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Unit 3 Organisations and Behaviour Assignment GSk
Diploma in Business
Unit Number and Title
Unit 3 organisations and behaviour assignment gsk
GlaxoSmithKline plc (GSK) is the leading health care organisation in UK that expanded its business and services in creation, development, manufacture of pharmaceutical products and curing of diseases. The organisation is working towards the welfare of the people of the entire world. It has achieved the fourth position in London stock exchange and several awards which is the big achievement for the organisation. In the current context, the report will summarise about the structure and culture of the GSK that involves working in coordination with the all employees. In the next task, it will depict the different leadership style and motivational theories that motivate the employees at every stage of work life. With that detail understanding about the impact of leadership styles and uses limitations of motivational theories in GSK business strategy. At last, the report will throw light on the advance uses of technology by increasing efficiency in working in group teams.
Compare and contrast different organizational structure and cultures
An organization is designed in a way to fulfil the goals and helps in accomplishing them in a best way. GSK follows a structure to achieve its goals. Organization may have different structures like hierarchical, functional, geological and matrix type. GSK follows a hierarchical structure. In a hierarchical structure there are multi levels. One may understand it like a pyramid, which has lots workers working under it which are directly been supervised by a smaller level above them, who are also been supervised by people above them. At the top there is a CEO which looks after each and every progress in the organization. Anything that can be broken down into a series of level can be said as hierarchical (Rosso.et.al. 2013). Organization like MERCK follows a matrix type structure in which reporting relationships are set up as a matrix or a grid which is totally different from traditional hierarchical structure. In this an employees have dual reporting duty- to a product manager and a functional manager. GSK’s culture consists of values, beliefs, shared assumptions which tell how employees behave in organization. Culture of organization depends on the shared values. GSK share its values to employees like how to dress, perform and act in their work, whereas MERCK’s culture is mainly focussed on experiences, philosophy, expectations, attitude and future expectations (Glisson, 2015). There are similarities is structure and culture in these organization, both believe in progress, satisfaction of the customers, achieving organization goals and care of the employees.
Figure 1 GlaxoSmithKline
1.2 Relationship between the organization’s structure and culture can impact on the performance of GSK
GSK has made its culture and structure which boosts the morale of the employees always. Encourage them to achieve the goals of the organization on time. GSK has a motivated and enthusiastic environment which helps in performing better. These is no issues on working hours, employees can adjust their working hours accordingly, keeping the organization goals in mind. Employees can share their views on safety, productivity, welfare, etc for the development of the organization. As per the employee’s feedback, training programs been conducted for improvising the performance of the organization. GSK mainly focussed on team work, respect of values and transparency. Employees are provided with helping gadgets like mobile, laptops and internet which increase their efficiency of work.
It is very important to distribute task to different groups to ensure that two groups are not doing same work at the same time. It will affect the productivity of the organization. When employees are made to work together on a task, an organization culture is formed. Employee interacts and share ideas with each other which is beneficial for both organization and employees. Organizational culture in some way defines the organizational structure of an organization but the structure also partially defines the culture of an organization. Structure and culture is a framework which is to be implemented. If the culture starts to integrate then it is a matter of time the structure also follows (Noruzy and Schneider, 2013).
1.3 Individual employee’s behaviour at work might be influenced by various factors
An employee’s behaviour and performance depends on how much he/she is comfortable at the job place, for this a positive environment should be there. At GSK the working culture is very positive and flexible; there is no complicated reporting system. There is transparency at all the levels, one should know about their team members and superiors. An individual employee’s behaviour also depends on the job security, GSK provides high job security. This develops a positive attitude in employees and productivity increases. Social and cultural factor affects the mindset of employee, behaviour and attitude is influenced by it. GSK always gives equal opportunity to all the employees, it motivates HR department to hire female employees also. Demographic is the study of general and particular population factors such as gender, race, size & location and population density (Pinder, 2014). Analyzing socio-demographic factors and identifying the group based differences in mobbing perceptions of the employees very important for identifying the high risk groups. Demographic factor widely affects the commitments of GSK. Gender plays an important role in the building of an organization. GSK promotes in hiring female employees also, as they are more committed to the organization.
Factors like environmental conditions like understanding between the employee, work place culture at workplace also impacts the behaviour of the employee. Behaviour of an employee also depends on discrimination among the employee’s, organization gives emphasis more experienced employees. This can make new employees feel complex. GSK tries to make their new employees comfortable at the workplace. Physiological behaviour of an employee affects the people who are working with him/her, which can also influence their behaviour as well. GSK keeps on monitoring the physiological nature of the employees and keeps correcting it through lots training sessions. GSK is influencing the employee’s behaviour and attitude by using different management strategies and creating strong organizational environment. Sometimes employee is not aware of his positive and negative nature, which affects the organization in direct manner. A positive employee has always positive attitude towards his work and other employees (Robertson, 2013).
2.1 Effectiveness of different leadership styles in different organisations
The effectiveness of the leadership is different in different organisation depending upon the individual benefits and drawback that each leadership style. It may be possible that the style which is beneficial to GSK won’t be benefited to MERCK. So it depends upon the operations and work culture prevailing in respective organisation. The commonly used three leadership styles are autocratic, transactional and transformational. In autocratic leadership style, decision making are done by the team leaders based on their judgements and ideas and exceptionally uses the advice of the team members. The effectiveness of this style is not so correct because it follows strict methods over the employees and also the organisation had shifted their emphasis from this leadership style (Abu Elanain, 2009).
In transactional leadership style, the leader focuses on the supervision and group performances and promotes conformity of the team member by using the rewards and punishment. And in transformational leadership style, the leader participates with the team members in their work, coordinate and create the vision for the change. This leadership style is the most effective style which even gives chance to the employees to participate in decision making. In the current case study, GSK had been using autocratic style where the organisation follow rule based approach and leading the employees was done through aspiration approach which reduces the growth of the employee’s and organisation. But after Witty appointment GSK moves towards the transformational style that promotes value based culture, listening to each team members individually for their needs etc. Different organisation uses different style because different organisation had different core advantage (Ahsan et.al. 2009). For example: MERCK was the leading competitor of GSK but they use different leadership style and were earning profits.
2.2 Organisation’s theory and management practices in GSK
With the hiring of Andrew Witty, the organisation was restructured. The management practices were changed. The two organisation theory was used in GSK:
Figure 2: Organisational theory
Scientific Management theory: Witty broke down the research teams into the smaller group to face the limitation of funds, moving toward the diversification of business for growth and to manage the risk. The organisational structure of the business was changed which focus on the organisational culture and value, R&D groups were concise to autonomous shop so that the scientists and researcher could give effective results on the R&D investments (Colquitt et.al. 2009).
Human relation theory: On leadership style the drastic change took place, Witty puts emphasis on value based culture where every team member were given equal chance to participate in the operation and decision making and promotes open style of working. The managers were not confined to only headquarters but were joining the staff to the canteens and listens their problems and needs of the individuals respectively. The best example for effective leadership had been set, the reduction in cost of the drug to the needy people in the developing country (Card et.al. 2010).
The above changes in theories and practices support the organisation in gaining the trust of the employees and customer as well. The GSK with strong management practices would able to sustain in competitive environment by the advantages with it. Change in leadership would give employees the job satisfaction and retention of employees for longer period.
2.3 Different approaches of management at GSK and MERCK
There are many theories which help the management to maintain the efficiency of the human resources. These theories keep the management touch with the diverse marketing trends. The theories help the organisation to maintain the effectiveness and operations of the business. The following approaches followed by both the organisation:
Human relation approach-GSK is very well using the value based approach which manages the human relation with the employees in order to motivate the employees. The theory supports for the welfare of the people and follows inspiration leadership for decision making (Danish and Usman, 2010). For example: GSK receives the feedback from the employees and clients, if manager receives any feedback which is negative then can be corrected through this approach.
Scientific approach-To improve the efficiency and performance of the business in the organisation this approach is also used in GSK. The approach has the advantage to manage the risk and fear of losing would be reduced. The approach develops the team cooperation and supports in achieving the organisational goals. It establishes the relationship between the employees and management of the organisation for meeting the desired profits.
MERCK also uses the different approaches for managing the business but it depends on the organisation that at which time the management has to use which approach. The efficiency of the employees would be increased by the above approaches (Demerouti and Bakker, 2011). The only drawback could be from the external environment i.e. from competitors, market risk and fluctuation, technological changes, government rules and regulations which sometimes increase cost of the management like GSK had to pay the penalty of $3Bn for the breaking of law by bribing the doctors.
3.1 Impact that different leadership styles may have on motivation at GSK
Leadership is very important in every organisation whether it is service sector or productions sector as it a heart of the HR management. GSK is the leading health care organisation and operating in different countries and monitoring is done through the well designed human staff of GSK. The leadership styles play a significant role in motivating the employees is:
Figure 3: Types of leadership styles
This style is designed by the top management and work on the principle of rule based approach. The decision are made by the top peoples and followed by the operational staff and seeks very less advice from the lower staff. The leader had a complete control and power over the team members to follow his rules (Piccolo et.al. 2010). For instance: In GSK before 1985 the organisation was using this style through which the results of the organisation were reducing day by day and employees were de-motivated.
Transformational leadership:This leadership is the most effective leadership where employees takes part in decision making and have given the right to attend the meeting and to put their suggestions for the improvement in efficiency of the employee and the management. In the present scenario, GSK is following this people leadership style which gives the employees flexibility in working with open style of management and helps in motivating by getting job satisfaction.
Democratic leadership:In this style also leader takes decision themselves but consider the employees before taking the decisions. The team members exchange their ideas and views to the management. For example: GSK is also using this leadership style to somewhat extent because it takes into account the employees issues and respect the culture and values of the employees which helps in motivating (Ilies et.al. 2009).
3.2 Motivational theories at GSK
Motivation is the key solution to the entire problem which the organisation of GSK was facing. The growth and efficiency of the employees are improved with the motivational theories. There are different theories which help leader to achieve the trust and make employees more productive. The two major motivational theories:
Figure 4 Maslow's theory of motivation
This theory is the most common tool used for motivating the employees in the organisation. The terms used in the theory clearly specifies what the organisation should do to understand the employees. The terms such as physiological, safety, belongingness, esteem and self actualisation have a great meaning within the context of motivating the employees. Physiological needs relate to human survival that the most important need to be met first. Safety need relate to security at the workplace where the employees are working. Security could be in terms of personal, health care and financial etc. love and belonging is also necessary for the employees to have the feeling that they are the part of GSK. Esteem need includes self respect of the human are valued in the organisation and self actualisation is measuring the potential of the employees and make them realise that they have the potential to perform till the standards set (Taormina and Gao, 2013).
Herzberg Theory:This theory is also known as dual factor theory. There are various factors that lead to satisfaction and dissatisfaction at workplace. This are:
Figure 5 Herzberg theory of motivation
Motivational factor- This factor helps the GSK for retention of employees for longer period and helps in achieving the job satisfaction to the employees by considering their need and promoting free style of working at the workplace by providing flexibility.
Hygiene factor- These factors includes the salary, job benefits, job security and working condition etc. which help to maintain the performance of the employees and growth of the GSK would also benefited (Rainey, 2009).
3.3 Usefulness of Motivational theories to Managers and their limitations in GSK
Motivational theory plays important role in the motivating the employees. Motivation in practical term means to stimulate, move or induce. It’s the duty of the HR manager to develop the culture of raising the productivity of the employees. The different motivational theories had been used by the GSK. Maslow’s theory states that the needs and requirement of the individual are considered and the manager has to put the serious effort for the fulfillment of the need of the individual (Robbins et.al. 2013). The manager motivates the employees by considering their feedback of their performances and suitably rewarding them for their work like leave encashment benefits, cash bonus etc. which is the effective tool strategy for motivation in financial term.
The limitation in GSK was that the leaders were commanding over the employees and this is the worst way to de-motivate the staff which reduces their productivity and leads to high employee’s turnover. They follow the approach of aspiration instead of inspiration to employee. And sometimes the leaders were arrogant in their behavior which is not at all acceptable behavior of the leader. For that the leadership style should be changed immediately and implemented as soon possible. The changes in GSK were noticed by appointment of Witty in motivating the employees by changing the thinking of the employees that they too belong to the organization by listening to them and joining to employees at lunch which also act as a motivational tool (Rutherford et.al. 2009).
4.1 Nature of groups and group behaviour at GSK
In an organization, group is the collection of employees that forms a team who works together to achieve the goals of the organization. GSK forms groups in the organization that helps is getting the targets achieved. Without forming groups an organization goals cannot be achieved. They fulfil the needs, power and power of the organization. GSK forms 2 different types of group, which are informal and formal groups. Informal groups are made by the employee themselves; it creates bonding among the employees (De board, 2014). Due to this employee exchanges their ideas with each other, social needs are fulfilled by the formation of this group. On the other hand formal groups are made by the management so that the organization goals can be achieved. Due to these formal groups, management of GSK is directly linked with the employees which helps improving the talent of individual employee.
GSK is making such groups to make their employees to work together and easily achieve their task. Groups formed make it easy for the employees to communicate in a better way. It is most essential for the social characteristics of workers in that company.
Figure 6: Formation of groups
There are mainly three views on the nature of act between team members of GSK. These are normative, it teaches how to carry out performance and manage the team. Second is making the group building, self managed groups, role play and sensitivity training of the members. Dynamics of team formation means attitudinal and behavioural features of a team. This helps in studying how different types of groups are been formed (Pitta.et.al, 2013).
4.2 Factors that may promote or inhibit the development of effective teamwork at GSK
Various factors are responsible for hindering the development of effective teamwork at GSK. Factors like communication style, organization size and attitude of employees are important one. A team requires lots of cohesion that is held together by lots of factors (Scott.et.al 2015). It is very important to know how to make teams. It is the duty of the management to form proper groups. A team is driven by a common goal. For achieving the goal in GSK, the common goal needs to be spelled out in advance and understood by the team members. The factors which help teams in achieving the goals are focussed. Goals must be in written format so that each member has clarification about his role. Sometime employees are not able perform in a particular task, GSK faces problems in such situations. For that training sessions are made for the employees. Lack of proper training decreases the performance of the organization. If an employee is not having proper understanding about his role, it directly affects the performance of the team. Leadership style is also a factor for poor performances of team members, if the team manager is not instructing the team member properly due to various reason, it will result in poor performance of the team automatically (West, 2014).
4.3 Impact of technology on the team functioning at GSK
The impact of technology in GSK could be both in terms of positive as well negative. Technology improves the team functioning of the organisation. In GSK there are 13000 people involved in R&D department where the technology plays the crucial role in developing the new drug and methods of curing the diseases and illness. The positive impact of technology in GSK brings open innovations in the R&D centres and programmed had been planned for the same. Team associates, marketing principles and research and development scientist with the technology can easily achieve their task. Technology brings together virtually at one place and it important also because the GSK business is allocated at different location and thousand of staff are diversified at different places (Hubka and Eder, 2012). The team efforts and working at one scale is only possible through technology.
The innovation in drug continues to add the productivity to the organisation by licensing the inputs as well as developing the alliances. Technology also provides to increase the knowledge of the scientist and researchers so that they can work in team and avoid duplication of efforts. It helps in sharing the idea by structuring the database files of common technique and by use of private cloud tool of information technology put the same to the internet so that other employee at different locations can have an access which would in long run saves money, time and cost. Online functioning procedures are very important for coordination and communication in GSK team group (Tay and Diener, 2011).
From the study, the culture and structure of GSK and MERCK had been analysed with that the factors influence the individual behaviour had been discussed. In the next part, report focus on the leadership styles which were followed in GSK and helps in achieving the motivation of the employees through the motivational theories. It had explained the impact of leadership style on motivation and their uses and limitations in GSK. At the end, the report had highlighted the use of technology in effective team working that improves the efficiency and growth of the GSK and thus attainment of desired goals.
Books and journals
Abu Elanain, H. M. 2009. Job characteristics, work attitudes and behaviors in a non-western context: Distributive justice as a mediator. Journal of Management Development. 28(5). Pp. 457-477.
Ahsan, N., Abdullah, Z., Fie, D. G. and Alam, S. S. 2009. A study of job stress on job satisfaction among university staff in Malaysia: Empirical study. European journal of social sciences. 8(1). 121-131.
Card, D., Mas, A., Moretti, E. and Saez, E. 2010. Inequality at work: The effect of peer salaries on job satisfaction (No. w16396). National Bureau of Economic Research.
Colquitt, J., Lepine, J. A. and Wesson, M. J. 2009. Organizational behavior: Improving performance and commitment in the workplace (pp. 169-174). McGraw-Hill/Irwin.
Danish, R. Q. and Usman, A. 2010. Impact of reward and recognition on job satisfaction and motivation: An empirical study from Pakistan. International journal of business and management. 5(2). Pp. 159.
De Board, R., 2014. The psychoanalysis of organizations: A psychoanalytic approach to behaviour in groups and organizations. Routledge.
Demerouti, E. and Bakker, A. B. 2011. The job demands-resources model: Challenges for future research. SA Journal of Industrial Psychology. 37(2). Pp. 01-09.
Glisson, C., 2015. The role of organizational culture and climate in innovation and effectiveness. Human Service Organizations: Management, Leadership & Governance, 39(4), pp.245-250.
Hubka, V and Eder, W. E. 2012. Theory of technical systems: a total concept theory for engineering design. Springer Science & Business Media.