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Unit 3 Organization & Behaviour Assignment - CAPCO & Next plc
In an organization, the behaviour of employees plays an important role in the success of the organization. The organization behaviour is used to create more efficient business organization using appropriate approaches for managing the workforce in order to obtain maximum level of output from an individual as well as from group members. The unit 3 organization & behaviour assignment CAPCO & Next plc would compare the culture and organizational structure of Next plc and CAPCO. CAPCO is an organisation working in financial sector. The organisation has international presence. It employee strength of the organisation stands at more than two thousand. This report also discusses the effectiveness of different leadership styles and their impact on motivation. Report has analysed the groups and their behaviour in organisation.
Figure 1: Logo of CAPCO
1.1 Comparison of CAPCO’s structure and culture with Next plc
An organization is identified in the market through their responsibilities, employee relationship and authorities. The structure of an organization plays a significant role in development of a company. The structures of an organization are to keep flow of work and bring profit to the organization (Chen.et.al, 2010). The similarities and comparison between the structure and culture of CAPCO and Next plc are as follows:
Table1: Similarities between CAPCO and Next plc
CAPCO and Next plc
Hierarchical form of structure
Both CAPCO and Next plc follows the hierarchical structure. The distribution of authority and responsibility is in hierarchical manner.
To enhance the productivity per employee both, the CAPCO and Next plc use task based culture. The culture followed by these organizations supports motivational and personal growth of the workforce.
Type of communication
The formal communication is followed in CAPCO and Next plc in order to meet the goals and objectives and informal communication is used to make more flexible and responsive the culture followed in CAPCO and Next plc (Colquitt.et.al, 2011).
The roles and responsibilities of the leaders’ management, employees are similar in both the organization. Employees are provided flexibility in order to manage their work and achieve the set goals and objectives of the organization.
Table2: Comparison between the structure and culture of CAPCO and Next plc
CAPCO follow decentralized decision making process. Means everyone’s participation is allowed in the decision making process.
Next plc follow centralized decision making process. This means the power of making decision is limited to only the top level of management and employees are not allowed to participate in decision making process.
Span of control
It supports the flat and wide span of control which means that there is a more power at each level to manage the task with less communication with the managerial staff (Schein, 2010).
Next plc supports tall and narrow span of control this means that the employees make direct communication with the managers because the employees in Next plc are less in number.
Structure of work process
CAPCO uses the division method in which it divides the work among the group of employees.
The employees of Next plc follow the bureaucracy structure and are grouped for a static purpose.
Uses democratic leadership style.
Uses autocratic leadership style.
1.2 Relationship between CAPCO’s structure and culture impact on the performance of the business
The performance of the CAPCO’s business can be affected by the relationship prevailing between the structure and culture of CAPCO. If the structure of CAPCO is not leading to a healthy and understanding work culture then the organization will be unable to meet all its goals and objectives. The culture at CAPCO is driven by its structural flexibility and strategies. The structure of CAPCO is based on the objective to meet the organizational goals with personal growth of the employees working over there. The culture of CAPCO is fully depended on the outlook and behaviour of the employees (Alvesson, 2012). Therefore, CAPCO uses the horizontal and vertical distribution of the roles and responsibilities so that in each level more freedom can be delivered.
CAPCO believes that motivated employees are more productive as compared to other normal employees. Thus, CAPCO uses the innovative and motivational culture which helps the organization in achieving its goals and objectives efficiently and effectively. CAPCO uses the flexible and dynamic workforce in order to meet the dynamic requirements of the organization. Employees are also provided with the high skill training and development programmes so that their skill and abilities are enhanced and to prepare them for the dynamic nature and roles in workplace (Naranjo-Valencia.et.al, 2011). The structure of CAPCO is of modular type so that any changes in the strategies can be formed and implemented easily according to the needs and expectations of the employees. The flexible communication helps in forming and maintaining the better culture for achieving the set objectives efficiently. With flexible communication employees are made free to be in touch with the management for improving the culture of the organization (Jones, 2010). Effective group norms introduced in the workplace helps in achieving the consistency in presence, integrity in work and trust among the employees.
1.3 Factors which influences the individual behaviour in CAPCO
There are several internal and external factors such as company structure, values, benefits, objectives, etc which influences the employees while they are at work. If there not well established structure and supportive attitude from the top management then, the employees doesn’t feel good and they started losing the work interest. Similarly, if the culture of the organization is not well defined and developed, the employees started feeling lazy about the work and they try to escape the work. Following are the factors which influences the individual behaviour in CAPCO:
- Leadership: The leaders and managers play an important role in influencing the behaviour of the employees working in CAPCO. It is been observed that employees do not feel to going to work when they have strict bosses (Keyton, 2010). It is the responsibility of leaders to understand the employees and provide them with the right direction and make them happy and satisfied.
- Job responsibility: The employees should not be overburdened otherwise they will feel restricted and unhappy about the work. They should encourage for upgrading their skills from time to time so that they perform their best.
- Relationship at Work: Employees feels uncomfortable and impossible to work in an isolated environment. Not allowing employees to interact and communicate with the fellow works leads to frustration and stress at workplace (Mowday.et.al, 2013). Thus, CAPCO should provide a friendly environment to its employees.
- Work Culture: Employees should feel comfortable for being positive and happy at the workplace because the tight work culture would influence their behaviour at workplace. The rules and regulations made in the organization should be same for all the working with employee over there (Lee.et.al, 2011). Transparency at all the levels is necessary. CAPCO should avoid complicated reporting systems. The employees should be provided with job security.
2.1 Comparison of effectiveness of different leadership styles at CAPCO and Next plc
Leadership plays a vital role in the organization. A good leadership helps in dealing appropriately the prevailing situation and taking effective and better decisions. Leadership helps managers to handle and make optimum utilization of available human resource in the organization (McShane and Von Glinow., 2015). The effectiveness of leadership styles used in CAPCO is as follows:
- Autocratic Leadership: The autocratic leadership style in CAPCO helps the managers to centralise the power of decision making with him. The employees are not allowed to have participation in the decision making process of crucial matters. The decisions so made are to be followed strictly by the employees. This style helps in making the fast and effective decisions.
- Transformational Leadership: This style helps CAPCO to motivate the employees through high level of communication from management and providing high visibility. The employees will feel important, happy and satisfied (Tannenbau.et.al, 2013).
- Participative Leadership: In this style, inputs are invited from the employees in the decision making process. This will help in boosting the employees’ moral and attaining the job satisfaction. This will in turn result in increase in productivity and profit. This style helps in bringing creativity in the workplace.
The effectiveness of different leadership style used in Next plc is as follows:
- Laissez-Faire Leadership: The highly talented and experienced employees in Next plc are provided with little or no supervision (Parris and Peachey, 2013). The employees are allowed to make freely the decisions related to their work. This helps in attaining job satisfaction and the employees become more productive with improve performance.
- Transactional Leadership: The reward and punishment system is followed in this style. Managers of Next plc distribute the task among the employees and give the reward or punishment on the basis of their performance. This style enhances the level of competition and which result in increase in productivity and improvement in performance.
2.2 Influences of organizational theories on the practice of management
The organizational theory examines the organization in order to identify the structure and pattern for resolving the issues faced by the organisation. The theory helps in resolving problems like meeting the stakeholder objectives and enhancing the production capacity. Applying the organizational theory correctly has several benefits for both the organization as well as to society also (Jogulu, 2010). The solutions to the business problems and business strategy are governed by the organizational theories. Some of the theories which are used by CAPCO are
- System Theory: System theory is a interdisciplinary study of system. It was developed by the Scott in 1981. This theory states that any small changes in a variable can cause huge effect on another variable and a big change in a variable would have less or no effect on another variable. This theory helps in understanding the set of objects, the relationship between those objects and the relationship between the set of objects and their environments (Voo.et.al, 2011).
- Scientific Management Theory: This theory was developed in 1917 by Frederick Taylor. The scientific theory is a management theory which helps CAPCO in analyzing the work flow in order to improve the economic efficiency, especially labour productivity (Shafritz.et.al, 2015). The objective of this theory is to get the work done in the best manner by offering motivation to the workers.
- Human Relation Theory: This theory is used by the organisations in dealing with the human resources. The theory focuses on using the motivation to get the work done. The theory also focuses on building values while working in the organisation. CAPCO focuses on the requirements and skills of the employees and encouraging them in the decision making process in order to attain the moral of the employees.
2.3 Different approaches to management used by CAPCO and Next plc
There are many fundamental approaches which is used and followed by the business management in different sectors according to their requirements (Burke, 2013). Some of the commonly used approaches by CAPCO and Next plc are:
- Human Behaviour Approach: The human relation approach is similar to the strategic management based on the fact of working hard to achieve the long term plans. This theory assist the both the organization to discover and identify the psychological needs of their employees with the purpose of attaining the long term goals. CAPCO motivates its employees by providing the facilities such as accommodation, house rent allowances, etc so that they feel happy at the workplace and they become more productive with improved performance (Saaty and Kearns, 2014). Where else, Next plc motivates employees by making them self dependant.
- Social System Approach: The approach considers that in an organisation there are people coming from different cultures and social systems and the organisation needs to deal with them considering their social and cultural values. The management at CAPCO and Next plc follows this approach and aims to build harmony among its employees (Armstrong and Taylor, 2014).
- Contingency or Situational Approach: This approach is an attempt made to integrate all the approaches to management. This approach helps the managers of CAPCO and Next plc to identify the factors which help in growth of the organization. This approach facilitates in identifying the technological needs of the organization and allocation of the resources accordingly (Parsons, T., 2013).
- Management Science Approach: The approach is used in CAPCO and Next plc at the higher management level for taking decisions.
3.1 Impact of different leadership styles on motivation within period of change
Leadership is the process of motivating, providing direction, implementation and planning in the organization in order to achieve successful attainment of the goals and objectives. There are many types of leadership styles used in CAPCO for achieving the set business targets. Motivation is the process used for encouraging the workforce to be more effective and productive (Van de Ven.eyt.al, 2013). The leadership styles such as authoritarian, participative and transformational leadership styles are used for showing the right direction to the employees and motivating them to work harder and dedicatedly at the workplace.
- The authoritarian leadership style used in CAPCO has a significant impact on the motivation within the period of change. The leaders’ uses this style in order to apply the change occurred in all over the organization. This style carries the lot of involvement of top management which supports and helps the employees working in CAPCO to accept the changes (Herzberg.et.al, 2011). This type of leadership is used to prevent the organization from the escape of employees from work and absenteeism due to introduction of such changes in the organization. The motivation of employees is nil in case of this leadership style.
- The participative or democratic leadership style motivates the employees a lot during the period of change in the organization. In this style the participation and opinions of each and every employee’s are welcomed. The employees of CAPCO are made free to give their suggestion and viewpoints regarding the change. This type of participation helps in bringing the positive attitude of employees towards the change. The employees are motivated by understanding their problems and providing absolute solution to their problem regarding the change (Schunk and Zimmerman 2012).
- The transactional leadership style helps CAPCO in motivating the employees by using the reward and punishment method in order to accept the change more precise manner and quickly.
3.2 Comparison of the application of two motivational theories within CAPCO
Motivation is the process of stimulating one’s behaviour and actions for successful accomplishment of predetermined goals and objectives of the organization. The motivational theories help in providing proper motivation to the workforce practically. The two main motivational theories used in CAPCO are as follows:
- Maslow’s Motivational Theory: This theory was developed in 1943 by Abraham Maslow. It is also known as Maslow’s hierarchy of needs because Abraham describes the human motivation pattern in a hierarchy form. The different types of needs in the hierarchy are physiological, safety, belonging, esteem and self-actualization needs. CAPCO develops various strategies in order to identify the needs of the workforce and to fulfil successfully those needs in order to attain the high productivity per individual (García-Morales.et.al, 2012.).
- Herzberg Motivational Theory: Herzberg stated this theory and is also known by the term Two-Factor theory. The term is used as there are certain factors which contribute to the satisfaction of employees. These are classified as motivation and hygiene factors. The factors like pay, benefits comprise the hygiene factors while recognition and promotion comprise the motivation factors. CAPCO uses this theory in order to achieve job satisfaction among the employees by identifying and increasing the job satisfaction factors in the workplace (Herzberg.et.al, 2011).
Table3: Comparison of Maslow's and Herzberg motivation theory
This theory is based on the concept of human needs and their satisfaction.
This theory is based on the use of motivators for providing job satisfaction.
Basis of Theory
Based on hierarchy of human needs (Maslow, 2013).
Based on hygiene factors and motivation factors .
Nature of Theory
Simple and descriptive in nature.
Prescriptive in nature.
Human needs act as motivator.
Higher order needs such as achievement, recognition, etc act as motivators.
3.3 Necessity for manager to understand motivation technique and apply motivation theories at the workplace
HR manager of the CAPCO needs to understand the theory of motivation and try to apply them while managing the employees. Motivation is the best way to increase the efficiency of the employees and it will directly affects the production part of the organization. Through motivation manager can boast the morale of the employees. Motivation is the liability of the manager that he needs to perform to improve the performance of the employees. Motivation can be monetary or non-monetary, monetary benefits include incentive, bonus, salary increment etc whereas non-monetary includes convenience facility, house rent allowance, promotion etc. Motivational theories assist the manager to improve the communication skills, performance improvement, boast morale etc. Incentive assists the manager to touch the emotional feelings of the employee and try to solve the problems as a friend. It is best way to identify the needs of the employees and try to fulfil them (Pinder, 2014). As per the motivational theories manager should identify the problems among the employees or team mates and try to solve them as soon as possible. CAPCO needs to maintain the friendly environment in the organization by which employees feel motivated and give their best to achieve the organizational goals. In organization employee think that the leader should understand their problems and sometimes make the work flexible by which employees perform well this all things a manager can understand through motivational theories. Motivational theories assist the manger to maintain the discipline in the organization so the employees perform the task in improved manner. The theories state that manager should treat the employee’s equal by that they did not feel discrimination at the work place (Armstrong and Taylor, 2014).
4.1 Nature of group and group behaviour in CAPCO
Team can be formed by two or more than two person for better performance. The group members perform on the equal platform to achieve the same objective. Organization forms the group because when person perform in the groups then easily achieve the task in the prescribed time. CAPCO forms the group to develop the feeling of togetherness among the employees and it will create the good working environment in the organization.
- Nature of groups: CAPCO forms the group of different types to achieve the organizational goals. Group members perform different functions to achieve the organizational goals. The leaders of the group take the initiative to motivate the group members to increase the efficiency of the team mates (Homans, 2013). Each group has the different perception for the other group it creates the feeling of competition among the members which increase the efficiency of the members. In a group different members have different thinking and this affects the working of members in a group. In an organisation, the like minded people form a group. Similarly employees who are friends also created groups in an organisation. The fact is also supported by proximity theory. There are two types of group in CAPCO.
- Formal group: Formal groups are created to achieve the particular goal for the limited tenure. CAPCO design this kind of groups to achieve the specific goals within the organization. The formal groups are formed to achieve the predetermined goals in order to create the feeling of togetherness among the employees (Levi, 2016).
- Informal groups: This kind of groups are formed by the staff members as a friend or for some help related to personal matters. There is no participation of manager or senior level management in this kind of groups.
4.2 Factors that promote the development of effective teamwork in CAPCO
There are various factors that promote the development of good team work in the organization like leadership, motivation, incentive, feeling of competition etc. If team leaders organize the activities to improve the skills of the employees and it directly affects the efficiency of the employees. CAPCO adopts various methods to develop the effective team work in the organization that directly influence efficiency of the employees. Following are the points that depict the development of effective team work in the organization:
- Motivation: Motivation is the best part that influences the employees to do the task well and in predefined manner (Hu and Liden, 2015). Through motivation a manager can improve the skills of the employees and guide them to perform the task. Motivation inspires the employee to do the task in well defined manner by which a leader will be happy with the performance of the employee. Motivation can be given in form of monetary or non monetary benefits like accommodation, performance appraisal, house rent allowance, free insurance, gratuity etc. CAPCO provides the reward, bonus, health facility to the employees in order to maintain the performance of the employees. Motivation is the best way to keep the employees energetic.
- Leadership: Leader plays vital role in the performance of employees that creates feeling of confidence among the employees. With the help of quality decision making process a leader can manage the employees in better way. For effective team work a leader communicate with the employees and try to recognize their problems. Leaders in CAPCO deliver various motivational lectures for the development of the employees in order to boast the morale of the employees. A team without leader cannot perform the task and it will be the reason of failure. Team leader is the person that maintains the discipline in the team and evaluates the performance of all the team members (West, 2012). So it can be said that a good team leader try to manage the efficiency of the employees and contribute various factors for the development of effective team work.
4.3 Impact of technology on team functioning in CAPCO
Technology upgrades the team functioning in CAPCO it allows the team mates to get in contact with the entire team member within seconds through e-mail, mobile phones, social media websites etc. Technology is very effective medium to raise the profits and easily compete in the global markets. It assists the team leader to float the necessary information with the group members in very less time. Organization can get in contact with the employees who work in different part of country through wireless media, mobile phones, e-mail etc. Technology advancement has improved the work efficiency of the employees with improved quality of work. It decreases the burden of team leaders and motivates them to perform the task on time (Grint and Woolgar, 2013). Emails laptops, computer, mobile phones, internet have made the communication process easy and safe. Top management can communicate with the employees of lower level in very simple way. For example senior manager of CAPCO wants to communicate with the middle level employee then simply sent the mail to the employee or call him on the mobile and deliver the information. Through Information Technology Team mates does not require and common place or auditorium to do the meeting simply all the member can get the mails from the team leader and get the necessary information in the e-mail (Riva.et.al.2012). Team members can easily interact with the clients through video calling, conferencing, mobile phones etc that assist them to deliver the services effectively.
From this report, it is observed that organizational behaviour has a significant impact on the process of working and management of the operations. The report has provided the detailed information about the organizational structure and culture of CAPCO and Next plc organization and the different leadership styles used in CAPCO and its on the motivation during the period of change. This is observed from the report that leadership plays a vital role in business planning and proper utilization of human resources. The comparison of Maslow’s and Herzberg theories as well as nature of group and group behaviour at CAPCO is also discussed. At the end of report, the factor that promotes and inhibits the team working and the technology used for better functioning is discussed.
Books and Journals
Alvesson, M., 2012. Understanding organizational culture. Sage.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Burke, W.W., 2013. Organization change: Theory and practice. Sage Publications.
Chen, C.J., Huang, J.W. and Hsiao, Y.C., 2010. Knowledge management and innovativeness: The role of organizational climate and structure.International Journal of Manpower, 31(8), pp.848-870.
Colquitt, J., Lepine, J.A. and Wesson, M.J., 2011. Organizational behavior: Improving performance and commitment in the workplace. McGraw-Hill Irwin.
García-Morales, V.J., Jiménez-Barrionuevo, M.M. and Gutiérrez-Gutiérrez, L., 2012. Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of Business Research, 65(7), pp.1040-1050.
Grint, K. and Woolgar, S., 2013. The machine at work: Technology, work and organization. John Wiley & Sons.
Herzberg, F., Mausner, B. and Snyderman, B.B., 2011. The motivation to work (Vol. 1). Transaction publishers.
Homans, G.C., 2013. The human group (Vol. 7). Routledge.
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.
Jogulu, U.D., 2010. Culturally-linked leadership styles. Leadership & Organization Development Journal, 31(8), pp.705-719.
Jones, G.R., 2010. Organizational theory, design, and change. Upper Saddle River:
Keyton, J., 2010. Communication and organizational culture: A key to understanding work experiences. Sage Publications.
Lee, L., Wong, P.K., Der Foo, M. and Leung, A., 2011. Entrepreneurial intentions: The influence of organizational and individual factors. Journal of business venturing, 26(1), pp.124-136.Levi, D., 2016. Group dynamics for teams. Sage Publications.
The Unit 3 Organization & Behaviour Assignment CAPCO & Next plc would compare the culture and organizational structure of Next plc and CAPCO, Locus Assignment Help in UK posting free units solutions so scholars can explore assignment help and get review the quality of our work.