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Unit 3 Organisational Behaviour Assignment
Business enterprises comprises of a vast workforce having different cultural background. Now, in order to work effectively, people need to interact within groups. In this context, Organizational Behaviour (OB) is a study that deals with this interaction of the workforce. This unit 3 organisational behaviour assignment is extremely important for improving the overall business operation. Proper communication among the employees helps the business organisations to grow. This assignment discusses the significance of interpersonal skills in the workplaces. Various approaches of management and leadership with motivational theories also have been discussed throughout this assignment. Moreover, the effectiveness of teamwork in developing organisational behaviour is highlighted in the assignment. In addition to this, the challenges faced in application of OB are also elaborated in the assignment.
2. Understand different approaches to management and leadership
2.1 Compare the effectiveness of different leadership styles in various organizations.
Leadership style have significant role in every organization no matter if it is small or a large company. These methods can affect every single person in an organization from senior to junior. The main aim of these leadership styles is to influence performance and the organization as it whole. Some of the styles are mentioned below:
- Autocratic Leadership Style and its effect: Autocratic leadership is also called as authoritarian leadership. Autocratic style defines the clear division between workers and leaders. In this leadership style, leaders take the decision, and the engagement of employees remain nil("Leadership Style and Staff Retention in Organisations", 2016). With this leadership, leaders are very much comfortable in making a decision, and also they are very much confident with their decision. Though many organizations use this leadership style, research shows that this style brings less creativity in the class of leadership than other contemporary styles. Mainly this type of style follows when there is a need for critical decision making. Therefore, employees may feel neglected by the decision making("Leadership Style and Staff Retention in Organisations", 2016).
- Participative leadership style and its effect: Democratic leadership style is also called as a participative leadership style. This is one of the best options for the leaders to take as their leadership style in their leadership career. This is totally the opposite characteristic of autocratic leadership style. The leaders provide the best guidance to the management and the team who are working in the organization (MALLOY & PENPRASE, 2010). Leaders hold the final decision but take the decision from the employees and the managers of the organization. According to research and practical experience participative leadership style has more workforce and content as this style deals with many decisions and ideas.
- Delegative leadership style and its effect: This is the last effective leadership style for the leaders. Comparing the other leadership styles, this style hardly makes any decision by itself. In this leadership style, leaders seldom their guidance and delegate the leadership to the most trusted member of the team. While it makes some advantages to the organization, it gives many disadvantages to it also. The line of authority and job description become confusing and blurred. The motivation becomes lost, and the confusion among the team members shows critically(MALLOY & PENPRASE, 2010).
2.2 Explain how organizational theory underpins the practice of management.
According to (Francescato&Aber, (2015), organizations are," social arrangements for the controlled performance of collective goals." There are many aspects of using organizational and management theories in the organizations. Many people try to adhere to maintain the methods to become more effective and organized in the working culture. However, they have to leave many of their personal principles to achieve the organizational theory. One of the best examples of this achieving organizational theory is in the financial sector where a manager or an employee wants to meet the organizational goals by having a set structure to obey(Francescato&Aber, 2015). If a person makes him bound to organizational theory, he might get neglected by other organizational activities in the work place. Depending on that management theory can give proper treatment to a person in an organization. For example, if a manager has to meet the target he should maintain the work flow. In this process, he might get stuck by the organization and its principles. In this way, he might get out of the personal principles and carry the work according to the management theories and principles. Apart from that, it is tough to maintain the organizational and management theory as a psychologically. For this, the psychological contrast between employees and employer should be maintained. It needs to define the fairness of relationship between the company and the employees(Francescato&Aber, 2015).
2.3 Evaluate the different approaches to management used by different organizationa
There are three different types of approaches to management which are; classical, neo- conventional and modern approach. The details of these methods are mentioned bellow:
- Classical approach: The Classical approach is known as the classical theories or the classical concept of a company. An organization is a complete box of aims objectives, communication, activities, role, relationship, and power when employees are working for someone in a group. The same concept is also based on the ‘classical' mold with the same assumption, but developed independently ("Knowledge Management Approaches for Customer Care Effectiveness", 2016). The bureaucracy concept is first invented by Max Weber, which presented a descriptive, scholarly, and detached point of view.
- Neo- classical approach: This approach is also referred to the human relation and thoughts which reflect a modification and the betterment of the classical theories. Which the classical approach is focused on the structure of the work and the physical aspects of work, the neo-classical approach focuses on the psychological, and social aspects of the workers and individuals and their relationship in the organization. However the neo-classical approach is not so much young than classical approach, from a recent research of business and leadership analysis it is proved that the neo-classical approach has its existence in the ancient time while they have gained the currency in the World War I. Thus, the neo- classical approach has given birth to the movement of human relation and provided the energy to the democracy in the organizational power, participative management and structure ("Knowledge Management Approaches for Customer Care Effectiveness", 2016). The neo-classical approach does not replace the concept of the classical approach. The emerging structure of social, political, economic, and technical environment of the organization are providing the highlights of shifting management approaches.
- Modern approach: In the year of 1930, the modern approach of management was introduced. Chester I. Bernard provided an explanation of this modern approach of management and organization in the year of 1983. According to the researcher, it is noticed that the organization, suppliers, individuals, customers are a part of the organisation environment. After the explanation, ten years later Weiner developed a unique concept of the system controlled by information feedback, described that the system of working environment is adopted by the measurement and correction through feedback. According to him, an organization is nothing but a system which always contains major five parts. The significant parts are input, process, output, environment, and feedback("Knowledge Management Approaches for Customer Care Effectiveness", 2016).
LO3 Understand ways of using motivational theories in organisations
3.1 Discuss the impact that different leadership styles may have on motivation in organisationsin periods of change.
A leader is a person who is followed by people because of the personality and attitude of the leader which influences their behavior and motivates them to follow them, not just the hierarchy or fear which compels them to do follow. The organization also needs its employees to perform better through inspiration and in the due process develop a company culture where everybody contributes towards a common goal. Here leadership styles play a major role in periods of change. Motivation in an organization is a process in which the behavior of the employee is influenced by managers, through their authority to offer or withhold the individual’s needs and goals (BPP Learning Media,2010). There are different styles of leadership which impacts the behavior of the employees. These are:
- Autocratic Leadership: In this kind of leadership, managers decide the role and function of the employees without the opinion or suggestion of the employees. They develop a certain framework for a particular work and everyone is expected to follow the steps in framework. This kind of leadership was active throughout the era of industrial revolution where employees were considered as a labor force not as human resource. The decision regarding every operation is taken by higher management who had very limited knowledge of technical how to do. So it can eventually cause communication gap between employee and employer when some drastic changes are required and result in failure of the decision.
- Democratic Leadership: As the name suggest, here opinion and suggestion of every one is taken but the final decision is made by the higher management. This kind of action gives positive reinforcement in motivation of the employees when they have their opinion asked.
- Laissez-Faire leadership: In this type of leadership, employees are given full freedom to set their own goals, decision making and resolve issues on their own. Managers just observe that the employees are working well on their own(Mullins, 2005).
3.2 Compare the application of different motivational theories within the work place.
The key elements of motivation are intensity, direction and persistence. Based on these elements various motivation theory have been proposed. These theories and their applications are as follows:
- Maslow’s hierarchy of needs theory of motivation: This theory is based on the fact that there are different types of need of a being at different level of hierarchy within a work place. Initially there basic need like hunger, clothes, house which changes to safety and then to social needs which ultimately ends in self-actualization. So the need to get on the next level motivates a person to perform.
- Theory X & Theory Y: McGregor proposed this theory based on positive and negative traits of human behavior. Theory X proposes that a employees does not like to work so he/she must be compelled to work by threatening or other means. Theory Y says that people like to work as they like to rest or play. These theories can be applied based on observation of the behavior of an employee by the manager.
- Herzberg hygiene theory: This theory suggests that there are two basic needs of an individual such as hygiene factors environmental factors and motivational factors. The environmental factors may bring in dissatisfaction with the job. Removing the dissatisfaction from the jobs does not make it satisfying one. It is the intrinsic factors which motivates employees and bring satisfaction.
- Theory of Needs: McClelland proposed this theory based on three needs: power, affiliation and achievement. High achieving employees stretches their ability when they see there is 50:50 probability of achieving the target. The need of affiliation and power drives motivation in high achievers. So theory of needs can be seen as prime motivator for high aspiration employees.
- Self-determination Theory: This theory advocates that an employee get motivated when they feel they have control over their actions. If a previously enjoyed task is feel like an obligation than that can demotivate an employee. For instance, if an employee is good at sales, can be motivated by giving incentives or perks on sales. But the same person can be demotivated if certain amount of sale is fixed as an obligation. So pursuing goal should be consistent with employee interest and core values.
3.3 Evaluate the usefulness of a motivation theory for managers
Motivationis an attribute of human behavior which can inspire people to put in best efforts to achieve the desired goal. It encourages putting in high levels of attempt towards satisfaction of individual needs. Managers motivate their employees in hope of satisfying these desires and compelling them to perform in a desired method. Motivation by managers can act as a reinforcement of confidence which can ignore the inner state of the individual and concentrate solely on the actions taken by the individual for the purpose of common benefit. It is also quite evident that different theory is applicable in different scenarios. Thus approach or process of motivation changes according to the requirement. Some organisation favours autocratic type of leadership while others advocate for democratic type leadership. But the most important task of a leader or a manager is to motivate others for their best performances. Managers can chose numerous ways of motivating others through challenge, encouragement, through commissions on better performance, asking feedback, through confidence reinforcement through training and skill enhancement. The manager’s task is to create a work environment of healthy rivalry which can motivate high achievers to set higher standards of performance. The manger has to act like a friend when dealing with a sub ordinate and at same time has to maintain the decorum of the work place. Mangers have to realize that motivation is not a character traitwhichsome body have and some do not have. It is the result of interaction of the individual and the situation.
LO4 Understand mechanisms for developing effective teamwork in organisations
4.1 Explaining the nature of groups and group behaviour within CAPCO:
Groups are an important part of an organisation. According to Moreland et al. (2013), groups are of two types-formal and informal. Formal groups are usually formed by organisational structure whereas an informal group is not determined by the organisational structure nor are structured formally. Hoch and Kozlowski (2014) remarked that the main reason behind joining a group is to gain success towards a common goal. However, according to Liu and Maitlis (2014), there is no specified reason for joining the group though from the point of view of social identify theory, people join groups as they are emotionally attached to a group and the success or failure of the group impacts on their self-esteem. Thus, one of the main characteristics of the nature of a group is that it helps in creating a social identity. The main reason for choosing a social identity can be uncertainty reduction or distinctiveness. However, according to Barsade and Gibson (2012), similarity and status co are the two main characteristics that comprise of a social identity which individuals found out while working as a team. It has also a major impact on team behaviour. In Capco, both formal and informal teams are present. The organisation follows a decentralised organisational structure and therefore, the employees are given the freedom to form informal team outside the workplace to discuss work related problems. On the other hand, there are formal groups within the organisation where everyone has own responsibility likewise the responsibility that members in a football team play. Hu and Liden (2013) remarked groups as people working in a team from different areas either formally or informally. Whether it is a formal or informal group, a team is developed in five stages namely forming, storming, norming, performing and adjournment stage as suggested in the Tuckman’s team development theory. For permanent teams, performing is the last stage whereas for temporary committees adjournment is the last stage of team development. As far as the team behaviour in Capco is concerned, the teams in this financial organisation are formed based on the first four stages as the team is permanent. The members of the team from diverse areas work together to solve workplace related problems. Whenever a new project comes all the team members whether they are formally or informally formed come together to discuss the problems and their solution.
4.2 Discussing factors that may promote or inhibit the development of effective teamwork within CAPCO:
Capco is a good example where effective communication and diversity rules as the root of teamwork. According to de Jonget al. (2014), without diversity, good teamwork cannot achieve its highest feet. A team member might be a new joiner though the existing employees having experienced in the field can help in learning the workplace skills. Similarly, if there are people from diverse cultural groups in a team, good leadership skills, and managerial approach helps in achieving effective teamwork through diversity. As said, leadership role or the leaders are the pioneers in building an effective team. A leader if unable to communicate the objectives or the goals of the organisation or the roles, they are assigned cannot help in making an effective team. Methot and LePine (2016) remarked that even though there is a good leader who is good at forwarding the team members towards organisational objectives or goals, there might be conflicts among team members working as a team in a diversified working culture. Therefore, the application should have the same priority as that of leadership and diversity. Araújoet al. (2015) pointed out that if communication process is smooth and clear, during the team building stages; every member of a team can know each other properly which is helpful in effective teamwork in times of need. However, the lack of appropriate communication between the employees or between the management and employees might hinder effective teamwork. The main reason as found out by McShane and Von Glinow (2015), is that the loss of focus from the actual goal that needs to be achieved. Further, lack of communication also signifies less managerial involvement that might also be a hindering factor for effective teamwork within an organisational context like as in organisation of Capco. Even though proper communication and leadership approaches are found in Capco, inability to focus on the above-mentioned factors might lead to non-performance of different teams within the organisation.
4.3 Evaluate the impact of technology on team functioning within CAPCO:
ICT or Information and Communication Technology have brought revolution in teamwork in the organisation. Belbin has identified 8 roles of team members. Earlier, it looks impossible for all the team members to perform the roles effectively. However, the advent of technology has made it possible for even a single person to play all the roles at once. Maruping and Magni (2015) remarked communication as the most important factor for effective teamwork. Earlier, it was impossible to maintain effective communication without being at the same place. However, the IC technologies like email and instant messaging apps have made it possible to maintain effective communication even within a virtual environment. Bertolottiet al. (2015) found the mobile technology as the most effective factor that contributes to team functioning. The development of mobile technology, especially the discovery of smart phones has made it possible to maintain effective communication as well as to improve planning procedures. Smartphones have apps including the calendar, spreadsheets and other native apps that help in organizing and planning activities. Team members can share with each other to be on the same track. Further, as opined by Zhang et al. (2015), mobile technology has also the power to change the way things are done within an organisation. A leader can make orders from miles away from office whereas the team members can use the mobile technology to follow the orders properly.
Cvikoet al. (2015) remarked that the internet has made all the mobile technologies and ICT technologies to work well. With the help of 3G, 4G data cards with the help of personal digital assistance devices, Laptops and Smartphone’s, communication, planning procedures, dealing with issues and collaborating has become easy. Thus, it can be said that technology has a bigger impact on team functioning in each and every organisation whether small or large, enterprise or multinational. Capco as an international organisation can also use this technology for improving their team functioning to the high extent.
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