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Unit 3 Case Study of CAPCO in Organizational Behaviour Assignment
Diploma in Business
Unit Number and Title
Unit 3 Case Study of CAPCO in Organizational Behaviour
One can see that the surroundings of a business keep on changing constantly and because of this fact, a manager’s role has progressively become more significant. All of a sudden, managers have also found a relative increase in the importance of their role in the business environment with a rise in their workload and responsibilities. For helping the managers in learning about the complications involved in a new workforce, there has been an increase in the importance of studying the concept of organizational behaviour. The study of organizational behaviour revolves around studying the how employees as an individual and in groups behave within the workplace. Moreover, the study is helpful in studying the approach of different types of employees in various situations.
The prime aim of studying organizational behaviour is helping the managers in multiple ways as it has a key role to play in an organization’s various aspects. Organizational behaviour observes the behaviour of an employee within an organization and the relation amid organization and organization. Study of organizational behaviour at times can be helpful in clarifying the factors affecting the management of a manager. Understanding of organizational behaviour further plays an important role in the managerial job.
1.1 Compare and contrast CAPCO’s structure and culture with another organization of your choice. Show the differences and similarities in these two organizations
It is a well-known fact that an organization’s structure and culture are directly linked with the performance of an organization. The theory of organizational culture infers that an organization can gain positive outcomes only if both the managers and employees remain committed towards the company’s principles, customs and morals. The theory also states that there is a strong relation amid the corporate culture and performance or profits of an organization. One can observe that if an organization and its employees share a common culture, the environment at work further makes it easier in sharing goals that are common and simultaneously pursuing measures that are relevant in order to attain the goals. Moreover, a shared culture positively influences the motivational levels of the employees at workplace concurrently encouraging them in identifying with the company they work for and develop the feeling of belongingness and responsibility for it. (Jones, 2010)
Any particular type of structure cannot be recognized as a great form of organizational structure and is entirely dependent on an organization’s goals, its business environment and the nature of its business. One can see that if not all, in most of the organizations there exist two types of structures namely formal structure describing the employees’ ranks, authority channels, departments and elements layout and the second is informal structure describing how employees establish interaction with each other at workplace.
CAPCO’s Flat Structure
Apple’s Traditional structure
The flat organizational structure at CAPCO has just one management layer which means that command line flows from top to bottom further widening the span of control.
CAPCO’s Flat Structure has helped the management in establishing clear and effective communication channels and keeping the employees engaged. Moreover, the structure has maintained a direct connection between an employee and the manager. (Jones, 2010)
The kind of organizational structure Apple follows has a major contribution in the company’s innovative success. Apple’s Traditional structure has added certain key elements from the other types of structure and is somewhat responsible to ensure support to the leadership of Steve Jobs. Apple has made some small changes now under the leadership of Tim Cook for suiting the demands of market and industry. (Jones, 2010)
The organizational structure followed in Apple has been effective in providing support to the global performance of the business ensuring its No. 1 position in the trade.
The kind of organizational culture practiced in CAPCO has assisted in promoting employee empowerment by concurrently developing its beliefs and core values further allowing the employees to constantly search for excellence in customer services and awe for diversification, thereby, making CAPCO more accommodative towards change. Moreover, the key focus of CAPCO’s culture is to enhance the stakeholders’ experience. In contrast, Apple’s organizational culture promotes innovation where the employees are effectively developed and integrated with the culture. The organizational culture of Apple is fine-tuned gradually for meeting the forces of its business environment. (Jones, 2010)
1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of the business
One can see that CAPCO’s flat organizational structure is parallel in nature with that of the nature of the modern strategies and hence, the relation amid CAPCO’s structure and nature is quite strong. CAPCO has been successful in maintaining a healthy employee relation with the help of its flat organizational structure further leaving a decisive impact on the employees’ performances. At times when there is an increase in the demand of financial products and services, this employee relation works as a lubricant in managing the same. By properly setting up the structure and culture, CAPCO efficiently deals with numerous critical issues for example, new competitors in the market. It has been observed that CAPCO’s culture lauds individuality, integrity and openness in workplace and employees have the freedom of realizing their dreams further making them creative and efficient in defining varied inventive ideas for escalating the overall company profit. CAPCO is expanding its business activities together and the influence of which can be seen on its comprehensive performance further making it understandable that the company is benefited with the structure and culture it follows. (Zheng, Yang and McLean, 2010)
1.3 Discuss the factors which influence individual behaviour in CAPCO
Discussed below are the factors which influence individual behaviour in CAPCO
- Personal Factors: a person’s nature, say for example, personality, perception, attitude and beliefs are the determinants of their behaviour at workplace. The employees of CAPCO possess a personality that is very customer friendly further reflecting their individual view towards growth and development. The employees are also highly committed and have immense respect for diversity and the company’s core values reflecting their positive perception and workplace behaviour. (Yuan and Woodman, 2010)
- Environmental factors: factors like economic, socio-cultural, political and legal leave an influence of the employee behaviour at work. The responsiveness of CAPCO’s employees can be determined by the economic factors like scope of career growth, pay structure, rewards and training and learning opportunities. Socio-cultural factors like relations with peers, supervisors and customers also influence employee behaviour. Political instability in an indirect way influence employee behaviour.
- Organizational factors: factors like physical environment, CAPCO’s structure and layout, leadership effectiveness and rewards scheme influence employees’ behaviour. The alignment of CAPCO’s structure with the culture manages a proper communication, job delegation and reporting system leading to employee empowerment and expanded responsiveness. (Yuan and Woodman, 2010)
2.1 Compare the effectiveness of the different leaderships at CAPCO and any other organization of your choice
Different leadership styles and their effectiveness on both CAPCO and Apple
- Autocratic: commonly known as authoritarian, this style describes the division between the manager and employees. The manager solely takes decisions with either very little or zero employee involvement as he/she has confidence of self-capabilities and is comfortable of the responsibility of decision-making. This style can be very effective in CAPCO in situations where quick decisions are needed to be made and cultivating a professional relation. This style will not be effective for Apple as it does not encourages creativity at work and empowering employees with autonomous opportunities. (Norman, Avolio and Luthans, 2010)
- Participative: commonly known as democratic leadership it stresses that management must guide the employees and various departments and openly accept their inputs. Although the leader encourages feedback, ideas and employee opinions, the right of making ultimate decisions relies with him/her. The employees are more content because of their inputs into decision-making. This style is effective in CAPCO as employees are encouraged to participate in the process of decision-making. Although preference and importance to employee suggestions is also been given at Apple, the key business-oriented decisions are taken by the management.
- Delegative: commonly known as laissez-faire, such leaders barely offer guidance and makes any decisions, leaving it on the employees. He/she delegate decision-making to the most reliable employees. Job descriptions and lines of authority are not clear in this style leading to a loss of motivation in employees which is accompanied with confusion. Even though Apple believe in empowering the employees, this style is not effective for the company. CAPCO used to pursue this leadership style; however, it found that only few employees grow in such leadership not everyone. (Norman, Avolio and Luthans, 2010)
- Bureaucratic: this style is very effective and efficient for CAPCO for going by the rulebook while managing decisions of the technicalities of its business and will be helpful in preventing the conflict of ideas amidst the manager and his/her subordinates. However, this style will not be effective at Apple where creativity and innovation is promoted and bureaucratic does not encourages the same and can discourage the employees who are highly imaginative further leading to poor performance and lowering the job satisfaction.
2.2 Explain how organizational theories have had influence on the practice of management
It has been observed that for an entrepreneur, the organizational structure of the company is the key question apart from being a primary factor in the business success. Organizational theories are helpful in addressing the issues involved in the business by concurrently showing the exact organizational problems and how a particular structure can efficiently deal with them. Organizational theories address how an organization works and attains its business goals, how the business environment influences the operations and how it gets through the external challenges. Moreover, organizational theories frame both concepts and phenomena specifying an organization’s working by fixating on the systematic purposes for achieving performance and the employee behaviour standards. (Zietsma and Lawrence, 2010)
- Scientific Management: this theory emphasizes on the formal studying of the management which includes planning, organizing, leading and controlling other than forcing on practice of management in CAPCO. One can see that scientific management further enriches the management scope and the study of the organization simultaneously leaving an enormous impact on the improvement of CAPCO’s business policies along with the management’s philosophies. Pursuing the scientific management, CAPCO easily focuses on various measures like qualitative tools helpful in effective planning and regulating of problems at work further leading in establishing the effectiveness of process because of increase in the demand of financial services and change in work conditions. (Zietsma and Lawrence, 2010)
- Human Relation Theory: the theory stated by Professor Elton Mayo stresses on the importance of having employees in an organization for productivity over machines. The theory further believes that an employee always wishes of being a part of a supportive team working for development and growth and thereby, an employee gets proper attention and is encouraged to participate, he/she recognize the significance of their work and get more motivated in being more productive that eventually results into a better work quality. The basics which evident during the study of human relations are individual attention and recognition aligning with the human relations theory, theorists supporting the motivational theory and studies supporting the importance of human relations in business. The results of implementing the theory at CAPCO’s practice of management further prove that relationships is the most important factor which influences employees productivity. (Zietsma and Lawrence, 2010)
2.3 Evaluate different approaches to management used by CAPCO and your chosen organization
One can see that CAPCO has made use of the scientific management approach in order to develop the science behind every element of an individual employee’s work further replacing the earlier thumb rule method and scientifically selecting, training, teaching and developing the employees. The management cordially complies with the employees for ensuring that the task given is done according to the principles of science that has been developed. Scientific management almost divides the work and responsibilities in equal proportions where the management willingly takes over the work it can do better in comparison to the employees. At Apple, the maximum use of this theory is done while its business activities are been carried and developed. Apple follows this approach in order to accomplish tasks that are based on this approach. Increase in the productivity level of Apple by optimization of the structure of a job is the relative outcome. Administrative approach believes that the practice of management is rather different from other organizational functions and can be easily applied on all organizational situations of CAPCO. Bureaucratic approach describes the long chain of command in an organization where the employees are usually demoralized because of its approach. Both CAPCO and Apple are employee oriented and makes the best use of human relation approach in order to establish healthy relations with employees, customers and different stakeholders. (Anderson and Anderson, 2010)
3.1 Discuss impact that different leadership styles may have on motivation within period of change
Leadership is something that often at times goes ahead of management. The involvement of management revolves around in getting things done with the help of available resources and pursuing the proper patterns and rules of the company. On the other hand, leadership helps the employees to efficiently drive through any kind of period of changes and new initiatives. A range of approaches to lead change within an organization is possible to identify with the help of using of authority by the leader and to what extent the subordinates were given freedom. (Zhang and Bartol, 2010)
In a period of change, the management of an organization say for example CAPCO must ensure that organization is always effective and well organized for achieving the goals. During these times, it is important that the managers adopt a good leadership approach for motivating the employees. The manager plays a key part in the organization’s culture which at times affects the performances of the company. In an Autocratic leadership the leader always keeps on telling the employees what to do and how to do the same, supervising them at the same time yet such a leader are also been termed as dictator leaders. There are times when an organization sometimes makes use of the Autocratic approach when a task done is not accepted externally. Autocratic leadership shows an organization a clear way and guiding the managers at the same time for overlooking the employees’ inputs. (Zhang and Bartol, 2010)
The style of a Democratic leader is said to be different because of its open approach adopted in leading the employees as the process of decision making in general is shared. Also the team’s views and thoughts further contribute to the vision of the manager. The managers of an organization like that of CAPCO when use the approach of democratic leadership, employees tends to work more hard. Also the manager helps the employees in being clear about their responsibilities and how to finish any task. Under the approach of Laissez Faire leadership the manager or the team leader gives authority and power to the employees in determining the goals and make decisions and solve problem on their own eventually allowing the employees improving their teamwork skills and concurrently enhance loyalty towards the manager and the company. (Zhang and Bartol, 2010)
3.2 Compare application of two motivational within organizational setting
Many analysts look the behaviours of motivation rising from a psychological need of desire which in general directs an individual or an employee towards aims and objectives that are relevant and will surely satisfy the desire. According to Maslow’s hierarchy of needs, a manager cannot keep the employees motivated with just giving positive feedbacks in case if the basic physiological needs of employees also known as the esteem factor is not been fulfilled by the organization. Herzberg’s two factor theory on the other hand emphasizes in the context of an organization that are generally two factors namely motivators and hygiene determining the motivational level of employees. Hygiene factors do not lead to a positive motivation and meanwhile lack of hygiene in the organisation could lead to de-motivation of employees in the workplace along with that of the customers. However, a good working environment within the organization can further lead the employees in achieving good and desirable performances. (Lam and Lambermont-Ford, 2010)
Maslow stresses that the satisfaction of any unsatisfied need motivates an employee whereas Herzberg disagrees and further argues by stating that the fulfilment of only intrinsic needs such as job content need, growth, achievements, recognition etc. motivates the employees. According to Maslow, employees’ needs are arranged in the hierarchy and the higher needs can be fulfilled once the lower needs are reasonably fulfilled. Herzberg however argues that there is no such hierarchy of needs and emphasizes that all the needs are viable every time and further suggested that the factors of hygiene and motivation are the only two basic employees needs. (Lam and Lambermont-Ford, 2010)
3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace
A manager’s job is to get things done through employees in the workplace and for doing this it is important that he/she is able to keep the employees always motivated. Most managers often under-utilize motivation which is an important tool in today's workplace for inspiring the employees to work both as an individual and in groups for achieving the desirable outcomes in a most efficient and effective way. The motivating forces of one employee varies from the other thereby, it is the managers responsibility in identifying these forces and address them in a smart way. (Parker, Bindl and Strauss, 2010)
There are cases where a manager lacks the knowledge of successfully implementing motivational programs for enhance employees’ productivity levels and establishing a positive working atmosphere. A manager’s goal is to enhance production and individual efficiencies for reaching the maximum business results. Employee motivation is dependent on job satisfaction, achievement, recognition and professional success and providing employees with a positive motivational work atmosphere is a rather challenging managerial activity. In the context of CAPCO, the theories of motivation are applied in order to encourage the employees. Although the theories are uncertain in predicting employee behaviour but are quite influential in redesigning of the job and management styles and employees performances. Supervising and controlling the employees performance is a critical issue for CAPCO and keeping the employees motivated is necessary for the company’s overall growth. It is a proven fact that motivated employees always work for the betterment of the organization and are least resistant towards any kind of organizational change. (Parker, Bindl and Strauss, 2010)
4.1 Explain the nature of groups and group behaviour within CAPCO
In CAPCO different types of group are there namely formal group and the informal group for improving its operations. For remaining competitive and improving its performances CAPCO has turned towards opting for formal teams in the workplace. A formal team is usually formed by the management and is a part of the organization structure are further armed with both financial and physical resources and are given the appropriate amount of authority for carrying out their roles. Formal teams’ key role is to achieve the CAPCO’s aims and business objectives that are defined in the company’s mission and policy statement. A formal group is further subdivided into command and task group where command group leads the organization and is responsible for taking business decision . At CAPCO a task group is formed for making specific contributions and doing specified tasks, say for example, pension review board. Formal groups are stable and remain for a longer period and their membership is specified through organisational process. (Griffin and Moorhead, 2011)
Informal group is basically formed by the employees because of their shared common interest and is not formed under the management’s directive. This kind of a group actually focuses on the issues countering the organizational patterns or might be formed for improving the workplace functions. Informal groups are unstable in nature and usually refer to the interactions and human relationship that emerge as a result of social and psychological forces operating at CAPCO. An Informal group is crop up on the grounds of friendship or some or the other common interest that might or might not be linked with work. (Griffin and Moorhead, 2011)
4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO
Team work is important for making improvement within the organization and achieving of success. CAPCO cannot always achieve success in the absence of teamwork. With the help of teamwork both the organization and its employees become familiar with each other and learn the techniques of working together. (Buljac-Samardzic, Dekker-van Doorn, Wijngaarden and Wijk, 2010)
Factors promoting teamwork in CAPCO
- Communication: open communication is helpful in promoting teamwork at workplace and concurrently cultivates effective team building. It is important to keep the employees aware of their job roles, targets and timelines. Effective communication done through emails, one-to-one meetings, group talks etc. supports the pervasiveness of organizational protocols. In emergence of a challenge or conflict, effective communications will help the teams to get engaged and overcome the situation rather than averting the issues. (Buljac-Samardzic, Dekker-van Doorn, Wijngaarden and Wijk, 2010)
- Diversity: teamwork can be promoted through diversity of cultures, talents and personalities that is helpful in promoting creativity and innovation and concurrently raise awareness respect for differences. It has been observed that teams lacking diversity often find it difficult solving certain problems.
- Leadership: effective leadership supports teamwork by influencing and motivating the members of a team. Inspirational leaders further back collaboration by establishing coordination in team members efforts and simultaneously encouraging them in giving their opinions during team meetings. (Buljac-Samardzic, Dekker-van Doorn, Wijngaarden and Wijk, 2010)
4.3 Evaluate the impact of technology on team functioning within CAPCO
An organization can replace workplace functions by making use of technology but this has not been possible so far because of the shortage of socialization in its culture. The primary focus of employees working together as a team is on acquiring recognition and rewards as it can provide both intrinsic and extrinsic motivation to them eventually leading to better performances. At CAPCO the management ensures that employees have the basic control over technology as with the change in times, technology has emerged as the strongest factors influencing employees’ behavior at work. By using technology a quick improvement in the operational process has been seen in CAPCO. Introduction of technology has further helped the manager in cutting down the number of staff needed for performing a certain task. Technologies and advance use of internet has made the work much easier for employees. With rise in market competition organizations like CAPCO are working on teams and technology advances further allowing the employees in bringing a change in they communicate and perform. The key benefit using technology on team functioning is that it has allowed the team members in completing a task on time irrespective of their different schedules and locations. Through technologies like video conferences, emails, phone calls etc. CAPCO’s manger efficiently facilitates communications within team members and concurrently reduces time and expense related with teamwork. (Rousseau and Aubé, 2010)
At the end we can conclude that in order to gain long-term success and sustainability CAPCO must incorporate and align its structure with the culture for promoting a working environment that is competent enough to response and accommodate in meeting the business challenges. Alignment of the structure with culture further influences employees’ behaviour at work allowing them to better understand their job roles empowering them to outperform and produce outstanding outcomes.
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