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Unit 3 Organisations & Behaviour Assignment - CAPCO and Next Plc
Organizational behaviour is the study of human behaviour within the organization that considers the involvement of management and staff members. This process has three different levels such as micro, macro and meso that help to give the in-depth knowledge about the functions of organizations. Moreover, it is a scientific approach that can be applied to the management of workers to maximize the output and achievement of objectives. The Unit 3 Organisations & Behaviour Assignment CAPCO and Next Plc will analyze the structure and culture of CAPCO and other organization as well explain the relationship between organizational structure and culture that has significant impact on the performance of operations. CAPCO is a cutting edge organisation that serves in the financial management sector. It employs over 2000 people across the globe and in 2013; it was rated as one of the best companies to work for in the Sunday Times 100 Best Companies list. It is also rated as one of the top 50 employers of women. In the next part report will compare the effectiveness of different leadership and organizational theories that could influence the practices of management. Furthermore, report will discuss the impact of different leadership style and motivational changes as well explain the nature of groups and group behaviour within CAPCO.
1.1 Compare and contrast of organizational structure and culture of CAPCO and Next Plc
There are many differences and similarity between the organizational structure and culture of CAPCO and Next plc. According to analysis following are the key similarity in structure of both organizations
Table1: structure and culture of CAPCO and Next Plc
Structure of Organisation
Characteristics of organisation
CAPCO is formal organisation that divide labour on the basis of maintaining efficiency on operations. Here individual activities are fixed. CAPCO communicates by straight chain of command.
It has informal structure so it is flexible and unplanned organisation. There is no defined relationship. The employees are allowed to join more than one informal group according to volunteer basis.
CAPCO is formal organisation. Therefore, it divides labour in specific category. Limited job are assigned to worker so their minds are clear about what they exactly do. Its formal structure is beneficial for organisation growth and achievement of goals (Hatch and Cunliffe, 2013).
Next Plc organisation different from CAPCO. The organisation has flexible and unplanned structure. It has been analyzed Next Plc organisation structure is not up to the mark. It requires defining activity between employees. Due to this, Next Plc organisation is not good as compare to CAPCO.
Culture of organisation
CAPCO hires skilled employees so they are able to take training session and better understand operational process. It also helpful to schedule activities of staff.
Next Plc has normative structure so it strictly follows rules and regulation. Employees are diverges from job role. They can do anything according to own perception. It has been observed that the organisation should maintain activity (Schein, 2010).
1.2 Relationship between CAPCO’s structure and culture can impact on the performance of its operations
The structure and culture of organisation is influenced by some factors such as object, size and complexity of tasks. The products and services offer by organisation also defines which structure is best. In CAPCO’s case, its structure and culture are relevant to each other. It maintains hierarchical structure with various layers. Supervisor team coordinate the tasks on the basis of goals and targets of organisation. The chain of command is held from top to bottom of hierarchy. The decision making is centralised at top management. The control on operation would effectively handle and channels of communications are clear. It shares value and belief with workers which identify behaviour of consumers (Daft, 2012). The main motive of organisation is influence behaviour of employees. The structure of organisation determines ethics, value of organisation that impact positively on employees. The culture of CAPCO Organisation reflects less freedom at lower level. The employees under low level are controlled by top management.
If the organisation starts to follow sharing of power and authority then it culture would be different. The employees at low level would be independent and personalize. However, it does not follow such structure. Such tall hierarchical structure would not be fit for CAPCO’s innovative culture. The flat organisation structure requires variety of skills. The employees have to complete one project then the next project is assigned to an individual. This type of structure creates empowered and motivated culture at work place (Baird.et.al.2011). It also leads to bottom up leadership approach. Employees are free to suggest their ideas and plans in order to improve strategy of organisation. CAPCO’s work culture determine on the basis of structure that decide jobs and responsibility. It helps employee to get proper instruction from top management but here, power is highly moralised due to its hierarchical structure.
1.3 Factors which influence individual behaviour in CAPCO
There are mainly five types of factors that influence individual behaviour in CAPCO. The factors are described as follows:
- Demographic Factors: The demographic factor includes background and education of employees. CAPCO organization mostly prefers well educated, young, dynamic and good socio-economic environment people. They believe that this factor result in better performance. The young and dynamic professionals with effective communication skills help manager to meet the organizational objectives (Joo and Durri 2015). CAPCO focus on background of candidate because it believes that organization growth is possible hiring quality human resources.
- Personal factor: The personnel factors influence behaviour of individual. It can be classified as characteristics of biography and learning. Human are born with biography characteristics such as physics, gender, ability, intelligence and experience. Such human characteristics cannot be change easily but learning characteristics can be change by interaction with environment. It would improve personality of employee. CAPCO Organisation believe that personal factor highly impact individual behaviour. Therefore, they hire employees by considering this factor
- Abilities and Skills: The skills and ability of individuals allow him/her to perform well. Individual behavior in CAPCO is highly influenced by ability and skills. A person can perform well in organization only if his/her ability match with job. HR manager is responsible to influence individual by training session.
- Environmental Factors: This factor is also considered because it impact on people behavior. This factor includes socio-culture, political factor, legal and economic factors. Such factors affect people behavior directly and indirectly. Apart from this other environment factors are economic condition, wage rate, and technology development affect individual behavior.
- Organizational factors: This factor highly influence individual behavior that work on organization environment. The structure, culture, facilities, revenue and reward system impacts the employee behavior. Stress free organizational environment reflect in behavior of employees. It would be beneficial for CAPCO Organization in order to influence individual behavior at their work and duties (Armstrong and Taylor, 2014).
2.1 Comparison about effectiveness of the different leaderships at CAPCO and Next Plc
There are various types of leadership style and theories at CAPCO and Next Plc. Each leadership style has different effectiveness. Leader’s quality influences people of organization. A good leadership quality can face different situational problem and affect decision making process also. Different leadership styles are described as follows:
- Autocratic Style Effects: In this leadership it style, it allow to take own decision without interference of manager. It makes a division between leaders and workers. Leaders can make decision without involvement of employees. In this style, leaders are confident and comfortable with decision making responsibility (Armstrong and Taylor, 2014). For Example- CAPCO Organization would take fast decision but employees are disconnected in decision making process.
- DemocraticLeadership Effects: It has been noticed that it is the best leadership option for CAPCO and Next Plc. It is effective for staff members and management also. The management staff is accepting individual perception from team members. It would be very effective because leaders gain ideas and suggestion from employees or gain different perception. Employees would be happy due to their involvement in decision making.
- Transactional Leadership Style Effects: The effectiveness of this leadership style better defines work duty, tasks are perfectly distribute among employees, appreciate and reward employees for good performance but are also criticised by managers. The appreciation and criticism depend on task result. In case of CAPCO and Next Plc, transactional leadership would be more effective because it is interactive with organisation management (Anderson and Anderson, 2010). Interaction is based on improvement and motivation of employees. It also trains employees whenever needed.
2.2 Organizational theories have had influence on the practice of management
The central part of study of organisation and management is understood by management theories. The application of theories brings change actual behaviour. It influence leading ideas and attitude towards management practices. Organisational theories make interrelationship between development and HR practices. These are interpretive and evolve in line that change organisational environment (Bratton and Gold, 2012). There are majorly three kinds of organisational theories- Administrative, scientific management and human relation management.
- Scientific Management Theory: The major concern of organisation is to improve productivity from employees. According to this theory, technical structure of organisation and provision of monetary incentive is used. It becomes a motivator to gain higher output. The major contributor of this theory is F.W. Taylor (1856-1917). The management work and ideas become more satisfying and profitable for all concerned. For Example- CAPCO organisation motivates employees by provide highest possible wages and efficient productivity. The main principle or this theory is to develop a true science for each person’s work and co-operation with workers to ensure job in prescribe way.
- Administrative Theory: It is composed by set of interrelated and mutual dependent system. Administrative Theory works in organisation in systematic way so that everyone has to follow the system. It includes presence of employees at regular on time. It observes work performance individually. For CAPCO, it defines set of rules which are strictly followed at work place. It improves relationship between employees and their leaders.
- Human relation management theory: It defines a relation approach between human resources of organisation. The methodology include sex power differential. It interprets different output from groups. The main motive behind this theory is to improve productivity from individuals (Guest, 2011). For Example- In CAPCO organisation, the women who are from traditional families of immigrant background subjected to frequent contract with male supervisors. It would improve sex power hierarchy in organisation. Women take support from males for critical task within workplace.
2.3 Different approaches of management used by CAPCO and Next Plc
There are various kinds of approaches like Classical administrative approach, Bureaucracy concept, neo classical administrative approach, human relation approach etc. Classical administrative approach of organisation is also known as classical concept. In this type of approach, Organisation structures its power, roles, objectives, activities, interaction between human resource and relationship between employees. Bureaucracy is another approach which is found in large scale of organisation like CAPCO and Next Plc. It is regarding to sub division under classical management. The tasks of organisation are allocated as official duties and it makes clear vision of labour and supervisors. This hierarchical authority is applied to define various positions in organisation. In this type of approach, uniformity of decision would be established (Boxall and Purcell, 2011). Apart from this, it defines high specialization for each job so that individual can understand it. There are set of rules and regulation so that uniformity in actions and decisions easily achieved. Recruitment for CAPCO and Next Plc are based on technical qualification and constitutes lifelong career of workers.
Another approach is human relation approach. It lead to idea of improve production by humanising work. The classical administrative approach mainly works on managerial perspective. On the other hand, Human relation approach improve understanding of people’ psychological and needs on human resource. Next Plc is informal organisation and may use human relation approach. It will influence the capability of employees. It demonstrates the employees to work and undertake complexity of needs (Bratton and Gold, 2012). It concerns about individual working, groups and norms that affect individual behaviour at work place. Another approach is neoclassical administrative approach. It is advanced and modification of classical approach. It mainly focuses on structure and physical aspects of individual. It recognizes social aspect of worker and its employee relationship among groups and organisation. The approach also finds rationality, order and structure. It does not replace classical approach, it just find extra need for organisation.
3.1 Evaluation of different leadership styles on motivation
Motivation is necessary to enhance capabilities of employees in order to achieve organizational as well as personal goals. Various leadership styles are in trend to motivate the employees in an organization. Some of them are: transformational leadership, charismatic leadership, autocratic leadership, democratic leadership and transactional leadership. Leadership styles play an important role to motivate employees and improve their capability to enhance the quality and productivity in work. Leadership styles of CAPCO and Next plc organization are discussed.
- Autocratic leadership: This leadership style is defined as the individual’s control over the decisions. In this type of leadership, Leaders expect obedience from followers rather than inputs and understanding from them. Decisions are made on confidentiality and observation power of leaders. This type of leadership is helpful to make quick decisions. However it can lead dissatisfaction in employees on the decisions made by autocratic leaders. Leaders at CAPCO organization makes autocratic decisions to act on several situations (Chemers, 2014). They try to consider suggestions from group members to improve the decision at later time.
- Democratic Leadership: Democratic leaders accept the suggestions and participations from underlying employees to make decisions. Individual’s idea and views are considered to finalize the decision. However, democratic leaders are liable to make the decision final. Democratic leadership in Next plc plays an important role to empower employees by making them capable to participate in decisions. Also, helps to establish good communication between management and employees. Demands of employees are easy to reach at management level in democratic leadership. However, sometime it may be time consuming and idea-mismatch process.
- Transaction Leadership: In transactional leadership style, goals are decided by higher authorities and passed to leaders to distribute and accomplish the task. Team leader is liable to distribute the responsibilities and assignments within team members. As team leaders is powered to praise and dispraise team members according to their work. Employees are expected to follow the rules and accomplish the assigned task. In some departments of CAPCO like sales, transaction leadership is implemented to govern the task process easily (Giltinane, 2013).
3.2 Comparison of motivational theories
Different motivational theories are proposed to illustrate the right implementation of motivation in an organization. Two theories are discussed in reference of CAPCO.
Maslow’s motivation theory: According to Maslow’s theory, basic needs of employees should be completed before to activate others. This is necessary to satisfy employees with work. Maslow defined a hierarchy of basic needs: self-actualization, esteem, belongingness, safety and psychological needs. Self-actualization needs include training, advancement, growth etc. Needs of employees like recognition of work and responsibilities are part of esteem needs. Individual’s relationship with team members and organization is termed as belongingness need. Employees expect work safety, job security and health insurance from organization as their safety. Addition to it, employees are physiologically inclined at pure food, water and air demands in organization. Maslow stated that lower needs should get higher priorities in an organization than other needs. Strategies in CAPCO are made with the proper understanding of demands from employees to get more outcomes from satisfied employees (Miner, 2015).
Herzberg Theory: Herzberg theory, also known as ‘two factor theory’, is based on two factors to motivate employees. According to Herzberg, demands of employees can be categorised in two factors: hygiene and motivators. Presence of hygiene factors does not affect the satisfaction of employees a lot but the absence of such factors may dissatisfy employees. Such hygiene factors are: relationship within organization, security, personal life and recognition of their status. On the other side, presence of motivator factors is necessary to keep the satisfaction of employees with job. Some motivators are: achievements, work recognition, responsibilities etc. Thus, CAPCO is trying to provide its best effort to satisfy the employees as an organization is nothing without satisfied workers (Yusoff.et.al.2013). Both the theories are focused on the basic needs of employees. Lower needs in hierarchy defined by Maslow are as hygiene factors of Herzberg. Also, Herzberg’s motivators are same as higher needs in Maslow’s theory. However, Maslow focused on enhancement in needs where as Herzberg shows the significant of such needs.
3.3 Implementation of theories
Mangers are liable to regulate rules and regulations in an organization. Managers receive commands from top authorities to implement them at lower level. Thus, managerial level of CAPCO is responsible to implement the theories of motivation in the organization. To ensure the proper application, managers need to identify the requirements of employees. Managers can use various analysis methods to record employees’ expectation within organization. For that, managers can use formal and flexible communication with employees. Regular feedback from employees can be taken to improve their satisfaction in workplace. Also, managers at CAPCO can organize events so that employees can express their thoughts. Rewards can be given to employees for their contribution in better work experience management (Alderman, 2013).
Once the requirements of employees are known, managers can make decisions to implement theories. Managers need to analyse the approaches to implement theories. CAPCO organization works on Maslow theory to understand the actual needs of employees and significant of needs. For instance, managers in CAPCO can pay reasonable salary for work, design policies to keep the job securities and interest, organize trainings to enhance capabilities of employees, reward employees’ work with remuneration etc. Alongside these, organization can provide clean and healthy environment in workplace. Work recognition is necessary to enhance employees’ capabilities. This will also motivate other employees to do better and become innovative. CAPCO spends much managerial time to know the employees’ behaviour with organization. This is helpful to reduce employee turnover and increase satisfaction among employees (Wery and Thomson, 2013).
4.1 Nature of groups and group behaviour
Employees are grouped in CAPCO to manage the things easily. Employees may be grouped according to similarities in their work and responsibilities. In an organization two types are groups are normally seen in existence.
- Formal Group: These groups are made by management to distribute work and liabilities. Such groups are officially maintained. Management employs a leader on a formal group to control the activities within group. Group leader receives commands from management and distributes the goal among group members. Group leader is liable to solve the issues of group members. In CAPCO, Activities of group members and their performance are under the supervision of leader. This is responsibility of a group leader to govern the progress of task assigned to employees in group (Miller and Rice, 2013). However, only leader is a communication channel between employees and higher authorities.
- Informal group: Informal groups are unofficially created to meet the social needs and interests of employees. These types of groups are helpful to create open and better communication environment for employees. Employees are more informal in such interest based groups so that they can express thoughts towards management. Unlike formal groups, workers can join or leave the group as of their interest. Informal group helps them to achieve esteem and recognition at work place. Informal groups are useful for CAPCO to understand employees as well as to spread the brand image (Cummings and Worley, 2014). Because informal groups are social in nature, better decision can be made on group.
4.2 Impact of factors on development of effective team work.
Development of effective teamwork is necessary to achieve the organizational goals easily. Several factors affect the development of effective teamwork: diversity in talent, technology, communication, objectives and leadership. CAPCO is made up around the diversity of talented employees. Diversity in group is necessary to bring creativity and innovation in work. It is also helpful to solve the problems easily and increase the productivity. Diversity also assists to solve different types of tasks. Addition to it, communication is necessary to optimize the use of diversity. Communication brings the employees together to achieve a common goal. Communication helps to make democratic decisions and express thoughts in CAPCO. Motivation is an additional but essential factor to develop good team. CAPCO’s leaders provide proper motivation to employees so that their capabilities and quality can be enhanced for organizational goals. This is responsibility of leaders to organize training and skill enhancement programs to build an effective team. Also, distribution of responsibility according to the skills helps a lot to make employees innovative and productive (West, 2012). Thus, proper assignment of responsibility is required to build the team. CAPCO analyses individual’s skills and experience to build strong teamwork. Organization tries to create communication easy among employees so that new talents and quality can be achieved in work (Hu and Liden, 2015). Team leaders ensure the regulation of commands to maintain discipline and behaviour within group.
4.3 The impact of technology on team functioning within CAPCO
Latest technical tools are introduced business environment. CAPCO use newly technical tools as the means of increasing profit. It would help out to stay competitive. For Example- at CAPCO, technology has become heart for providing better services to customer. The impact of latest technical tools would improve CAPCO’s staff capacity and improve job satisfaction. Employees become flexible to play roles and responsibilities. This would also improve control and coordination in team work tasks. Better communication among team member would improve quality of work. Employees would be more satisfied with their jobs by using technical tools. On the other hand, new technology can impact on management that need a plan about training and skills update. For Example- management of CAPCO decides to include latest technology at work place which will use in daily work routine. Then, it is necessary to focus on usability of new resources (Armstrong and Taylor, 2014). A training session is held that provide guidance about how to use new resources safely and appropriately in order to take safety at workplace.
CAPCO use latest online technical tools that positively impact on organisation. These tools are used to access customer information, and assess the public demand. In some cases, new technology improves hinder team functioning and share good practices. CAPCO use technical tools such as E-mail, smart phone, computers and groupware to improve functioning of employees. E-mail makes better communication with staff member at different places. The workers which need to go out of workplace that able to connect with network and remote access resources like database of organisation (Bratton and Gold, 2012). Such tools are also improving communication among team member whether members are out of office.
Report has analysed the organisational structure and culture which play significant role to improve performance of human resource. The leadership style empowers, motivate and control the team. Unit 3 Organisations & Behaviour Assignment CAPCO and Next Plc has identified that CAPCO implement hierarchical structure where different layer include leadership over team member. Individual factors are influenced by ability and skills, demographic factor, personnel, environmental factors etc with respect to CAPCO. Moreover, different leadership style and its effectiveness are also explained within report. It has been noticed that scientific management theory enhances capacity and individual productivity by introducing technical tools which are best suit for organisation. The study has evaluated impact of latest technical tools at work place of CAPCO. The organisation would gain positive impact only when employees being flexible to use new technology.
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