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Diploma in Business
Unit Number and Title
Unit 3 Different Aspects of Organisation and Behavior
In this Unit 3 Different Aspects of Organisation and Behavior the emphasis is given to the organisation and behaviour. Organisation is the collection of the people who used to share a common goal and purpose. Every organisation has their business objectives and it is the group of people or teams who used to give their equal contribution for achieving the objectives. The behaviour of the organisation is depend on the structure and the culture that the management of the organisation has design. Organisation structure brings coordination and the culture is the practices that are followed by the organisation in order to achieve the business objectives. Different aspects of organisation and behavior report will show case different aspects of the motivation, behaviour of the individual, organisational culture based on the productivity of the organisation.
Organisation is the collection of the people who used to share a common goal and purpose. Every organisation has their business objectives and it is the group of people or teams who used to give their equal contribution for achieving the objectives. Organisation structure involves the way that the task are allocated and every members of the organisation used to work in a coordinated way based on the supervision that is defined by the structure of the organisation (Buchanan and Huczynski, 2010). Organisation structure establishes a sound working environment by defining the communication process where the members are aware about their reporting authority in the organisation.
The similarities of all the structure is the communication process. Each structure has a defined communication process where the members used to communicate in the way that is designed. The objective is to bring sound coordination among the teams. But the differences are very much wide which are as follows:
The organisation structure that is relevant for Oticon is the geographical structure where the geographical units are formed based on the concerned geographic locations or market.
Functional structure is one of the most common structures where the hierarchy is formed based on the roles and responsibilities.
Matrix structure: can be mainly observed in the IT companies where the projects are given focus. For each projects a specialised teams are formed in the same department.
Organisation culture: is the process or the system followed by the organisation based on the particular values or beliefs (Bratton, Sawchuk, Forshaw, Callinan and Corbett, 2010). These values influence the members of the organisation about their way of working, acting in the organisation. It sets a discipline in the organisation which enhances the sound coordination and relationship among the members. The four cultures that are mainly observed are as follows:
Organisation structure and organisation culture is interlinked with each other. In the business organisation a structure is being formed to determine the process of the communication and to ensure sound coordination among the teams whereas organisation culture is the way that the organisation moves by following certain values and beliefs (Tsai and Wu, 2010).
For example if the organisation follows a structure that is strictly formal by setting a centralised decision making power at the top then the organisation culture will imply a low level of freedom as well as autonomy among the employees at the lower level. Again if the organisation has a decentralised decision making system then the organisation culture will support the autonomy of the employees who can share their views regarding any topic. Automatically the motivation level will high and it will maximise the level of the productivity. The way that the organisation used to allocate the power determines the behaviour of the employees. Thus a structure of the organisation gives a clear picture about the responsibilities and the tasks along with the communication process that the employees needs to perform in the organisation. The decisions are result from the work culture.
The organisation structure of Oticon is mainly geographic in nature where the decision making power is given to the independent distributors and sales offices in the different countries. The decentralised model of structure at Oticon will affect the level of performances as the units can share their opinions or decisions regarding any notification given by the head office of Denmark. The productivity will be high as the employees can share their thoughts which will increase their morale as well as motivation level.
The organisation culture of Oticon can easily be determined from the structure they used to follow. The task culture will help the organisation to reduce the level of issues in the performances as the teams are formed in order to undertake several projects in different countries. The decentralised structure allows the employees to share their opinions and this will help the management to get an idea about the current situation of the organisation. The employees are valuable asset of the organisation and the autonomy will enhance the performance level.
Individual behaviour is the way that the employees or the individuals used to react based on different situations in the organisation. The external and the internal stimuli are also held responsible for influencing the individual behaviour.
The factors that influence the individual behaviour at the work are as follows:
Leader is a person who exercises high degree of influence as well as control over others. Leadership is the ability of the person who can lead the team with high influencing and convincing power. The guidance that influences the individual to perform in a positive way reflects the positive impact of the leadership. There are different styles that a leader applies which are needed to be identified and analysed in order to determine the effectiveness.
There are different organisational theories which focus on the several dimensions of the management in the organisation. The theories can be linked with the practices of the management that are as follows:
Scientific management: Frederick Taylor is the developer of the scientific management which claims that optimisation as well as simplification in the job can maximise the productivity level. The developing manager and the employees must be coordinated with each other to make the work process smooth and sound. The four principles that are involved in the scientific management are as follows (Miles and Snow, 2011).
Administrative Theory: This is the theory developed by Henri Fayol which gives prime importance to the 14 principles of management and 6 functions of management (Miles and Snow, 2011). The six functions that are identified in this theory are forecasting, planning, organising, controlling, commanding and coordinating. The 14 principles which can underpin the practice of management are as follows:
Human Relations Theory: This is the theory which has been developed by Elton Mayo in his Hawthorne studies which focus on the employees or people for increasing the productivity. The employees must be given priority in the workplace in order to boost their confidence and morale as a result the productivity will be increased. The features that this theory focuses are:
Nice Cars is the company which used to sale the used cars. The management of the company gives focus on the human relations theory where the sales representatives are given autonomy to share their opinions regarding any issues or decision making process of the company. Sales representatives know the market demand very well and for that reason they are given priority. The productivity level of the organisation is high and the customers are also sharing their positive reviews after purchasing the cars due to the efficiency of the sales representatives. Thus this theory has been selected by Nice Cars in order to make the cars saleable in the market.
It was considered that the organisations which are Japan based are most efficient in the terms of productivity and the employee’s performances. The significant process of the Japanese companies has created a challenge for the companies in America and Europe. The professor William Ouchi has claimed that the organisations operating in the market of Europe and America can learn the practices followed by the Japanese companies and for that the Theory Z was developed which is a blend of Eastern and Western practices of the management. The organisation Nice Car can follow this theory in order to increase the business turnover as well as the level of productivity (Weiner, 2010).
The other Western approaches to the management are Theory X and Theory Y. Theory X claims that these are the employees who do not work and they need supervision in order to control their performances. Theory Y claims that the employees are motivated to give their best performances in the organisation. They apply their creative ideas in order to give their performances.
Thus the Theory Z considers the approaches of Theory X and Theory Y which focuses both on the employment and job security for the long term. Theory Z is more practical in its approaches at it clearly highlighted the solutions to get a better result. But Theory X and Theory Y only highlight the positive and negative employee’s behaviour in the organisation. No solutions are being developed in this theory.
Organisational change is one of the inevitable parts of the business which influences the management to accept the change. The business environment is dynamic and for that changes are necessary to increase the level of efficiency of the management. But the management have to face the resistance from the employees for accepting the change. In that case leadership styles can be effective to reduce the resistance and to convince the people to accept the change.
The Benefit Agency is the executive body of Department of Social Security UK was set up in order to look after the social security schemes or services are functioning properly or not. But later it was merged with Employment Services in the year 2001. This merger is the change that the organisation has accepted and it must create influence to the employees working in the organisation.
It is the motivation that can convince the employees to accept the change. But if the organisation does not give importance to the employees then there is a high chance of conflicts and misunderstandings in the organisation which can affect the productivity level.
The leadership style like Participative leadership can be the positive approach to increase the motivation among the employees. This style will allow the participation and hence the employees of Benefit Agency can share their opinions for the change that has been decided which can boost the confidence level of the employees as they will feel that the organisation has give them importance while taking any decisions. But the Autocratic leadership style can invite conflict as the management will not involve the employees to share their opinions regarding the change. This can be the negative side which affect the motivation level of the employees (Wood, Zeffane, Fromholtz, Wiesner and Creed, 2010).
Mc Gregor theory gives emphasis on two dimensions which are Theory X and theory Y. The employees who are fall under the category of Theory X are considered to be the de-motivated who dislike their work (Kitchin, 2010). The employees are generally avoids the responsibilities and hence the management must control their performances. The employees who are giving low performances are needed to be identified and supervised for improving their performances. In case of Theory Y the employee are self-motivated and enjoys their work which tends to give more productive results in the organisations. The management of Benefit Agency need not have to control or direct their performances but they must be involved in the decision making process which can increase their motivation level.
Herzberg Theory also gives emphasis on two dimensions which are hygiene factors and motivation factors. Hygiene factors include the salaries, job security, working conditions of Benefits Agency. Apart from that the motivational factors includes the status, recognition, promotion, growth opportunities provided by Benefits Agency. When the hygiene factors of Benefits Agency are well placed then the satisfaction level among the employees will be high. Other than that if motivational factor is followed then the employees will be committed towards their performances and also they will be highly motivated which in turn the level of productivity will rise (Crowther and Green, 2014).
The similarities that lie between both the theories are the identification of motivational factors which can improve the performances of the employees of Benefits Agency. The difference is the approach of the two theories. Herzberg theory identifies the reasons for satisfaction and motivation whereas Gregor theory has only identify the two sets of the employees in the organisation.
Herzberg theory is the effective theory than Mc Gregor due to the different areas that has been highlighted in this theory. Both the factors like satisfaction and motivation has given emphasis. But in Gregor theory only two sets of employees have been identified along with the measure like controlling which is very limited as there are many reasons behind the de-motivation.
The motivation theories give emphasis on the motivational factors that drives the productivity of the organisation. It is the manager of the organisation who needs to manage the employees in order to give productive performances. Thus there is a need to understand the relevance of the motivational theories in the practice of the management. The employees of the Benefits Agency have an expectation in their professional career and it is the management of the organisation who must ensure the development opportunities for the employees in order to increase the motivation as well as employees morale. The merger that the Benefits Agency has undertaken is due to the extension of the services of Benefits Agencies but the employees will not be aware of such situation and for that they are needed to be convinced about the decision that the top management has taken. In this situation of the organisational change the employees will resist the change and for that the management needs to understand the theories of motivation in order to incorporate those factors for increasing the motivation. For example Herzberg theory will give two aspects which are hygiene factor and motivation factor (Weiner, 2010).. To increase the motivation the management of Benefits Agency needs to incorporate the business strategy like promotion, recognition; reward for the productive employees and to satisfy them the management needs to ensure sound remuneration structure, job security to convince the employees to accept the change. Thus there is a need to understand the motivational theories during the critical situations.
Groups are the collection of the members who used to interact and work jointly to achieve the common purpose (Mataric, 2011).. In Zico computers the groups are the formal groups that are designed by the organisation based on the targets.
From this perspective it is clear that all the teams are groups but all groups are not teams. A team is called when all the members used to give equal contribution to achieve the desired target but the phenomenon like social loafing can hamper the performances of the groups. For example Zico computers are having 4 groups who used to take care of the operation and marketing functions. But at the end of the year it has been found that the group of the operation is not giving productive result but the other group in the same department is giving maximum effort. In this scenario it is the negative group dynamics that affects the group performances. Thus all teams are the groups but all groups are not the team.
A team consist of the individuals who used to share a common purpose by contributing equally. The effectiveness of the team is simply the capacity where the members accomplish the goals effectively.
Team Effectiveness model can highlights the factors that can promote or inhibit the development of the effectiveness of the teamwork by focusing on five areas which are as follows (Martin, 2011).:
Technology is the key area which can be adopted in order to develop the organisation’s effectiveness. The organisations are adopting the technology in order to bring efficiency in the work process. Technology saves time and cost which can assist the organisation to achieve the profitability. The virtual teams are mainly the remote teams who used to communicate electronically which saves the time for the clients. The clients can interact at any place to get the solutions from the virtual teams. These teams are well coordinated and support the clients by fulfilling their requirements at the specific time provided by the clients (Edmuds, 2016)..
But there are also the challenges like the poor connectivity and network congestions which can affect the communication process. Apart from that in case of small organisations the affordability is the main question where the technology set up requires huge investments. But overall the technology brings effectiveness in the work process and help to interact with the members at any place they like which saves time as well as cost.
To conclude this essay has given the glimpses on the different aspects of the organisation and behaviour. The report has highlighted the relationship between the organisation structure and culture by relating with the organisation Oticon. The influencing factors that affect the individuals towards the performances are also shown along with that the effectiveness of the different leadership styles is also included. The organisational theory and its importance towards the management are highlighted along with the different motivational theories which are related with the performances of the employees. The importance of the groups and the application of the technology are also being highlighted in this essay.
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