCO follow the attribution theory of the individual behaviour and corporation states that it is concerned about how the individuals of CAPCO relates their practices with their thinking’s and behaviour(Sadler, 2003). There are many external environmental factors that can affect the personality of an individual and these are workplace, wages, rewards and promotion. The specified company has to make sure that it provides friendly and healthy work environment to its employees.The next factor that affects the behaviour of the employees at CAPCO is their abilities and skills. As the company promotes creativity and innovation, there is always a great positive influence on workers. The performance of a worker is taken place if he or she has some good skills and talents behind them. Managers also play an important role in matching the abilities and employability skills of the employees.
Another factor that affects the individual behaviour is the attitude of the workers to the works. There are many factors that influence the attitude of the employees, namely, family, society, culture and organisational beliefs and its factors. The personality of the workers also influences the individual behaviour as it is the characteristics and distractive traits of the people.
The specified company, CAPCO, has adopted the democratic leadership which is appropriate to its organisational structure of flat structure. Though the flat organisational structure of the company has short chain of command from top to bottom, it supports the decision making process of the company which is an essential element of a democratic leadership. Here is the comparison given between the democratic leadership of CAPCO and autocratic leadership of The Real Pie Company.
CAPCO Democratic leadership style
The Real Pie Company Autocratic leadership style
The leadership style of CAPCO supports the empowerment as the decision making process of the company is left to the employees on the basis of their knowledge and what they have learned from the interaction with the clients(Sadler, 2003).
In this style, the power of making any decision lies within the top management who might not aware about the conditions of the ground.
This leadership style mainly focus on the innovation and creativity of the employees at CAPCO.
As the employees don’t have to think of their own, there is a very narrow position for any innovation and creativity.
This leadership style help to increase the level of motivation among the employees and they can also feel that they are part of the corporation.
Employees are not always motivated as their voice doesn’t to the top level of the management.
CAPCO is the organisation that is utilising the scientific management and theories related to the human relation to its operations for developing it as a combined approach for the management. The scientific management of the corporation focus on the quality of the commodities and services offered by the company which helps then to become more efficient to its customers. It also works as an aided function that helps the corporation in planning the proper hostile conditions such as inflation and in the situation of tough competition(Tracy, 2014). The management of the specified company motivates their employees for maintaining a good relations and communication for reaching their objectives. In addition to this, the human relation theory that the company has implemented works on encouraging the employees as it helps in maintain the good relations between the top managers and the workers working under them. This approach at CAPCO also improves the productivity of the employees as they feel that their thoughts are heard by the employers. Under this approach they have a thought that they have some value in the operations of the company.
As discussed above, the corporation is using the combination of scientific management and human relation approach for maintain its operations. The specified approach has been very influential for the company as it lead the company to rank as 27th under the working environment for the employees. On the other hand, Bureaucracy method at McDonald emphasis on the close-fitting control of the workers as it has applied a ladder of specialist in its management method(Tracy, 2014). While the job and responsibility of the workers at McDonald are distinct in a very strict method, the role of the workers at CAPCO depends on the need of the hour.
Balanced-legal decision-making rules are the key attribute of the Bureaucracy approach accepted by McDonald while there are no such strict rules at CAPCO when it follows the human relation philosophy.
Now a day leadership is quite essential for the growing competitive market because it is the responsibility of the leader to make assure that the employees’ works under the supervision of him are encouraged so that their productivity could be enhanced for the advancement of the firm. CAPCO implemented the democratic leadership style because it improves the productivity of its employees in a quite great extent(Tracy, 2014). The firm has the capability, skilled as well as committed to its employees because of the implementation of democratic leadership style. With the help of democraticleadership style CAPCO develops a sense of loyalty andtrust, safety and at the same time reliability between the workers because they feel that their ideas andperceptionsarebeing received by the management and also because of their dues are fully paid by the management. Leader plays the most significant role in the company, same as in CAPCO, it means whenever during the period of changes sometimes the workers gets confused about their functioning then the leader is there to make him understandevery single thing about their roles and functioning(Sadler, 2003).In CAPCO, democratic leadership style authorizes the workers as well as appreciates their innovations andtalents that encourage them to do excellent in the future.
Tesco has implemented the autocratic leadership style where workers are excluded in the process of decision making whereas various decisions are taken by the upper management. When the workers does not have the right for participating in the process of decisions making then it can have an negative impacts on theirencouragement that can results in less productivity than the employees within the democraticleadership styles(Iqbal, 2011).
In different firms various motivational theories being adopted for achieving a quite congenial working atmosphere. Motivational theory is quite important for the goodwill, brand image and reputation of the firm. CAPCO has adopted some of the motivational theories that are discussed below:
Maslow Hierarchy Theory:Under this theory, various participantsof the team and the firmhave varieties of necessities, so if the requirements arefulfilled then the employees get motivated which actually result in increasing his functioning. The employees’ gets motivation only after their requirements anddesires get fulfilled(Shafritz and Ott, 2005). The basic concept of this theory portrays that motivations enhances form requirements like Socialneeds, Safetyneeds and Self-needs. Safety needs comprisesthat requirement that gives an individual with a sense of security and safeguard. It also comprisesnumerous needs of financial security, good health, and personal security. Social needs designated as the need for sensing a sense of belonging as well as recognition. Social needs are substantial as they do not senselonesome and depressed. The aspiration and requirement to become what one is possible and appropriate of is something which is top personal.At CAPCO, lower level employees are much concerned about the salary and the middle-level employees get motivated only after achieving their self- needs and at the same time physical needs.
Herzberg two factor theory:This theory helps the management for realizing as well as verifying the factors which motivates their employees(Mcreynolds, 2012). This theory can be utilized for broader consideration as well as can be implemented in overall. Herzberg concentrates on the main two factors that require to be listed while creating the planning for the motivation of the employees at CAPCO.
HygieneFactor: this is a factor that do not motivate a person and cause dissatisfaction if not been cared properly. This factor is achieved by CAPCO with the help of consideration of performance, self-guided team as well as particular goal.
Motivator: this is the factor that helps andsupport the firm in order tomotivate their workers by giving them recognition as well as reward. Opportunity and promotion are also provided for pursuing their talents are originalmotivators as stated by Herzberg.
With the gradual growing of the firm it becomes quite problematic for the management for managing the workers one by one and at the same time they require to have a mechanism at place that can support in order to motivate the workers. Motivational theories give stage to the administrators under which they can establish a motivated environment. Motivational theories support the administrators in order to verify the aspects that cause motivations as well as the aspects that result in the dissatisfaction. The most significant utilization of motivational theories for the administrators are that it supports in enhancing the productivity of the workers and at the same time it keeps the workers satisfied and happy through the firm cause less worker turnover. CAPCO concentrates on the worker motivation because it gives the chance for growing as well as the worker identify the challenging condition for performing creatively and extraordinary(Liao, 2009).This theory also helps in supporting human resources of the firm as well as improves their performance in the working field. Through motivational theories the administrators’can have the potentiality to adopt strategies anddesigns that can motivate their employees. Motivation is actually the theory that leads to the discovery of something new(Amar, 2002). This theory is helpful in order to verify the significance of motivation under an attentive corporate personality and hence controls the nature of worker within the team of the company.
Group is mainly referred as the gatherings of two or more person who actually achieve the certain aim or target. Many firms are utilizing the conception and aspect of group of team because it provides many opportunities as well as accomplishment for the firm. Through understanding the requirement of team, CAPCO establishes the team qualities to its workers with the help of adding few characteristics of team such as commitment, cooperation, coordination, sharing, open communication and helping others.The achievement of the team actually depends upon all these qualities(West, 2012). There are two types of groups like Formal groups and Informal groups. Forma groups are the groups that are formed for conceiving particular aims and goals. These are the groups that are demandable by the firm because they provide procedures of rules and laws for accomplishing the objectives without any problem(Terry and Hogg, 2000). Whereas informal groups are the groups’ that are exist in the formal firm for satisfying and fulfilling social requirements, psychological needs for upholding as well as improving the relationship with workers. These groups are quite influential and pleasant as firm cannot be able to adopt any action in their evidences. At CAPCO, group nature or behavior of every section is quite positive. They perform by associated with a confident mentality that handles them to their business objective and aim. The working atmosphere of the mentioned corporate is quite encouraging for each and very employees as they enjoy working within the firm.
At CAPCO, numerous factors which promote the establishment of team effectiveness in the firm. The factor which promotes the establishment of the effectiveness of team in the firm containscommunication, training anddevelopment as well as leadership(Parker, 2009). In this analysis, it has been found that as CAPCO follows the democratic leadership style it is for the management for keeping their employees motivated so that they can share their perception, skills and ideas for providing the competitive services of finance to the clients. This type of leadership style helps in promoting the establishment of effectiveness of team in the firm. Communication is the factors that help in promoting the effective teamwork in the firm as the frankand honest communications is the key point of the company CAPCO(Giuliani and Kurson, 2002). The company always tries to maintain the atmosphere smooth by the honestand loyal communication. Training and development program helps the company for enhancing the talents and skills of the workers.
Technology plays the most important role in CAPCO mainly in the communication factor. Through the invention of social networkingsites CAPCO develop and form its own site for networking. The most essentialmotive of the firm is to form honestand loyal communication that can helps the company to communicate effectively and efficiently(Technology, 2008). Technologies like internet helps and supports CAPCO in various ways such as the team workers of the company can send as well as receive the messages even when they are not in same area(Rayudu, 2010).
From the above analyzed report it has been concluded by the researcher that the main point of the analysis of organizational behavior is that a scientific process can be implemented within the management of employees. This analysis contains the different aspects like values, beliefs and assumptions of the workers that perform in the firm. CAPCO implemented the democratic leadership style because it improves the productivity of its employees in a quite great extent. The firm has the capability, skilled as well as committed to its employees because of the implementation of democratic leadership style(West, 2012). . With the help of democratic leadership style CAPCO develops a sense of loyalty and trust, safety and at the same time reliability between the workers because they feel that their ideas and perceptions are being received by the management and also because of their dues are fully paid by the management. At CAPCO, lower level employees are much concerned about the salary and the middle-level employees get motivated only after achieving their self- needs and at the same time physical needs. CAPCO concentrates on the worker motivation because it gives the chance for growing as well as the worker identify the challenging condition for performing creatively and extraordinary. This theory also helps in supporting human resourcesof the firm as well as improves their performance in the working field.
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Khan, M. (2008). Financial services. New Delhi [u.a.]: Tata McGraw-Hill.
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