Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 3 Organizational Behaviour
The Organizational behaviour revolves around understanding the human behaviour within an organization and hence is an integrative area comprising of management, communication, sociology and psychology. The key idea behind studying this subject is application of scientific approach in managing the employees and implementing of productive theories that are used for HR purposes for maximizing the outcome from an individual member. Organizational Behaviour primarily holds three broad areas namely Micro-level business, Meso-level and Macro-level
An organization’s organizational behaviour is mostly dependent on its managerial rules, standards, vision, culture and atmosphere. Furthermore, it supports in developing the employees both social and professional abilities for better execution of corporations. Organizational behaviour requires various approaches like qualitative, statistics, complexity theory, time series, multiple regression, research methodology, analysis and computer simulations etc. for understanding the organizational studies for eventually studying and forecasting the organizational nature. Organizational behaviour is a tool been used for improving the return and productivity and is just not limited in understanding the human behaviour within an organization.
An organization’s structures and cultures are interdependent eventually having a consequential impact on the business’s performance. For having a better understanding about the relationship amid the structure and cultures, one must first understand the terms. Organizational structure can be described as explicit and implicit rules and policies of corporate which are eventually been designed for providing structure to an organization where roles and responsibilities of a job is designated, composed and integrated. Furthermore, the structure of an organization also regulates the flow of information from one level to another. Decisions flow top to down in a structure that is centralized whereas decisions are made at different levels in a decentralized structure. Organizational cultures can be described as workplace development as usually points to the values such as assumptions, beliefs, values, norms and language patterns the managers and associates share. The culture of a company further determines how the management and employees establish interaction and deal with business transactions. One can see the reflection of a company’s culture in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, customer treatment and satisfaction etc. (Lefifi, 2015)
The comparison amid CAPCO’s structure and culture is done by taking the example of NHS. An organization’s structure can be highlighted through its framework and its chronology from top to bottom level establishes the structure. CAPCO’s structure is flat which is non-hierarchical and team-driven and within its organisational structure functions a matrix structures for executing specialized projects which require specific skills. CAPCO’s flat structure produces employees who are self-motivated and empowered with an access for taking advice and training. The bottom up approach of leadership allows very little bureaucracy. The culture of CAPCO is very ambitious and innovative further supporting its structure and reveres distinctiveness, sincerity and broad-mindedness in workplace allowing the employees in having freedom of fulfilling their dreams. CAPCO’s culture promotes personal growth, performance and reward, provides challenges along with experience and learning. In addition, it encourages flexibleness, creativeness and taking risks. The employees, who are teamed with a stable vision, are more likely in meeting the uncertain and challenging needs of the industry. (Lefifi, 2015)
In a stark contrast NHS which is a traditional bureaucratic organisation promotes a hierarchical structure which involves numerous layers i.e. top to bottom layer and a long chain of command. The structure of NHS ensures effectiveness of command because of précised span of control whereas its organizational culture is quite formal where employees are expected of following a proper dress code at work. The working hours are too set by the department head further inculcating steadiness within the employees.
1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of the business
The relationship between CAPCO’s culture and structure is very profound and often at times managers fail in realizing the relevance of this relationship. An organization’s culture and structure cannot be considered and evaluated individually as both are interrelated. CAPCO’s current culture states the working type of all the employees at work along with the set of values and standard within the organization. Organizational structure can be determined by its infrastructure and the hierarchy of the employees. Furthermore, employee relation’ performance at work and their commitment and efficiencies are also dependent on upon the organization‘s structure and the culture. (Cummings and Worley, 2014)
The manager can easily identify an employee’s progress by the kind of training he/she receives which eventually is determined by the culture of an organization. CAPCO’s culture ultimately determines the level of customer and employee satisfaction at the company. Employees’ value can also determined by the definitive belief of the workplace. It has been observed that employees attitude towards resolving work related problems and handling their job is highly influenced by CAPCO’s culture and structure which eventually is helpful in cultivating a healthy and positive working environment further allowing successful employee retention. Moreover CAPCO’s structure promotes the necessity of having a healthy competition amid the employees without the use of any unethical means and involvement of employees in decision makings gives rise to creativity and innovation within the workplace. When grouped together, all the above discussed factors assist in the enhancement of performance of the employees’ and the organization as a whole. (Cummings and Worley, 2014)
At CAPCO, the employees are expected in meeting the set standards of professional behaviour as an integral employment condition as these standards are further helpful in creating a considerate working atmosphere for everyone. By learning the standards governing the workplace, ensures the acceptability of an employee’s behaviour and his/her preparation in succeeding in particular job role. Moreover, adequate behaviour is also required in order to get accepted into the culture of the workplace. There are numerous factors influencing employees’ behaviour as an individual within CAPCO. (Caroline Martins and Meyer, 2012)
Mentioned below are certain factors influencing individual behaviour in CAPCO:
Demographic Factors: these include socio economic background, qualification, nationality, race, age, gender, etc. CAPCO gives preference to individuals belonging from a decent socio-economic background, well-educated etc. as they tend to perform better compared to others. At CAPCO, there is a great demand of professionals who are young and dynamic having a good intellectual background and adequate communication skills. (Caroline Martins and Meyer, 2012)
Abilities and Skills: skill is an ability of acting in a way allowing an individual to perform well at work further influencing an employee’s behaviour and performance. CAPCO ensures that an employee’s abilities and skills are matched with the job requirement that is a key role played by the managers so that he/she can give outstanding performance. (Caroline Martins and Meyer, 2012)
Perception: an individual based on their allusions can establish and decipher environmental stimulation. An individual’s perception is influenced by many factors and study of perception has an important role to play for the managers, as they are accountable of cultivating an encouraging working atmosphere, which can be perceived most favourably by the employees further allowing them in performing exceptionally.
Attitude: an individual’s attitude is highly influenced by family, society, culture, peers and organisational factors; thereby it is important for a manager in studying the job related variables for creating a favourable work environment further tempting the employees in forming a positive attitude towards their jobs allowing them to perform better.
Personality: heredity, family, society, culture and situation are key factors influencing an individual’s personality. An individual’s personality varies while making a response to the business environment. By studying the personality traits of the manager can easily understand the individuals’ eventually allowing them to direct their effort and motivating them for achieving CAPCO’s goals. CAPCO expects certain kind of behaviour from its staffs that can be identified through review, learning, liability and training. (Caroline Martins and Meyer, 2012)
Leaders not only help themselves but others too in doing correct things in a right way by setting a direction, building a vision that encourages the followers and creating something new. In the context of an organization like CAPCO, leadership which is dynamic, exciting, and inspiring is mainly about scaling where the employees either as a team or an individual needs to go in order to gain success. Leader while setting a direction must also make use of management skills in order to guide his/her followers towards a right target in a way that is effortless and productive. CAPCO based on the situations at workplace makes use of various leadership styles for managing the manpower eventually controlling the in-house dignity of the workplace
Comparison of effectiveness of different leaderships at CAPCO and NHS
Pacesetting Leaders: this kind of a leader sets a high performance standard for both themselves and their followers further exemplifying the kind of behaviour they expect from the others within the team. He /she give either little or no feedback on the performance of the followers, barring from taking over when the followers imply to lag behind the schedule. The leader pursuing this style has no belief in making compromises and believes in being self-directed. It is very effective in CAPCO as the staffs are immensely experienced and motivated and the leader firmly believes in producing quick results. For NHS, this style might be ineffective as the employees are dependent on the leader’s guidance for executing a task and its extensive use can engulf team members and oppress innovation. (Yukl, 2012)
Affiliative Leaders: this kind of a leader advocates cooperation and unity amid the followers and assist in resolving workplace conflicts. He /she are versed in building teams by ensuring that the followers feel connected to each other. The leader never fails in praising the followers for their hard work and contributions further keeping them motivated however, poor performance might go unchecked. This style is effective for both CAPCO and NHS as the employees under this kind of leader remain motivated all the time and find their leaders backing them at critical situations
Democratic Leaders:this kind of a leader successful cultivates harmony amid employees through participation. This style is most effective in CAPCO in a situation when the leader or manager needs the team to buy into or have hold on any decision, plan, or goal or in case he/she is unsure and is in need of new and unique ideas from experienced teammates. However, the style is not effective for NHS where the staffs constantly deal with emergency situation when time is the bottom line and teammates are not learned enough for offering guidance to the leader.
Coercive Leaders: this kind of a leader claims prompt consent and rules by fear. He/she takes charge and calls for no conflicting opinions. This leadership is of choice when a business is undergoing a crisis situation such as in a company turnaround, takeover attempt or at the time of a natural emergency like a tornado or a fire. He/she promotes flexibility within the organization for implementing necessary changes at workplace. The effectiveness of this style in both CAPCO and NHS can be seen when a turnabout is indispensible for the viability of a department, or an immediate compliance for a business need with an instruction. However, the coercive style must be used for a short period of time as it negatively impacts the employees. (Yukl, 2012)
One can describe organizational theories as set of ideas and instructions enabling the managers in effectively managing the manpower within an organization. Furthermore, the organizational theories assist the managers in deciding the practices of the company while keeping in mind the company’s objective. An organization’s structure and culture can also be determined with the help of organizational theories. The management practices of an organization eventually gets densely affected by the theory it follows thereby, it is important that the managers are trained frequently for keeping them updated so that they can accurately impart an organizational theory within the workplace. (García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2012)
Types of organizational theories are given below:
Classical Management theory: one of the oldest theories for managing the manpower of an organization where employees are provided with opportunities of training and are allowed to performing a given task under the guidance of the manager. Under this theory there is zero involvement of employees in decision making process and lacks flexible work timing. Classical theory is bit autocratic in approach. The key purpose behind this theory is resolving conflicts amid the management and employees needs by proposing productive operating procedures, excluding random behaviour of the supervisor and employee motivation through economic incentives. It influences the practice of management by emphasizing on the rules of an organization with minimal attention on the value of an employee. (García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2012)
Classical theory is subdivided into:
Human relation approach: in this approach an organization focuses on the fulfilment of employees’ needs and wants and further aims in keeping them motivated so that they eventually remain satisfied leading to framing of a happy and healthier internal environment. The use of human relation approach at CAPCO has helped the management in retaining the skilled employees and simultaneously reducing the employee turnover proportion, which ultimately is helpful in improving the brand’s image in the global markets. Practicing this approach has further helped the managers in cultivating a healthy working atmosphere allowing the employees to perform in a more effective way and producing quality output. Using such an approach is effective in successfully obtaining CAPCO’s organisational objectives. Moreover, it has helped the management in ensuring that all its employees are equally motivated and are rewarded and appraised for their contributions in the company’s growth and success which can either be monetary or non monetary. (Pathak, 2009)
Contingency approach: an organization under this approach focuses on employees performances further aiming in enhancing their productiveness at work. NHS makes the best use of this approach in being more constructive. As NHS’s day-to-day operations are uncertain, this flexible approach ensures that its remains productive and that the staffs work in an effective way even under pressures. For fulfilling the patients’ needs NHS frequently gives training to its staffs for ensuring that their efforts and hard work are used in the fulfilment of the healthcare’s objectives eventually fulfilling the patients’ demands and managing its services in accordance to the business conditions. (Pathak, 2009)
Leadership styles are helpful in keeping the employees motivated and hence, managers implement various styles of leadership in different situations within the organization. It is important that a manager have a clear understanding of the various leadership styles, as it will eventually help them in choosing the best style fit for a certain situation at workplace. It has been observed that any kind of change implemented within the organization leaves its impact on the overall process of the business including the employees and their motivational levels in particular. A period of change is the most challenging task of the manager as he/she has the responsibility of not only implementing the change but also keeping the employees motivated and preparing them to openly accept the organizational change. This is the time when a manager needs to retain employee motivation by adopting a suitable leadership style allowing them to keep giving better performances without been unaffected by the period of change. (Northouse, 2015)
Different leadership styles impact on motivation within period of change
Participative Leadership Style: this leadership style encourages the employees for participating in the organizational process and a participative leader helps the employees in understanding the need and benefits of change in workplace and throughout the period stands with them for keeping their morale high. The key impact of participative leadership is that it keeps the motivational level of employees high by encouraging them in being engaged in the process.
Laissez-faire Leadership Style: by practicing this leadership style the manager or leader delegates the roles and responsibilities to all the employees according to their skills and abilities which eventually cultivates a feeling understanding within the employees allowing them to more in an effective way. During a period of change, the manager role of responsibility and authority delegation amid the employees is helpful in keeping them motivated thereby, making them more responsible in bringing out quality output even in critical conditions. (Northouse, 2015)
Bureaucratic leadership:leaders or managers pursuing this style is very strict and firmly believes in following the rules and policies set by the management and adhere to the line of command. He/she imposes stern and methodical discipline on the employees’ further demanding serious approach at work. This style is committed to structure, rules and policies and is quite impactful within a period of change, as the employees know what to expect and what the management expects from them. (Northouse, 2015)
Autocratic leadership: an autocratic leader usually controls and authorizes the decision-making, team efforts and keeps a close monitor on the employees. Although this style has some negative connotation but is the most relevant leadership style in certain situations in particular within a period of change. At times when there is very little scope of any error, it is helpful in controlling the situation in keeping the employees out of harm’s way. It leaves a negative impact on employee motivation within a period of change as staffs opinions are given less importance
One can describe motivation as a factor stimulating a person desires as either an individual or an employee for keeping him/her engrossed and committed to the job. Keeping the employees motivated for achieving the organizational goals and objectives is the most challenging task of the management. Various motivational theories have been developed which emphasizes on the importance of motivation at work thereby, it is utmost necessary in having adequate information related to the implementation of these theories, as it will further be helpful in establishing an effective employee-manager relations eventually producing a quality output together by attaining the predefined goals. (Latham, 2012)
Within an organizational setting like that of CAPCO enables the managers in developing a better understanding of motivational theories like Maslow’s theory of motivation and Herzberg theory. According to Maslow’s theory of motivation, the employees’ needs are fulfilled in a hierarchical way where once the most basic need is satisfied, the need for the fulfilment of the next need arises and so on.
Hence, it is necessary that CAPCO focus on fulfilling the employees’ needs in order to keep them motivated further allowing them to work more hard in achieving the company’s goals without making a compromise on the quality. Moreover, it will assist in cultivating effective and harmonious employee-management relations within the organization. A healthy workplace relation helps in creating a healthier organizational environment concurrently lessening employee turnover and ensuring smooth business execution. (Latham, 2012)
Herzberg’s two-factor theory of motivation emphasizes on motivators, which are factors an organization’s introduces to directly motivate the employees in working hard. Nonetheless, he also believed that there are certain factors i.e. hygiene factors, which de-motivates the employees in its absence but on the other hand, would also not motivate them in their presence. The motivator factor is mainly concerned with the actual job; take for example, how engrossing the work is and the growth opportunities like responsibility, recognition and promotion it offers while the hygiene factors surround the job instead of the job itself. An employee will show up at work only if he/she is been provided with a reasonable pay and safe and secure working atmosphere however, the fulfillment of these factors will not encourage him/her in working hard. Herzberg firmly believes that an organization like CAPCO needs to adopt an autonomous approach of management for driving the employees’ morale. Moreover, they should also focus on developing the nature and content of the job through methods such as job enlargement, enrichment and empowerment. (Latham, 2012)
A manager is responsible for handling the manpower and making them work in an efficient way and it is entirely dependent on him/her on how to keep the employees motivated. One can see that motivation process is quite convoluted and hence, must be managed with rigor, as an organization’s growth is dependent on the same. Manager is responsible for understanding the employees and accordingly manages them by maintaining a personal touch. It is important that a manager adopt various motivational theories as per the need of the situation for keeping the employees committed to their work. Businesslike and strategic utilization of motivational theory is therefore, very important. Knowledge of motivational theory allows the manager in better understanding an employee’s importance within the organization and treating them more humanly and with respect towards their contributions in the organizational success. Employees’ performance and efficiency is directly related with that of a manager’s efforts in keeping them motivated. Employees who are motivated tend to work with more efforts and are highly committed to their job further leading an overall growth of an organization like CAPCO. It is necessary that managers set achievable targets to the employees for enhancing their working efficiencies and let the work on their own; this will eventually flow in new and innovative ideas. (Rue, Byars, and Ibrahim, 2012)
One can describe group behaviour as human groups’ behaviour right from its creation to its disintegration. Alike other creatures’ human beings too have a tendency of grouping up and getting engaged in executing coordinated activities. A group’s behaviour can be highly variable depending upon the factors mounting pressure on the group. The size and composition of a group can vary widely depending on the nature of the task. A person as an individual has a tendency of being drifted towards other people having similar characteristics like him/her. Moreover, layout of a group emerges in a natural way might be more compatible in comparison to a group that is forcibly formed take for example, an assigned group at work who come together just for completing a project. While managing the groups CAPCO must ensure that its employees prefer working as team rather working as an individual. (Chaneta, 2010)
Work groups are categorised into two specifically formal and informal groups where formal groups are formed by the management as the element of organisational structure and are determined through purpose and roles. These groups have authority and are given financial and physical resources. Informal groups, on the other hand are created on the grounds of close needs, support, interests or growth and are instinctive and natural grouping members who come together to work for a longer period. (Chaneta, 2010)
Teamwork’s success is an indispensible part of CAPCO as it always aims of getting succeeded in the comprehensive markets. For CAPCO to successfully attain its desirable goals, it should be aware of its market position and understand the importance of teamwork within the organization. The biggest advantage of teamwork is that it intensifies CAPCO in operating and functioning to the best of its abilities and has a better understanding of critical issues like factors promoting the success of teamwork along with the elements inhibiting teamwork. Organizing of inter-group competition is the most effective and favoured thing in order to promote teamwork success. Such a competition inculcates effectiveness and cooperation within the group because when groups compete with each other, it is most likely that team members comply with the rules and values upholding a team for reaching effective teamwork. (Wheelan, 2014)
With the emergence of technology and its adoption at work has impacted immensely on the way a task is done and on the working environment’s physical characteristics. Technology has helped the employees in CAPCO in establishing interaction with colleagues, vendors, customers and proposed customers. Technology elevation has raised the bar vending information, response time, information analysis and decision making. Use of technology has fastened information flows in real time amid the teams performing numerous functions and acting on it further allowing the entire team to take part in the advancement of the product/service within the organization thereby, furnishing a true digital collusion. Technology like email, instant messaging video, phone conferencing, e-calendars and webinars allows a diverse group of people who are geographically dislocated, with different schedules work together in an effective way by reducing the time and costs consumed in completing a project. With technology teammates can erase travel time and also schedule conflicts and miscommunications. (Levi, 2016)
In this project the key focus is on understanding the various aspects of organizational behaviour by considering CAPCO as an example. A discussion has been made on organizational structure and culture by highlighting its similarities and the differences. Further, various leadership styles and their effectiveness on CAPCO has been explained along with different type of organizational theories and management approaches. The study of organizational behaviour is essential for having a fundamental view of how an organization acts, behave and perform for its stakeholders and society.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Caroline Martins, E. and Meyer, H.W., 2012. Organizational and behavioral factors that influence knowledge retention. Journal of Knowledge Management, 16(1), pp.77-96.
Chaneta, I. (2010). Groups and Group Behaviour. (Online) Available at http://ir.uz.ac.zw/bitstream/handle/10646/653/group_&_groups_behaviour.pdf;jsessionid=8A813A3981DD7043C821C6E619AD137F?sequence=1 (Accessed on 17/8/2016)
García-Morales, V.J., Jiménez-Barrionuevo, M.M. and Gutiérrez-Gutiérrez, L., 2012. Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of Business Research, 65(7), pp.1040-1050.
Latham, G.P., 2012. Work motivation: History, theory, research, and practice. Sage.
Lefifi, K. (2015). The relationship between Organizational Culture, Structure and Performance. (Online) Available at https://www.linkedin.com/pulse/relationship-between-organizational-culture-structure-kabelo (Accessed on 16/8/2016)
Levi, D., 2016. Group dynamics for teams. Sage Publications.
Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.
Pathak, S. (2009). Organizational Design, development and change. (Online) Available at http://organisationaldesign.blogspot.in/2009/06/describe-different-approaches-to.html (Accessed on 16/8/2016)
Rue, L., Byars, L. and Ibrahim, N., 2012. Management: Skills & Application. McGraw-Hill Higher Education.
Wheelan, S.A., 2014. Creating effective teams: A guide for members and leaders. Sage Publications.
Yukl, G., 2012. Effective leadership behaviour: What we know and what questions need more attention. The Academy of Management Perspectives, 26(4), pp.66-85.