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Diploma in Business
Unit Number and Title
Unit 3 Organization Behaviour Capco & Four Seasons hotel
Organizational behaviour defines the human behaviour within an organization. This helps in providing effective approaches for managing the workforce in order to improve the productivity from the individual as well as group members. CAPCO is a cutting edge company which provides services to financial sectors on the international basis. It was rated as one of the best companies in Sunday Times 100 Best Companies list. In the first task, the report will compare and contrast the structure and culture of CAPCO with Four Seasons hotel. It will also explain the relationship between structure and culture which impacts on the performance of the business of CAPCO. In the next task, the effectiveness of different leadership styles is compared and their impact on motivation in the period of change. The theories of management which influence the management practices of CAPCO and different motivational theories applied in CAPCO are also explained in the next task of this report. In last it explains the nature of the group and group behaviour prevailing in CAPCO and also the factors which promote and inhibit the development of effective teamwork.
CAPCO executes the divisional structure to implement the narrow span of control over the organization. The span of control refers to managerial positions inside the organization to make the proper use of resources. Organization enlightens the management with proper authority to regulate the functions of the employees. In contrast structure of Four Season Hotel is based on the bureaucratic approach by which sometimes employees feel discriminated and may leave the organization. It has a large chain of levels so the organization has less control over the operations, on the other hand, CAPCO has small and flatten chain by which managers have high control over the operations. In a divisional structure, management divides the objectives into small modules and divide all modules into all the levels of the organization but needs more efforts to execute the task. A small organization like CAPCO put high efforts at all the levels with less dependency on the supreme authority. Organizational culture of the business is a stretcher, innovative and risk taking in comparison to the Four Season Hotel (Cummings and Worley, 2014). On the other hand, Organizational structure of Four Season Hotel is of centric approach and applies the stability in the authority. Management uses the bottom to up approach whereas Four Season Hotel applies the top to bottom approach with high bureaucracy.
Similarities in culture and structure of CAPCO and Four Season Hotel: CAPCO and Four Season Hotel have some similarities in the culture and structure. Sometimes both the business adopts the formal and informal type of communication level to accomplish the organizational goal. The working environment of both the organization promotes the use of technology to meet the demand and standards of the industry. CAPCO and Four Season Hotel use the matrix structure to evaluate the production process in less input (Harper, 2015). The organizational culture of both the organization is similar in the context of leader’s responsibility, communication level, employee responsibility etc.
In addition to this, it can be said that both the organization follows the simple kind of organizational structure by which all the employees can easily understand the liability and roles.
Behaviour, attitude, responsibility of the employee towards the organization plays the vital role in the functions of the organization. CAPCO adopts the vertical and horizontal distribution of power and control to achieve the organizational goals. Responsibilities and organizational goals can be defined by the top management and top management regulates the functions of the lower management in order to achieve the organizational goals. The proper distribution of authority and control in the organizational structure helps the CAPCO to achieve the better results. The culture of CAPCO is highly flexible and innovative that assists the organization to easily compete in the market. Structure depicts the right way to control and manage the performance of the employees. Structure and control aid the management implements the proper communication channel in the organization and defines the right way to perform the task. Structure assists the manager to control the correct follow of information in the organization and try to check the channel to improve the efficiency (Rothaermel, 2015). Positive culture develops a good working environment in the organization whereas negative working environment develops the feeling of discrimination among the employees.
CAPCO’s has the simple and flexible kind of working culture that assist the management to achieve the task on time. Management influences the employees to participate in the decision-making process and follows the cultural values and ethics in order to improve the services of the employees. Individual growth in the organization is promoted by the management in order to deliver better values to the employees. Organization hires the trained and skilled candidates for the management because trained and skilled candidates are the assets for the business they deliver the quality services for the organization. For achievement of the services management thinks to provide monetary benefits to the employees and keep them motivated. Organization collects the feedback from the employees about the working culture of the organization and tries to improve the services if any negative feedback generated from any employee (Bock.et.al.2012). For example, CAPCO is working creates the team in order to achieve the task on time, if all the team members working together without any conflicts and issues then it reflects the positive image of the organization.
Behaviour of the individual is influenced by various factors like demographic factors, abilities and skills of employee, behaviour, perception, attitude or personality etc. The individual nature is sometimes rigid or complex by which he or she will not be able to involve in the working environment of the CAPCO. Many factors related to age, experience, responsibility, seniority etc affects the behaviour of the individual and make him different from other employees. Following are the points that influence the behaviour of the individual:
Leadership is the most important part for every management to handle the human resource in the CAPCO. Through leadership, management can effectively manage the roles of the roles of the employees and instruct them to accomplish the task in a prescribed way. Four Season Hotel does not only depend on skilled employees but also depends on the leaders (Northouse, 2015). Comparison of effectiveness of different leadership styles in CAPCO and Four Season Hotel:
Organizational theory helps the CAPCO to improve the behaviour of the employees towards the organization and achieve the organizational goals on time. Theories help the management to set the standard for the services and manage the resources for quality services. Organizational theories assist management in improving the behaviour of the employees by implementing the policies for the development of the employees (Armstrong and Taylor, 2014). Following are the theories that CAPCO in the organization:
CAPCO and Four Season Hotel use different approaches that needed according to the department. According to the requirement of the goal both the organizations use the different approaches are as follows:
Classical Administration Approach: Management follows this approach implement the rules and regulations, policies and duties in the organization. This approach helps the organization to maintain the stable economic status. Management of both the organization follows this approach to control the teams those are working for the same project for longer tenure (Stokes.et.al.2016). The effectiveness of the theory can be measured through acceptance of rules by the employees.
Human relation approach: CAPCO encourages employees for smooth and tension free working to achieve the common goal. Organization designs the formal and informal communication channel in order to identify the problems of the employees. Employees are free to express their views and queries on the groups or teams. Employees can suggest the improvement about the policy or strategy by which leader can develop the innovative strategy for the organization (Shafritz.et.al.2015). Human relation theory at the organization can motivate the employees to give their best for the growth of the organization. In Four Season Hotel, human relations are formal for the accomplishment of theorganizationalgoals.
Employees are the most valuable asset for any business organization because employees are the base from which an organization achieves its goals. To improve and enhance the performance of the employees, proper motivation of them is required. Motivation helps in bringing the enthusiasm among the employees to the workplace to increase the company’s bottom line. Every business owners often fret about the best way in order to increase the motivation of their employees (Schein, 2010). There are many internal and external factors which increase or even cause a loss of motivation.
Figure 1: Features of Leadership
The leadership styles which influence the motivation of employees are as follows:
Figure 2: Leadership Styles
Motivation basically describes the reasons for people’s actions, needs and desires. Fulfilling these needs and desires helps in improving the performance and production level of the employees of CAPCO organization. The motivational theories explain how to motivate the workforce practically working in the workplace. The Maslow’s hierarchy of needs theory was propounded by the Abraham Maslow. According to Abraham, there five common basic needs of human which is arranged in a hierarchy form in a pyramid shape (Schreyögg, 2012). Employees can fully motivate if these needs are achieved sequentially by the CAPCO.
Figure 3: Maslow's hierarchy of needs
The Herzberg’s two-factor theory was developed by Frederick Herzberg and he concludes that there are presences of certain factors in the workplace which result in job of customer satisfaction but the absence of these factors causes job dissatisfaction. He further discussed the two factors namely, motivators and hygiene factors (Maslow, 2013). The Motivator factors like recognition and responsibility help in giving positive satisfaction to the employees of CAPCO and the hygiene factors like job security and fringe benefits do not motivate but, the absence of these result in de-motivation.
Figure 4: Herzberg two factor theory
Table 1: Comparison of Maslow's and Herzberg motivational theory
MASLOW’S MOTIVATIONAL THEORY
HERZBERG MOTIVATIONAL THEORY
Concerned about different levels of needs which affect the motivation level of employees (Maslow., 2013).
Concerned about the ways of increasing the motivation levels of employees.
Focuses on fulfilling the basic needs of human.
Focuses on identifying the causes of satisfaction and dissatisfaction factors in the workplace.
Human needs are classified into five basic categories.
The factors which affect the level of employee’s satisfaction is categorised into two factors i.e. hygiene factors and motivational factors (Herzberg.et.al, 2011).
Managers are those who are responsible for completing the given task efficiently and effectively through the employees or the workforce. Motivation is an important tool for improving the performance of the employees at the workplace which are often under-utilized by the managers. The managers of CAPCO should use the motivation in the workplace to inspire the people to perform their best individually as well as in groups for producing the best result for the organization (Mackay, 2010). It is the duty of managers to identify and address carefully the set of motivating forces of each individual.
Figure 5: Benefits of Motivation in CAPCO
The motivation for getting better performance fully depends on the job satisfaction, recognition, achievement and professional growth. The goal of CAPCO’s manager is to increase the efficiency and production to reach the optimum results for the organization. It is a very challenging managerial activity to provide a positive motivational work environment to the employees of CAPCO. There are many types of motivation and motivational theories, which the management has to identify with their employees on an individual level for a successful implementation (Miner, 2015). It is a manager’s duty and responsibility to have a close study of different motivational theories and select them accordingly which helps in improving the motivation level and increases the production in the organization. The motivation theory chooses the manager should be effective and should not bring so much of burden on the organization’s operating cost.
Group means two more people working together for accomplishing the common goals. The core targets of the organization are achieved easily and quickly when such task is performed in a group of people rather than individuals. For the social characteristics of the workers in the organization, working together as a group is most essential. There are many types of groups created in CAPCO for achieving some specific results (Granovetter, 2010). The team members agree to a general task and become mutually dependent relative in their actions. Generally in the organization like CAPCO, two types of groups are found i.e. formal groups and informal groups.
Teamwork is the willingness of a group of people to work together for achieving the common goals or target. The development of teamwork in CAPCO is promoted because of following factors:
Factors which inhibit the development of effective teamwork are as follows:
Figure 6: Benefits of an Effective Teamwork in CAPCO
The change in market trends has introduced many modern technologies which help an organization in increasing the amount of profit and to attract more and more customers by providing best and quick services to them. The organizations like CAPCO are mostly depended on the technology to provide the financial services to their customers in an effective manner. The introduction of new technologies also had reduced the staff requirements; develop role responsibilities and increases job satisfaction level through effective and good communication (Scarbrough and Corbett, 2013). The modern technology has proven beneficial in many sectors of the organization but because of changes in technology in hinders the group functions. The team has to maintain and update their knowledge timely in order to complete the task effectively.
The involvement of technologies in teamwork has brought more challenges and improved functioning. The use of mobile phones, social media and email has improved the performance of CAPCO organization. Now the employees can communicate more effectively and easily in order to be updated. This also helps them to be in contact and connected when they are on the employer’s premises (Evangelista and Vezzani, 2012). E-mails help CAPCO in sending the important documents and information easily to the member of the team for the smooth functioning of the team.
Figure 7: Technologies and Teamwork
The personal computer helps the team members to do different tasks more effectively. It also allows doing more complex tasks related to mathematical or statistical operation easily and quickly (Barge-Gil and Modrego, 2011). The use of groupware in team functioning enables the member to plan and conduct important meeting and discussions and to have easy access to the virtual business environment by sitting in any part of the world.
From this report, it is observed that the structure of CAPCO is flat which ensures proper chain of command and better control. The culture of CAPCO also supports open and effective communication in the organization. Various effective leadership styles are used in CAPCO in order to complete the specific task efficiently. The group behaviour within CAPCO consists of group viability and high level of satisfaction among team members and high level of performance. The teamwork in CAPCO is effective due to appropriate cooperation, relationship and leadership. The various new modern technologies such computer and mobile phones help in performing the teamwork tasks more effectively in CAPCO.
Books and journals
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Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Day, D.V., Fleenor, J.W., Atwater, L.E., Sturm, R.E. and McKee, R.A., 2014. Advances in leader and leadership development: A review of 25years of research and theory. The Leadership Quarterly, 25(1), pp.63-82.
Drew, S. and Coulson?Thomas, C., 2013. Transformation through teamwork: the path to the new organization?. Team Performance Management: An International Journal.
Evangelista, R. and Vezzani, A., 2012. The impact of technological and organizational innovations on employment in European firms. Industrial and Corporate Change, 21(4), pp.871-899.
Galegher, J., Kraut, R.E. and Egido, C., 2014. Intellectual teamwork: Social and technological foundations of cooperative work. Psychology Press.
Granovetter, M., 2010. 19 Business Groups and Social Organization. The handbook of economic sociology, p.429.
Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.
Hatch, M.J. and Cunliffe, A.L., 2013. Organization theory: modern, symbolic and postmodern perspectives. Oxford university press.
Herzberg, F., Mausner, B. and Snyderman, B.B., 2011. The motivation to work (Vol. 1). Transaction publishers.