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Unit 3 Factors of Organisation and Behavior Assignment
Factors of organisation and behavior assignment report is a study of behaviour of individual and groups in organisation. The importance of organisational structure and culture in organisation behaviour is explained in the study.All the activities and their effectiveness influencethe growth of the company. The perspective of the employees in the organisation is influenced by the organisational culture and also makes impact on the level of performance of employees. Different organisations have different organisational structure and culture which influences the objectives and working behaviour of the company. Every company chooses structure by analysing all the factors which can influence the decision like- size of the organisation, type of business, and features and attributes of activities of the organisation.A detailed study of organisation behaviour and its role in the growth of the company is done in this report.Importance of leadership and motivation in the organisation’s growth is explained in the study.Different styles and techniques of leadership and motivation and their impact on the employee’s behaviour can be understood by this study.Every organisation formulates teams to execute a particular task and this improves the speed and effectiveness of the employee’s performance.CAPCO is leading company in the financial sector providing financial management services to the customers all around the world.And having a structure where there are 2000 employees giving their services in the company and making an effective organisational culture and behaviour.A detailed study of the company is done in the report.
1.1 Compare and contrast CAPCO’s structure and culture with another organisation of your choice. Show the differences and similarities in these two organisations.
In the era where no boundary for trade and it is to expand the business overseas markets it is important to make an effective and systematic sequence of activities and roles and responsibilities and communication.Organisational structure helps to solve the complexity of the organisations and their activities. There is integrated relationship between organisational structure and culture. Both are influenced with each other and make impact on each other. Organisational structure and culture enables effective and economic business activities by managing and monitoring activities. Coordination and accountability is maintained in the organisation which helps to make innovative and flexible environment in the organisation (Stare, A. 2011).
CAPCO’s organisational structure is non-hierarchal, flat and team driven. Tall hierarchal structure is not effective for innovative and entrepreneurial culture like CAPCO having.The company is having its operation all over the world so it becomes necessary to maintain discipline in the company’s activities, and for this there exist a few levels of hierarchy in the company. The culture of the companysupports decentralised structure of authorities and responsibilities. The company is using matrix structure for some projects in which employees with different skills from different departments are taken together to complete that effectively and achieve the most appropriate results. Once the project has achieved its results then they are reported back to their departments. The culture of the company enables and supports the organisational structure of the company by providing opportunities to employee to innovate and develop their performance and personalities. Team work is enhanced in the organisational culture.Flexibility is provided by the culture which helps to manage the risk and maintain certainty in the company (Gultekin, K. 2014).
Aventas group is also a leading organisation providing its services all over the globe. The company is expanded in various sectors and employing more than 8000 employees in different companies. The organisational structure of the company is tall hierarchal and top to bottom. The company focuses on the profitability of the company.The differences between these two organisational structure and culture are that the CAPCOhas a flat and non-hierarchalorganisational structure which focuses on overall development of company. Whereasin the Aventas group of companies there exist tall hierarchal structure and culture is to maximise the profit of the company.CAPCOhas adopted decentralised structure of decision making, and Aventas group has a centralised structure of decision making and communication. Innovative and integrated approach towards execution of activities and performance in CAPCO but in case of Aventas group there is no such approaches are adopted in the company.Both the companies have different objectives and different structure and culture,which make them different from each other (Islam & Hasan et al. 2015).
1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of the business.
The organisational structure and culture are two integrated approaches which resolvethe complexity of the organisational activities.The activities of the company are managed and set into a direction to achieve goals and objectives of the company.Organisational culture and structure enables a systematic framework or path to all the activities of the company and coordinate them. For the smooth running of the company it is essential that there is a systematic approach which defines why and how the company will work. The impact of organisational structure and culture also influences the behaviour of individual and group in the organisation. Following are the impacts made by the relationship between CAPCO’s structure and culture (Saunila & Ukko et al. 2014).
- Increased performance: The organisational structure and culture is systematic and removes complexities which makes the performance of the company more effective. The overall development of the company leads to grow the company in the right direction.
- Organisational behaviour: In CAPCO the organisational structure and culture is effective and efficient which makes positive behaviour of individual and groups in the organisation.
- Employee development and motivation: In the organisational structure and culture of the CAPCOthere are adopted policies which focused on the overall development of the employees, by providing them freedom to innovate and implement, openness in the environment and decentralisation of authorities and responsibilities. Decision making power in team work helps to motivate the employees and increases their performance and involvement in the company (Saunila & Ukko et al. 2014).
- Collective approach: The culture of the organisation is positive and supports team work. The teams help to effective execution of projects by utilising the skills of the employees. The utilisation of specialisation quality of human resources is taken for the overall development of the company.This approach focuses on the collective benefits in the organisation instead of individual benefits.
- Effective communication: CAPCO is having an effective organisational structure and culture which makes a framework for the execution of the activities. This enhances the level and effectiveness of communication in the company.
- Code of conduct: The organisational structure and culture of CAPCOis effective and systematic which makes uniformity and stability in the company and reduces uncertainty. It helps to create a code of conduct and make it clear to all the employee relationship the manner in which the activities must be executed.This is an effective tool for reducing the unethical activities in the company (Storey & Hughes et al. 2013).
1.3 Discuss the factors which influence individual behaviour in CAPCO or in any organisation of your choice.
Organisational behaviour includes the behaviour of individual and group. Individual behaviour in the organisation defines the level of effectiveness in the activities of the company. There are various factors which influence the individual behaviour. In CAPCOthe company focuses on developing the positive individual behaviour by empowering them. Company’s structure and culture provides freedom to the employees to increase innovations and involvement of the employees in the company’s growth. The factors which influence the individual behaviour are as follows (Montani & Battistelli et al. 2014).
- Stability in employment: Job security plays an important role in the individual behaviour.The fear of losing job affects the performance of the employees by affecting the individual behaviour. This is the most important factor which influences individual behaviour.CAPCO is providing stability in employment in the company.
- Positive environment: The individual behaviour can be influenced by environment of the company and can influence the environment also. Individual behaviour includes the way and manner of interaction of employees or individuals in organisation. Level of positivity in the environment of company can increase the performance of the company.CAPCO is having positive environment and level of involvement of employees in the company.
- Compensation and incentives: Compensation can be defined as the monetary value of the efforts and work done by individual. Rates of pay influences positively or negatively individual behaviour.Incentives and bonus may be in monetary term or non-monetaryterm which motivates the employees and increases their performance and capability by influencing individual behaviour.CAPCO has an effective and systematic tool for compensation and incentive distribution (Montani & Battistelli et al. 2014).
- Leadership system or styles: Leader is a person who leads all the activities of the company in the direction of achieving goals and objectives of the company. A leader is the key person to motivate and lead all the employees in a positive or negative manner.There are different styles of leadership and must be choose after analysing all the attributes, advantages and disadvantages of the leadership styles. In CAPCOthere is effective leadershipin the team work which enables distribution of task and responsibilities and roles.This motivates the employees and increases the performance of the employees.
2.1 Compare the effectiveness of the different leaderships at CAPCO and any other organisation of your choice.
In every organisation there employed number of employees which are engaged in the activities. The leadership helps to manage those employees and provide them a positive atmosphere to work. Leadership is a tool to increase the involvement of employees by motivating them. There are various types of leadership styles having different attributes, advantages and disadvantages. Leadership style must be chosen by a company according to the objectives and organisational structure and culture. The following are the leadership styles and some of them are used by the company CAPCO (Hamstra & Sassenberg et al. 2011).
- Autocratic style of leadership: This is a style of leadership which is based on a traditional approach of leadership. There is absence of employee involvement in the company’s decision making process. The effects of this leadership are negative on the performance of the company. Employees are depended on the leader for all the decisions related to the any task. This style increases the employee turnover due to lack of employee engagement in the company.
- Participative style of leadership: This leadership style ensures the participation of the employees in the company’s decision making process.The importance of the employee’s views is defined in this leadership style.The motivation is enhanced of the employees by ensuring them that they are important for the company.CAPCO has a flat non-hierarchal structure which is using the participative style of leadership to enhance the creativity and capacity of the employees to increase their performance (Hamstra & Sassenberg et al. 2011).
- Decentralised style of leadership: In this leadership style the leadership is decentralised and diversified in different levels and departments by the decentralisation of the authorities and responsibilities in the organisation. The employees under this leadership style are highly motivated and creative and innovative by nature.CAPCO is using this leadership style effectively in the organisation by providing freedom in the environment. Innovative and creative behaviour is developed by giving authorities and opportunities to the employees. An overall development can be achieved by the company by using this leadership style.
- Transformational leadership style: In this style of leadership the leader influences the attributes of the employees by being ideal for them. The leader focuses on the overall development of the employees by providing them opportunities to develop their personalities and performance. In this leadership style the employees are influenced by the leader as well as influence the leader (M. Taylor & Colvin et al. 2014).
- Flexible leadership style: This style of leadership provides flexibility to choose leadership tools and techniques according to the need of situation. There is no rigid pattern or policies for leadership in the company. This flexibility helps to adjust in the dynamic environment and cope up with any kind of challenges.CAPCO is using this leadership style and gives flexibility to change the leadership patterns in different projects and tasks.
2.2 Explain how organizational theories (e.g. scientific management and human relations theory) have had influence on the practice of management.
Organisational theories are the parameter for achieving a substantial growth and systematic execution of tasks and activities in the company.These theories influence the effectiveness of thepractices of management by setting a method or pattern to be followed in the management of practices in the company. Organisational theories are divided as follows (Bruce & Stoodley et al. 2014).
- Classical organisational theories: Classical theories are contemporary and traditional approaches towards the management of practices.These are the theories which are using in the organisations from past several years. There are some classical organisational theories as follows.
- Taylor’s principle of scientific management: In this organisational theory focus is on the scientific management of practices instead of rule of thumb. The process of decision making is considers the scientific analysis of options and situation and then select the most suitable for the company. Recruitment and selection process is done in scientific manner to improve the workforce in effective manner. Trainings and development sessions for employees are scientifically done to ultimately improve the performance of the company. Coordination is developed between management and employees by reducing the conflicts (Bruce & Stoodley et al. 2014).
- Weber’s Bureaucratic approach: Weber’s theory is a study of power and authority. There is sub-division of tasks and labour and high level of specialisation is there.There exists a tall structure of hierarchy of authorities in the company. There is stability and certainty in the company which can be predictable. A set structure of rules and regulations leads to uniformity in the decisions in the organisation. Democratic environment is developed in the company to manage the practices.
- Fayol's principles of management: Administrative theory: This is the most appropriate and well used theory of management of practices. In this theory division of work is done to take the benefit of specialisation in the practices of the company.There are 14 principles included in this theory of management of practices (Marley, I.R. 2012).
- Division of work
- Authority and responsibility
- Unity of command
- Unity of direction
- Subordination of individual interest
- Degree of centralisation
- Scalar chain
- Stability of tenure of personnel
- Esprit de corps
- Modern organisational theory: It is a systematic approach towards the management of practices in organisation.This theory is multidimensional and multidisciplinary which leads to a dynamic environment of interaction in the organisation. There are some modern organisational theories as follows.
- The systems approach: The system approach is focused on the effective interaction between the management and employees in a company. It is a combinationof formal and informal structure of activities in the organisation. The decisions are taken systematically after analysing all the available options. An effective communication channel is developed in the organisation for systematic interaction, stability and growth of the organisation (Marley, I.R. 2012).
- Socio- technical approach: This approach focuses on the transformation or conversion of the organisations process of management of practices. In this approach human relations are developed by effective interactions. This is done by analysing psychological, physical and social factors of human resources in the organisation.
- Contingency approach: This is a situational approach of management of practices in organisation. This is extension ofthesystem approach. In this approach the concentration is on the requirement of the situation in the organisation.The organisation must consider factors which affect the decisions and a contingency structure must be planned (Marley, I.R. 2012).
2.3 Evaluate the different approaches to management used by CAPCO and your chosen organisation.
There are various approaches to management with their different attributes and applicability in smooth running of organisation.The growth in the performance of company depends on the effective management approaches and techniques used in the organisation. It is very important to select the most appropriate management approach by considering the goals and objectives, vision and mission, and structure and culture of the company.Effective management leads to maximise the profit and overall development of the company.CAPCO is a leading company providing financial services all around the world and having a non-hierarchal flat structure which is providing freedom and positivity in theenvironment of organisation.The culture of the company allowsthe employees to innovate and decision making in a team work or project. The management approach in the company is very effective and efficient in the company (Kuosa, T. 2011).
CAPCO is using different approaches for management in the organisation in which mixture of traditional and modern approaches are taken. Passive management approach and capacity building approach and low level control approach are the management approaches used in organisation. We can understand these approaches as follows.
- Scientific approach- CAPCO is working all around the world and providing its services in financial matters. All the activities and decision making is executed scientifically by analysing different alternatives available and selecting the most appropriate. Employees are provided scientific trainings and development programs and the recruitment and selection process also must be scientifically.
- Administrative theory- This theory has 14 principles, some of them are using in CAPCO”s management process. Diversification of task by using specialisation, chain of command, span of control, decentralisation in the structure of the company, remuneration or compensation, and discipline are the principles of this theory which are adopted in the company for management.
- Neoclassical approach to management- CAPCO is using neoclassical approach effectively in management process of the company. In this approach of management focus is on management of individual and work teams. Participative management of organisation is supported by this approach (Kuosa, T. 2011).
- Systems approach- In this approach the focus is on the individual management and controls the individual and group behaviour in the organisation. CAPCO is adopting this approach for effective management of the communication network, maintaining balance and appropriate decision making process. This approach leads to maintain stability, interaction and growth of the company.
- Contingency approach- CAPCO is using this approach to maintain stability and reducing uncertainty in the company.This approach provides flexibility in the adoption of different management approaches to cope up with the changing environment.
3.1 Discuss the impact that different leadership styles may have on motivation within period of change.
Leadership can be termed as a tool of motivation in organisation. Activities of employees must be lead in the direction of the company’s objectives and goals. Leader is a person who is responsible for improving and monitoring the performance of the company.Effective leadership increases the productivity of the company. In this changing and dynamic environment it is very important to lead the employees in the right direction and cope up with the changes. There are different leadership styles which makes impact on the overall performance of the company by motivating the employees.These leadership styles have different impacts on the motivation of employees while the environment changes. We can evaluate these impacts by studying about different leadership styles within a period of change (Zareen & Mujtaba et al. 2015).
- Autocratic leadership style: This is a rigid and traditional style of leadership in which there is no participation of the employees in the process of decision making.This approach of leadership is used in the tall hierarchal structure organisations where there is used top to bottom approach of role and responsibilities and orders. In the changing environment autocratic leadership style is not useful and ineffective as in the present scenario focuses on the employee empowerment in the company.
- Democratic leadership style: Democratic leadership style is the approach towards the involvement of employees in the growth of the company. Decision making process in the company is done by considering the perceptions and views of the employees in the company.This approach is increases the performance and engagement of the employees in the company by motivating them effectively.in the period of change this leadership styles makes positive impact on the motivation of employees. Perception of the employees is considered and opportunities are provided to them which ultimately influence the level of capability of the employees and help to adopt and cope up in the changing environment (Zareen & Mujtaba et al. 2015).
- Transformational leadership style: This leadership style is the most popular leadership style in changing world and focuses on the ultimate objective of the company. This is a charismatic leadership style in which the leader focuses on the empowerment of the employees by setting high level of personal integration to achieve the employee retention and loyalty. But this approach is different from charismatic approach as in it focuses on the organisational growth by motivating them.
- Visionary leadership style: This is a proactive approach towards changes in the environment. In this leadership style the focus is on the partnershipapproach between the vision and understanding of the employees towards these visions. This is an effective approach to motivate employees in the period of change (Deschamps & Privé et al. 2016).
- Transactional leadership style: This leadership style is a modern approach in the changing environment which focuses on the chain of commands and activities and assumes that paying rewards and giving punishments can effectively motivate employee to increase their level of performance.
3.2 Compare the application of two motivational theories (e.g. Maslow’s & Herzberg theories) within organizational setting.
There are different motivational theories are with different attributes and applicability in organisations. Motivational theories are selected by the organisations after analysing all the factors influencing the effectiveness of the company.Maslow’s hierarchy of needs, Herzberg’s two factor theory, Alderfer’s ERG theory, Expectancy theory, and equity theory are different theories of motivation can be used by the companies to motivate the employees.We will compare two motivational theories according to their features and merits and demerits (Patrick & Williams et al. 2012).
Maslow’s theory defines the importance and role of human needs and motivation. The way it works in motivating the employees of the organisation is very important. There is a hierarchy of human needs which is in the prioritised manner. It is a simple and experience based theory. The applicability of this theory is very effective and easy as in it can be adopted by organisation of any size and business. The scope of the theory is wide and easily understandable. Once the need is satisfied then it stops working as a motivational factor. This theory is effective where there is monetary and non- monetary both motivation works.
Herzberg’s theory of motivation is motivational theory which includes some motivational factors divided in categories.These factors define and influence the level of motivation in the organisation. This theory and its factors are based on the primary data. Developed countries and their huge capital companies use this theory to motivate their employees. The scope of the theory is narrow as in there is limited reach of the theory and confusion between the motivator factors and hygiene factors (Szalma, J.L. 2014).
3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace.
Managers are the key persons involved in the running of the business effectively and efficiently. They work hard to increase the productivity and performance of the company. Managers should learn the importance of the applying motivational theories in the workplace. The following points can help them to understand the role of motivational theory in the growth of the company (Heinrichs & Lovat et al. 2013).
- Clear objectives and vision: Motivational theories helpto make it clearto all the employees their flow of activities which will be leaded in the direction to achieving them.This helps to increase in the engagement of the employees in the company.
- Effective performance: The performance of the employees defines the level of the profitability and growth of the company. Motivational theories have different tools and methods to motivate the employees and increase their capability. This ultimately increases the overall performance of the company.
- Communication: Motivational theories reduce gaps between the employees and employer or manager in the company. Communication gap creates inefficiency in the activities of the company.The hierarchal level and structure becomes smooth and it becomes easy to get the commands and giving feedback by the employees (Heinrichs & Lovat et al. 2013).
- Decreased employee turnover: The level of employee turnover can be reduced by implementing motivational theories in the company.Motivational theories gives opportunities and participation in the decision making processto the employees to increase their level of engagement in the company by motivating them.This helps to increases the employee retention and their loyalty towards the company.
4.1 Explain the nature of groups and group behaviour within CAPCO or your chosen organisation.
Groups are formed in organisations to complete a defined task or tasks in a prescribed manner by taking two or more than two members from departments of the company according to the requirement of the task. The group or team have a pre-defined set of objectives to be achieved in the prescribed time period.The members became dependent on each other for their skills and responsibilities in the team or group. CAPCO is having different groups or teams performing some defined tasks and activities for the speedy and effective results. There are two types of groups which can be formed in any organisation according to the requirement of the situation. These are formal and informal groups (Burke & Books24x7 et al. 2012).
- Formal group: CAPCO is having some formal groups which are formed by the company itself to complete some specified tasks and achieve any objectives speedy and effectively. A systematic procedure is followed to create a formal group in which objectives are defined, employees are taken from different departments and a procedure to be followed is prepared. There are two types of formal groups. Permanent or command group and task group are two types of formal group. Command group are permanent and task groups are formed for a specific task and do not exist after the completion. CAPCO is having many task groups which are giving chance to innovate and make decisions and achieve the goals effectively to the employees.
- Informal group: These groups are formed by the employees not by the organisation for satisfying their need to get socialised and interact with each other. These groups develop the positive organisational behaviour and environment and increase the motivational level of the employees. There are two types of informal groups are there inCAPCO, friendship groups and interest groups. These groups are created by considering the will of the employees. The individual and group behaviour of the friendship group have similar attributes and there exist pure friendship. These groups make positive or negative effect on the organisational culture (Stevens & Books24x7 et al. 2016).
4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO or your chosen organisation.
CAPCO is empowering employees by providing them innovative and positive environment and working in a team to get opportunity to make effective decision making in the organisation. There are some factors which making impact on the development of the teamwork in the organisation.
- Workforce diversity: CAPCO is having with different attributes, features, perceptions and ideas in their teams. Working together makes the diversity in the manpower and benefit of specialisation can be taken by the whole team. Innovative and creative environment can be developed in the company.
- Communication: CAPCO is non-hierarchal structure and there are no levels for the communication channel. It becomes easy to communicate within the teams and reduces any miscommunication within the team. It helps to clear with the roles and responsibilities of the team members towards the team (Marquardt, M.J. 2011).
- Trust: The trust factor influences the effectiveness of team work in the organisation.When the team members rely on each other and loyal for their roles and responsibilities then the results are effective of the team work.
- Leadership: Effective leadership is essential for the team work. Allocation of task must be appropriate and role and responsibilities must be cleared by the team leader. Participation of the employees must be taken while making any decision in the team (Marquardt, M.J. 2011).
4.3 Evaluate the impact of technology on team functioning within CAPCO or your chosen organisation.
CAPCO is multinational company having its functioning in providing financial services all around the world. The impact of the technological aspect is very important for the effectively executing the activities of the company. Technology has made the globalisation possible in the world by reducing the distance between the company and the customers and removing boundaries of the countries. Level of effective technology will result in the most profitable results. In the team functioning the impact of the technology is crucial as in the activities of the team becomes smooth and effective. Different teams have different impacts of technology but the most important impacts are as follows (Jarle Gressgård, L. 2011).
- Effective communication- technology makes it possible to communicate with team member in any corner of the globe. Team members can communicate by mobiles, e-mails, video calling and messaging.
- Effective action plan- Team member can make an effective action plan by analysing different factors with the most effective technologies. This helps to provide certainty in the team work and lead them in the right direction.
- Quality- Adopting the best technologies helps to achieve quality results in the team. Improved quality is a tool to measure the team performance.
- Record- Technology helps to record all the activities and all the information related to the team work. In case of any conflicts and complexity these records can be utilised. Effective allocation in the team is done by team leader by using effective technologies (Jarle Gressgård, L. 2011).
In the present business scenario the individual and organisational behaviour is very important. It influenced by the organisational structure andculture. The individual behaviour is influenced by the personal, economic, social, and environmental factors in an organisation. The individual and group behaviour can be increased positively by motivating the employees. There are various leadership styles making positive impact on the motivation in the period of change which can be defined as the modern approaches towards leadership.Different motivational theories and their impact on the growth of the company is analysed in the report.We have understood that the positive relationship between leadership and motivation creates positivity, loyalty and stability in the organisation.Working in team is a way to take benefit of diversified workforce and effective and innovative results.CAPCO is having an effective relationship between organisational structure and culture. The company is having modern approaches towards effective leadership which is making positive impact on motivation level of employees.Company is working in teams for making an innovative and positive environment to motivate the employees and increase in the performance of the company. We can conclude that the company is focusing on the maximising the profits by satisfying and empowering the employees.
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