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Unit 3 Organizational Behaviour Assignment CAPCO and NHS
Studying about organizational behaviour revolves around the observation of how employees act or behave within an organization and the factors that are responsible in motivating them in doing so. It is quite essential that a new manager has a clear understanding about organizational behaviour’s primary aspects given its importance in the areas of hiring, training and developing employees. Moreover, it is a well know fact that by motivating the employees, once can optimize the long-term success of a business
A change in an organization’s mission and its structure that is perpetual in nature further leaves a great affect essence of its organizational behaviour. It is imperative in how managers are responsible for the decisions made, how they communicate and deal with diverseness and other body concepts of organizational behaviour.
1.1Compare and contrast CAPCO’s structure and culture with another organisation of your choice. Show the differences and similarities in these two organisations.
Organization Structure is a system that specifies hierarchy of authority, command and control within an organization. It identifies different jobs and establishes how roles are assigned and coordinated to maintain flow of information between various levels of marketing management to achieve goals of organization. Whereas, Organization culture is a set of values, ideologies and beliefs that are maintained by organization and is expressed in their work environment, interaction and future aspirations. (Business Case Studies, 2016)
Organizational Structure of CAPCO and NHS
Flat Structure of CAPCO
Hierarchical Structure of NHS
In flat structure there are fewer lines of authority and control which gives scope for less chain of command and wider access of control at CAPCO.
In hierarchical structure at NHS (National Health Services) there are multiple layers and chain of authority which ensures effective command with less span of control. (Business Case Studies, 2016)
Being Flat structure, the employees in CAPCO manage more than one role which makes them fit for innovation and entrepreneurial culture. (Business Case Studies, 2016)
As roles and responsibilities in NHS are clearly outlined at all levels it leads to specialized activities that is useful for maintaining control and leadership.
Due to flat structure, there is openness within CAPCO and employee’s can freely share information or ideas across different teams which lead to improved coordination and communication.
In hierarchical structure there is less communication across departments but there is wide access of communication within each individual departments leading to clarity and effectiveness of roles.
Due to flat structure employees are highly motivated and empowered with support and participation which results into effectiveness of CAPCO.
Employees in NHS are motivated by hierarchical growth prospects and promotions.
As lines of command are fewer with absence of mid level management so CAPCO has cost effective operations. This channel is effective mostly but at times it may lead to confusion or collapse of command. (Business Case Studies, 2016)
As layer of command are more so competition across departments arise for individual benefits leading to less adaptability to changes. Also it takes time to reach to decisions due to multiple layers of command, which acts as its limitations. (Business Case Studies, 2016)
Organization Culture of CAPCO and NHS: The culture that is promoted in CAPCO supports innovation and entrepreneurship and provides individuality, solidarity and openness at work. Thus employees are free to learn, experience and live their aspirations. CAPCO’s culture incorporates growth, performance and reward, challenge and experience, thereby inspiring innovation, creativity and risk taking attitude to meet challenges and changes of environment. Whereas, at NHS the culture supports higher control of quality health services for well being of individuals, community and staff to ensure that national resources are used effectively for constant improvement. This culture prioritizes patient’s wellbeing by empowering staff to achieve highest level of service standards. Also, transparency of actions and decisions is maintained to support integrity, innovation and best outcomes. (Business Case Studies, 2016)
1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of its operations.
The alignment between CAPCO’s structure and culture helps to maintain innovation and entrepreneurship which is significant for delivering flexible, tailored solutions to financial service industry. It also helps to meet industry challenges and changes more consistently thereby ensuring higher efficiency and smooth control of operations. Thus it enables smooth functioning of business. (Sokro, 2012)This inter relationship also impact on performance of CAPCO by enduring excellence in achieving organization objectives with better customer support and employee engagement. The environment of open culture and structure at CAPCO helps to establish improved outcomes and productiveness as employees are better oriented to their goals and hence work responsibly to realize their aspirations. Further, this structure and culture empowers and motivates employees by establishing clear communication and leadership with minimum level of barrier between management and employees. Thus it establishes coordination and collective working to achieve both individual and organizational goals.
1.3 Discuss the factors which influence individual behaviour in CAPCO or in any organisation of your choice.
Various factors influence individual behaviour at work leading to positive or negative impact on performance and efficiency levels. As CAPCO supports positive, flexible and inclusive working environment so this influences the behaviour of employees helping them to grow. Some of the factors are discussed below:
- Work Relationship: as CAPCO follows flat structure and culture that supports innovation and entrepreneurship the employees are allowed to access various level and teams without any barrier and strict supervision. Also they have freedom to share ideas and express themselves which acts positively on the behaviour of employees, making them learn, aspire and experience more. Thus relationship between employees and management is open and strong which makes employees accept risk and new challenges of financial industry. (McShane and Von Glinow, 2015)
- Culture: the culture at CAPCO supports growth, rewards, challenges and learning of individuals, so, employees feels inspired. Also openness of culture promotes innovation and empowerment among employees. As policies are transparent and information flows clearly at all levels, employees feel more integrated within the system. Thus it impacts positively on their behaviour and they show trust and interest to achieve excellence of performance.
- Clarity of role: at CAPCO employees are clearly delegated roles and responsibilities according to their knowledge and abilities. Also managers are always supportive to teams and are open for mentoring and coaching. This helps individuals clearly understand their job and deliver expected outcomes. Further, employees are encouraged to express their thoughts so that managers can analyze development needs or workload situations. (McShane and Von Glinow, 2015)
- Flexibility: at CAPCO employees are provided flexibility and freedom to share ideas, concerns etc. Also, work time flexibility is provided so that employees can balance family and professional commitments. This relives stressful situation at work and employees feel more connected with CAPCO thereby influencing their behaviour at work positively.
2.1 Compare the effectiveness of the different leaderships at CAPCO and any other organization of your choice
Leadership is defined as the art of leading and inspiring others to create a challenging change that would lead to achieve goals. The effectiveness of different leadership styles at CAPCO and NHS are:
- Autocratic style: in this style the leaders make decisions alone and do not encourage employees to share their inputs. Thus leaders have full command and whatever they decide has to be followed. (Osuchukwu, 2016) While this style is suitable when there is crisis or when employees require close supervision but it is not effective in both CAPCO and NHS where a culture of innovation, integrity and empowerment is promoted. In both these organizations employees are encouraged to share ideas, experiences so that learning can be facilitated at all levels without any barrier which would help them to meet their objective to deliver customer excellence and best of services.
- Democratic style: this style of leadership encourages openness within organizations where employees can freely share and discuss ideas across various teams. As information keeps flowing easily so every option for improvement can be considered for best decision. (Osuchukwu, 2016) This style is particularly effective for CAPCO which provides service to financial industry that has rapid changes which is not constant. Hence, optimum decisions has to be taken which fits for changing environments and this democratic style promotes unity of actions with best empowered option. Whereas, it is not useful for NHS as it has specialized health care teams so rapid change of information and decision is not feasible to maintain quality care services. It needs straight forward tasks so that employees can be responsible for actions and not disturb the systematic process.
- Participative style: in this style leader empowers teams for their inputs but the final decision making is done by leader himself. This participation encourages their spirit as they feel that their opinion matter which acts positively on employee’s behaviour. Thus they are more flexible to challenges and changes in the role or process. (Vaccaro, Jansen, Van Den Bosch and Volberda, 2012) Hence, this style is effective in case of CAPCO as well as NHS where teams require constant motivation to share their inputs and bring improvement in process so that organization delivers quality and precision.
- Transformational style: in this style the leaders engage in high level of communication to achieve goals, enhance productivity and visibility. It encourages involvement of management who encourage teams to take risk as per changes in environment. (Osuchukwu, 2016) Thus it is effective for CAPCO where rapid change of actions and decisions are involved whereas it may not be suitable for NHS which needs specialized and systematic flow of information and process which are more consistent.
- Laissez Faire style: in this style the leaders impose less supervision on employees and also fail to provide regular feedback. Thus it is effective when employees are highly skilled and self dependent to lead them selves. But where supervision is required it is ineffective and may lead to poor control and productiveness thereby increasing costs. (Vaccaro, Jansen, Van Den Bosch and Volberda, 2012) Thus this style is not fit for either CAPCO or NHS as both needs supervision and control of process, information and decisions to lead to effective and controlled outcomes.
2.2 Explain how organizational theories (e.g. scientific management and human relations theory) have had influence on the practice of management
Organizational theories state the ideologies and conceptual understanding of different aspects of organization such as its structural design, flow of command and control which helps to focus on performance, conflict management and building of relationship to adapt to changing environment in order to achieve preferred outcomes and goals. Whereas, management means planning, directing and controlling different actions and people to achieve established goals of organization which is supported by organizational theories. (Khamsi and Largani, 2014)Various organizational theories have had influence on the practice of management in CAPCO, some of these are:
- Scientific Management: this theory developed by Frederick Taylor outlined techniques that improve efficiency to complete a work in best possible process. He divided the work process into sub tasks and then studied the behaviour of people and their effort to achieve those set tasks. This helped to determine the best option possible for finishing a task optimally with available resources in a given time. Thus Scientific Management theory affirms that organizations identify best method and then train employees to handle every aspect so that their productiveness can be enhanced to achieve desired results. Further, employees should be recognized with rewards to maintain consistency of performance. (Cummings and Worley, 2014) The management practice at CAPCO has influence of Scientific Management theory because tasks are assigned after measuring the knowledge and abilities of employees so that they can handle them efficiently. Also as freedom to share and discuss ideas is encouraged across teams and between management so information flow is controlled to achieve productive outcomes even in risk taking environments with use of optimal efforts and resources. Thus process is organized to encourage integrity of actions, innovation and individuality.
- Human Relation Theory: this theory proposed by Elton Mayo values more on human aspect at workplace instead of relying on process and procedures to achieve productive and effective outcomes. The theory emphasize on building interaction between management and employees so that they work together to help one another achieve desired goals. Thus it states that motivational and emotional tactics can be applied to achieve fulfilled employees who would invest their efforts to increase organizations growth. (Khamsi and Largani, 2014)
The management practice at CAPCO can be said to be influenced by Human Relation Theory because employees are empowered to communicate across various layers of management and teams freely to share and discuss opinions which facilitates their learning and experience to adapt to various changes of environment with improved creativity and individuality of tailored solutions. Also, employees are assertive to take calculated risk to outperform which helps to maintain their productiveness. Moreover, as employees are provided freedom and challenges so they feel invested and connected with CAPCO’s growth which helps them to increase employee retention.
2.3 Evaluate the different approaches to management used by CAPCO and your chosen organization
Management is defined as the art of planning, directing and controlling people and process to achieve results through optimal use of resources and efforts. (Miller, 2014) There are different approaches to management such as Contingency approach, Decision theory approach, Socio- Technical System approach etc. The effectiveness of the use of various approaches in context of CAPCO and NHS are discussed below as:
- Contingency Approach: this management approach emphasizes on the fact that theories can be applied to different environmental changes only when it’s various dynamics i.e. Internal as well as external environment are identified and analyzed to suit needs of situation. The internal environment includes structural design, process and technology inputs whereas external environment constitutes of social, economic and political factors. (Miller, 2014) Thus Contingency Approach is effective for CAPCO as it operates in financial service industry which includes rapid and dynamic changes of environment and the solutions are thus subjected to risk which are obtained by identifying best possible option through optimal use of resources and decision management. Thus this approach is complex but it suits the innovative and entrepreneurial culture of CAPCO. Whereas, in case of NHS being in healthcare industry, the environment requires pro-active actions and decisions so Contingency approach is not effective as it is reactive in nature and also complex which has no factual testing to suit applicability on different crisis situations.
- Decision Theory Approach: this management approach emphasizes on the fact that as the management and the employees are involved in the decision making process and fulfillment of objectives so they are considered to be responsible for problem solving or any change in environment. Thus, efficiency of results and control of situation depends on the quality of decisions that are made by analyzing different dynamics with decision making techniques or tools such as MIS, Decision matrix or Cost-benefit Analysis. (Miller, 2014) This approach is effective for both CAPCO and NHS as it uses technical tools to arrive at optimal decisions that can be applied based on crisis or situation demand. Thus it helps to make best fit decisions with calculated risks to achieve quality and controlled outcomes. The only negative aspect of this approach is that it does not include total management view due to its limitations and focus on decision making only.
- Socio-Technical System Approach: this management approach emphasizes on the fact that social and technical systems of organizations are inter related as organizational changes are governed by social changes which ultimately leads to changes in technology and process within an organization. Thus when both social and technical systems interact properly then an organization can be managed effectively and all its process can run smoothly. (Miller, 2014) This approach is effective for both CAPCO and NHS as changes in social preferences i.e. customers in case of CAPCO and care seekers in case of NHS has lead to modification or innovation of process, systems and interactions. Both of the organizations carefully identify and assess the changes and then apply best of resources and technology in work dimensions to achieve goals. Thus effectiveness of results is achieved with greatest smoothness of operational process. Whereas when organizations fail to use this approach then it can lead to lack of total management view and lack of focus on other contributory factors besides productions aspects.
3.1 Discuss the impact that different leadership styles may have on motivation within period of change
A leader can be defined as a person who either as an individual or a manager at workplace leaves his/her influence on a group of people or team and drives them in achieving a goal. A simple hint related to this definition would be the 3Ps namely Person, People and Purpose. (Twenge, 2010)
An organization like CAPCO’s objectives is to regulate the leadership styles it needs to pursue for establishing a healthy work atmosphere. CAPCO wants to implement a change in its premises by rotating the employees from one team to another and for a successful execution of this change, assessment of the impact of leadership styles are:
For ensuring employee rotation change at CAPCO, the manager can pursue participative leadership style letting him/her to engage the employees who might be getting affected by the decision. Employees’ involvement will keep the management aware of the issues they face in real time situations and also encourage the employees concerned in suggesting their ideas and opinions for resolving the problem. The style leaves both positive and negative impact on employee motivation. The positive impact will be the management can convince the employees by making them see the good side of the impending changes whereas the negative impact might be the involvement of many employees eventually creating more confusion and making the process much more complicated than it actually is. (Twenge, 2010)
If the manager follows transformational leadership it will be helpful in automatically influencing the employees with the management activities regulating the change as they can envision CAPCO’s values and goals in terms of change ultimately benefitting the employees to grow. The positive impact will be that management can influence the employees through values and goals whereas the negative impact will be the unsatisfied employees who should be identified and undertaking approaches for turning them into satisfied employees.
In case the manager follows transactional leadership style, employees accepting the change will be rewarded whereas the ones who will be a rebel will be punished. This style is irrelevant with the change in the working environment of CAPCO where the employees play the role of strategy implementer and if implemented will lessen the motivational levels and lowering the overall productivity of the business. (Twenge, 2010)
In case the manager follows autocratic leadership, he/she will institute change without even making a discussion with the employees leading to minimal complications in the execution. However, it will de-motivate the employees who will neglected and invaluable eventually effecting their productivity at work and performances
3.2 Compare the application of two motivational theories (e.g. Maslow’s & Herzberg theories) within organizational setting
Comparison between the applications of two motivational theories within organisational setting
Maslow’s motivational theory
Herzberg motivational theory
The theory relies on an individual’s needs and satisfaction
The theory relies on motivators like achievement, identification and development (Lam and Lambermont-Ford, 2010)
Dependent on hierarchy of five types of individual needs and fulfilling them to motivate the employees. (Lam and Lambermont-Ford, 2010)
Refers to hygiene and motivating factors where hygiene factors are linked with dissatisfaction and motivators motivates the employees.
Simple and informative. Depends on long-time experience respecting to individuals needs.
Prescriptive and suggests the factors of motivation to be applied effectively.
Widely applicable in both MNCs and SMEs as money are treated as a strong motivation factor.
Narrow applicability and is primarily applied in MNC’s where money is less motivating factor.
Descriptive or perspective
Descriptive by nature
Prescriptive by nature
Needs act as motivators which are not satisfied or the satisfaction level is less.
Hygiene factors do not act as motivators. Higher level needs like materialization, recognition, challenges act as motivators.
3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace
Necessity of managers to understand and apply motivation of theories are:
- Task delegation: every employee is different from the other on the basis of traits and characteristics making them expert in their areas of work thereby, managers must understand the factors motivating them and delegate tasks according to their expertise allowing them to be satisfied. Inaccurate task delegation will make them dissatisfied.
- Work culture: it is the most significant factor for an organization and only a clear understanding of motivation theories will help the managers in establishing the desirable work culture. Lack of proper work culture might make it tough or even unlikely in achieving the organisational objectives with employees’ cooperation. By adopting motivational theories , managers can identify the factors satisfying and motivating the employees in respect to the culture and follow applicable measures for ensuring that the desirable levels are met and achieved. (Parker, Bindl and Strauss, 2010)
4.1 Explain the nature of groups and group behaviour within CAPCO or your chosen organization
In CAPCO, types of groups are formed based on the objective.
Formal Groups: this group is formed by the organization and their behaviour is aimed in attainment of the predefined business goals. The teammates work on designated and rooted tasks. (Griffin and Moorhead, 2011)
A formal group can be classified into two namely
- Command group: it consists of team members who directly report to the manager. For example, a group working on a project and reporting to the same manager
- Interest group: consists of team members who come together for achieving a specialized objective. For example, a group of friends chilling out together
Informal group:this kind of groups at work are formed through friendships and common interests and can be classified into two namely
- Task group: the teammates come together to complete a certain job
- Friendship group: the teammates with shared interests or familiar characteristics come together Group behavior an important factors for determining a group’s effectiveness and can be related with Belbin’s team role. (Griffin and Moorhead, 2011)
4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO or your chosen organization
Factors promote or inhibit teamwork at CAPCO are:
- Group Process: in this process key business decisions are taken by the Chief Consultant who interacts with the senior members for conveying the decisions to others. In case the employees want to share some feedback or discuss the issues they face in real time situations, they are free to approach the Chief Consultant. This is helpful in giving direction and a roadmap to the team members. (Luis Daniel, 2010)
- Power Dynamics: the work process is structured allowing the team members in pursuing their activities. The Chief Consultant acts as a strategy thinker further conveying the strategy to the senior consultants further allowing the team members to communicate with topmost position eventually bring a faster communication process allowing the team in following what is directed.
- Personal factors: it has a major influence on effective team work. In case certain teammates pass on their duties and do not contribute in teamwork then it definitely will affect the alliance. However, if the management pursues participative styles then it will leave a positive impact on teamwork allowing the members discuss problems and feedbacks. (Luis Daniel, 2010)
4.3 Evaluate the impact of technology on team functioning within CAPCO or your chosen organization
Positive and negative impact of technology in team functioning at CAPCO
- Use of accounting software and other advanced form of work- based applications has allowed the teammates in been connected to each other while giving business presentations to the clients allowing them to showcase the future benefits or losses.
- 24x7 communications has been made possible with the help of technologies like mail, smart phones etc. even if they are not in same geographical locations.
- Since communication are done on a virtual platform, the information can be manipulated easily further hampering team functioning.
- Poor connectivity and networks traffic or hardware problems leave a negative impact on the team functioning. (Kopcha, 2010)
At the end it can be concluded that an organisational behaviour involves various aspects which further influence an organisation’s overall productivity. Organisational culture and structure have been discussed by considering the example of CAPCO and NHS. Moreover, various leadership styles along with the organisational theories have been discussed in organizational settings and practice along with the theories of motivation and why it is needed and their effectiveness is highlighted.
Business Case Studies. (2016). Organizational Structure in an innovative environment: A CAPCO Case Study. (Online) Available: http://businesscasestudies.co.uk/capco/organisational-structure-in-an-innovative-environment/introduction.html#axzz39bpY1RD3 Accessed on 16th July, 2016
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Griffin, R.W. and Moorhead, G., 2011. Organizational behavior. Nelson Education.
Khamsi, H.Z and Largani, S,M., 2014. Explanation of Human Relations Status Based on Performance Components of Principals. Arabian Journal of Business Management Review, Vol 4, No 5
Kopcha, T.J., 2010. A systems-based approach to technology integration using mentoring and communities of practice. Educational Technology Research and Development, 58(2), pp.175-190.
Lam, A. and Lambermont-Ford, J.P., 2010. Knowledge sharing in organisational contexts: a motivation-based perspective. Journal of knowledge management, 14(1), pp.51-66.
Luis Daniel, J., 2010. The effect of workplace spirituality on team effectiveness. Journal of Management Development, 29(5), pp.442-456