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Unit 3 Organization & Behavior Assignment – CAPCO Ltd
Organizational behaviour is the study of the way in which employees interact with each other and organization. Study of organizational behaviour is necessary to understand the employees’ satisfaction and organizational benefits from individuals. The Unit 3 Organization & Behavior Assignment CAPCO Ltd will go through the culture and structure of a CAPCO organization. CAPCO is a global finance and technology consultancy organization in United Kingdom. The study will highlight the impact of culture and structure on the performance of employees. Later to it, study will determine the impact of historical theories on management practices and identifies effectiveness of leadership style and management approaches in workplace. In next section of report, implementation aspects of different motivational theories will be described with the role of line mangers and leadership styles. The study will also define group dynamics and factors on effective team resources development and functioning. The report will study the subject in context of CAPCO organization for better understanding.
1.1 Compare and contrast CAPCO’s structure and culture with Tesco
Comparison of structure and culture of CAPCO and Tesco
CAPCO organization implements divisional structure to make use of narrow span of control. Span of control defines the managerial position within the structure of organization. CAPCO empowers the management with appropriate power to control subordinating activities. In comparison of structure of Tesco which is based on traditional bureaucracy structure as it has large chain of levels and less control at each level, CAPCO’ structure has small and flatten chain of levels to manage the organization. In divisional structure, CAPCO divides the organizational objectives in modules to distribute among the levels and executes the tasks with non-hierarchical and team-driven structure. Culture at CAPCO is more flexible, creative and risk-taking whereas Tesco’s culture is centric to use skills in specific tasks and manage stability (Alvesson, 2012). CAPCO’ culture uses the bottom up approach with little bureaucracy to accomplish objectives whereas Tesco is uses top to bottom approach to ensure the workflow and control.
Similarities in culture and structure of CAPCO and Tesco
Additional to differences, CAPCO and Tesco possess some similarities in structure and culture of organization. Both the organization uses the formal and informal structure to accomplish their tasks. Structure of both the organizations encourages the use of technical changes to meet the new demands and standards of industry. CAPCO and Tesco make the use of matrix structure to ensure the more productivity in less input. Culture of both organizations is similar in role of leaders, communication path, core competence and autonomy. Both organizations foster the productivity from employees as well as simplicity towards the achievements of goal (Brown and Harvey, 2011). CAPCO and Tesco are also similar in social and working context of employees.
1.2 Impacts of CAPCO’s culture and structure relationship on its performance
Strategies of management towards the behaviour, attitude and disposition of employees play an important role to define the culture in workplace. CAPCO’s structure makes the use of vertical as well as horizontal distribution of power and control to achieve more through put in given efforts. Critical decisions and organizational goals are defined by top authorities and management to regulate on following levels in structure whereas lower levels are empowered to make their own rules and decisions to deliver performance at upper level. This proper distribution of roles and controls in structure helps to deliver and manage high performance in industry. Structure of CAPCO creates the highly flexible and innovative culture. Structure defines the right way to control information flow among levels and employees which result is a well-communicated and coordinating culture (Zheng.et.al.2010). This culture finally delivers the high performance and productivity. Training, workshops, events and diversity management is at core of CAPCO structure to determine the culture and performance at each level.
CAPCO’ structure is flexible to define their own strategies and rules to achieve assigned objectives. Organization encourages employees to participate in decision making process and structural improvements to enhance the cultural values and ethics of employees. Personal growth is managed parallel to organizational growth to deliver high experience in workplace. CAPCO believes that satisfied and skilled employees are most valuable assets of organization to achieve high performance. In order to achieve performance, CAPCO uses the intrinsic benefits and motivations from structure and culture of organization to direct the employees towards the achievement of quality and performance (Jiménez-Jiménez and Sanz-Valle, 2011). Management respects the social needs of employees and listen from them to feedback the structure and culture of organization. As managing diversity at each level, organization encourages individuals to perform their best in workplace.
1.3 Factors which influence individual behaviour in CAPCO
Individual’s behaviour in CAPCO workplace is driven by five factors: demographic factors, abilities and skills, perception, attitudes and personality.
- Abilities and skills: CAPCO analyzes the abilities and skills of employees to assign roles and responsibilities. Individual’s skills are considered to determine organizational behaviour. Employees make use of their employability skills and abilities to achieve personal growth and position in CAPCO organization and they behave according to their role and responsibilities. Individual’s capabilities play a vital role to decide the behaviour in workplace.
- Perception: Perception means the ability to understand something with senses and awareness. Individual’s perception towards the role and responsibility, employees and organizational motives affects the behaviour within workplace (De Jong and Den Hartog, 2010). Perceptions of management towards the employees also lay impact on organizational behaviour. Employee’s perception plays a vital role to move towards the achievements.
- Demographic factors: Demographic factors like age, sex, origin place, race and ethical beliefs and values play a significance role in behaviour of employees. These native abilities of employees are determined to achieve the best outcome from individuals in CAPCO. Employees’ behaviour is driven by native factors those reflect their influence in behaviour and rarely changes.
- Attitude: Individuals’ attitude towards the job profile, organizational structure and operation, employees and achievements determine the behaviour in CAPCO workplace. Positive attitude of employee helps to achieve benefits of self-motivation whereas negative attitude may discourage employees’ satisfaction with organization. Individual’s attitude determines the personal growth and organizational behaviour. Attitude of management employees towards the performance of an employee affects the structure and culture of CAPCO organization.
- Personality: Expressions and presentation of employees affect the behaviour and safety workplace. CAPCO needs the effective personalities those are excellent in verbal communication to represent their business before customers (Huczynski and Buchanan, 2010). Individuals’ personality is analysed to make the selection on job profile of employee.
2.1 Effectiveness of difference leadership styles in CAPCO and Tesco
Leadership style is necessary to drive human resources towards the desired functionality. Overall productivity and performance of CAPCO and Tesco organization is not solely depend on capabilities of employees but also on leaders. Effectiveness of different leadership style in CAPCO is compared with Tesco.
- Autocratic Leadership style: CAPCO’s top management behaves like autocratic leaders and does not include the participation of employees in decision making process. Autocratic nature of leaders helps to make critical decisions in several business opportunities and downtimes. However, the effectiveness of leaders decides the implementation of policies at lower level and organizational achievements at outside. Tesco implements autocracy at all levels to keep the decision process fast and centric to single person so that lower levels only needs to concentrate on task rather than decisions.
- Democratic leadership style:CAPCO’s management and team leaders use this type of leadership style to make decisions and distribution of work easy and adaptable. Democratic leaders listen from followers to consider their participation in decisions. Thus the resulted policies and rules are more acceptable and effective with respect of autocratic leadership (Ekaterini, 2010). However, democratic leadership demands more time and lengthy process in comparison of Tesco’s centric and quick autocratic leadership.
- Transformational leadership style: CAPCO’s formation of candidates into effective teamwork depends on the transformational leadership style in workplace. Effectiveness of transformational leaders helps to bring the employees together on a common goal to accomplish and develops the teamwork. This is required to make use of multi-skilled employees to execute several types of task. Tesco’s structure is to make the employees perfect in specific task so transformational leadership is only required one time to assign goal and form teamwork (Schein, 2010).
2.2 Influence of organizational theories on practices of management
Management of CAPCO implies several theories to ensure good employees’ behaviour parallel to the achievement of organizational goals. Theories help to standardize the organizational structure and suggest the approaches to manage the resources in more appropriate manner. CAPCO implies three theories in workplace for management of practices in organization.
- Scientific management theory: Taylor’ scientific management theory is the earliest approach to manage the employees’ satisfaction together with the organizational growth. Theory focused on standardization of code of practices in an organization so that maximum labour productivity can be achieved. CAPCO organization uses this theory to optimize the use of available human resources. CAPCO focuses on strategies to meet individual’s satisfaction and motivation so that more productivity can be gained from individual employee. Organization provides best of salary, accommodations and benefits in industry to increase labour productivity. CAPCO also sets the high objectives to meet with minimum number of employees (Shafritz.et.al.2015).
- Administrative theory: The effectiveness of administrative theory depends on the regulation of rules. Theory encourages management to apply the policies and rules of organization at each level. CAPCO management is liable to apply the policies and regulations at lower level to maximize the outcome. CAPCO assumes that strict regulation of policies is necessary to achieve maximum productivity with effectiveness of rules.
- Human relation management theory: Theory of human relation management leads an alternative approach to enhance the experience of organization. Theory emphasizes that smooth relations of management with individuals are necessary to motivate them morally. CAPCO organization allows people to be social in workplace and encourage them to establish flexible communication with other employees and management. This relations are used later to motivate the employees’ capabilities with moral values. CAPCO provides open minded workplace for employees to grow together (Bratton and Gold, 2012). As a result, effective human relationship helps to increase productivity.
2.3 Different approaches of management used by CAPCO and Tesco
CAPCO and Tesco organization use variety of approaches to apply needs of management. According to requirement of objectives, CAPCO and Tesco use the following management approaches to ensure smooth organizational operations.
- Classical Administration Approach: Instead to focus on individual’s performance and capabilities, classical approach emphasize on the strict follow of rules, policies and duties in organizational levels. This type of approach is useful to make economic status stable. Management of CAPCO and Tesco uses classical approach to control the teams those are assigned on a specific task for a long time. Effectiveness of approach lies in the regulation and acceptance of rules within employees. This approach isolates the employees from being update with changes. Changes are only governed and decisions at top authorities.
- Bureaucracy Approach: Multi-branch organizations like Tesco and CAPCO uses the bureaucracy approach to treat each location or group as a division of specialist so that administration becomes easy. Top authorities divide the resources among subdivisions and assign them task in which they are specialist so that individuals work can be combined to achieve high performance and quality. In this approach, top authorities behave as an administrative for organization branch and branch itself possess the administrative features for lower levels (Kuipers.et.al.2014). However, CAPCO uses democratic structure at organization level in comparison of Tesco.
- Human relation approach: CAPCO encourages smooth and flexible human relation in comparison of Tesco organization. CAPCO established formal and informal communicate in workplace to understand the requirements and expectations of employees from organization. Employees are free to express their thoughts and queries against the structure and operations so that improvements can be applied to manage organization. Also, human relationship in workplace motivates employees to do their best as their capabilities are driven by moral values. In Tesco, human relations are formal in nature to accomplish task perfectly (Frederickson and Ghere, 2013).
3.1 Impact of different leadership style on motivation in period of change
An organization needs to go through several stages to create brand value and economic status. An organization may be in stage of formation, sustainability, maturing and take-off. Effectiveness of different leadership styles are described in context of CAPCO organization.
- Autocratic Leadership: When an organization is at formation or take-off stage, autocratic leadership is effective to make decisions quick and responsive to condition so that opportunities can be targeted timely to enhance economic status. This is required because at both the stages employees may not be able to understand the opportunities in business. CAPCO used this leadership in formation stage to improve business and now uses to make critical decisions (Bucic.et.al.2010). Autocratic leadership is required during the period of changes to lead the team with centric and clear decisions power.
- Democratic Leadership style: During the period of changes from survival to maturity, democratic leadership helps CAPCO to make decision making with employees’ participation so that better and satisfied structure and culture can be developed. Individual’s intelligence is used to make decisions more adaptable to grow with satisfied employees (Frankel and PGCMS, 2016). Democratic leadership motivates the employees to stand for their rights and requirements as it helps CAPCO to solve internal issues to move forward.
- Transactional leadership style: To grow business, CAPCO needs to increase productivity and performance. Transactional leader play a vital role to drive workforce toward new requirements, more demands and quality. Effectiveness of leaders reflects in the motivation of employees (Chaudhry and Javed, 2012). CAPCO’s transactional leaders are specialist to distribute work and responsibilities among employees and they know how to utilize individuals’ capabilities to meet new organizational goals and market inclinations.
3.2 Comparison of motivational theories
Motivation is required in an organisation like CAPCO to direct the behaviour of the workforce so that they perform well and give their hundred percent towards the growth of the organisation. Managers of CAPCO motivate their employees by identifying and satisfying their needs using the Maslow’s and Herzberg motivational theories.
- Maslow’s Motivation Theory: The Maslow’s theory also known as Maslow’s Need Hierarchy theory was propounded by the Abraham Maslow in 1943. Abraham suggests that every individual has some basic needs which make them happy and satisfied. These basic needs include physiological needs, safety needs, love and belonging needs, esteem and self-actualization needs (Kremer &Hammond, 2013). Abraham put all these needs in a hierarchy and states that the first need in the hierarchy must be fulfilled first so that employees working in the CAPCO get motivated and their talent is fully utilized in the growth of organisation. Various strategies are developed in CAPCO to identify and understand the needs and demands of the employees so that to get more outcomes from them.
Figure 2: Maslow's theory
- Herzberg Motivational Theory: This theory was developed by the Frederick Herzberg in 1959 and it also known as Two-factor theory. This theory states that there are certain factors in the workplace which leads to job satisfaction and job dissatisfaction (Jansen & Samuel, 2014). Herzberg classified these factors into two broad categories, these are:
- Hygiene factors: These factors are essential for the purpose of motivation in the workplace. It includes pay, fringe benefits, company policies, physical working conditions, etc. It provides positive satisfaction for a short term but if they are absent then it will cause dissatisfaction among the employees of CAPCO.
- Motivational factors: These factors help in motivating the employees of CAPCO by providing recognition, growth and promotional opportunities, meaningfulness of the work and responsibility. These factors motivate the employees of CAPCO for their better performance. Thus, it is also called as satisfiers.
3.3 Implementation of motivational theories
In any organisation the implementation of rules and regulations in the lower level are done by the managers. In the same way, the manager of CAPCO is liable for implementing the theories of motivation in the organisation in an effective manner. He is responsible to look whether the employees or the workforce working in the CAPCO are properly being motivated or not. For this, manager can use various analysis and methods for measuring the needs and expectation of employees and to ensure that employees’ requirements are properly fulfilled or not (Pacesila, 2014). Manager of CAPCO can organise an event or can have regular feedback from employees to improve their satisfaction level in the workplace. Formal and flexible communication can be used by the manager to contact or communicate with the employees.
When the needs and requirements of the workforce are identified by the manager of CAPCO, he further makes the decision of implementing the theories to meet the expectations. A manager after identifying the required needs of the employees, he then chooses and selects the theory which should be applied practically. For example, Manager of CAPCO can motivate their employees by providing job security, good and healthy work place, benefits like promotion, bonus, rewards, etc to motivate the employees so that they perform their task dedicatedly. CAPCO spends a lot in understanding the behaviour of their employees which would indirectly help them in fuller utilization of human resource and reducing the employees’ turnover in the organisation (Mitchell, 2013). Thus, a manager of CAPCO should study briefly the needs and behaviour of the workforce and the theory which is to be implemented accordingly.
4.1 Nature of groups and group behaviour
A group is the collection of individuals who are in regular contact and have a frequent interaction and work together to achieve the common set of objectives. The groups are basically formed with the motive of fulfilment of prestige, power, satisfaction, social needs, etc. Groups help in fulfilling personal and professional needs (Conway, 2010.). In CAPCO, employees form group to manage their task easily and effectively. The grouping may form on the basis of the similarities of their job or responsibility. There are many types of groups such as primary and secondary, formal and informal, autocratic and democratic group, etc. In CAPCO, two types of group are identified. These are as follows:
- Formal Group: The formal groups are formed by the management of CAPCO to fulfil needs and task which are related to the organisation mission. The management distribute the work and responsibilities between the employees and also select a leader who will manage that particular group. This type of group is formed for a specific purpose and after completion of that purpose the group is dissolved. The communication is carried on through formal channels which are decided by the higher authorities like e-mails (Moskovsky.et.al.2013). The working of the formal groups is regulated by the rules and regulations of the organisation.
- Informal Group: The informal groups are formed in the CAPCO because of the social and psychological forces operating in the workforce. These groups are basically created unofficially to meet the social needs and interest of employees and their working is not regulated by organisational rules and regulations. Employees feel free in such type of groups and express their thoughts towards management which help the organisation to understand the employees’ behaviour and identify their needs to be satisfied by the organisation for their better performance (Stewart and Shamdasani, 2014). The communication is done through informal channels in informal groups.
4.2 Impact of factors on development of effective teamwork.
Teamwork is a crucial part of any business. An effective teamwork is the process of working together and trying to cooperate with the group of people with the purpose of achieving the desired goals. Development of effective teamwork is essential to achieve the goals and objectives of an organisation efficiently and effectively. There are many internal and external factors which cause both positive and negative impact on the development of effective teamwork (Hu & Liden, 2015). The factors which have positive or negative impact on the development of effective teamwork in CAPCO are as follows:
- Communication: A clear and good communication facilitates development of effective teamwork. The team members should feel comfortable in raising questions related to the clarification of job and responsibility and also feel free to give any valuable suggestions. A good communication brings employees closer for accomplishment of objectives of the organisation.
- Diversity: A good and effective team consist of diversity of talents, cultures, skills and personalities. Diversity in group helps in bringing new and innovative ideas. Diversity helps to find innovative solutions to various problems arising in the teamwork (De Board, 2014). On the contrary, diversity also raises the potential for conflicts within team which can be harmful.
- Leadership: Leadership factor support in building effective teamwork in CAPCO because the team gets benefit from several sources of inspiration. Leaders coordinate the efforts of team members and direct and motivate them to attain the objectives of the team. It is the responsibility of leaders to organisation training for the enhancement of skills of the members of the team.
- Team-Building Exercises: The team-building exercises helps in improving the particular aspect of performance of team such as communication and problem-solving. To bring the members together to build the relationships, boost morale and promoting mutual understanding various effective ways such as games and drills can be exercised.
4.3 The impact of technology on team functioning within CAPCO
In this changing scenario, there is a very tough competition prevailing in the market. To stand and to have a sustain position in the market an organisation trying to use newly developed technologies in their day-to-day operations to achieve its goals and good brand name. To increase the profit, CAPCO uses various technical tools (Weller.et.al.2014). The use of latest technology in CAPCO has improves and in some cases hinder the functioning of the team. These technologies prove in the improvement of customer satisfaction in CAPCO and helps in achieving the needs and demands of customers. It improves the control and coordination required in completing the task in teamwork. Introduction of various new technologies in CAPCO requires organising the training for providing the guidance to the employees related to use of technology safely and appropriately (Pinjani & Palvia, 2013).
Use of e-mails helps members of a team to communicate asynchronously but the negative impact on the team functioning will be if there is any misuse of e-mails. Any type of misuse of confidential mails may hinder the functioning of the team. Use of mobile phones allows member to communicate from anywhere outside the employers premises but sometimes having access always can also hinder the functioning of the team (Mathieu.et.al.2014). Computers enable the members to do any type of complex task easily and accurately but if the information is hacked by someone will also hinder the team functioning. Groupware also enables the team members to plan meetings and to collaborate with virtual environment which can be accessed easily from any part of the world.
The Unit 3 Organization & Behavior Assignment CAPCO Ltd has been concluded the structural and cultural comparison of CAPCO and Tesco organization alongside the relationship with performance factors. The report also determined the influence of factors in the individual’s behaviour in workplace. The study has been made to understand the effectiveness of different leadership styles (transaction, autocratic and democratic leadership style) and organizational theories to map the management approaches with organization. The study has been evaluated the impact of historical motivational theories (Maslow’s motivation and Herzberg theory) in current context to define the role of line managers and leadership styles. Various implementation methods have been described to apply motivational theories in organization. Addition to it, the report also has been identified the nature of groups (formal and informal groups) and their significance, factors affecting development of effective teamwork and role of technology in organizational functioning. The study has been made around the organizational structure and culture of CAPCO and compared with Tesco organization.
Books and Journals
Alvesson, M., 2012. Understanding organizational culture. Sage.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
Brown, D.R. and Harvey, D., 2011. An experiential approach to organization development. Upper Saddle River, NJ: Prentice Hall.
Bucic, T., Robinson, L. and Ramburuth, P., 2010. Effects of leadership style on team learning. Journal of Workplace learning, 22(4), pp.228-248.
Chaudhry, A.Q. and Javed, H., 2012. Impact of transactional and laissez faire leadership style on motivation. International Journal of Business and Social Science, 3(7).
Conway, S., 2010. Employing social network mapping to reveal tensions between informal and formal organisation. Social interaction and organisational change: Aston perspectives on innovation networks, pp.81-123.
De Board, R., 2014. The psychoanalysis of organizations: A psychoanalytic approach to behaviour in groups and organizations. Routledge.
De Jong, J. and Den Hartog, D., 2010. Measuring innovative work behaviour.Creativity and Innovation Management, 19(1), pp.23-36.
Ekaterini, G., 2010. The impact of leadership styles on four variables of executives workforce. International Journal of Business and Management,5(6), p.3.
Frankel, A. and PGCMS, R., 2016. What leadership styles should senior nurses develop?. nursing, 10, p.32.
Frederickson, H.G. and Ghere, R.K., 2013. Ethics in public management. ME Sharpe.
Hu, J. and Liden, R.C., 2015. Making a difference in the teamwork: Linking team prosocial motivation to team processes and effectiveness. Academy of Management Journal, 58(4), pp.1102-1127.
Huczynski, A. and Buchanan, D.A., 2010. Organizational behaviour. Financial Times Prentice Hall.
Jansen, A. and Samuel, M O., 2014.. Achievement of organisational goals and motivation of middle level managers within the context of the two-factor theory. Mediterranean Journal of Social Sciences, 5(16), p.53.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and performance. Journal of business research, 64(4), pp.408-417.
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