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Unit 3 Organization and Behaviour Assignment – CAPCO Ltd
Diploma in Business
Unit Number and Title
Unit 3 Organization and Behaviour – CAPCO Ltd
The unit 3 organization and behaviour assignment CAPCO Ltd has a main focus on the behaviour of individuals in the organizations. The project is based on the case study of CAPCO which is a consultancy firm which provides consultancy in IT, management and technology. The culture and structures of the organizations will be discussed in the assignment which can determine and affect the behaviour of the employees in the organisation because every organisation has different culture and it influence its management and workforce. Also there are some motivational theories which will be discussed to know that how it motivates an employee in the organisation. The importance of teamwork and group behaviour will be discussed to know how it shapes the organisational behaviour of the individuals.
1.1 Compare and contrast CAPCO’s structure and culture with another organisation of your choice. Show the differences and similarities in these two organisations.
The organisation structure can be understood as the arrangements of people, their roles, rights and duties in the organisation. The structure of the organisation shows that how the work is allocated among different levels of the organisation which helps in achieving its objectives and targets (Champoux, 2011)
There are different types of organisation structures which are followed by the companies which are discussed below in points:
- Functional Structure: This organisational structure is based on the different functions of the organisation like IT, finance, marketing and the departments are divided according to the functions.
- Product based Structure: This organisational structure is mostly followed in large companies where the divisions are made according to different products. There are specific responsibilities of each department which is related to the product.
- Geographically based Structure: This type of structure is based on the groups which are located at different locations. The departments are based on the different locations where the offices are located (Brooks, 2008)
- Multifunctional Structure: This is the structure in which there is an alignment of different functions of different departments of the company.
- Multi divisional Structure: This structure of the company involves the alignment of the company to the different divisions of the company which can be made geographically or based on functions and product. This structure coordinates the activities of different departments or divisions.
- Matrix Structure: This is the hybrid of the functional and product based organisational structure which is mostly used in large companies which operates globally (Brooks, 2008)
- Centralisation Structure: Here, the head office will have all the powers and responsibilities and the decisions will then be passed to all the branches.
- Decentralisation Structure: In this structure, the powers and responsibilities are delegated to different branches of the company so that the main head office can focus on some other important matters (Brooks, 2008)
Organisation cultures: These are the values and beliefs which governs the behaviour of people in the organisation. These affect the activities of the people and guide them how they have to act in different situations. Thereis different type of cultures followed in the organisation:
- Power culture: Here all the powers are in the hands of few people at top positions and others have to follow.
- Role culture: Here, the powers are distributed to different people and they have to operate according to their roles
- Task culture: In this culture, every team gets a task and they are required to accomplish the given task by putting group efforts.
- Person culture: In this culture, the persons working in organisation get different roles to achieve common objective of the company and individual (Mullins, 2009).
CAPCO- comparison with Albridge Solutions Inc. - The structure of CAPCO is Multifunctional and multidivisional where the different departments and different functions are aligned for better working with the achievement of the objectives of the company. CAPCO has person culture where different roles are given to each person or employee who is motivated to achieve his role. The company supports the employee by continuous support and help. People are rewarded for their good work and the employee get challenging work for their personal growth too (glassdoor.co.uk, 2016). On the other hand Albridge Solutions Inc. is one of the leader in providing the enterprise solutions and consultation services. The firm has matrix structure which is the hybrid of product or functional based structure and the culture of the organisation is power culture where the management has all the power and the employees are facing through the negative culture within the organisation. The employees are de motivated as they not rewarded for their good performance in the company.
Albridge Solutions Inc. - The difference in the culture and structure of both the organisation is that where CAPCO is following the friendly and cooperative culture and equal opportunities are given to all the employees, Albridgebelieves in holding all the powers in few hands which does not motivate employees to work hard. The similarity in both the companies is that both the companies provide a good competitive pay and salary to its employees.
1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of its operations.
There is a direct link between the structure and culture of the organisation which have a great impact on the performance of its operations. The structure and culture of the organisation are the main factors which determine the quality of its performance. CAPCO is following a very friendly and cooperative culture which promotes the motivation in the employees and they are determined to work by putting more efforts so that they can achieve the goals and objectives of the organisation. It follows a structure which is multifunctional and multidivisional which shows that the different activities in different departments which are located at different locations are aligned properly, so that thecoordination can be maintained between all the divisions and functions. This lead to the better functions and operations of CAPCO and the decisions are made by keeping in view the needs and reviews of all the divisions which helps in proper management of resources and work. This helps not only in increasing the capabilities of the organisation but also in the enhanced performance of the company because a good and cooperative culture makes people think for the organisation’s better performance (Robbins, 2011). The person culture followed in CAPCO helps it in keeping its employees satisfied which is very important for the attainment of the objectives of the firm. This also helps the company in having a competitive edge in the industry.
1.3 Discuss the factors which influence individual behaviour in CAPCO or in any organisation of your choice.
There are various factors which are responsible for influencing the individual behaviour in CAPCO and every other organisation. These factors are:
- Personality: The personality of every individual is built from its background, family, environment and surroundings and personality i fluence the behaviour of the individual in CAPCO because the person will act and react according to what he has learned from his surroundings (Tosi&Pilati, 2011).
- Racial backgrounds: the racial backgrounds of people determine the thinking of people which are different for different people.
- Status: The status of people determine their attitude and behaviour in the organisation like the manager will have different behaviour from the low level worker in CAPCO because they will be having different roles to play and not the same powers to carry on functions.
- Environmental factors: These are the factors which influence the behaviour of people in the organisation. The business environment includes the wage rate in the industry, chances or opportunities for growth in the industry, etc.
- Cultural factors: The culture to which the individual belongs is different in different countries and places which determine their behaviour and the culture shapes the behaviour of the employee in the organisation (Tosi&Pilati, 2011)
- Personal factors: Personal factors refer to the characteristics which makes every individual different. These include the colour, caste, sex, age, marital status, etc which affects the behaviour of an individual in CAPCO.
- Structure and culture of the organisation: The structure is the arrangement of status, roles and powers and culture is how the roles and responsibilities are carried on in the organisation. These definitely influence the behaviour of an individual in the organisation CAPCO follows a cooperative culture which helps in the development of an employee and they get motivated and comfortable inthe company (Tosi&Pilati, 2011).
2.1 Compare the effectiveness of the different leaderships at CAPCO and any other organisation of your choice
Leadership is when a single person directs and guides a group of people in a particular way so that the organisational objectives can be achieved. Different leadership styles are adopted in the organisations which are suitable in achieving their aims and objectives. The types of leadership styles are explained below:
Authoritarian Leadership Style
In this style of leadership, the powers and controls remain in the hands of few people who belong to top management. They themselves take all the decisions and the employees have to follow as directed. The advantage is that the decisions are made quickly and effective decisions are taken but the disadvantage is that it takes too much time and the growth chances of the employees are limited (Wickramasinghe&Perera, 2014).
Democratic/ Participative Leadership Style
Here, The group members are consulted by the team leader and then the decisions are taken. IT is often seen the team which has participative leadership is more creative and more satisfied as they are given importance by the leader. It fosters good relationships among the people but this leadership involves a lot of time in decision making.
Laissez –faire Leadership Style
This style of leadership provides chance to all the members to take decisions for the team on their own. They resolve their issues on their own and decide how to move ahead. This provides the benefit to the employees in terms of job satisfaction and freedom but this can lower down the actual work productivity of the team as there is no strong control on the team (Wickramasinghe&Perera, 2014).
CAPCO follows participative leadership style where the decisions are taken by involving the employees and by taking their opinions on the matters which makes them satisfied by their job and also the decisions taken are effective as different opinions are taken and then the decisions are made. As the name suggests, participative leadership style gives chances to every employee to participate in the decision making of the organisation or team. The other organisation which is taken is PepsiCo UK and Ireland which is known for its high quality cultural practices (pepsico.co.uk, 2013). PepsiCo is a food and drinks manufacturer which has a huge portfolio of brands of drinks like Pepsi, Tropicana, quacker oats and more. The organisation follows a mixture of participative leadership style and autocratic leadership style. The organisation is known for its leadership development and involves activities like job rotation, mentoring, etc which enhances the experience of the employees (pepsico.co.uk, 2013). It also follows autocratic leadership as the workers have to follow the rules and regulations which are decided by the leaders of the organisation.
2.2 Explain how organizational theories (e.g. scientific management and human relations theory) have had influence on the practice of management
The organisational theories are the ones which have a great influence in determining the environment prevailing in the organisation and these are also helpful in explaining the structure and culture of the organisation and it provides suggestions for improving the existing environment in the organisation (Taylor, 2012). Different organisational theories are:
- Human Relations Theory: Here it is believed that the main demands of the workers should be met so that they can be satisfied and can focus on their main targets. A satisfied employee is the most important asset for the organisation and contributes in the productivity of the organisation. Healthy relationship and environment, good pay and other rewards are some of the factors which satisfy the employee from the job.
- Scientific management theory: This is the theory which focuses on planning so that specialization and effectiveness can be achieved and the management and workers work together with cooperation by having trust on each other so that the productivity can be increased. CAPCO uses this theory so that it can develop skills in its workers by having trust on them. It also involves providing development opportunities to them so that they can work more effectively for achievingthe goals and objectives of the company (Taylor, 2012).
- Administrative theory: This theory was given by Henry Fayol which is based on certain principles of management and there are various functions which are involved in management lie planning, organising, directing, training, coordinating and more. Here it is believed that the group and its behaviour will directly impact the productivity of the workers. Human resources will also play a great role in productivity (Andersen, et. al., 2015)
The above explained theories have different impact on the practices of management.
2.3 Evaluate the different approaches to management used by CAPCO and your chosen organisation
There are different approaches of management which are used by CAPCO and other organisations to bring best out of the practices carried on in the management. Some of them are discussed below:
- Human relations approach: CAPCO uses the human relations approach so that it can provide maximum satisfaction to its employees. It involves its employees in decision making and believes in considering their opinions in the decision making of the organisation. This approach provides an opportunity to the employees to showcase their skills and talents which give them opportunity to grow and succeeds in their career. PepsiCo UK and Ireland is another organisation which provides healthy environment to its employees so that their performance can be increased.
- Systems approach: Systems approach is the hybrid approach in which both traditional and human relation approaches are included. The approach includes the involvement of human capital of theorganisation effectively so that the company can achieve its goals and objectives. The approach is very helpful if it is used appropriately. It helps in taking effective decisions and theperformance of the employees is improved. This approach is appropriate for both CAPCO and PepsiCo (Tosi&Pilati, 2011).
- Contingency approach: Contingency approach is the approach which says that the management and its practices should be altered for meeting the needs of the company. The environment of business of companies gets changed from time to time and companies should match the changes in order to get aligned with the environment and its needs. In the era of globalisation, it is very important for the companies to adopt contingency approach to have a competitive edge in the industries. CAPCO and PepsiCo both should have contingency approach to maintain their positions in the industry (Tosi&Pilati, 2011).
3.1 Discuss the impact that different leadership styles may have on motivation within period of change
Leadership as already discussed is the power of influencing and directing people to do a certain work for a particular goal and objective. Leaders have certain qualities which influence people to work for them. The leader can adopt various approaches which can be autocratic, participative or laissez- faire according to the situations and environment of the company. Different companies adopt different leadership styles which suits the environment of the organisation. A good leader motivates its employees and keepsthe members of the team happy so that they can give their best efforts for the organisational goal or purpose. There are different leadership styles which have an impact on the motivation within periods of change in the organisations (Larsson &Vinberg, 2010). The discussion below will clear the impact:
- Autocratic Leadership: This style of leadership is the one where the leaders have the strong powers and they believe in taking all the decisions by themselves and do not involve any of the employees in decision making of the organisation. This de motivates the members of the team as they are not consulted or given any importance for taking any decisions regarding the team or organisation. But the leadership style has a benefit as the decisions taken involve very less time and the decisions are effective as it is taken by the leader. The main demerit of this style is it does not provide any motivation to the employees and discourages their feeling of attachment with the organisation(Abd-El-Salam, et. al., 2013).
- Participative leadership: This leadership style gives an opportunity to all the members of the team to present their views and opinions on all the matters of the team/ organisation. They are allowed to participate and this style has the biggest advantage that it improves and encourages the employee to work for its organisation by putting their best efforts. The motivation level of the employee gets improved as they are given importance in the important matters of the company. They feel attached to the company.
- Laissez-faire leadership: This style of leadership is the one which gives the freedom to its employees to take their own decisions and to adopt any method to perform. Here not the managers but the employees have the power to take decisions and the managers ask them that what should be done. This style gives a very high level of motivation to the employees and the employees also feel that they are given importance in the team and they feel an attachment with the company which encourages them to work hard for their company. But this style sometimes reduces the effectiveness and productivity of the employees as they mis utilize the freedom given to them (Saeed, et. al., 2014)
3.2 Compare the application of two motivational theories (e.g. Maslow’s & Herzberg theories) within organizational setting
Motivational theories are the concepts which help the organisation to provide motivation to its employees so that they can get encouraged to work harder and to provide their best efforts to the organisation. There are different motivational theories which helps in motivating the employees in CAPCO so that the workers do not feel like leaving theorganization and they feel that they have to provide their skills and talents to the organisation so that the organisation can grow in future. Motivated employees are the most important asset for the organisation as they are the most important factor which determines the success of the firm.
The application of two motivational theories is compared below:
Maslow theory of motivation
Theory X and Y
This theory is given by Abraham Maslow which explains the motivation process of an employee in the five stages which are in hierarchy. The five stages are the Physiological needs, safety needs, love and belongingness needs, esteem needs and the self actualisation needs. When an employee attains one level of needs, he move on to the next level of need and the process goes on until the employee reaches the last stage of motivation i.e. self actualisation needs. The diagram of the hierarchical motivation theory of Maslow is given below the table.
This theory is given by Douglas McGregor which states that there are two approaches of managing people in the organisation.
Theory X suggests that the workers are not treated equally and they are de motivated which results in poor efforts from the workers. Theory X encourages the authoritarian style of management in which the workers are not allowed to take any decision of their own and they have to follow their bosses or leaders. Here the assumption is that workers dislike working, they are controlled by their leaders and no rewards are given for encouraging them to work.
Theory Y suggests that participative style of management is followed in the organisation and the assumption is that employees are motivated and are happy to work for the common goals of the organisation. They take the responsibility on their own and provide excellent results to the organisation.
The conclusion is that theory X generally provides unproductive results whereas Theory Y provides good performance from the employees and it is beneficial for the growth of the company.
The diagram of the theory is given below the table.
The theories discussed above are different and both have different concepts but both can be applied by CAPCO for motivating their employees and to get better productivity in theorganisation.
3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace
Motivation is an important concept which is to be provided by every organisation to its employees so that a healthy environment can be maintained in the company because of the motivated employees. CAPCO uses Motivation theories to provide motivation to its workforce because it is essential to keep the employees satisfied and motivated to make them work effectively for the company. CAPCO uses Maslow’s theory of motivation as this theory explains how an employee can be motivated in stages and how the different level of needs of an employee can be satisfied which will help in getting the productive employee to CAPCO (Bellemare, et. al., 2010). Also the x and Y theory of motivation is applied which helps the company to determine that it should use theory Y which helps in getting the best performance and efforts from the employees. Theory X is assumed to be the situation where the employees are not motivated and rewards are not provided to them for their extra effortswhere as theory Y is assumed to be the workplace with high level of motivation in the employees and the satisfied workers work happily for the success of the organisation. Theory Y suggests to themangers of CAPCO to adopt participative leadership style for satisfying and motivating the employees. These theories of motivation inspire the managers of CAPCO to provide an opportunity to the workers to present their views and opinions to the managers. This participation of the employees will encourage them to achieve the common goals of the organisation by putting their hard labour as employees will feel that they have importance in the organisation. The employees for their good performance get rewards and recognition which encourage them to work more effectively (Bellemare, et. al., 2010).
4.1 Explain the nature of groups and group behaviour within CAPCO or your chosen organisation.
Group is the collection of many individuals which interact or communicate frequently with each other for a casual or formal objective. These people have things in common like common interests, qualities, qualifications, etc. In a group each member is allocated with different tasks which are to be performed for the common goal or objective of the group. Team is a group of persons which have joined together to achieve a common goal. All the members are accountable individually or collectively.
There are two types of groups which prevail in the organisation:
- Informal groups: these are the groups which are made by the people for sharing their own interests and opinions. These groups are made by choice of people who want to stay together. The communication and knowledge takes place in their group through informal channels of communication. There is no set format for communicating to each other.
- Formal groups: Formal groups are made for a purpose. Here the work is allocated to each and every member of the group and they have to perform it accordingly for achieving a common goal of the team. Communication in this group takes place through formal channels like letters, circulars, meetings, emails, etc. and the member in a group share their views and opinions which are related to the goals and objectives.
Purpose of teams: The purpose of teams is to provide guidelines which enhance the productivity of the employees and they get motivated to achieve common goals by working together helping each other. They become support systems for each other. Team work is very essential for every organisation to achieve the targeted work.
Team roles: Team roles are defined in a team which is the way in which each team member has to behave according to their qualities and interests. Dr Belbin suggested nine team roles which are effective in contributing to the achievement of the common goals in an effective manner (belbin.com, 2016). These Nine team roles are given below:
- Resource Investigator: These are innovative and curious workers of the team who explores new ideas.
- Team worker: These team employees provide support to the team for achieving their goals.
- Coordinator: These employees guide the team and coordinate the efforts of every member for the common goal.
- Plant: These are the innovators who come up with new ideas and approaches in the team.
- Monitor Evaluator: These team members are best in evaluating the ideas which are bought up by Plants.
- Specialist: These team members are specialists in some of the other field and they provide their expertise to the team
- Shaper: These people provide challenge to the team to perform well.
- Implementer: These people get the things done in the team and convert the plans into actions.
- Completer Finisher: these team workers are focussed to complete the projects on deadline and see if there are any errors or if something is incomplete (belbin.com, 2016).
Stages in Team development: The team get developed in stages i.e. step by step. There are five stages of team development which has been provided by Bruce Tuckman. The stages re explained below:
- Forming: This is the initial stage where the various members of team try their best to get involved in the team and to behave in the manner which is needed in the team.
- Storming: This is the next stage where the members face clashes among themselves because all the members have different opinions on the matters.
- Norming: In this stage, the members try to cooperate with each other and try to get a solution for the differences they are facing so that they can work for the same purpose.
- Performing: In this step, the focus of the whole team is on themain goal and objective which can be attained when the team will work together.
- Adjourning: This the ultimate stage where the purpose of the group is achieved and the group is terminated as the main goal of the team formation does not exist now.
The Belbin team roles can be used by CAPCO to allocate the roles to the employees who belong to the same group so thateach employee can function according to the role allocated to him/her and the group can achieve its objectives properly. CAPCO can also make the appropriate use of the team development stages given by Bruce Tuckman so that a team can be formed properly and common goals can be achieved.
4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO or your chosen organisation
Team dynamics refers to the relationships between different team workers who work for the achievement of a common goal. Teamwork is when all the members of the team work for the same goal and there are many factors which promote the development of the effective teamwork in CAPCO or PepsiCo UK and Ireland:
- Job satisfaction: The team workers should be satisfied from their role or job in order to contribute their important efforts for the achievement of the gaol of the team (Beigi&Shirmohammadi, 2012).
- Motivation: the company should provide motivation to the workers in the team in the form of monetary or non monetary form so that they can get encouraged to work harder for the team development and achievement of purpose.
- Effective Communication: It is very important to establish effective and clear communication within the team members so that the ideas and opinions can be shared easily and the problems can be discussed openly which could remove the barriers of the goal achievement.
- Strong leadership: the leader of the team should be strong and cooperative who can bind the team together by encouraging them to work with each other with harmony and coordination (Beigi&Shirmohammadi, 2012).
4.3 Evaluate the impact of technology on team functioning within CAPCO or your chosen organisation
Technology is new innovative techniques which are used by theorganisations to produce their goods and services and to achieve their objective. Due to globalisation it is very important for the companies to adopt new and latest techniques so that it can have a competitive edge in the industry. CAPCO also have to adopt latest technologies so that it can provide innovative products and services to the clients. Also new technologies help the workers in getting their work done in an effective manner (Robbins, 2011). The below points shows the impact of technology on the functioning of team:
- Competitive advantage: Adoption of latest technology brings competitive advantage to the functioning of the team. CAPCO is the provider of financial services which needs continuous development in its technology so that the effectiveness in its functions can be attained.
- Enhancement of capabilities: the use of technology enhances the capabilities of the employees to work with quality and they can also use latest technology to increase their productivity.
Where on one hand, technology has positive impact on the functions of the team of CAPCO, there are some negative impacts too, which are:
- Adaptation problems: The members sometimes are not able to adapt to the changes which are brought by the technology which carets problem for them to work with an ease.
- Less interaction: The interaction between the team members has reduced due to the emergence f latest technologies. It createddistances between people in the team. They only communicate through chats, emails and messengers which create only the virtual communication among the team members. The real communication is essential for building good relationships among the team members for building positivity in the teamRobbins, 2011).
CAPCO is a financial provider which is based on a multi functional and multi divisional organisational structure and has a person oriented culture where the company provides continuous support to its employees so that they get motivated to perform at their best level. It can be concluded that there are different motivational theories which are used by CAPCO to motivate its employees so that they can work for the achievement of common goal. The teams in CAPCO are formed for achievement of a purpose which can follow the stages of team development given by Tuckman and the roles are allocated in the team by referring to the Belbin team roles. CAPCO is a company which believes in investing in its employees so that it can maintain its culture and can achieve its objectives with the help of involvement of its human capital.
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