Unit 3 Organisations and Behaviour Assignment - CAPCO Ltd

Unit 3 Organisations and Behaviour Assignment - CAPCO Ltd

Introduction

The main focus of this report is to understand the different structures and cultures of the organisation and how the workforce behaves in this different environment. The behaviour of individuals is influenced from many factors at the workplace which will be discussed in the report. The unit 3 organisations and behaviour assignment CAPCO Ltd will develop an understanding on the teamwork and the roles shared by the members of the team who work to achieve a common goal. Also, how the team develops in the stages will be discussed. The individual and group behaviour is easy to understand in the organisations. Different theories are given by academics which will be discussed that how they shape the behaviour of the individuals in CAPCO, a service organisation in  financial resources  sector. The report will be based on the given case study of CAPCO.

                                                      Organisation Behaviour

Task 1

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.

By Organisation structure, we mean the arrangement of people and operations in the company which is done to provide the goods and services to people in the best possible way. The structures of the company are based on its size, complexity of work, purpose or goal of the organisation (Brooks, 2008). Every company has different structures, which are been explained in below points:

• Centralization: In this type of structure, the decisions are made in the head office and then are directed towards other branches of the company. The top managers take the decisions and the lower level managers have to follow the same.
• Decentralization: Here, the power to take decisions is allocated to different branches which give power to the managers at different sites to take decisions. It helps in reducing the time taken for decision making and also satisfies the employees as they get a sense of responsibility (Cosh, et. al., 2012).

In the image given below, organisation A has decentralisation structure where the powers are scattered and Organisation B has centralisation structure where the power is concentrated to the highest level only and the decisions are to be followed by lower level of employees.

1. Bureaucratic structure: It is highly formalized structure where there are very strict rules and regulations and the tasks are divided into various functional departments.
2. Functional structure: This is the structure where different departments are their roles are divided like finance, HR, sales, inventory, etc and coordination is to be maintained between all the departments.
3. Product based structure: In some organisation, the structure is made based on the products and it is mostly followed by the large companies (Brooks, 2008).
4. Matrix structure: Matrix structure is a combination of a product based structure and function based structure which has the strengths of both the structures.
5. Virtual organisation: In this type of structure, the primary activities are outsourced and the managers maintain their  customer relationship  with the external parties.

                         Virtual organisation

Culture of organisation: Every organisation has different culture according to which it takes decisions and carries out its functions. It distinguishes one company from other (Cosh, et. al., 2012). According to Charles Handy, there are four types of organisation culture, which are:

CAPCO and comparison with Goldman Sachs: CAPCO follows functional structure where the departments are made on the basis of various functions and each department has to coordinate with another to perform effectively. It has person culture where every individual is been given importance in the company and are motivated and trained for their personal and professional development (capco.com, 2016).

Whereas Goldman Sachs, which is a leading firm in the field of investment, banking, management, etc. at a global level, follows decentralised structure in which the powers are distributed to different divisions and functions at lower level. Goldman Sachs follows Role culture where different roles are given to different individuals. They believe in teamwork and to create the healthy  business environment so that their people can work effectively to deliver best results (Goldmansachs.com, 2016).

1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of its operations.

CAPCO follows functional structure and person culture. The structures and cultures followed in the organisation have a very strong impact on its performance as they are interconnected with each other. If the company’s structure is such that it holds the power in some hands, the culture will be power culture where the lower levels will lack freedom and where the structure is decentralised, the culture will be more independent (Singh, 2011).

         Structure and Culture of CAPCO impact its performance

The culture and structure of CAPCO will determine that how its employees will behave as the roles and responsibilities are decided according to the company’s structure and culture. The structure is been used by the management to direct their employees and to delegate the authorities and culture of the organisation will determine the motivation level of the employees and their powers in the organisation (Goswami & Goswami, 2010).

1.3 Discuss the factors which influence individual behaviour in CAPCO or in any organisation of your choice.

There are some major factors which affect the individual behaviour in CAPCO and Goldman Sachs UK:

1. Demographic Factors: These factors are also referred as Personal factors which are background, family, sex, age, income, occupation, marital status, etc. These factors affect the behaviour of an individual. For e.g. Young employee will be ready to take opportunities and challenges while the employees over 50 years will be more relaxed and satisfied. The employees who have good educational and family background will be more suitable for the jobs and will be able to perform good while less educated employee will not be able to perform good in most of the cases.
2. Personality: The personality of every individual is different and this shows how a person thinks and behaves. A person will behave in the organisations as per their personality traits like Adaptability, openness, consistency and more which makes every person different from the other.
3. Cultural factors: These factors are derived from the culture to which a person belongs and it is different at every place. Culture motivates an individual to behave in a particular way which also influences the behaviour of the employee in the organisation.
4. Structure and culture of the company: This is also the major factor as the structure and culture determines how much power and responsibilities an employee have in the organisation and how he can react in the same.

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Task 2

2.1 Compare the effectiveness of the different leaderships at CAPCO and any other organisation of your choice.

Leadership is the term which refers to the ability which is used to influence people so that they work for the attainment of the common goals and objectives.  There are different types of leadership styles which are discussed below:

• Autocratic leadership style: In this style of leadership, there is a clear difference between the leaders and the workers. The employees are not involved while making the decisions for the company. This style lacks creativity and also the motivation in employees but fast and rapid decisions are made (Osuchukwu, 2016).
• Participative or Democratic leadership style: In this style, the employees offer directions and guidance to the employees and take their suggestions for taking any decisions for the company. The final decisions are made by leaders but the opinions are taken which motivates the employees to work effectively for their leaders. This is considered as the best style for leadership in the companies.
• Delegative or Laissez- faire leadership style: In this style, the leaders make responsible the employees to take their own decisions and ask employees what should be done. This involves high trust on the employees by the leaders but the style is not so effective as the powers and authorities can be misused and the structure becomes confusing (Osuchukwu, 2016).

CAPCO and Goldman Sachs, both follows participative  role of Leadership  style with a blend of Autocratic leadership where the employees are guided and given the freedom to present their opinions and views on the particular matter but the ultimate decisions are taken by the leaders. The leaders make sure that discipline is maintained in the organisation.

2.2 Explain how organizational theories (e.g. scientific management and human relations theory) have had influence on the practice of management

Organisation theory is used in businesses so that the jobs in the companies can be done successfully as the environment of the organisations is determined by the use of particular organisational theory. There are many organisational theories which have the influence on the practice of management and the same are discussed below:

• Human relation theory: According to this theory, the human capital is the most important factor which should be made comfortable and satisfied in the job. The demands of the human resources should be fulfilled in order to make them satisfied and so that they can focus on completing their work with more efforts. By providing rewards, motivation, training or responsibilities, the employees can be made satisfied in the organisation. CAPCO uses the human relation theory in order to make their employees satisfied and to bring effectiveness and productivity in their work which would help the company to achieve its goals and objectives (Avery & Bergsteiner, 2011).
• Scientific management theory: According to this theory, there is a mutual faith and collaboration between the management of the company and the human resources which motivates the employees to work more effectively for the employer. Goldman Sachs uses this theory as it provides training to its workers on various functions and activities and this creates an opportunity for the workers to perform well. By performing well and providing the best efforts to the company, the employees cooperate with the company to achieve the ultimate aims and objectives.
• Bureaucratic Theory: According to this theory, the management of the organisation is strict and dominant which believes in giving orders to the workers and the workers have to follow the orders. This theory is negative from the point of view of the growth of organisational and the employees. It de motivates employees by not providing them any power or freedom in the organisation (Morrill, 2008).

2.3 Evaluate the different approaches to management used by CAPCO and your chosen organisation

There are different approaches of management which are followed by the organisations like CAPCO and Goldman Sachs. These approaches are selected by keeping in view the structures and cultures of the organisation and how they can fulfil the objectives of the company. Following are some of the management approaches:

• Classical approach: This involves the formal structure which follows a common hierarchy of management. It includes bureaucracy approach and scientific management approach.  Classical approach included the terms like Job specialisation, formal rules and regulations, formal selection and more which were considered to be the ideal factors to be followed in the bureaucratic. Its scientific management approach also introduced certain terms like division of labour, analysis of work and more which help in maximisation of output and efficiency of workers. Motivation is necessary for workers so that they can work effectively.
• Human Relations approach: This approach was introduced during 1920’s and it focussed on many social factors rather than focussing on the benefit of organisation. The factors included were leadership, behaviour of people, healthy environment and relationships. This approach is used by CAPCO by involving the opinions of the employees so that they work hard to increase their productivity for the company. The employees are cared by the organisation (Morrill, 2008).
• System approach: This approach is the combination of classical and human relations approach. In this approach, the organisation adopts all those methods which motivates the employees and keep them satisfied so that they help the company to achieve its objectives by providing their best performance.
• Contingency approach: This approach can be referred as the better version of systems approach where there is no existing design of the organisation and the structures or cultures of the organisation is designed according to the situations which prevail. Goldman Sachs use contingency approach for its management (Avery & Bergsteiner, 2011).

Task 3

3.1 Discuss the impact that different leadership styles may have on motivation within period of change

Leadership is the quality of a person who can direct a large no of people to do a certain task. They influence people to do anything. There are different styles of leadership which are been discussed above and these may have impact on motivation within a period of change (R?ducan & R?ducan, 2014).

• Autocratic style of leadership: this style of leadership hardly gives any chances to employees to take decisions or to present their views in front of management. Here the motivation in the employees is created by making them believe in their managers and they are made focussed to achieve the goals of the company (Kollia & Prevyzi, 2012).
• Participative style of leadership: In this style of leadership, the employees are involved in the decision making and the leaders do not make any decisions without the consent of the team workers. By involving the team workers, the leaders motivate them. They create the interest of the workers of the company in the operations of the company which helps in motivating them and they feel attached to the company.
• Delegative style of leadership: In this style of leadership, the workers are highly motivated as the leaders sit back and leave the decisions to be taken by the employees. They guide their employees and motivate them to take right decisions. When an employee faces a downfall in his performance, the leader helps him to recover and provide him training which again builds up his performance as he gets motivated (MSi, 2015).

3.2 Compare the application of two motivational theories (e.g. Maslow’s & Herzberg theories) within organizational setting

Workforce can be motivated at workplace by many methods. There are certain motivation theories with the help of which the organisations can motivate their workers. By getting motivation, the workers will be able to become stress relived and they will be able to do their job well. CAPCO can use any of the below explained motivational theory:

Maslow Theory of motivation: The Abraham Maslow theory of motivation is the process in hierarchical form in which there are five levels of hierarchy. These five levels are to be achieved by the employee to get ultimate satisfaction. The five stages of Abraham Maslow theory are given below:

1. Physiological needs: These are the basis needs which are needed by the person for general living like food and water (bhengagement.com, 2013).
2. Safety needs: safety needs are also the basic needs which are needed by an employee to have security in life.
3. Love and belongingness needs: This comes in the category of psychological needs which are needed by employees in terms of friendship or relationships for satisfaction in personal life.
4. Esteem needs: This also belongs to psychological needs where an employee needs recognition and accomplishment in life and career.
5. Self actualisation needs: When all the levels are crossed by an employee, he reaches to the self actualisation where the employee feels highly motivated (Kollia & Prevyzi, 2012).

The below diagram makes the theory more clear:

                             Maslow theory of motivation

Herzberg’s theory of Motivation

This theory is often known as Motivation- Hygiene theory in which certain characteristics or factors are there which are related to job satisfaction and some factors are related to job dissatisfaction. The factors which are leading to satisfaction and dissatisfaction are given below:

Factors leading to satisfaction are achievement, responsibility, Growth opportunities, Recognition or the work to be done and the Factors leading to dissatisfaction are the policies of the company, relationship between the workers and the management, salary of employee, status or role in the organisation, security in company, etc. These two factors are based on the assumption that motivators, satisfies the employees and the hygiene factors hinders the motivation and satisfaction of employees. CAPCO should use this theory by providing hygiene factors to the employees and by building enough motivators for the employees so that they can work effectively.   

                                                         Herzberg two factor theory

3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace

Motivation is essential to be provided to the employees in the organisation so that they can have an urge to work in a better way for the company. CAPCO can use any of the above discussed motivation theory to motivate its employees. It will help CAPCO to maintain its healthy environment and it will stimulate actions of the employees to achieve a common goal or objective.

• The Maslow theory of motivation can be used by the managers of CAPCO so that the needs of the employees can be satisfied by following the hierarchical pattern. The needs right from the basic level to the self actualisation level can be fulfilled by CAPCO for its employees. This will make the employee to reach the ultimate level of satisfaction (Thomas & Books, 2009).
• Herzberg’s theory of motivation also satisfies the employees by providing them the appropriate motivating and hygiene factors. The combination of these two factors will help in motivating the employees to reach their best level of efforts. CAPCO can use these factors of motivation to capture the best performance of their employees.

Both the theories are effective in providing motivation to the employees and in getting the best efforts out of them which are also effective for the better productivity, quality and efficiency of the organisation (Thomas & Books, 2009).

Task 4

4.1 Explain the nature of groups and group behaviour within CAPCO or your chosen organisation.

Group is the formation of different people who collectively work for the common purpose. Group behaviour is the collective behaviour of the people in a group. Groups may be small or large in size or they can have different characteristics and can be made for the fulfilment of different purposes. There are two types of groups in organisation formal and informal groups. Formal groups are made to accomplish a task which is completed by dividing the tasks among the people in a group. Informal groups are the ones which are made out of common interests in people and these are made for the own satisfaction of employees.

                                   Group in organisations

There are certain roles in a team which are played by different members of a team. 9 team roles given by Dr. Belbin are given below:

                                                     Belbin Team Roles

Stages in team formation: The team is formed by following the following stages given by Bruce Tuckman:

1. Forming: This is the beginning where the team members try to get along with each other.
2. Storming: Here, the disputes arise among team members due to the difference in thinking.
3. Norming: Here, the disputes are solved and cooperation is established.
4. Performing: The team performs in this stage to get the desired goal.
5. Adjourning: Here, the team achieves the goal and gets terminated as the purpose of team is accomplished (Boundless.com, 2016).

CAPCO can utilise the team roles given by Belbin to effectively perform and to get desired objectives also the stages of team formation can be followed for a proper execution of team and its functions.

4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO or your chosen organisation

The factors which promote the development of effective teamwork within CAPCO and Goldman Sachs are explained as below:

1. Healthy competition within the group: The organisations should promote healthy competition among the group members so that they are motivated to perform better than others.
2. Discipline: A discipline should be maintained within the team to effectively complete or achieve the purpose of teams within a specified time (Mullins, 2009).
3. Clear communication: Communication is an essential factor which is responsible for effective and ineffective performance of the teams. Clear communication will allow the members to present their views and opinions to other members who will increase the productivity and quality of work.
4. Training and development: Training should be provided to the team workers so that they get to know and learn about various techniques and methods which are to be used for the achievement of goals.
5. Motivation: The team members should be motivated to work for the common goals of the organisation and it can be done through various methods like providing bonus, incentives, good pay, good environment, recognition, responsibilities and more (Mullins, 2009).

4.3   Evaluate the impact of technology on team functioning within CAPCO or your chosen organisation 

Customer service is important to both the organisations CAPCO or Goldman Sachs and to any other organisation and to satisfy the constant changing needs of the customers, it is important to adopt new and innovative techniques which can help in satisfying the customers. Technologies have a huge impact on the functioning of the team too. It helps in customization of the activities for meeting the current needs and expectations of the clients (Maruping & Magni, 2015).  The impact of technology on the team functioning can be positive or negative which is explained in the below points:

Positive impact

• Competitive edge: Adaptation of technology helps the team of a company to have a competitive edge in the industry and it can provide better goods and services to the customers.
• Easy communication: The communication within the members of the team is made easy because of technology. Technology has provided the world with many platforms like emails, chats, or private messengers with the help of which the team members can coordinate the functions and act accordingly.
• Speed: the speed of the functions and operations of the team have increased with the help of technology. The functions are completed rapidly which increases productivity (Maruping & Magni, 2015).

Negative impact

• Difficulty in adaptation: It is difficult for the team members to adapt to the technologies which changes frequently. They find it difficult to learn new technologies every now and then. They need training for this which requires extra cost.
• Usage of mobile phones for personal use: Technology has made several functions easy for the team but it also affects the time of the employees as they get involved in different gadgets for their personal entertainment or use like playing games on mobile phones, doing chats on various applications on smart phones or surfing social networking sites on internet (Maruping & Magni, 2015).

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Conclusion

It can be concluded that CAPCO is a provider of financial services and it has functional structure of organisation and it follows the person culture where the employees are given much importance. Goldman Sachs has been compared with CAPCO which has decentralised structure and it follows Role culture. Different  motivational theories help CAPCO in providing motivation and job satisfaction to its employees. CAPCO follows participative style of leadership where the employees are given opportunity to present their views to the management. Team its stages of formation are been discussed in the last task which shows that how a team is formed and what are different factors which influence the work of team.

References

Avery, G. & Bergsteiner, H. 2011,Diagnosing leadership in global organisations: theories, tools and cases, Tilde University Press, Prahran, Vic.

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