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Diploma in Business (Marketing)
Unit Number and Title
Unit 3 Organisations and Behaviour
Organisation behavior is the subject that focuses on behavior of the employees at the workplace as well as the factors that affect their performance. This Solution discusses about different organisational structure and culture that has its impact on the policies of the organisation. Mama Mia is the restaurant chain that has been focused under the study.
The unit discusses about the various leadership styles used in the organisation and their impact on the motivation of the employees. It also focuses on the factors and the theories that motivate the employees to perform. Learners will also learn about the organisation theories and approaches that have been used in order to frame the structure and culture of the organisation. The last part of the unit argues about team work and the impact o technology on the same.
Organisational structure: Structure of the organisation can be determined by the way it works. It is the framework that defines the activities and practices of the organisation in terms of supervision and task allocation. The roles and responsibilities in the organisation have been divided according to the structure of the organisation. The structure of the organisation can be categorized on the following basis:
Employees in the organisation works at different levels according to the roles and responsibilities delegated to them. These levels have been decided according to the structure of the organisation. The structure of the organisation discusses about the span of control and the chain of command. Span of control can be defined as the number of people supervised by the single manager and chain of command is the number of levels in the hierarchy. Various structures have been discussed below:
Number of levels
Chain of command
Span of control
Organisation culture: The beliefs and traditions of the organisation form its culture. Different organizations have different beliefs and behave differently in the same situation. This difference in beliefs and culture differentiates the organisation from others. Various cultures followed by the organizations are:
As far as Mama Mia is considered, the organisation believes in power and task culture. This can be identified by the way the organisation deals with the situations. Mama Mia is the organisation that does not allow its employees to involve in the important decision making processes and restricts them to innovate. Bureaucratic form of leadership style has been followed that determines the strictness in the culture of the organisation. On the other hand, Prezzo is the organisation that supports its employees in many ways. They used to provide rewards to the employees in order to raise their confidence and motivate them to work. Person culture is followed by the organisation. (Aswathappa and Reddy, 2009)
Relation between organization’s structure and culture: Structure of the organisaton defines the number of levels in the organisation and how the roles and responsibilities are delegated among those levels. The culture of the organisation defines the relationship between these levels. The culture and the structure of any organisation is very much related as both the elements of the organisation collectively differentiates the organisation from others. The organisation with more levels of hierarchy results in poor communication and thus provides the strict organisation culture. This suggests that organisation structure somehow defines the culture of the same. If the there is closed culture of the organisation that restricts the communication and the information flow in the organisation, employees get affected by it. Employees do not get the free environment to innovate and work thus results in their poor performance. (Buelens, 2006)
Impact on business performance: It has been discussed in the case that Mama Mia is the organisation with hierarchical structure and thus have more levels of supervisor hierarchy. The culture of the organisation is not open. As it is identified from the case that the employees are not allowed to innovate and all the decisions have been made at the top management without considering the views of the employees. Bonuses have been given to the managerial level employees for the growth of the business while lower level staff has been not given the bonuses that they deserved. This results in conflicts between the employees especially at the lower level. They did not feel the belongingness for the company instead they have feeling of being exploited as they work for long hours without any extra earnings. This ultimately results in high employee turnover and poor service experiences by the customers. The reviews at trip advisor have also been dropped down due to such practices. (Grint, 2005)
Various factors affect the behavior of the individual. It may be the response to the surroundings or may be because of individual’s traits and personality. This suggests that the behavior of an employee at the workplace is affected by the organisational factors as well as the personal factors.(Karthick, 2010)
Organisational factors that affect the behavior:
Personal factors that affect the employee behavior:
Leadership styles: There are various leadership styles used by different leaders according to their beliefs and the situation in the organisation. Leaders are the one who have the power to lead and guide others according to the manner best suited. The main motive of the leader should be to motivate and inspire employees to work rather than forcing them. Some of the leadership styles that consider motivation differently are:
Motivation: The success of the organisation depends upon the performance of the employees. Employees perform only when they feel motivated. Thus, motivation is the very important factors that need to be considered by the leaders in order to make employees work. (Buelens, 2006)
Impact of leadership style on motivation: Leadership starts with the recruitment of the employee till he departs from the organisation. The bind and the relation between the employee and the leader somewhere is the basic reason for the motivation of the employee. This relation is depends upon the leadership style the leader is following. Democratic leaders are very much familiar with their employees and hence forms an informal relation with them .this is because there is no communication barrier between them. Therefore, the employees working under this leadership may not need to be inspired by extra rewards as the relation between the leader and the follower inspires the employee to work.
Autocratic leadership deals with formal relationship between the employee and the leader. Thus there is no scope of informal communication and effective bond between them. Here, leaders have to use extra tools of motivation to inspire employees. The only tool used under this type of leadership is fare wages to the employees that is not enough to make the people work. This is the situation that can be seen in Mama Mia management. This is because of autocratic leadership that employees feel frustrated and do not perform effectively. (Grint, 2005)
Laissez-Faire leadership is the most lenient type of leadership style in which leaders do not interfere in the work of the employee and employees remain free to innovate the practice on their own. Employees are already motivated under this leadership.
Motivation is the basis for efficient performance of the employees. Every employee needs to be inspired so that he can perform effectively. Motivation acts as the driving force for the employees. There are several motivational theories that are adopted by the organisation at the workplace to motivate their employees. Some of them have been discussed below:
Herzberg Two Factor Theory:This theory involves two types of factors that affect motivation. The motivational factors are those whose presence motivates the employees to work. Another is hygiene factors that can cause dissatisfaction if not present. (Karthick, 2010). This theory can be applied by focusing on both the factors. Management should concentrate that motivational factors such as good and open working environment is present at the workplace. Simultaneously management needs to concentrate on preventing dissatisfaction among the employees by providing them fair salary and benefits.
Maslow hierarchy needs theory: It is theory of Human motivation that considers 5 levels of motivation:
In order to apply the theory at workplace, management needs to find out the level of needs of an individual and have to fulfill the needs accordingly. The needs of the individual changes with time and hence the managers have to fulfill the needs of the employees according to the levels described above.
Hawthorne effect: This theory was given after considering the results of many experiments. According to this theory, the employees respond more effectively when they get more attention rather than the physical changes made. This clearly suggests the human behavior of getting recognized. This recognition motivates the employee to work.
This theory can be applied in the organisation by introducing the reward system in the organisation for the performers. Rewards can be given in terms of money, benefits or recognition.
Expectancy theory: This theory suggests that employees work according to the results expected to be. The outcome is the determinant of the intensity of performance of the employee. It means that employee tends to work more effectively if he realizes that outcome will be worth enough.
This theory can be implied by setting achievable goals for the employees as well as providing them rewards at the time of goal achievement. (Subba Rao, 2010)
Herzberg two factor motivation theory: This theory has been given by Herzberg. It deals with two factors of motivation that affect the performance of the employees at the workplace. It is very important for the organisation like Mama Mia to introduce this theory in the organization to motivate the employees. This theory states that management should not only consider the factors that satisfy the employees but should also consider the factors whose absence may cause dissatisfaction in the minds of the employees.
Managers of Mama Mia should understand the importance of introduction of this theory in the organisation. Introduction of this theory results in improved performance of the employees as employees feel the sense of belongingness with the organisation and thus they perform better. Managers should realize the fact that provision of rewards is not the only remedy to motivate the employees but focusing of the factors such as fair salaries and importance to the employees are equally important for motivating the employees. This is because these are the basic need for an individual to work. Firstly, managers should focus on introducing the factors that removes dissatisfaction and then should concentrate on the factors that satisfy the employees.
Mama Mia is the organisation with closed organisation structure and culture and the leaders follows the autocratic style to lead the employees of the organization. This organization faces many challenges as it only focuses on achievement of organisational objectives. Organisation needs to implement some of the changes in the policies so that it can achieve better results and gain better performances from the employees. It has to introduce motivational theories to motivate the employees as well as need to implement positive changes to raise the standards of team work in the organisation.
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