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One can see that studying organizational behaviour is an inter-disciplinary area, which further draws its observations from sociology and anthropology, economics, cognitive and social psychology. In this assignment a foundation of organizational behaviour, which revolves around the behaviour of employees, either as an individual or in a group is provided that eventually is built on numerous investigations and practical utilization of researches made on the concept of organizational behaviour that are both classic and contemporary.
The study of organizational behaviour will help in developing an understanding on how an employee’s ability, group dynamics and processes, workplace culture, leadership styles, technology and the structure influence behaviour apart from the role of employee motivation, communication and workplace conflicts in affecting behaviour. By studying the concept of organizational behaviour, a person can evolve the ability of analyzing, understanding and ultimately explaining the key aspects and elements within an organization and make a practical application of the theories that are learned in a competent way for resolving the problems in a strategic way, successfully execute an organizational change and emerge as a more competent leaders and managers.
In this assignment the case study of CAPCO has been considered as an example. CAPCO is a preeminent financial service consultant provider, which was established 15 years back and is ranked 27th in 2013 in the list of The Sunday Times 100 Best Companies to Work For.
The structure of an organization in general highlights the hierarchy of command line, communications and an organization’s right and duties. In other words, an organizational structure determines how power, roles and responsibilities are designated, controlled, coordinated and an information flows amid the management hierarchy. Structure is dependent on an organization like CAPCO’s strategy and objectives. A structure that is centralized, the power of making decisions relies with the top layer of management who further strictly controls other departments whereas decision making power is distributed and freedom can be seen in the departments and divisions in a decentralized structure. Organizational structure can be illustrated an organizational chart. (Schein, 2010)
Types of organizational structures:
Organizational Structure of CAPCO and UNISON:
CAPCO ‘s Flat Structure
UNISON’s Tall Structure
The flat structure of CAPCO promotes in having fewer levels of management eventually reducing the line of command and establishing a wider range of access and control over employees. (Zheng, Yang and McLean, 2010)
The tall structure of UNISON is a reflection of the complications that are involved in the nature of work it carries. Most of its staff work either from the new Euston Road centre or from any other 12 regions in UK
CAPCO’s flat structure further empowers the employees in playing multiple roles at work eventually preparing them for culture that promotes innovation and is entrepreneurial in nature.
In UNISON’s tall structure, one can see a small span of control, closer supervision and advanced jobs and because of many levels in the hierarchy, scope of being promoted is much higher although the communication is poor.
One can see openness at workplace and because of the flat structure, employees are given the freedom of sharing their ideas and information with their colleagues further cultivating a much better coordination and communication.
The process of decision-making in UNISON is much longer and is complicated. Costs burden in maintaining a large number of positions is a key disadvantage of tall structure. (Zheng, Yang and McLean, 2010)
Because of the flat structure at CAPCO, employees are always motivated and the management empowers them by supporting and allowing participation eventually resulting into the organization’s effectiveness. (Zheng, Yang and McLean, 2010)
UNISON’s tall structure allows the employees in being organized eventually helping them in acting quickly and responding to the changes
Organizational Culture of CAPCO and UNISON:
Culture can be defined as the values and behaviours contributing to an organization’s psychological and social environment and comprises of the experiences, expectations, values and philosophies which hold the organization together and one can eventually see it in the future expectations, interactions with outer world, inner workings etc. Organization culture relies on attitudes that are shared, customs and beliefs, written and unwritten regulations evolved over time. Organization culture determines the ways a business is conducted, how an organization treats the customers, employees and the community, scope of freedom in decision-makings and evolving of new ideas etc. (Rijal, 2010)
Types of organizational culture:
The kind of organizational culture CAPCO promotes lends support to the enterprising nature and modernization. In addition, it satisfies the employees by providing distinctiveness, teamwork and broad-mindedness at work thereby, encouraging them to keep on learning, experiencing new things eventually living their dreams. The organizational culture practiced in CAPCO has integrated elements like growth, performance, rewards, challenge and experience further allowing the employees to adopt innovative approaches at work and becoming a risk-taker for meeting the business environment challenges and changes. (Jones, 2010)
UNISON’s organizational culture allows the human resources to bring in innovation at work and constantly supports in resolving problems. Moreover, UNISON’s organizational culture implies a carefully knitted approach in order to facilitate organizational learning and concurrently highlights the need of evolving a kind of culture that backs the success of business on a global platform.
One can see the influence of both CAPCO’s culture and structure in the overall performance of the business. CAPCO’s malleable organisational structure is further helpful in ensuring the management day-to-day operations and other activities involved in the business are executing in a smooth and uninterrupted way by simultaneously increasing teamwork and employee participation at the workplace. CAPCO’s management through its flat organisational structure further ensures a wide range of control which has ultimately assisted in cutting down the communication gap amid various departments. (Jiménez-Jiménez and Sanz-Valle, 2011)
One can see that CAPCO’s structure is supported by its go-getting and contemporary culture. CAPCO’s culture proclaims individuality, integrity and openness in the working atmosphere and employees are encouraged to dream and work towards achieving the same. CAPCO’s culture is further built on four key pillars and has embraced growth opportunities of employees, rewarding outstanding performers, providing a challenging job portfolio and encouraging experience and learning. It has been observed that the structure and culture of CAPCO cherishes resilience, creativeness and risks that are further affiliated with indelible vision. This allows the employees in meeting the challenges and changes of the financial services industry. (Jiménez-Jiménez and Sanz-Valle, 2011)
Researchers suggest that an individual behaves in a certain way under a given situation and that no two individuals behave similarly. One can describe the behaviour of an employee as his/her reaction in a certain workplace situation.
It is important for an employee to maintain a sensible behaviour at workplace just not for gaining appreciation and respect from superiors and co-workers but most importantly for maintaining a healthy workplace culture adhering to its rules and regulations. There are numerous factors responsible for influencing an individual’s behaviour at work further affecting their performance and efficiency levels that can be either positive or negative. As discussed earlier, CAPCO backs a working environment that is decisive, malleable and comprehensive and thereby, it influences the employees’ behaviour allowing them to flourish. (Snape and Redman, 2010)
Factors influencing individual behaviour:
A leader can be described as an individual who is capable of influencing a group and driving them towards achieving a common goal. One can observe that leadership is an endless practice of showing direction to the followers in quest of a certain goal, target or desirable result. In other words, a person who motivates, inspires and pushes others towards a desired outcome is said to be a leader. Although an effective leadership practices are said to be enduring, however, the situations under which a leader works tends to differ from time to time and one situation to the other. (O'Reilly, Caldwell, Chatman, Lapiz and Self, 2010)
Effectiveness of different leadership styles at CAPCO and UNISON:
Organizational theories can be defined as the study of organizational designs and its structures, an organization’s relations with the external business environment and managers and technocrat’s behaviour within organizations. Moreover, the study of organizational theories proposes various ways of coping with swift change. (Ansari, Fiss and Zajac, 2010) The term management can be described as an act where people are brought together for accomplishing desirable objectives and goals by making and effective and efficient use of available resources. In an organization that is viewed as a system, one can describe management as a human action, which includes designing for bringing out an outcome that is profitable.
Organizational theories have had influence on the practice of management:
Scientific Management: Frederick Taylor has developed this theory in which he has outlined certain techniques for bringing improvements in the efficiencies of accomplishing a task allotted in a best way that is possible. Taylor has further subdivided the process of doing a work and closely studied the employees’ behaviour and the efforts they given in successfully finishing the given task. The approach undertaken had eventually helped in identifying the best way an employee can adopt in order to complete the task with zero percent errors with the help of available resources in a given timeline. (Ansari, Fiss and Zajac, 2010)
Principles of Scientific Management:
The four principles of Taylor's are:
The theory of Scientific Management asserts that an organization at the first stage identifies the best method to be used and then determine the kind of outcome it desires. Taylor’s theory also stressed on recognizing the employees’ contribution through rewards.
It has been observed that the practice of management at CAPCO is highly influenced by the theory of Scientific Management as employees are assigned with tasks only after measuring their expertise and abilities further empowering them to give an outstanding performance. Moreover, the employees are also encouraged in openly sharing and discussing their ideas with the management thereby, controlling the outflow of information eventually needed for achieving constructive outcomes even in environments where ample amount of risks are involved making use of flawless efforts and resources so that the process is formulated for encouraging innovation, individuality and integrity of actions. (Ansari, Fiss and Zajac, 2010)
Human Relation Theory: Professor Elton Mayo has developed this theory which emphasizes on giving more value on human aspect within an organization rather than just being dependent on certain process and procedures for achieving a result that is both rewarding and effective. Mayo stresses on the need of generating communication amid the management and employees so that they understand each other in a better way and work together for helping in achieving the desired goals at both personal and professional levels. Furthermore, the theory states that an organization can apply the technique of motivation and emotion for satisfying the employees who when satisfied will walk the extra mile for enhancing the overall growth of an organization. The theory of human relations management believes that an employee craves of being a part of a team that is supportive eventually facilitating growth and development. When employees get special attention and encouragement for participation, they tend to identify the importance of their role and are thereby, get more motivated in being more productive and producing high quality work. (Ansari, Fiss and Zajac, 2010)
One can say that the practice of management at CAPCO is influenced by the theory of Human Relation as the employees are given the empowerment to interact with all layers of management and employees irrespective of their departments without any restrictions and are also constantly encouraged in sharing their ideas and suggestions further facilitating their learning and experience in getting themselves adapted to the various changes of business environment with an improvement in their creativeness and distinctiveness of tailored solutions. Moreover, the employees get the much needed confidence of undertaking calculated risks eventually helping them in maintaining their productivity at work. At CAPCO, the employees are provided with an ample amount of freedom and work challenges so that they get the feeling of invested and connected with the company’s growth further allowing the management in increasing the rate of employee retention. (Ansari, Fiss and Zajac, 2010)
Different approaches to management:
Evaluation of different approaches to management used by CAPCO and UNISON:
The word motivation is evolved from the word motive meaning need, desire or wants that drives a person as either an individual or an employee in achieving a predefined goal. In other words, motivation is the process of inspiring a person in taking adequate actions for accomplishing certain goals. In a working environment, the psychological factors that stimulate an employee’s behaviour include their desire for money, success, recognition, job satisfaction, teamwork etc.
There are various leadership styles in a business world and each can used in a particular way for employee motivation. Managers reach out to these leadership styles for motivating the teammates and increasing their productivity levels and at times also integrate their own personal touch while executing their brand of leadership.
Employees are the most valuable asset of any organization and hence it is the utmost responsibility of the manager in keeping the employees morale high making them wilfully give their best performances. However, with change in times, keeping the employees motivated is a challenging job. Although there are numerous motivational theories, CAPCO’s manager should understand and choose the best, which suits the workplace. (Lam and Lambermont-Ford, 2010)
The workplace like CAPCO promotes a cohesive workgroup with amicable supervision where the employee craves for the fulfilment of the social needs. The management then applies the Maslow’s motivational theory in order to fulfil the employees’ needs with the help of belongingness and affection. Employees need recognition and belongingness from the management and senior authorities, which motivates them to work. In Maslow’s theory of motivation the hierarchy is designed in the order in which needs are fulfilled. At CAPCO, the employees physiological and safety needs are satisfied by giving them the opportunities of being employed further enabling them to arrange for the basic necessities of a human being such as food, clothes and shelter. Once both these needs are fulfilled, employees tend to crave for the need of belongingness, which eventually is based on relationships and is fulfilled by the management by cultivating a working atmosphere that is more friendlier and healthier allowing the employees in giving their 100% best. Moreover, CAPCO keeps the employees motivated through benefits like recognition, appraisal, discounted lunch coupons, incentives for over achieving the targets etc. which in turn increases their productivities. (Lam and Lambermont-Ford, 2010)
In Herzberg’s Two-Factor Theory, one can see that the parameters of motivation are categorized into two factors namely Motivators and Hygienic Factors. In CAPCO’s context, it is important for the management in determining the Hygiene factors and the Motivators and then accordingly design adequate strategies. For example, if proper remuneration, other perks and extra benefits are given to the employees that further meet the changing marketing strategy then it automatically will keep the employees motivated and satisfied. Employee can also be motivated by offering them with their due recognition. (Lam and Lambermont-Ford, 2010)
One can define motivational theory as a concept, which outlines the incitement of behaviours that are goal-oriented with the employees.
Herzberg two-factor theory emphasizes on motivator factors such as responsibility and recognition, prosperity and improvement which are needed to be fulfilled by an organization in order to stimulate fulfilment within employees whereas the hygiene factors like salary, promotion, administration, relations and working conditions do not leave a direct impact on the employees motivation however, in the absence of these factors they tend to get dissatisfied. (Yuan and Woodman, 2010)
Instinct theory of motivation emphasizes on a person’s biological approach to motivation and further proposes that a person’s behaviour is driven by his/her instincts which are goal-directed and innate behavioural patterns that are not based on learning or experience. The theory developed by Psychologist William McDougall stressed that an employee’s instinctive behaviour is made of three fundamental elements namely perception, behaviour and emotion.
For improving employees’ performances, the managers must evolve their knowledge linked with motivational theories and how it must be successfully applied in various situations at work. By understanding the use of motivational theories, managers can not only keep the employees highly motivated but can also develop the sense of being sincere towards work in them. Moreover, managers also need to identify those factors which drives motivation within employees keeping in mind that a factor which drives one employee may not necessarily be a motivation for the other. (Yuan and Woodman, 2010)
One can define group behaviour as the behaviour of groups or teams at workplace from the time they are formed until their disintegration. As common in animals, human beings too have the tendency of forming a group and being engaged in coordinated activities. A group’s behaviour varies depending on the situations and can vary in terms of size and composition. Social psychologists studying group behaviour state that the a group makes contributions in almost every activity from designing of advertisements that are targeted to specified customer group to understand how they will react in adverse conditions. For an organization working together as a group is necessary for socialization of the employees. (Griffin and Moorhead, 2011)
Nature of Groups:
In an organization, there are types of groups, which are formed for getting précised outcomes. Team members agree in doing a general task and then become mutually interdependent working in support of each other for achieving success. The nature of groups can be seen in three different views where the first is normative in which how a performance is carried out and the team is managed is explained and second view includes methods, group building, role play, self- managed groups and sensitivity training of teammates. The third is been assigned as team dynamic from the internal nature of a groups point of view. (Griffin and Moorhead, 2011)
A team is said to be effective only if it is successful in providing satisfaction to the members involved, attain growth and improved performance. Factors like communication, leadership, diversity etc. are necessary for developing a successful teamwork. The most fundamental component of teamwork is leadership thereby, the team leader must be capable enough of generating and maintaining a positive work culture further motivating the others to works towards the attainment of the goals that are targeted. (Goldman, Meuser, Lawrie, Rogers and Reeves, 2010)
CAPCO pursues good leadership styles and the managers too are very helpful who are always there whenever employees need them for getting motivation and encouragement further creating a working atmosphere that is more friendlier. The manager always encourages the team members in sharing of ideas and opinions that might be beneficial for the businesses overall growth and concurrently advocate high motivational levels amid the members as result of which they feel being supported and invaluable. In every 3 months, CAPCO arranges for various training programs for enhancing the employees’ skills and burnishing their communication skill which is considered as an indispensible factor in the cultivation of interpersonal relations at work. In addition, open communication is another integral factor of effective teamwork where every member are given the right of expressing their ideas, suggestions and ideas and understand each other’s point of views. Moreover, diversification is also a factor promoting innovation and grows respectfulness towards CAPCO amid employees, the effectiveness of which can be seen on teamwork. (Goldman, Meuser, Lawrie, Rogers and Reeves, 2010)
With a change in business scenario, every organization has introduced the use of modern technology at work for coping the pressure and aggressive market competition. CAPCO considers the involvement of technology has been beneficial in increasing its revenue generation and has simultaneously has helped in attracting more number of customers. Working in a financial industry, CAPCO is highly dependent on the use of technology for making it easier for the customers to buy the products. By making an effective use of technology, CAPCO has cut down its staff capacity, evolved job roles and responsibilities and enhancing job satisfaction through excellent communication. Technology enables the teams in maintaining and updating their knowledge for effectively doing a task. Using email, smartphones, computers etc. have helped in improving the performances of teams allowing the members to stay in touch round the clock and from any location even while on a holiday. (Ahuja, 2010)
At the end, it can be concluded that the study of an organizational behaviour is the reflection of how an organization like CAPCO functions and comprises of the structure and culture further determining the company’s future. CAPCO’s success and failure in the long-term period is at large dependent on the kind of culture it possesses and how helpful is the culture in employee retention. CAPCO’s innovating and entrepreneurial culture cultivates loyalty amid employees. In addition, the managers are helpful and cooperative in nature driving the employees in achieving a common goal
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