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Diploma in Business
Unit Number and Title
Unit 3 Organization Behaviour
The organization behaviour explains the relationship between the organization culture and structure. Different organisations have different culture and structure. It depends on the goals of the organisation. Organisations change their culture and structure according to the external changes. The shape and size of the organisation are also the determinants of the structure of the organisation. This Unit 3 Organization Behaviour Assignment - Capco & Hsbc also focuses upon the leadership styles adopted by the managers in the organisation. All the other approaches in the organisation like; motivational theories and approaches to management. The behaviour of the people in the organisation also depends upon the approaches they have been controlled with. Teamwork is another factor that affects the working and behaviour of employees. With advancement in technology, functions of organisation also get advanced with its use.
Every organisation works in a different manner. They have different culture and policies according to their structure. The following characteristics are the basis on which the organisational structure is characterised:
Some other elements are also there on which the organisational structure is based upon:
CAPCO is an organisation with flat organisational structure. Flat structure refers to few layers of hierarchy in the organisation. The span of control in CAPCO is wide as there are few layers of managerial hierarchy. CAPCO applies matrix structure to complete its projects as they have multiple projects running simultaneously. (Brooks, 2009) On the other hand, Tesco is the organisation with long hierarchal structure and therefore has narrow span of control. The beliefs and principles of the organisation form its culture. The organisation culture depicts the behaviour of the employees in the organisation. The culture of the organisation is the basis on which the way of performance of the organisation depends. (Atkinson, Nazarian and Greaves, 2015)
Classification of organisation culture:
CAPCO has a very open and free organisation culture. The employees are free to share their views regarding the issues in the organisation. They have freedom to take part in decision-making processes. HSBC, on the other hand has a very systematic culture. They follow the strict rules and regulations to run the organisation. They allow creativity and changes but in concern with the framed rules.
Organisational structure and culture depends on each other. Change in organisational structure affects the culture of the organisation and vice-versa. For example, if an organisation decides to decentralise the system then they have to change their culture according to that. If we talk about the organisation CAPCO, they have the flat organisational system with few levels of hierarchy. This facilitates them to communicate easily. The employees can easily share their views to the top management and hence it creates a free organisation culture. If the culture of the organisation is free then the employees in the organisation can work according to their creative minds that improve the performance of the employees.
The growth rate of CAPCO is 14.7%. This is because of the people culture in the organisation. Employees in CAPCO are involved in the decision making process so that the incorporation of any new thing in the company is introduced in concern with the employees working there. Freedom of creativity motivates the employees to brainstorm on their own on the issues in the organisation. Employees in CAPCO are not dependent on their seniors to perform, they are free to apply their way of working and it acts as a motivation to perform in the organisation. Employees are the biggest asset of the organisation and the success of organisation depends on the performance of the employees. If employees are free to perform, they can enhance the performance of the organisation as a whole.
Many factors affect the behaviour of an employee in the organisation. The surrounding of the organisation and the individual’s own traits, both are factors that may have their impact on the behaviour of employee. The insight of an individual comes out in his behaviour and his response to the surroundings depicts his behaviour at work.
Factors that influence individual behaviour:
Leadership means the ability to lead others. Leaders act as the guide to their followers. Leadership is the quality of a person to make others do the work under specific circumstances with specific behaviour. Leaders not only guide or mentor their followers but also influence them. As different people have different personality, so they have different styles to control or manage people. These styles can be referred to as leadership styles.(Grint, 2005)
Classification of leadership styles:
Different leadership styles by different organisations:
Organisational theory is the inter relation between the concepts and the approaches used in the organisation. Organisational theory forms the foundation of the organisation. It depicts what all approaches, the organisation use for its functioning. Organisational theories adopted by the organisation depend on its culture and structure. Different organisation has different structure and therefore they have different approaches or theories.(Wheatley, 2006)
Below are the theories that affect management practices or approaches:
Classical management theory: This is a traditional organisational theory adopted by the organisation with formal structure. It gives emphasis on the structure of organisation. Classical management theory consists of two management approaches:
Bureaucratic approach: Scientific approach of management is based on improving the productivity by using scientific tools of management. It focuses on the standard rules for the organisational functioning. The basic components of this approach are efficiency in productivity, standard tools, efficient use of resources, proper workflow, division of labour etc. The organisation that follows this approach deals with using standard processes in the functioning of the organisation.(Williams, 2006) Bureaucratic approach refers to the use of standardised rules with proper hierarchy. The main element of this approach is clear definition of roles in the job. They also deal with formal organisation and have standardised rules. In spite of that, they also focus on the specificity of the jobs and the levels of hierarchy in the organisation.
Neo classical approach: Neo classical approach is also known as human relation approach. It focuses mainly on the employees of the organisation. It is the integration of behavioural science with the management of people. The organisation with this approach believes in getting work done with the help of human resource available in the organisation. These organisations focus on the behaviour of the employees and try to influence them to perform better.
Modern approach to management: This approach is used mostly in all of the organisations now. This approach focuses on employee as well as productivity. This is a balanced approach to management. The processes used in this approach are inter- related with each other. Two approaches fall under this category:
Contingency approach: System approach deals with both, task as well as people. Organisations with this approach use the strategic process to improve productivity in consideration with the behaviour of the employees. Contingency approach is based on situations. Organisations with this approach are flexible towards the situation. They use different approaches at different situations. They believe that conduction of processes in an organisation cannot be done in similar manner every time. Changes have to be brought in the approaches and functioning techniques of the organisation according to the current situation.
Different management approaches are used by different organisation having different structure. Management approach adopted by the organisation depicts the focus of the organisation. Organisation that focuses on people use different approach than the organisation with productivity focus.
CAPCO: CAPCO use contingency approach to management. The focus of this organisation is change management. It believes in changing the strategies according to the change in the situation. Therefore, the best approach that can be used by CAPCO is contingency approach. CAPCO gets guidance from the change management consultants in accordance with the dynamic environment.(Capco.com, 2016)
HSBC: HSBC is the organisation that uses system approach to management. HSBC focuses in the improvement of productivity by efficient use of human resources. Organisations like HSBC have specific rules and regulations on which they work. HSBC is a customer oriented firm and train their employees to deal with customers in an efficient way. They hire skilled employees for dealing with customers.(HSBC.com, 2016)
System approach by HSBC
Contingency approach by CAPCO
Leadership refers to capability of an individual to mentor and control others. Leaders are those who can control their followers and guide them whenever necessary. Leadership does not limit to mentoring and controlling, it is the ability of an individual to persuade people to make them work. Leadership is about motivating employees to do work efficiently. The style of leadership depends upon the leaders as well as the follower who needs to be guided in accordance with their nature. Different leadership styles have different impact on the motivation of employees.(Jogulu, 2010)
Motivation stimulates employees for efficient working. The performance of the employee automatically gets improves if he is motivated by factor. Different leadership styles falls under two categories.
Persuasive style: In this style, leaders make the decision and after that persuade or influence employees to work according to that decision. Leaders motivate the employees but the factors of motivation are in accordance with the leaders only. This style has less impact on motivation, as if the employees are not happy with the decision made then they do not feel motivated to work in a way leader wants them to do. The style that falls under this category is autocratic leadership style.
Participative style: This style favours the participation of employees in the decision-making processes. The leadership styles fall under this category are autocratic, democratic and laissez faire. Both these styles allow the employees to participate and share their views and opinions. This style itself is a motivation for employees as they feel the importance of getting involved in the organisation’s processes. These leadership styles have great impact on the motivation of the employees in period of change. As the human needs change with time, the factor that motivates him to chase that need also changes accordingly. The leaders have to create the greed of achievement of that needs in the employees to motivate them.
Maslow hierarchy needs theory: Maslow hierarchy needs theory focuses on the hierarchal pattern of changing needs of an individual. This theory identifies that the needs of the individual alters with changing period. On the account of achieving those needs, individuals perform their task. The thought of achieving those needs motivates them to work. Below are the levels of the needs in this theory:(Jogulu, 2010)
Physiological needs of an individual are the survival needs. These needs form the foundation of the Maslow needs hierarchy theory. These needs are very basic in nature and include air, water, shelter and food. After completion or achievement of physiological needs, individual tries to achieve the needs of safety. Safety needs refers to the needs related to the safe environment of the organisation and the security of job of an individual. After security needs, employee wants to retain in the organisation. An employee has to be social because humans need the support of others to retain in a society. This involves the social needs of a man that is about getting support from the superiors and the colleagues. Next is the need of self-esteem. Everyone wants to be valued. Employees need to be recognised for the work they do or the task they perform. This recognition fulfils the need of self-esteem of the employees. Last level of needs is the self-actualisation. At this level, the individual is satisfied with his achievements and move towards growth and creativity.(Wheatley, 2006)
Application of Maslow hierarchy needs theory: Maslow theory of needs to be applied in the organisation with involvement of managers as well as employees. Achievement of basic needs requires the efforts by employees to do the delegated tasks and managers should do the efforts to provide proper knowledge of the tasks to the employees. Achievement of safety needs require a safe environment to work. Organisation should also give a sense of job security to the employees. Achieving social needs requires social interactions between the employees or between the employees and the top management. This interaction acts as a support to the employees. For fulfilling the needs of social esteem, organisation should provide employees with a reward system. Introduction of reward system motivates the employees to work and the recognition of their performance inspires them to work in a better way. Lastly, employees realise their worth and try to grow in the field. This will give them a feeling of self-actualisation and satisfaction.(Luthra, 2015)
Hertzberg two-factor theory: This theory by Fredrick identifies that there are two factors affecting the employee’s performance in the organisation. The employee can be either satisfied or dissatisfied with the organisation. The two factors are:
Motivation factors inspire employees to work. They are the inspirational factors that stimulate the employees to perform better in future. They create a sense of competition. Hygiene factors are not present to satisfy employees but are present to avoid the feeling of dissatisfaction. It involves the working environment or the behaviour of colleagues etc. Small celebrations on festivals create liveliness in the working environment but the absence of celebration also does not create the dissatisfaction. This is an example of hygiene factor that affects the employee performance. (Grint, 2005)
Application of Hertzberg two-factor theory: Hertzberg theory suggests that both the factors should be given equal concern in the organisation. This theory can be applied by introducing reward system to motivate people in the organisation. Hygiene factors can be introduced by conduction of small parties, creating a external environment etc.
Introduction of motivational theories proves to be very important in the organisation. These theories motivate employees to give better performance. Motivation is a process of inspiring people or we can say that stimulates them to perform towards a particular goal. If an employee is giving his best then it is easy for an organisation to achieve the final goals or objectives but most of the time it is the demotivated staff that restricts the achievement of organisational gaols.
Managers are the one who mentor and guide the employees to perform. They delegate the duties and responsibilities according to the skills of the individual. Skills are not enough to perform in the organisation. Some of the circumstances may demotivate employees to work. It is the duty of the manager to keep a watch on this. He needs to inspire employees in regular intervals. Verbal motivation can affect the employees but not at much extent. Employees require rewards and recognition to perform. In other words, managers have to create greed in the mind of employees towards the achievement of rewards. This greed automatically motivates them to perform. This performance benefits the employee as well as the organisation. It is very necessary that manger understands the importance of motivational theories and introduce them in the organisation. Managers have to evaluate the nature of the employees to motivate them because all employees differ in the choice of motivation factors. Some employees get motivation by monetary rewards and some by recognition. Therefore, managers have to apply the theory of motivation according to the employee’s nature as well as in accordance with their career stage.
People coming together to interact with each other generates a group. In respect to organisation, employees interact with each other with some purpose and form a group. The purpose of interaction decides the type of the group. The purpose can be social and official. (Kelman, 2006)
The top management people form official groups. The purpose of this group is to make decisions regarding the issues in the organisation. The members of this group are the people with specialised skills who can contribute to the purpose. After completion of the purpose, some groups dissociate and some remain as it is for future purposes. For example, group of Board of Directors is a permanent official group while the group formed for completion of a project dissociates after achievement of the purpose. Social groups have the purpose of interacting with each other on social issues. Members join these groups according to their own choice and can leave the group if they want. The bonding of social groups is based on the emotions. For example, the group of friends in an office is a social group. The members of that group can be from any of the department. They share the kind of relationship and attachment to each other. Group behaviour depicts how the individuals in the group are behaving collectively. People join groups for many purposes and they behave accordingly. You will find that the social group always looks happy and stress free as compared to the official groups. The nature of group behaviour depends on the purpose. Two friends behave differently if they are a part of an official group. The interaction of the people in the organisation may have its impact on the behaviour of the individual. Three key phenomenons can be focussed upon while studying the effect of group:
Groupthink refers to reaching out to a decision with involvement of all the members of the group. Group shift suggests that group has more risk taking capacity than the individual as the risk divides in the group decisions. It also suggests that the support of the members shift the view of an individual from normal to extreme. Deindividuation means loss of individuality. Individuals loss their individuality as they act as a group. CAPCO favours the practice of working in teams. As the organisation has open and free environment to work, employees can easily interact with each other. This supports the functioning of group as the members of the group feel more comfortable working with each other even in the formal groups. CAPCO supports the formation of the temporary formal groups as they get dissociated after the completion of the project.
Working in a group is not an easy task. Maintaining a synergy in the group is very difficult for long time. Individuals in the group can become the strength of the group but sometime act as an inhibiting factor as well. The teamwork is very much influenced by the external as well as internal factors. Some promote the teamwork and some may inhibit them. (Frazer and Oswald, 2009)
CAPCO is an organisation that supports working in a team. It believes that working in a team give better results than working individually. The factors that promotes teamwork in CAPCO are
CAPCO does not have any inhibiting factor that influences the teamwork of that organisation. CAPCO has great communication channel, they have great leadership approaches and the employees are free to share their views.
In today’s era, we cannot imagine even our daily doings without technology. Technology has great impact on our lives either personal or professional. Likewise, organisations are also not away from the technology. Innovations in technology prove to be very beneficial for the organisational functions. Introduction of new gadgets, improvement in software etc lead to ease in communication and data transferring. Some of the new technological advancement that is beneficial for the organisations are:(Sevincer, Kluge and Oettingen, 2013)
CAPCO is the organisation that is using technological benefits at great extent. Following are the technologies used by CAPCO:
Organisational structure and culture are the interdependent and a very important element of the organisation. They form the foundation of any organisation. Organisation adopts different approaches to management, motivational theories and leadership styles based on their organisational culture and structure. Different leadership styles that can be adopted by the organisations are democratic, authoritative and laissez faire. Motivation is another important element that is used by the organisation to inspire people to work. Motivational theories like; Maslow hierarchy needs theory and Hertzberg two-factor theory can be introduced in the organisation to motivate people. Another element or factor that has been focussed is teamwork. It is very important for the organisation to work in a team because it gives better performance results as compared to the individual performance. Technology supports the teamwork and makes it easier for the employees to communicate with each other.
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