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Unit 3 Organizational Behaviour Assignment CAPCO & Tesco
Diploma in Business
Unit Number and Title
Unit 3 Organizational Behaviour CAPCO & Tesco
Organizational behaviour refers to study of human behaviour in organizational settings, the interface between organizational culture and behaviour of individual at the workplace. The study of organizational behaviour is being divided into three different levels such as micro, macro and meso that have a different process for development of behaviour and interaction between organization and staff (Aydin, 2015). Unit 3 organizational behaviour assignment CAPCO & Tesco will compare and contrast the structure and culture of CAPCO and Tesco as well explain the relationship between CAPCO structure and culture impact on the performance of operations. CAPCO serves the financial sector on an international basis. In the next part, the report will compare the effectiveness of leadership between CAPCO and Tesco as well explain the organizational theories that have a significant influence on the management practices. Furthermore, the report will discuss the impact of different leadership styles and explain the necessity of manager of CAPCO to understand and apply motivational theories. At the end, the report will explain the nature of groups and behaviour within the organization and evaluate the impact of technology on team functioning.
1.1 Compare and contrast of CAPCO and Tesco’s structure and culture
Structure: Organizational structure is the framework of task-and-authority relationship in organizations that coordinates and encourages staff members to work together towards the mutual goals and objectives. However each organization has different structure but there are some similarities between organizational structure of CAPCO and Tesco which are as follows:
Table 1: Similarity in structure
Organization is following global function in departmentalization.
The retail organization is also following the same functional departments like accounting, HR, sales and inventory.
In order to manage the functions, organization is following the hierarchy structure (Bock.et.al. 2012).
Organization is also using the hierarchy structure for better monitoring and allocation of resources.
The management is giving preference to specialization in the services and products that company is offering.
Organization is using specialize training and development module according to structure to manage the work to perfection.
Table 2: Difference between structures
Organization is following hierarchical formal structure to assign role and responsibility
Tesco management is following informal structure for allocating and monitoring the work.
This structure helps to signify the division of labour to encourage the performance.
Formal structure helps to determine the policies and objectives of business in effective manners.
The activities of individual at workplace are partial that improve the focus (Burke, 2013).
According to this structure, two way communications has been performed.
It is more flexible and do not have the specific planning of operations.
This structure of Tesco not has defined relationship. It majorly uses impulsive relationship.
The management of organization use the volunteer aspects for performing the tasks.
Organization has more than one informal group.
This structure has positive impact on the process of organization to manage the operations.
Division of work has been performed according to skills and capabilities of individual.
Management has divided the work into different category.
Formal structure helps to maintain the activities by focusing on the outcome (Carlson, 2013).
Management analyse the needs and allocate the tasks accordingly.
It is flexible as manager could change the role and responsibility of individual.
Organization does not allow any relationship with operations.
This is helping organization to improve the effectiveness of activities to reach the standard.
Culture: Organizational culture is the set of shared organizational value and norms that shapes the way of interaction among the staff members as well helps to develop the positive and healthy working environment.
Table 3: Similarity in culture
Organization has developed the strong team working culture that helping to meet the objectives efficient manner.
The same culture is been followed by the Tesco to maintain the effectiveness of teams to achieve the organizational objectives.
Respect of people
Organization is giving value to the belief of staff members.
Tesco is offering proper respect to the needs and value that followed by the people.
The culture of organization helps to encourage for creativity in the business process (Zheng.et.al. 2010).
Organization is encouraging the positive culture that helping the staff to give input in the development of products and services.
Table 4: Differences in culture
Type of culture
Organization is following Academic culture
Tesco is following Normative culture
It focuses on the skills of staff members.
Organization considers the market changes and global approach.
This culture gives value to norms and predefines values.
Tesco has defied the rules and regulations for maintaining the culture.
This influence decision of staff members to follow the guideline and fulfil the responsibility (Alvesson, 2012).
The staff of Tesco follows fix layout for managing the tasks as well giving the freedom to staff members to maintain the culture.
1.2 Relationship between structure and culture as well their impact on performance
According to analysis, it is been carried out that CAPCO is following the informal structure and academic culture that have a significant impact on the operational, functional and management activities. In addition to this, top management of the organization is implementing the changes in the structure and culture according to needs and requirements. The structure and culture of organization majorly interrelated as the strategy and plan that organization develop and implement are framed according to structure and culture. For the achievement of organizational objectives and goals the role of culture and structure is important as the respect of belief, value and proper allocation of role and responsibility influence the performance of CAPCO staff that directly encourages the overall standard and quality of operations (Michie.et.al. 2011). According to given case, the structure of CAPCO is playing a major role in the establishment of culture which is helping to settle the behaviour, moral value and power of decision making. Apart from that, the level of freedom organization is offering is not according to a structure which affects the communication within the organization.
Culture and the structural relationship are required for managing the coordination among the departments and behaviour of the organization as the decision-making, allocation of resources and accountability get influenced by the changes in the both. This is the responsibility of the management of CAPCO to monitor the impact of culture and structure on the functions as well approach of staff members. For example, the blend of culture and structure of CAPCO organization is supporting the decision-making and utilization of resources that encouraging the performance as well efficiency (Voon.et.al. 2011). In addition to this, formal structure is helping the organization to maintain the effectiveness in the determination of role and responsibility by focusing on the results. The combination of culture and structure of CAPCO is working for the organization to encourage the performance.
1.3 Factors that influencing the individual behaviour at CAPCO and Tesco
There are various factors and issues that have a significant impact on the behaviour of staff members of CAPCO and Tesco. According to analysis, these factors influence the performance, input and effectiveness of individual as well culture of organizations. Following are the factors that influencing the behaviour of individual at CAPCO:
- Age:This is a key factor that influences the behaviour of individual at CAPCO as the experience of elder staff and creativity of young people to affect the understanding and communication process of individual (Hatch and Cunliffe, 2013). The experience of the individual has a significant impact on the behaviour as the level of energy; innovation and risk taking get affected with the age.
- Gender: According to given scenario, CAPCO was rated as one of the best companies to work for in the Sunday Times 100 Best Companies list. It is also rated as one of the top 50 employers of women. The gender of the individual has a major impact on the working process, understanding of consequences and decision making. According to research, it is been considered that gender of the individual influence the problem-solving ability, analytical skills and motivation level. These elements have a direct impact on the behaviour of staff of CAPCO.
Factors that influencing the behaviour of individual at Tesco:
- Personality: The physical appearance of the individual has a direct impact on the behaviour. According to analysis, it is been identified that growth, development and mindset of staff members is different from each other that influence the behaviour (Ortt and Smits, 2016). The personality of the individual helps manager and management of Tesco to assign the role and responsibility at the workplace.
- Values:Tesco is largest retailer chain in UK and thousands of staff members working for the organization to achieve the goals and objectives of the organization. However, employees of Tesco are following the culture proposed by the management but values of individual influencing the behaviour and approach.
2.1 Comparison of different leadership at CAPCO and Tesco
For managing the human resources and maintaining the organizational behaviour role of leadership is critical as direction and guideline that proposed by the manager influence the performance of staff as well encourage them for improving the skills. CAPCO and Tesco are two different sectors organizations that performing the different operations and activities to gain the profit. By analysing the process of Tesco it is being considered that managers of the organization are using the autocratic leadership style for managing the human resources and decision making . This kind of approach has a major impact on the allocation of role, resources and types of operations to staff members (Kanfer, 2012). According to autocratic leadership, the entire command and control over the inventory, production, logistics and distribution performed as per the decision of manager or higher authority of Tesco. There is no interface of staff members of another stakeholder in the decision-making of Tesco as well the performance of individual judged as per the benchmarking standard.
On the other hand, CAPCO managers and management are following the transformational leadership style that has a significant impact on the organizational behaviour. By using this style of leadership the manager of CAPCO is motivating the staff members and teamwork which are essential for financial sector organization. The organization CAPCO acquires approximately about 2000 employee all over the world and has been listed among one of the best companies as well. Transactional leadership is been implemented with the purpose to maintain, manage and monitor the workforce and their work effectively (Gagné and Deci, 2015). This kind of leadership is helping CAPCO to maintain the interaction with the staff members, gain the support of employees to change the process and proper utilization of resources.
2.2 Influence of organizational theories on the practices and management
In order to manage the organizational practices and behaviour, the management could use the different types of theories that by evaluating the effectiveness and requirements. For CAPCO Human Relation Management theory would be appropriate to maintain the effectiveness of organizational culture and behaviour. This theory of organization suggests that belief and desire of people to be a part of a supportive team would faceplate the development and growth of the business entity. CAPCO staff members receive the special attention from the senior staff members as well motivation that helps to develop the strong and positive relation with the staff members (Mohrman.et.al. 2013). The basic aim of using this organizational theory is to ensure the optimum utilization of resources, enhance the quality and communication. Human relation management theory suggests that accomplishment of tasks along with the current trends and activities requires the support of the staff members.
In addition to this, this organizational theory has a positive impact on the practices of the organization as the environment of the organization is friendly and give the respect to individual that influence the performance. Human relation theory is helping CAPCO management to understand the needs and objectives of staff members and offer them support accordingly. For example, following the organizational theory of Human Relation management CAPCO management is allowing the staff members to give the input about the organizational process of managing the resources, planning, communication and coordination that has a positive impact on the business activities of the organization (Carroll and Buchholtz, 2014). Moreover, to achieve the desired goals and objectives it is necessary for top management of CAPCO to maintain a healthy relation with the employees to keep them motivated.
2.3 Different approaches of management used by the CAPCO and Tesco
In order to develop and maintain the organizational behaviour according to proposed standard the management of Tesco and CAPCO are using the various management approaches. The aim of using management approaches helps to the scheduling of tasks, determining the goals and objectives, improve the performance as well the use of resources. Tesco is using the management is using the classical management approach in which organization has stated the benchmarking standard for quality, production, behaviour and communication among the staff members. This kind of approach is helping to achieve the organizational goals with collective efforts that influence the profits as well understanding of staff members by learning the new skills or tactics from the team members (Colbert.et.al. 2014). In addition to this, the classical approach that followed by Tesco supports the organization to enhance the power of decision making, encourage the communication and monitoring of business activities.
On the other hand, CAPCO is using scientific management approach with the aim of encouraging the sales and numbers of customers. By using this kind of approach the organization is offering the training, guideline and support to individual that would help to meet the objectives more professional manners considering the current trends of the financial industry. By using this kind of management approach, CAPCO is looking to develop the quality culture at the workplace where individual play their part in proposed manner. For example, CAPCO is scheduling the tasks in more professional ways by considering the skills and capabilities of individual that helping to maintain organizational behaviour and smoothness in the business functions.
3.1 The impact of different leadership styles in motivation within the period of change
The leadership basically means to lead a group of people. Leadership includes establishing a clear vision, sharing that vision with others so that they will follow that willingly, coordinating and balancing the conflicting interest of all the members, etc. There are several types of leadership styles which help the leaders in an organization to motivate the workforce and improve their efficiency (Cummings and Worley, 2014). There are many types of leadership styles such as autocratic, participative, transformational, laissez-fair leadership style, etc that an organization follows to achieve its objectives effectively and efficiently. The styles which
CAPCO follows to motivate its employees are as follows:
Figure 1: Leadership style
Autocratic leadership: Autocratic leadership is also called as authoritarian leadership. In this style, a leader is fully liable to take all the decisions related to company and receive little or no input from the group members. In this type, a leader makes a decision on the basis of their perceptions and judgments.
Figure 1: Autocratic leadership style
Participative leadership: In this leadership style, manager or leader invites input or suggestions from its employees in all decision making of the company (Fullan, 2014). The staffs are provided with significant information regarding company’s issue and a majority of votes will determine the course of action that the company will take. In this style, employees are free to give their views and suggestions.
Figure 2: Participative leadership style
Laissez-faire leadership: In this style, workers are given full rights and power to make decisions. This leadership style was first described by Levin, Lappet and White in 1983 (Harmon, 2015). This style leads to increase in efficiency and motivation among the workers.
Figure 3: leadership styles in CAPCO
With respect to the present case, the management of CAPCO follows autocratic, laissez-faire and participative leadership styles while TESCO follows autocratic style only. The leaders of CAPCO motivate their employees by involving them in the company’s relevant matters and enhance their efficiency and confidence which automatically leads to increase in production (Hassan.et.al. 2013). While leaders of TESCO does not involve their employees in relevant maters of company which leads to pressure on them and that ultimately reduce their efficiency and spirit of working.
3.2 Comparison of the application of Maslow’s & Herzberg theories within the organization
The leaders have been provided with a wide range of motivational theories such as Maslow’s theory, extrinsic theory, Herzberg theory, incentive theory, etc. These motivational theories help leaders to increase the productivity, job satisfaction, improves the performance level, growth of organization, etc. Following are the comparison between two major motivational theories:
- Herzberg theory:The Herzberg theory is also known as Two-factor theory of motivation. This theory states that in the workplace there are some factors which cause job satisfaction and the separate set of factors causes dissatisfaction. Basically, Herzberg has classified the job into two categories:
- Hygiene factors: These factors include pay, fringe benefits, company policies, status, job security, physical working conditions, etc. These factors are those which are essential at the workplace for the existence of motivation (Hu and Liden, 2015). These factors symbolised the physiological needs which the individuals wanted and expected to be fulfilled.
- Motivational factors: The motivational factors of Herzberg theory yield positive satisfaction. These factors are inherited to work. These factors include recognition, growth, promotion, achievement, responsibility, etc which motivates the employees for a superior performance. The motivators symbolised the psychological needs that were perceived as an additional benefit.
- Maslow’s theory:Maslow’s theory was invented by the Abraham Maslow and he states that motivation is the result of a person’s attempt of fulfilling the five basic needs. These five needs are shown in a hierarchy structure which states that the first need in the hierarchy must be fulfilled first and later the other one.
Figure 4: Hierarchy of needs
3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace
For the better motivation of employees in an organization there is a need of a good leader or a manager with a sufficient knowledge of the motivational theories. According to the Maslow’s theory, leaders of CAPCO should motivate their employees by fulfilling their basic needs so that they can work more efficiently and effectively. The needs of employees such as physiological needs, safety needs, love, esteem and self-actualization must only be fulfilled with the purpose to motivate them and to enhance their efficiency. However organization has the good understanding of needs of a staff member but the lack of application of motivational theory is affecting the overall organizational behaviour of CAPCO (Ki.et.al. 2015). It is the duty of the manager to keep a close eye on the needs of the employees and to provide them timely and optimum remuneration and promotions to the employees. The manager is also responsible for seeing whether the staffs are either ignored or dominated anywhere in the company and also how they are being treated in the organization.
The manager should work for the development and growth of the employees so that they perform efficiently and helps in fulfilling the objectives of an organization. Proper understanding and knowledge of motivational theories and factors along with the proper applications according to requirements will influence the behaviour of individual at CAPCO which is essential for the organization to achieve the objectives. Thus, it is noticed that by making such initiatives, employees would be motivated towards the organization and would help out the manager in the accomplishment of every task successfully.
4.1 The nature of groups and group behaviour within CAPCO
This is been observed that every organization is being divided into a various number of groups. These groups are been created with a purpose to perform some predetermined tasks. The team members in the group perform their assigned activities and mutually depend on each other for the completion of the task given for which the group is being formed. There are basically four types of team i.e. permanent teams, task forces, virtual teams and skunk works. Basically, it is found that there are two types of groups that prevail in the organization. Formal and informal groups are the two groups that exist in the organization (Mangi.et.al. 2015).
- Formal group: The formal groups are formed in the organization in order to complete some specific predetermined task.
- Informal groups: The informal groups are formed in an organization because of relatedness needs, goal accomplishment, emotional support, etc. Such types of groups are framed by the employees themselves.
With the respect to CAPCO, both formal and informal groups exist over there and these groups work for fulfilling their different goals and objectives. The formal group in the CAPCO is constituted by the management as part of the organizational structure. These groups are equipped with financial and physical resources and with the appropriate amount of authority to carry out their roles. The formal group acquires a well-defined structure and communicates in a definite way. Both the formal and informal group differs from each other and also carries a wide range of activities. It has been observed that the group behaviour prevailing, assist CAPCO to a large extent in completing the task either formally or informally (Aydin, 2015). For a successful completion of the task, it is necessary that the members of the group should work with a mutual understanding and consent so to move in a similar direction.
4.2 The factors that may promote or inhibit the development of effective teamwork within CAPCO
With the case of CAPCO, there are many factors that promote the teamwork efficiently and successfully. Factors such as communication, leadership, team-building exercises, homogeneity, stability, cohesiveness, creativity, etc help CAPCO to build a strong team for performing their task in an effective and efficient manner.
Figure 5: Team working
Thus the teamwork in an organization plays an important role as it produces higher quality outcomes, better context for individuals, builds trust, teaches conflict resolution skills, encourage healthy risk-taking, help higher authorities in achieving the desired goals, leads to higher profitability, etc.
4.3 Impact of technology on the team functioning within CAPCO
In order to maintain the effective flow of business activities and practices that are being performed by CAPCO has a significant impact of the technology. According to given scenario, it is been identified that CAPCO is operating a business strategy in the financial sector and use of technology is necessary for communication, collecting the data, formatting and distribution. Team functioning in the today’s time has requirement of technical tools like email, phone and information systems to maintain the list of customers (Burke, 2013). By using these, technological tools CAPCO staff members are performing the tasks and activities which are result oriented. This kind of approach is having a positive impact on the team functioning as well helps to complete the tasks on the given time limit.
For a team of the staff member, it is important to have strong communication and coordination that is important for managing the operation according to organizational behaviour. For that purpose, use of technical tools like computers, mobile phones and internet tools have a significant impact on the functionality of CAPCO teams. In addition to this, personal computer also helps the team members to keep records of their activities or plans so that to implement to monitor and evaluate the activities in a more reliable manner. On the contrary to this, technology had some of the adverse impacts also which could be harmful if misused by anyone (Alvesson, 2012). For instance, capturing any important detail in the mobile phone and making wrong use of it. Hence, from that analysis, it is been considered that planning and effectiveness of teams at workplace majorly rely on the technology.
From the study, it is been considered that organizational behaviour defines the approach and effectiveness of operations that performed to achieve the goals and objectives. The report has provided the detail information about the similarity and difference between CAPCO and Tesco structure and culture as well discussed the factors like age and personality that affecting the behaviour of individual at the workplace. In the next part, a report has discussed the impact of leadership styles and motivational theories that used by the management of Tesco and CAPCO. Moreover, a report has explained the behaviour of groups at CAPCO and evaluated the impact of technology on team functioning.
Books and journals
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