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Unit 3 Different Aspects of Organisation and Behavior Assignment
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.
Ac 1.1 compare and contrast different organisational structures and cultures
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.
- For example, Oticon is operating in more than 20 countries with the networks of the independent distributors and sales office in some countries.
- The global companies are mainly followed this structure in order to flourish the business in the specified market or regions effectively.
- Local managers are mainly recruited in this type of structure who is well aware of the concerned market or region as they belong from that market.
- The customers can get homely feelings by communicating with the sales representatives as they know the local taste and preference effectively.
Functional structure is one of the most common structures where the hierarchy is formed based on the roles and responsibilities.
- This structure can be common in case of the stable business environment
- The weakness of this structure is the level of flexibility where the management finds its difficult due to the high level of bureaucracy
- The communication process is slow as the structure contains different levels.
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.
- The teams are formed for temporary period which is mainly on the tenure of the project.
- Coordination among the teams are strong
- But in this structure the team members only focus on their team responsibilities and neglect other.
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:
- Role culture: Role culture is mainly observed in the large companies where the quality management sets specific roles and responsibilities in order to remove the doubts and confusions. It is mainly rigid as the members used to work as per the given responsibilities and it is irrelevant for the small companies where the employees need to carry different work needed by the time.
- Power Culture: In case of power culture, the power of the authority is mainly concentrated on some people in the organisation. The negative side is the de-motivation among the employees as the promotion or power is being suppressed by those individuals who are having high power. In long run this type of organisation fails to operate as the attrition rate is high. For example, the downfall of Lehman Brothers is the example of power culture.
- Task culture: It is the culture that is mainly formed based on the teams to solve the specific problems or issues (Buchanan and Huczynski, 2010). This culture is present in Oticon as they are operating in more than 20 countries and their products are sold in more than 100 countries. Thus specific teams are formed in order to address the issues faced by the independent distributors of several nations.
- Person culture:In this type culture people used to give priority to themselves than to the organisations. They feel that they are superior to the organisations. In the long run this type of culture negatively creates impact on the business of the organisation.
AC 1.2 Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business
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.
AC 1.3 Discuss the factors which influence individual Behaviour at Work.
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:
- Perception: It is generally a process that influences an individual to interpret the following situation (Baden-Fullern and Morgan, 2010). The individual or the employees in the organisation used to watch or observe several incidents or happenings in the organisation and these incidents used to influence them to interpret as per their observations. For example if the management of Oticon invites all the employees towards any decision then they will be motivated due to the importance that the management has given to them which in turn will increase the productivity in the organisation. The employees will perceive that the management is supportive and consider them as an asset of their resources.
- Abilities: It is the traits that the individual acquire it from the environment and also gifted during the birth. Oticon organises training and development session for the employees to make them more efficient which will definitely increase their competencies. Abilities will be increased as the trainers will demonstrate and share different information regarding the hearing technologies during the training. Apart from that the employees who are competent can give more productive performances as the training will add extra capabilities and skills in them.
- Attitude: Attitude is mainly the expression of the individual towards any object or incidents (Bratton, Sawchuk, Forshaw, Callinan and Corbett, 2010). For example an individual who has high experience in professional career might have an indifference attitude. The employees who have a rich experience in working with Benefits Agency can have an attitude which is experiential that involves the emotion of the individuals.
- Gender: The market studies claimed that both the men and women have equal capabilities in the terms of the performances in the organisation. However the factor absenteeism can give a picture about this difference and it is found that a woman is referred to the care giver for the children. Thus the work allocation in Oticon is sole depend on the manager’s personal values and perception.
- Personality: The personality is another factor that influences the individual towards the performances. An employee of Oticon is extrovert and for that it helps the team to achieve the target. As this personality determines the individual’s openness to communicate with other individuals effectively manages the business objectives.
AC 2.1 Compare the effectiveness of different leadership styles in different organisations.
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.
- Autocratic Leadership: Autocratic leadership style implies that the management of the organisation takes the decision without involving any one in the organisation. The employee’s commitment will be low as they are not allowed to participate in the decision making process. The de-motivation among the employees can result to the negative productivity in the organisation. The management applies this style in order to remove the confusion and misunderstandings among the employees as the management restricts the involvement of the employees (Kitchin, 2010).
- Participative Leadership: Participative leadership is mainly applied in the Nice Car organisation where the sales representatives are given autonomy to share their opinions regarding any issues they face or for collecting the feedbacks from the market regarding the demand of the used cars. This style increases the commitment of the employees as it allows the participation. The motivated employees will give their best performances and hence the productivity will be high.
- Laissez faire Leadership: It is the style of leadership where the employees or the teams are given sole authority to undertake any decision. The employees will be satisfies as they are the sole authority for taking any decisions which will increase their commitment towards the performances. But sometimes it can increase the misunderstandings among the team members as some members can feel that they are ignored when their colleagues have taken any decision.
- Transformational Leadership: This is a leadership which are observed in Oticon where the management has set certain examples which can influence the teams to give their best effort in developing the updated hearing aids (De Vries, Bakker-Pieper and Oostenveld, 2010).. The commitment is high in this style as the employees will be encourages to achieve the success like the manager who has created some positive contribution in the organisation. The vision of the management will only influence the teams to f\give their best performances and hence their productivity will be high.
- Transactional Leadership: These types of leadership style give emphasis on the reward and punishment for the employees. The achievements will give reward but the non achievement will impose penalties. This type of style creates negative impact on the mind of the employees as the punishment will de-motivate them and reduce the level of productivity.
AC 2.2 Explain how organisational theory underpins the practice of management
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).
- The rule of thumb in the workplace should not be there in order to increase the flexibility level in the organisation. The efficiency should be focus and for that changes in the work process or structure can be done.
- It is to be noted for the management that assigning the work to the employees without any proper analysis can hamper the work process. Adequate training, checking the level of motivation, capabilities are needed to be determined before allocating the task.
- The performances of the employees are needed to be monitored continuously in order to share the feedbacks to the employees. Accordingly they can improve their performances.
- The management must ensure proper planning before allocating the work. Proper planning can only ensure the meeting of the objectives of the organisation.
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:
- The division of work by the management can increase the efficiency of the employees due to the specialisation
- The manager should understand both the areas of authority and responsibilities equally.
- There must be a proper discipline in the organisation
- The employees should report one reporting authority which can remove the confusions or misunderstandings.
- The individual interest must be restricted and a general interest should be considered by the management
- Fair remuneration is to be considered for increasing the level of motivation
- The decision making process must be defined and structured in order to remove the misunderstandings
- The employees must be aware of the reporting authority
- The working environment must be clean and properly designed in order to increase the involvement
- Employee’s attrition rate must be reduced which has to be taken care by the management
- Team spirits must be given emphasis in order to achieve the targets of the organisation effectively.
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:
- The employees must be given attention by giving them recognition
- Motivation level needs to be high for the employees
- Special emphasis is to be given on the human relations (Wilson, 2013).
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.
AC 2.3 Evaluate the different approaches to management used by different organisations.
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 employees of the Nice Cars should know company’s culture and philosophy so that they can understand the importance of the work they are doing.
- The development of the employees can ensure success of the organisation. The development will increase the level of competencies for the employees and it can increase the efficiency level of the employees at Nice Cars
- The employees must be invited to share their opinions in the decision making process. However the management of Nice Cars used to follow this approach in order to increase the level of motivation among them.
- The organisation must take care of the benefits of the employees. However the remuneration structure is not competitive for Nice Cars and the management must take care of this area.
- The organisation Nice Car must evaluate the performances of the employees in a team. The contribution is needed to be analysed in order to share feedbacks.
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.
AC 3.1 Discuss the impact that different leadership styles may have on motivation in organisations in period of change
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).
AC 3.2 Compare McGregor & Herzberg theories indicating the one which can be more effective when applied in the case of Benefit Agency
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.
AC 3.3 Evaluate the usefulness of motivation theories to managers.
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.
AC 4.1 Explain the nature of groups and teams and their behaviour within organisations
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.
- Group Size: The size of the group influence the group function and productivity as it involves several roles of that create an impact on the group operation and interaction. If a group has more than 12 members then it is termed as a large group and when the groups contains nearly around seven then it is a small group. The speed, problem solving techniques diverse input depends on the size of the group.
- Social Loafing: There are some members in a group who used to pass away the responsibilities which are creating the conflicts and misunderstandings. It has been very common that there are some members who do not help the group but they are moved by motions (Mataric, 2011). This phenomenon is termed as social loafing which is affecting the group performance in overall.
- Group think: This is a phenomenon when all the members of the groups used to take a joint decision in respect of a scenario. This decision minimises the conflicts and brings harmony in the group.
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.
AC 4.2 Discuss the factors that may promote or inhibit the development of effective teamwork in Zico Computers.
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).:
- Goals: For Zico computers the goal is to give best servicing solution to all the customers in the specified areas. The teams are formed by giving a target of successful calls that they have achieved. The values that Zico Computers used to focus are customer’s satisfaction by giving permanent solution to their systems.
- Roles: The roles are the determining part for every organisation. It is the level of competencies that the team members have in order to accomplish the goal. There are some members who used to give creative ideas in order to have productive results. The team leader is being selected at Zico Computers by the qualification and the experience that the members have. But the negative group dynamics can affect the team roles which are needed to be avoided.
- Procedures: Procedures are the work process that Zico Computers has. The communication procedures are needed to be set up in order to make all the members updated and informed. For that the meetings are conducted in order to allow the involvement of the members in the decision making process. The managers need to specify the procedures clearly for removing the confusions (Baden-Fullern and Morgan, 2010).
- Relationships: The relationships between the team members are the important factors for the team effectiveness. Listening to all the members and allowing all the members to share their feedbacks or opinions can maintain strong relationships. The members supporting each other can bring positive relationships in a team work.
- Leadership: The leadership style can also influence the team work. If the team leader of Zico Computers applies the participative style then all the members will be motivated and share their opinions in the decision making process. This will increase the productivity of the teams and will assist the organisation to achieve the business goals effectively.
AC 4.3 Evaluate the impact of technology on team functioning within a given organisation
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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