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Diploma in Business
Unit Number and Title
Unit 3 Organizational Behaviour
The organizational behaviour the focus is given to the organisational behaviour. Organisational behaviour is the study that is related with the impact of the individuals, structure and the groups in the organisation. This study will help to increase the knowledge about the several dimensions of the groups and its behaviour that influences the level of productivity. This Unit 3 Organizational Behaviour Assignment Capco Culture will enlighten the facts that drive the motivation among the employees in the organisation. The organizational behaviour will highlight the relationship between the organisation structure and culture that creates a significant impact on the performances of the employees. The groups play an important role in the organisation and thus the behaviour of the groups will be identified in order to increase the effectiveness of the group members.
Organisation is generally the entity where the people work as a team in order to achieve the common business goals of the organisations. Organisation structure defined the process of task allocation, coordination and communication in the organisation. The management designs the organisation structure in order to remove the misunderstandings among the employees and the management can effectively interact with the employees (Gully and Philips, 2013). The organisation structure that is relevant for CAPCO is the Geographical structure as CAPCO is the global business organisation and having their offices at USA, Europe, India, Singapore, Africa etc.
Geographical structure will assist the business to give special importance to the different set ups in several locations. The localisation of the business can be possible and it will help CAPCO to acquire the clients effectively. The managers of these organisations are from local areas as they are specialised and well aware of the concerned market.
Functional structure can be observed in the organisation like Arcadia Group UK which is operating in the garments sector. In this structure the hierarchy are set based on the specialisation and experience. The flow of information is followed as per the hierarchy. But it has a weakness like it lacks in flexibility and the free flow of information is restricted(Gully and Philips, 2013).
The structure of the functional structure is given below:
Matrix structure is the structure which is generally formed for temporary basis. It is mainly found in the IT companies who are handling the different projects. Based on those projects the companies used to form a structure and that is classified as the Matrix structure. Coordination is sound between the teams (Sweeney and McFarlin, 2014).
The similarities between the structures are the coordination and the flow of information and knowledge. All the structures are designed in order to ease the flow of information. But the difference is also there. For example in case of Geographical structure the organisations are mainly global and they are focus to the localisation factor in order to attract more clients. But in case of Formal structure the flow of information is fixed and the employees have to move according to the structure that is designed by the management.
Organisation Culture is basically the system that is followed by the organisation based on the beliefs and values. These values influence the employees to act in the way as it directed. The different cultures that are observed in the organisations are as follows:
The similarities of this culture are the beliefs that the organisation assumed in the work place. But the approaches of this culture are different from one another which have been discussed.
Organisation structure and culture is aligned with each other. The organisation designs the structure in order to define the communication process and also to allocate the work effectively which will remove the doubts and misunderstandings among the employees. On the other hand the organisation culture determines the process that is to be followed by the organisation based on certain beliefs and values.
For instance if the organisation is having only a formal structure with centralised decision making system then it can be assumed that the organisation is having a culture that restricts the employees to share their opinions or feedbacks regarding any decisions. The involvement will be low in this case (Cooper and Bonnici, 2011).On the other hand if the organisation structure supports the decentralised decision making system then it will allow the employees to share their opinions or feedbacks regarding any decisions. This will increase the employee’s morale and motivation for the organisation. Hence the result will be positive for the productivity of the organisation.
CAPCO has a geographical structure as the business is operated globally. The objective of CAPCO is to give advanced finance solutions to the clients who can be the individuals or the companies. Thus the main factor is the localisation and thus the management recruits local people in the structure in order to understand the demand of the client and also the current situation of the particular nation. Geographical structure will naturally support the participation and empowerment culture in the organisation which will increase the motivation of the financial consultants of CAPCO to give productive performances in order to satisfy the clients. Thus there is a link between the organisation structure and organisation culture which influences the performances of the employees at CAPCO.
Individual behaviour implies the way that the individual gives their reaction based on the particular situation. It is the external and internal stimuli that influence the individual to behave in the particular way. The factors that are responsible to influence the behaviour of the individual are as follows:
Perception: It is the way that the individual interprets the particular situation. The organisation takes several decisions or action in order to operate the business. The employees who are working in the organisation observe certain actions and interpret in their own way. The organisation CAPCO believes in empowerment and with this attitude the employees perceives that CAPCO provides supportive working environment which will increase their motivation and the performances will be productive.
Abilities: The abilities are mainly the competencies that the individual possess during the time of birth and also from the external environment(Wilson, 2013).The abilities of the individuals can be enhanced from the training programmes organised by the organisation like CAPCO frequently in order to make the consultants more specialised in the finance domain.
Attitude: The expression that is mainly given by the individuals towards any situation or objects is termed as attitude. The attitude of the individual will vary from each other. For example the Principle Consultants of CAPCO are highly experienced than the consultants and this can vary their way of working or interpreting the situation.
Personality: The personal factors of the individuals reflect their performances in the organisation (Cole, 2011). The individual working at CAPCO is introvert by his personality and thus it can be assumed that he will lack in the openness of the communication skills which will affect his performances.
Organisational Factors: The organisational factors like the policies and the procedures are also influenced the individuals working at CAPCO. The benefits that CAPCO provides like the medical insurance, bonus, incentive and other growth options motivates the employees to give their best performances. Individuals feel positive for working with the organisation CAPCO.
Leader is the individual in the organisation who has got an influencing power and can lead the team effectively. It is the leadership quality that influences the people to listen and to move as per the direction of the leader. There are several styles based on the leadership followed by the leader in order to manage the team and productivity in the organisation. The different leadership styles are as follows:
Autocratic Leadership:Autocratic leadership is found in the small enterprises like VK enterprise where the owner used to take the sole decision for the organisation. He does not involve any employees in the decision making process. The involvement is zero in this style. This style de-motivates the employees to give their best performances as their opinions or feedbacks are not granted by the management of the organisation (French., 2011).The employee’s morale will be low in this style. But for the management it is beneficial as they can freely undertake the decision making without involvement of other employees.
Democratic Leadership: It is the leadership style mainly followed in the organisation CAPCO where the financial consultants are given empowerment to share their opinions or feedbacks regarding any decisions. The Principal Consultants used to conduct meetings and in that meetings the consultants used to share their concerns or issues they are facing. This will increase the employee’s motivation and morale. This style will shows a difference in the productivity as the employees will give their best due to their consideration in the organisation.
Laissezfaire Leadership: It is the leadership style where the team leaders used to give autonomy to the members for taking any decisions(Beck, 2013).The employees are satisfied because the management has given them a power to take any decisions. But this style is not effective as the decisions are taken based on the general interest of the employees which can affect the business. This style is not followed as all the business organisations prefer the profit motive in their operations.
Transformational Leadership: This is a where the leaders used to share different examples of his achievements in order to influence the employees to give their best performances. In this style the employees are encouraged to give their best performances due to the vision or examples set by the management of the organisation like Arcadia Group UK.
Transactional Leadership: It is the leadership styles that is mainly focus on the punishment and achievement. The employees will be given rewards for their achievements and penalties for the employees who will not achieved. The employees will be stressed and frustrated due to the provisions of the punishment in the work process. Generally the organisations do not follow this leadership style currently due to the intense competition they faced. Thus they want to retain the employees for the long term basis.
Organisational theories can be linked with the practices of the management. There are different theories which are developed by several scholars after having certain experiments. The theories influence the practice of the management in the following way:
Scientific management:The theory of scientific management is developed by Frederick Taylor. The theory gives emphasis on the optimised way of utilising the resources and simplified ways to complete the job can only bring productivity in the organisation. The principles based on the scientific management are as follows:
Administrative Theory: Henry Fayol has developed the administrative theory where he has given importance to the 14 principles and 6 managerial functions. The six functions are:
Apart from the functions the principles are given emphasis are as follows:
Human Relations Theory:Human relations theory was introduced by Elton Mayo by conducting the Hawthorne studies which considers the human beings or the employees as the major driver of the revenue in the organisation. The basic attributes of the Human relations theory are as follows:
The management of CAPCO considers the Human relation theory in order to increase the motivation level of the consultants. It is the consultants who will bring business for the organisation and the cli8ents will be satisfied if the consultants can provide effective solutions. Thus the benefits like medical insurance, bonus and growth opportunities are given emphasis in CAPCO to maximise the performance level of the consultants. The management of CAPCO also considers the Administrative theory where the employees are given fair remuneration as well as the teams of the consultants are mainly considered in the work process. Scientific Management theory is also being applied by the management of CAPCO where the performances of the consultants are monitored in order to plan for the training programmes. Thus there is a touch of all the theories in the workplace of CAPCO by the management to endure high productivity and profitability.
The management adopted different approaches in order to increase the productivity and manages people effectively in the organisation. But the approaches are needed to be determined and evaluated in order to address the effectiveness.
Based on the organisation CAPCO, the Theory Z can be related in the approaches adopted by the management. This theory was introduced by William Ouchi by aligning the Eastern and Western practices in the organisations (Kitchin, 2010).CAPCO is the organisation which operates in the financial sector as they provide effective finance solutions to the clients. The consultants are given prime focus in order to meet the client’s requirement effectively.
In this approach based on the Theory Z, the employees will be motivated to give their performances exactly required by the organisation. Apart from that the organisation CAPCO can also determines the level of efficiency by the process of monitoring as mentioned in the theory. In the organisation Arcadia Group UK, the Theory X and Theory Y is followed by the management. Theory X is the group of employees who are not serious in their responsibilities and for that constant monitoring and supervision is required. On the other hand Theory Y claims that the groups of employees who are motivated and give productive performances in the organisation (Robbins, Judge, Millett and Boyle, 2013). The Theory X and Y are not effective like the Theory Z. Theory Z focus their approach towards the productivity and the efficiency of the work force. Other than that the measures are also shared by this theory in order to gear up the productivity. On the other hand the Theory X and Y is more generalised in its approach and hence the level of productivity cannot be increased.
The organisations are operating in the dynamic environment where the level of competition is high and also the influences of the stakeholders in the organisations. Thus a change is important for the organisation in order to operate the business effectively. Organisational change is the common phenomenon for the organisations in order to stay in the competition or in the industry due to the rapidly changing of the taste and preferences of the customers. CAPCO is a global organisation operating in Europe, US, Africa, India, Asia etc. They have adopted the policy that the consultants will be shifted from one group to another in order to enhance the teamwork in the organisation. The teams are the groups of consultants who used to deliver solutions to the clients. With this change the consultants can feel uneasy to work with other groups and they will resist the change.
Thus motivation is the only factor that can influences the consultants to accept the change and follow the process as designed by the management of CAPCO. Motivation can only be enhance if the leadership styles are aligned with the motivation. If the management of CAPCO follows the Participative Leadership style then it will permit all the consultants to share their views regarding the change (Wood, Zeffane, Fromholtz, Wiesner and Creed, 2010). The consultants will put forward their reasons for not accepting the decisions and the management can also get the chance to convince the consultants to follow the change in order to increase their productivity as well as development. The consultants can be motivated that the management has consider their views but if the management follows the Autocratic leadership style then it will prohibit the involvement of the employees in sharing their opinions which will rise conflicts and disputes in the organisation.
Motivational theories give emphasis on the employee’s motivation level in the workplace. There are different motivational theories which are as follows:
Herzberg Theory: In this theory there are two factors which drive the motivation among the employees. The factors are the hygiene factor and motivational factor. Hygiene factor includes the job security, remuneration, working conditions of the organisation. Motivational factors involve the recognition, reward, promotion, development opportunities etc. in the organisation. Both the factors are important to increase the motivation and satisfaction level of the employees which will drive their commitment towards their performances (Wilson, 2013).
The similarities that are observed between the two theories are the level of motivation that is given prime importance. Both the theories identify the employee’s needs and requirements in order to undertake the measures for Zenhancing the level of motivation (Beck, 2013). The difference between the two theories is the approach. Maslow hierarchy needs theory considers the employees personal and professional needs and for that the organisation can plan in order to increase the level of motivation and commitment of the employees. On the other hand Herzberg theory gives two factors which are hygiene and motivation where both the intrinsic and extrinsic motivation is focused.
Managers in the organisation play an important role in order to plan, control, organise and coordinate the activities in an effective way. It is the manager of the organisation who needs to manage the people for giving productive performances. In order to give productive performances, it is the motivation that is needed to be present among the employees. Without the motivation the employee’s morale will be low and significantly the performances will also hamper (Bratton, Sawchuk, Forshaw, Callinan and Corbett, 2010). The theories of motivation highlight different areas about the needs of the employees and if the organisation identify those needs then it will be helpful for the managers to manage the employees effectively. For example Maslow’s hierarchy needs theory highlights different needs that the individual requires and it is the duty of the manager to identify those needs by incorporating several techniques like giving job security, fair remuneration for increasing the motivation of the employees. Herzberg theory has given the glimpses of two factors that are hygiene and motivational factors. In order to increase the employee’s moral and commitment towards the performances then this theory is needed to be followed.
But sometimes it is not possible for the management of small enterprises like VK enterprise to incorporate the motivational theories due to the low capital structure. But the management of CAPCO has identified those requirements of the employees and incorporate the measures to gear up the level of motivation among the employees. Thus the theories are needed to be understood by the managers in order to increase the morale of the employees.
Groups are basically the association of the members who used to share the common purposes in order to achieve the business goals.
Belbin’s Theory can be considered in order to understand the group behaviour of CAPCO. The following features of the group members at CAPCO are as follows (Buchanan and Huczynski, 2010). :
Team are the members of the organisation who used to perform the task jointly in order to share common purposes. The effectiveness of the team can only be said when the capacity of the teams are high in the terms of goal achievement. The different factors that promote and inhibit the development teamwork at CAPCO are as follows:
Adopting the technology in the team functioning at CAPCO will bring effectiveness in the organisation. Advancement in the technology can simplified the business operations of CAPCO and also reduces the cost of the operation. The virtual teams are there in CAPCO who used to connect each other electronically. These teams provide assistance to the clients by giving solutions to the issues they are facing by adopting the services of CAPCO. All the members of the team used to connect each other by the use of e-mails, mobile applications etc. These technological implications connect the members at any place with each other. Thus the coordination can be enhanced by the adoption of the technology.
The positive impact is the smoothness in the communication process. The members or the clients can connect to the organisation with the help of technology at any place they like. No matter they have to visit the office. It saves time for both the clients and the team members to interact with the clients. The clients can also be satisfied with the easiness given by the ethnological applications adopted by CAPCO. The team members can easily reach to the clients with the help of the technology (Edmuds, 2016). But the negative side can be the errors which can come during the connections. Poor connection strength can bring barriers in the communication process. There is also the requirement of the investment in order to set up the technology in the work process. But overall it will bring smoothness in the team functioning.
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To conclude this report has highlighted the facts related to the organisation behaviour. The first part has given the details of the organisation structure and culture associated with their relationships. The second part of the report has highlighted the effectiveness of the different leadership styles and the organisational theories which determines the practices of the management in the organisation. The third part has showcased the motivational theories along with the necessities for the managers to understand. The last part of the report has shown the nature of the groups and the behaviours in the organisation along with the implications of technology in the team functioning.