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Unit 3 Organizational Behaviour Assignment - Capco Ltd
Diploma in Business
Unit Number and Title
Unit 3 Organizational Behaviour
Organizational behaviour defines the way in which employees interact with each other for common objective of organization. The report will identify the similarities and differences in structure and culture of CAPCO organization in comparison of Tesco organization. The report will also focus on the factors those are determinant for individual’s behaviour in workplace. Later report will identify the effectiveness of various leadership styles in CAPCO organization.Organizational behaviour will also describe the motivational theories and their impact on performance and quality in organization. The Organizational behaviour will use concept of employing grouping in organization along with changes coming into existence due to technology. CAPCO is organization of United Kingdom mainly provide services in finance and grocery products.
1.1 CAPCO’s structure and culture
Table 1: Similarities in structure and culture of CAPCO and Tesco
CAPCO & TESCO
Structure of organization
The managerial distribution of power and responsibility in both the organizations are same as both follows hierarchical structure.
Both organizations use the concept of team working to accomplish the objectives. The culture is driven by productivity and collaboration with each other in workplace.
Strategies of organizations are inclined towards the satisfaction of employees in workplace for professional and personal growth.
Employees are liable for their job as levels are distributed as coordinator for lower levels in workplace.
Nature at workplace
CAPCO and Tesco use business manner of working to accomplish the objectives. However, both supports informal communications in events and activities to strength inter personal support (Jones, 2010).
Table 2: Comparison of structure and culture at CAPCO and Tesco
Span of control
Each level of organization has enough power to complete the work and there is less communication among them. Lower levels are directed and govern by associated leaders. CAPCO supports wide span of control.
At other side, The structure of Tesco follows tall and narrow span of control. The power is distributed into top levels and low levels in structure can communicate with them to accomplish goals.
CAPCO implements the democratic leadership styles.
Tesco is autocratic in nature (Thornton.et.al.2012).
The CAPCO’s power distribution is robust as employees are free to make decision for their job. In this manner, decision power is decentralised into levels of structure.
Lower levels in Tesco are dependent of decisions of upper levels to accomplish the goals. There is centralised decision power.
Structure of work process
Dynamic group of employees are used to accomplish work in division method.
Employees assigned in groups follow bureaucracy structure to achieve a goal (Zheng.et.al.2010).
1.2 Relationship between CAPCO’s structure and culture and impact on performance
Structure of CAPCO is hierarchical in power distribution and responsibilities which is effective to encourage dynamic team working. The culture of organization is driven with power of flexibility, workplace freedom, work division and communication. The structure of CAPCO implies the development of individual in workplace along with organizational development which is necessary to conquer the trust and interest of employees in workplace. The structure also enforces employees into self motivated environment to enhance productivity and performance in work. The structure of organization supports the dynamic grouping of employees to treat their skills best for their personal as well as social growth parallel to organizational growth (Schein, 2010). The structure of CAPCO is made around the four things to empower the cultural values in workplace: opportunity to all, performance and rewards, work and learning with experience.
These four values of CAPCO culture and structure encourage employees to work well in direction of organizational growth and development. The organization’s strategies to accomplish the work into modules help to establish flexible communication in workplace. Organizational events, training and development for employees help them to enhance the productivity and performance in their work. Also the structure of organization is transparent to measure the employee contribution in overall growth. Effective facilities in workplace along with reward system make the culture productive and beneficial for organization as well as for employees. The proper mechanism to communicate with managerial units in workplace helps employees to resolve their issues in work. Every group of employees has support and guidance of leaders to accomplish the objectives with right manner. Organization culture empowers the employees to express their thought and ideas in operations of organization so that structure can be made more robust to deliver the qualities (Colquitt.et.al.2011). Remunerations and benefits at upper level encourage employees to be honest and innovative in their work.
1.3 Factors which influence individual behaviour in CAPCO
Individual’s behaviour in CAPCO may be based on the five factors of personality. These factors determine the overall personality of individual in workplace:
Openness:Openness determines someone’s curiosity, intelligence, originality and creativity for new changes and development to enhance the existing working conditions. The degree of openness describes the skills of employee for new learning and flexibility in work under constraint driven conditions. Openness with co-workers, innovative into approaches to problems and aware of surrounding to define new ways to operate into workplace is required to contribute in culture of organization.
Conscientiousness:The influence of punctuality, dependency, self organized and systematic working determine employee’s performance and role in job. Conscientiousness helps to predict the usability of employee’s contribution in work accomplishment (Brackett.et.al.2011). This can be said as the supplementary skills those are required to make use of primary skills of employee in workplace. The seriousness about work and understanding with job and duties influence the performance at workplace.
Extraversion:The extraversion factor defines the ability to be talkative, social, enjoyable and attractive to others in workplace. This is required to deliver the skills and experience to others and helps to create communicative culture inside the CAPCO. Employees are required to be expressive for their demands and problems to make system performance directed. The organization believes that happy employees can bring more values in workplace than the others those are only concentrated to their work accomplish target.
Agreeableness: Individual’s behaviour is expected to be warm, nice, trusting and tolerant. The helping nature of employees helps them to express their experience and knowledge with others in workplace and they always helps to create a happy working environment rather than to create stressing conditions in workplace (O’Neill.et.al.2011).
Neuroticism:The degree to which a person is temporal, moody, anxious, irritable and aggressive is called neuroticism. The personalities with high degree of neuroticism always become the source of problems in workplace. CAPCO demands the employees those can work normally under the problematic situations.
2.1 Effectiveness of different leaderships at CAPCO and Tesco
Different type of leadership styles are used in CAPCO and Tesco those are effective to deliver the performance and productivity. Leadership style in workplace is required to guide the underlying workers effectively towards the sustainable conditions in workplace. There is big role of leadership patterns behind the success of CAPCO.
Autocratic leadership: The top management of CAPCO uses autocratic leadership to compete and sustain in market under the changing requirements. Top authorities are not liable to include the employees into decision making as the subjects of business may be unaware at employee side or they may not be capable to help the authority to lead the organization in market. In CAPCO, only the top authority uses autocratic leadership to determine the market expansion opportunities and scopes without making participation of employees into decision making. Al though Tesco, uses autocratic leadership in most of levels in structure to make decision power centric to liability and success.
Democratic Leadership: Except the top management, mangers and other equivalent bodies follows democratic leadership style (Sadeghi and Pihie, 2012). They involve the contribution of employees to make decision in workplace for their rights. Employees are expected to express their thoughts and ideas in development of organization. The majority of employees towards a decision determine the decision final to review at managerial level. This is effectively used by CAPCO to deliver satisfaction to employees in workplace.
Transformational leadership: The ability to utilize the secondary skills of employees to perform organizational objectives is transformational leadership. CAPCO uses dynamic employee groups to make use of skills of employees into multiple subjects. Al though, Tesco makes static group of employees those are dedicated to perform only specific kind of work. CAPCO’s leadership styles are effective to deliver performance and quality with proper utilization of skill sets in workplace (O'Reilly.et.al.2010).
2.2 Organizational theories and practice of management
With time, many theories are given to assist the management to implement effective practices to utilize the resources towards high productive and performance environment. Theories help CAPCO to determine the strategies with available set of resources for proper utilization and arrangement in workplace. Both the theories are useful in workplace to determine the maximum outcome with minimum input into business processing via a scientific resource arrangement and interpersonal relations. CAPCO effectively uses both the theories to plan to practices in workplace.
Scientific Management Theory: Taylor’s scientific management theory helps organization to implement scientific approaches in practices, resource distribution and utilization. Theory emphasize on the use of updated tools and material, standardized methods to accomplish objectives, proper training and selection of employees, scientific work planning and effective wage distribution. Taylor has determined that all this can be used in workplace to enhance the productivity and quality (Shafritz.et.al.2015). The scientific management theory helps CAPCO to organize the practices for high performance in less input. Employees and other resources can be organized in scientific manner so that overall effort and capital investment can be reduced to achieve more benefits.
Human Relation theory:The employees and their relation to each other matter in an organization to create a productive workplace. The relation of employees with management can be made flexible to know the requirements and issues of employees in workplace. The better relation keeps the system free from the partial behaviours and work time misuses. CAPCO believes that human resources in workplace should be flexible and informal up to a level to bring the understanding of team work and loyalty towards the organization. Communication between governing and working bodies can solve most of issues in workplace (McFadden.et.al.2011). CAPCO’s management always try to empower the interpersonal relations as it will motivate the employees to do their best in work.
2.3 Different approaches to management
For management purpose, organization uses various approaches which can bring the productivity and performance with available set of resources within time. The approaches help the organization to arrange the resources and capital in more appropriate manner. Management makes use of approaches to simplify the work process and progress.
Human relation approach: CAPCO organization uses human relationship approach to accomplish the task and to motivate employees in workplace and job responsibilities. Organization provides good intramural facilities, housing, transportation and other allowances to keep the employees interested in workplace. Also the personal relations help management to achieve high productivity and quality. The motivation and rewards are part of human relations to enhance the work from individual in workplace (Goetsch and Davis, 2014). Human relations are also effective to disclose the hidden talents in employees which may be useful for management to handle new objectives.
Contingency approach: The approach is effective to monitor the performance and work of employees. Management uses this approach to supervise the implementation of existing planning and decisions. CAPCO determines the critical conditions in business processing to predict the requirements in workplace to handle them. The assumption of internal and external factors those may lead the organization into conditional operations is required to make proper use of strategies. The approach helps employees and managerial staff to evaluate the performance of management with results of strategies and planning in workplace. For instance, it may be difficult for CAPCO managers to handle the performance of entire set of employees. However, the leader of groups can report to upper level and then information and knowledge of organizational operations can be forwarded to managers (Schein, 2010). In this manner, contingency simplify the working process and enhance the performance in workplace.
3.1 Impact of leadership styles on motivation within period of change.
Leadership is basically an ability of an individual to influence, motivate and inspire others in order to attain common goals. There are many different types of leadership styles which assist an organization to motivate the people or the workforce in a right direction for achieving the objectives effectively during the period of change. The different leadership styles have a different impact on motivation. Therefore, the leaders of CAPCO is required to select an appropriate leadership styles during the period of change to make the workforce timely motivated and to enhance their performance by making them more productive (Hoel.et.al, 2010). The following are types of leadership styles which have different impact on the motivation:
Charismatic Leadership Style: In charismatic leadership style, the leaders are engaged fully in boosting the enthusiasm and energy level of the workforce which enables them to deal positively with the change occurred in the organization. In this style, the leaders have an enormous accountability and require a lasting commitment in order to make the organization strong during the period of change. The workforce as well as entire organization is fully depended on the charismatic leaders.
Participative Leadership Style: In this style of leadership, the leaders motivate the workforce of CAPCO by encouraging their participation in the decision making process (Voon.et.al, 2011). This creates a sense of positive attitude in them and they accept and work for the organization with full enthusiasm and dedication. Through this style, the workforce achieves job satisfaction as well as it improves their skills and capabilities.
People-oriented Leadership Style: In this leadership style, the leaders works on the team in order to make the team functioning effective by managing , supporting and embryonic the team members which assist them in to cope with the change positively and effectively (Jogulu, 2010). The leaders are used to support the team in order to make it stronger and effective by encouraging the resourceful collaboration.
3.2 Comparison between the applications of two motivational theories.
The motivation is a concept which defines the behaviour or actions of an individual. There are various theories of motivation which guides and assists in directing the behaviour and actions by identifying the cause which leads to such behaviour ad action. The applications of two motivational theories in CAPCO are as follows:
Maslow’s Hierarchy of Needs: The Maslow’s theory was propounded by the Abraham Maslow in 1943. According to this theory, the people working in CAPCO can be motivated and encouraged by identifying and fulfilling their basic needs and requirements (Sadri and Bowen, 2011). Abraham defines that there are five basic needs of an individual which has to be fulfilled in a hierarchical manner. This would bring a sense of job satisfaction in them and through this they become more productive and efficient. The five basic needs are psychological needs, safety needs, social needs, esteem needs and self-actualization needs.
Herzberg theory: The Herzberg theory was propounded by the Frederick Herzberg in 1968. According to this theory, there are many factors in the workplace through which the individuals are influenced. The two set of factors are motivational and hygiene factors. The motivational factors like promotion and job recognition increases the motivation level of the workforce and the hygiene factors like job security and level of pay brings the lower level of motivation in the workforce (Ahmadi.et.al, 2012).
Table 3: Comparison between the two motivational theories
Maslow’s Motivational Theory
Herzberg Motivational Theory
Based on the concept of human needs and their satisfaction.
Based on the concept of factors which increases or decreases the level of job satisfaction among the workforce.
Basis of theory
Based on the hierarchy of five basic needs.
Based on the two set of factors i.e. motivational factors and hygiene factors.
Nature of theory
Simple and descriptive
Prescriptive in nature.
Any of the five needs acts as a motivator.
The motivational factors act as a motivator.
Applicable in developing and under-developed countries (Kremer and Hammond, 2013).
Applicable in developed countries.
3.3 Necessity of managers to understand and apply the motivation theories within the workplace.
The business management in CAPCO are responsible to complete their specified task efficiently by fulfilling the core objectives of the organization successfully. Therefore, in order to achieve the task as well as the objectives, the managers are required to apply an appropriate motivational theory in the workplace. Through motivational theories, manager can motivate and inspire the workforce of CAPCO in a right direct by increasing their level of productivity. Through this, the productivity level and job satisfaction level of employees can be achieved efficiently. The managers are responsible to understand and apply the appropriate motivational theory on a workforce because different motivational theories have different impact on the motivation (Lankes, 2011). The manager should select the required motivational theory according to the organizational policies, structure and culture of CAPCO.
It is a responsibility of the managers of CAPCO to analyze and examine whether the selected motivational theory is helpful in improving and encouraging the productivity level of each employees working in CAPCO or not. The managers should ensure that the chosen theory is capable enough to increase the profitability ratio of the organization and reduces the cost of operations. The theory should not only brings the motivation in the employees but also assist them in growing and developing their overall skills, knowledge and capability. The chosen theory must assist the organization to retain their talented and competent employees for a longer period of time (Miner, 2015). Therefore, it is very necessary that an appropriate motivational theory is applied in the workplace after thorough understanding because if the theories applied don’t meet the requirements then there will be the unnecessary wastage of the resources.
4.1 Nature of groups and group behaviour in CAPCO.
A group is basically a collection of individuals who come together to achieve some common objectives. In CAPCO, many numbers of groups are formed and the nature and group behaviour often differs on the basis of the type of groups. The two types of groups are identified in CAPCO and these are formal group and informal group.
Formal Group: The formal groups in CAPCO are formed in order to address some particular task or objectives. Usually such types of groups are small in size (Heinrichs.et.al, 2013). These groups are formed intentionally by the management in the organization. The groups or the members of the groups are provided with all required resource with the purpose to complete the task timely and effectively. The nature of the formal group is précised, well-organized and specific. The behaviour pattern in this type of group is formal i.e. they communicate with each other in an official way means in a prescribed manner. The team members of the formal groups are highly committed towards their task and everybody performs according to their prescribed roles and responsibility. They work mutually and co-operate each other for making the team strong and effective. In formal group, a team leader is also appointed who is charged with the accountability and responsibility of the team.
Informal Groups: The informal groups in CAPCO are usually formed on the basis of many reasons like for fulfilling the social needs of an individual working in CAPCO (Scott and Davis, 2015). These groups are formed by the employees itself to achieve their common interest or objectives. The groups are slackly organized groups and they are not well equipped with the resources. These are formed for shorter period of time. The nature of the group is non-critical, friendly and flexible. The members of the groups behave and communicate in an informal manner means in a casual and relaxed manner. The group behaviour of such informal groups is friendly and caring.
4.2 Factors that promote or inhibit the development of effective teamwork.
An effective teamwork assists the organization to complete its tasks efficiently and effectively. However there are many such factors that may promotes or inhibit the development of the teamwork (De Board, 2014). The following are some the factors which promote the development of an effective teamwork in CAPCO:
Leadership: The team can be developed as more stronger and successful through an effective leadership. Through proper inspiration and guidance, the members of the team can be encouraged and made them more optimistic towards their job. The leadership ensures that the team members are keeps on motivated and disciplined. It monitors and ensures that everyone is performing their respective roles and tasks with full enthusiasm and dedication.
Communication: The base of effective teamwork mainly depends on the effective communication. The cohesion among the team members is achieved through effective communication (Granovetter, 2010). It facilitates the team members to share the needed information to other members of the team timely and achieve their task without any barrier. The communication can be make effective by communicating through various available forms and sources like meetings, emails, groups talks, mobile phones, video conferencing, etc.
Diversity: Effective teamwork can be achieved by introducing the diversity in it. Diversity in personality, employability skill and ethnicity assist in encouraging the advancement and creativity in the group. This would assist the team members to develop a creative solution to the problems and solved out them easily and timely.
The following are the some of the factors that inhibits the development of effective teamwork:
Group size: Sometimes the size of the group also acts as a barrier to effective teamwork. The team with smaller size is less more effective as compared to the team with large size (West, 2012). The team with large size faces difficulties in obtaining an effective communication, coordination and cooperation which are important factors in building a team effective and stronger.
Cohesiveness: The cohesiveness defines the degree of interrelation and interdependence among the team members. The team in which low degree of cohesiveness is found it makes the team ineffective and weak. The cohesiveness is achieved in the team by bringing the faithfulness and fulfilling group norms.
4.3 Impact of technology on team functioning.
The various advancements in the technology assist the business organizations like CAPCO in meeting their goals and objectives effectively. These help the organizations to develop and grow by diversifying their business. In the same way, the technologies lead to positive impact on the team functioning at CAPCO (De Guinea.et.al, 2012). The technologies made efficient for the members of the team to communicate with each other in order to accomplish their common tasks and goals of the organization effectively.
It makes easier for the team members to be in touch no matter if they are outside the business premises through e-mails, mobile phones and video conferencing, etc. It also facilitate them to share the information of any format like big PDF files or a word file can simply be share using the various messaging applications or e-mail. Apart from this, the technologies also assist the team members to conduct a required research by referring to various articles, books and journals with the help of internet. It also facilitates to find an effective solution to the problem by making use of problem-solving software (Grint and Woolgar, 2013). Is also assists in preparing the reports and presenting effective presentation. On the other side, it has also affected the function of the team. The members of the team are now required to be more concerned and updated about the newly introduced technology in order to make their team more effective. This leads to divert their attention and focus more towards the technologies besides their main target to make the team stronger.
From this report, it has been found that the organizational behaviour has an important impact on the working of the organization CAPCO. The detailed study of the different organizational structure as well as organization culture of CAPCO and TESCO is provided in the report. The various factors which influence the behaviour of an individual in the organization are also studied in the report. In next task, the report has provided the information about the different leadership styles and their impact on the motivation. The comparison is also made between the Maslow’s theory and Herzberg theory and nature of the groups and group behaviour is also studied in the report. At the end, the factor which promotes and inhibits the effectiveness of the teamwork and the impact of the technologies on the team functioning is also viewed in the report.
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