Unit 3 Organizations and Behaviours Motivational theories Assignment

Unit 3 Organizations and Behaviours Motivational theories Assignment

Unit 3 Organizations and Behaviours Motivational theories Assignment


Diploma in Business 

Unit Number and Title

Unit 3 Organizations and Behaviours Motivational theories

QFC Level

Level 4


Organisational behaviour is to interact with people within the group and to interact with the individual at work place. This approach of management is used for the Human Resource Management and developing the culture of organization. In organizations and behaviours motivational theories given case, Oticon organisation has defined organisational structure in different ways like study of human behaviour etc. The ways and their impacts and benefits would be further highlighted in the report.

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Task 1

1.1 Compare and Contrast different organisational structures and culture

Organisational structure and cultures are inter-related with each other. The structure works in a hierarchy to assigns roles, authority and responsibility according to their position in the organisation. Moreover, it helps in managing communication and coordination effectively to achieve the objectives.

Table 1: Similarities in structure




Hierarchy structure

The organisation is following the hierarchy structure for proper functioning.

Phonak is also using the same hierarchy structure for proper management and use of resources.

Work specialisation

The organisation prefers specialisation in the services and products the company produce.

Phonak too prefers work specialisation by providing advance training to staff to give expertise in their workings.

Flexible Functioning

Organisation is providing flexibility through better business process in every department.

Phonak is also  following the same functioning in all departments like HR, accounting, sales and marketing etc (Aydin, 2015).

Table 2: Comparison of structure





The given organisations structure is well defined and formal but with flexibility in working.

The structure of Phonak is somewhat informal.


The company employs adult only so that they can act reasonably to any situation.

The company follows formal structure which has benefits of better flow of communications and roles and responsibility are clearly defined (Carlson, 2013).   

The informal structure is very flexible in the organisation and there are more personal communications.

There are no defined roles and responsibility and the chain of communication is not proper.

Comparison and contrast between organisation cultures

Table 3: Similarities of culture





Company believes in innovation in his services and products.

Phonak also leads on the way of innovation.

Emphasis on people

Company duly emphasis on customers and the employee.

Phonak also gives value to customer and produce goods according to need of customer.

Team work

Team work leads to efficiency of the employee and collective strength of the team.

The same is with Phonak team work helps to achieve the objectives (Cummings and Worley, 2014).

Table 4: Comparison of Culture





 The company follows Academic culture

While Normative culture is been followed by PHONAK


  • Culture is concerned with highly skilled employed.
  • The culture is consumer friendly which supports the structure.
  • The culture in very strict with predefines rules.
  • Guidelines are followed for the rules and regulations .

1.2 The impacts on the performances of the relationship between OTICON structure and culture

In Oticon Company, the structure and culture are inter-related. The structure works in hierarchy i.e. the work and duties are assigned in the downward position in order to achieve the objectives. But sometimes the structure differs from organisation to organisation as the culture and values of management used for developing the work. The performances of the individual are very much affected by the culture. The reason may be due to the differences in behaviour, perception, and attitude.  Behaviour may be defined as the way the individual reacts or express his emotions in different ways.

Moreover the culture reflected in OTICON is flexible which redesign its workplace to allow maximizing disturbance tolerance i.e. to provide mobile office but after providing this much flexibility the lower level is less flexible means they are not provided rights and powers in the structure which affects the work culture directly (Harmon, 2015). The structure should be such that it manages the responsibility and authority and promotes work culture. Both structure and culture influence the employees to work effortlessly and it may have negative impact also due to conflict in individual’s behaviour.

1.3. Factors which influence individual behaviour in oticon and benefits agency

There are many factors which influence the behaviour of individual but the three main factors are: personal factor, organisational factor and environmental factors. Personal factor influences the individual behaviour because human beings are born with different qualities have different perception and attitude. Thus all characteristics are related to each other. The behaviour cannot be changed actually it can only modify according to the human personality. The second major factor is organisational factor. According to analysis, it includes the individual behaviour as the every individual has own perception and values to deal with the situation and manage the work. The third influencing factor environmental factor (McLaren and Struwig, 2015). This factor has wide impact on individual behaviour, the factor such as economic factor, socio cultural factor, political factor and legal factor. Economic factor are wage rates, technological advancement. These factors are needed to be considering by both the organisations to achieve the objectives and to improve the behaviour of the individual.

In the given scenario, Oticon Company is having influence of the personal factor. Personal factor includes different perception, attitude, ability and intelligence. Even the company was first to provide redesign workplace with mobile office where each workstation consisted of desk without drawer and with inbuilt powerful PC’s where all work was done. However the organization is offering facilities to staff members but still it faces attitude problems in the individual. In case of Benefit Agency economical factors are having major issues as organization is having financial problems and not able to offer the satisfactory wages and salary to staff members (Pioch and Gerhard, 2014).


The Oticon Company which is engaged in the hiring aids is successful company, though the company have both positive and negative impacts but with the initiatives taken by Knud to adapt a flexible workplace environment with the advancement in technology which also helps them to reduce chaos within the individual but also improvement in company’s performances by 10% per annum.

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Task 2

Nice Cars is German automobile organization those has faced failures but grows with effective management. This task will assess the effectiveness in leadership styles which can sustain and grow a business in competitive situations. The task will also cover the organizational theories those are used by Nice Cars to manage employees and other resources. The task will also discuss the different management approaches like human relations and contingency to illustrate the effectiveness of Nice Cars and Shin-Gijutsu Group.

2.1 Effectiveness of different leadership styles in different organizations

Different leadership style has different advantages or benefits and disadvantages or demerits. It differs from organization to organization depending on the requirements of the individual organization. It has been seen that basically there are three types of leadership style that are autocratic, transactional and transformational. In autocratic leadership style the decision making and right to attend the meetings were only to top management, the employees do not participate in any functioning of the organization (Saarijärvi.et.al. 2013). The effectiveness of this style is not proper and works on strict formal approach even the organizations do not prefer to use this style of leadership due to reduction in their growth and profits. 

Transactional leadership is quite effective in encouraging the employees and directing them to complete their task. With this style the employees evaluate and the correction are done by the management. And in transformational leadership, the employees are motivated and their feedback is included in their meetings and even their leaders have been given a right to attend the meeting and participate in the  decision making .

In the given case, in before 1990’s Nice Cars were using autocratic leadership style but with the downfall in the profits and sales they adopted different style i.e. transformational leadership style with that there loss making organization changes in profit making in just four years. It’s not necessary that the style which benefited to the Nice Cars would also be beneficial to the competitor’s of the same car industry this is because different organization has different core competencies. For example in 1990’s the BMW M5 were the biggest competitors of Nice Cars but they are using different leadership style and were generating high profits (Zhu.et.al. 2013).

2.2 Organisational theories in Nice Cars

Nice Cars needs the organizational practices with standard theories which indicate the role of management personalities to retain the skills and productivity of employees. Organization uses the following theories to motivate the employees for their work and performance so that organizational objectives can be achieved parallel to employee development and satisfaction.

Human Relation Theory:Nice Cars follows the practices towards the better human relationship in workplace as it treats the employees as part of organizational family. The communication among managerial units and under control engineering and working group is informal so that they can share their challenges and experience in work effectively. With the implementation of human relation theory, organization has promised Japanese engineering staff for life time employment. The reward system for high productivity and quality is improved with more transparency and accurate measurement. Nice Cars also use the training and development programs to achieve the accomplishment of objectives in informal manner (Gready, 2013). Human relations are used in workplace to motivate the employees and to direct them in competitive culture.

Unit 3 Organizations and Behaviours Motivational theories 1

                                              Figure 1: How human relation theory works

Scientific management theory: Nice Cars also implements scientific management theories as it has reduced the time and cost on resource utilization and assets are management effectively for better productivity. Japanese work approaches are used to reduce the effort about to 50%. Organization has arranges the process in piping manner and reduce the dull time in workplace. Also the proper inventory management has reduced the misuse of resource. The management of Nice Cars is measuring the performance and quality of work with scientific tools so that partiality can be reduced and employee’s trust can be achieved for sustainability of organization (Aragón, 2010).

Unit 3 Organizations and Behaviours Motivational theories 2

                                                 Figure 2: Scientific management model

2.3 Different approaches to management 

Human relation approach is used by Nice Cars and Shin-Gijutsu Group use contingency approach to manage the business. Both the organization overlaps the approaches for better management of resources and employees in business objectives. Management approaches helps to enhance the employee interest and productivity so that organizational objective can be achieved effectively.

  • Human relation approach:Nice Cars has informal relations with employees which is effective to manage the business with engagement of employees in decision making process. Human relation helps organization to estimate the requirements and demands of employees. It also helps to motivate the employees with personal relations and communication so that higher productivity can be achieved. To strengthen the relation with high quality and profit, Nice Cars also use training and development programs along with organization of events to increase the productivity (Pless.et.al.2012). However, the informal relations react sometime as the barrier in quick decision making process and reduce the performance on over communication and friendliness.
  • Contingency Approach: Along with Nice Cars, Shin-Gijutsu Group use contingency approach in which management observe and enhance the utilization of  human resources  as well as assets of organization for high performance and quality. Organization measures the individual’s performance and contribution in accomplishment of objectives. The performance measurement is only effective tool to motivate the employees with rewards and benefits. The culture of workplace is forced to become competitive for benefits and facilities. The management of organization has no engagement of employees in decisions and itself observe the influencing factors on business environment (De Souza, 2013). Training and development programs are organized to shape the talent of employees according to working standards and practices.


The task has been concluded the effectiveness in leadership style along with organizational theories to manage the resources. Different management approaches have been discussed in context of Nice Cars and Shin-Gijutsu Group.

Task 3

In any organisation, whether it is production sector or the service sector. The need for leadership style is there to meet the benchmarking standard as well utilization of resources to achieve the goals and objectives. In the given scenario, the different styles that the leader should follow and how it would be useful for the Security Agency services in achieving the productivity and growth and would be the impact of not using appropriate style of leadership in the agency and the brief discussion on motivational theory of Herzberg’s and Maslow’s theory and how to use these theory and which one to use. So the organisation could achieve its objectives by motivating their employees through proper training, promotions and incentives.

3.1 The impact of different leadership style in motivation within the organization in changing period:-

For the purpose of direction in an effective manner, organizational team is applying leadership style. Organization can adopt many of the leadership style such as: - autocratic leadership style, democratic, transformational, charismatic and transactional leadership style. These leadership styles plays significant role in motivating to employees in an agency organization for achievement of the set objectives and build their knowledge.

Following are some leadership style which can motivate the employee of the organization:-

Unit 3 Organizations and Behaviours Motivational theories 3

               Figure 3: Types of leadership

  • Transformational leadership:Transformational leadership is a style where the employer work with their employee to recognized needed changes in an organization. This leadership style motivate to employee to implement changes and work with new vision according to new requirements.
  • Autocratic leadership:In this leadership style individual person controls all over decision and very less or no contribution to another team members in any decision. In this style all the decision making authority has only on a single person. Here in this style the top management or manger of an organization are wholly liable to make any decision (Hu and Liden, 2015). There is no contribution of any low level authority or employee. This type of leaders takes decision based on their ideas and judgment. This leader rarely accepts advice from another team members or subordinate.
  • Democratic leadership style:This type of leadership includes all the group members to take more participative role in decision making. Here in all team members exchange their ideas or views with the management or employer. The members also assist to management in determine the activity as what need to be done and how it to be done. In all final decision is taken by top management.

In the given scenario, the organization follows hierarchal structure and leadership is based on autocratic leadership where top management takes decision but with the appointment of Derrick (chief executive) the style has been changed from autocratic to democratic and transformational style where lower management also participate in decision making, promotions were give, innovative ideas are welcomed and working as a team. But again with change of chief executive with Peter the old autocratic leadership was coming in the picture that created the problem for skilled staff (Carroll and Buchholtz, 2014).

3.2 comparison of the application of Maslow’s & Herzberg theories within an benefit Agency

There are varieties of theory which make easy to leaders for motivating the team members and make them more productive. The comparison between two major theories as follows:

Herzberg theory:According to Herzberg, in any organization basically two factors which motivate an employee to work for achievement of the desired goals. Job dissatisfaction is affecting various factors present in organization. This theory is mainly made of hygiene and motivation factors. The hygiene factor includes salary, benefits, job security, working condition etc. whereas motivation factor depends on the requirement of an individual such as recognition, promotion, growth etc which can be satisfy or dissatisfy.

Unit 3 Organizations and Behaviours Motivational theories 4

                            Figure 4: Herzberg motivational theory

Maslow’s theory:According to Abraham Maslow every individual have some basic needs and fulfilment of these needs, motivate them to achieve a desired goal. According to these theory, the need of an individual’s  are classify into five stages i.e. basic or physiological needs, safety needs, love and belonging needs, esteem needs and self actualization needs. An organization can motivate to an individual by fulfilling their needs (Mangi.et.al. 2015). An individual can work more efficiently if their needs are fulfilled by organization. An organization can accomplished their objective to satisfy their employee need.

Unit 3 Organizations and Behaviours Motivational theories 5

                                Figure 5: MASLOW'S Theory

In the given case study, the both can be applied on the choice of the agency but it would be better to use Herzberg theory of hygiene and motivation factor as it cover the maximum issues which the staff faces in the workings. And with the appointment of derrick these theory has been seen too much extent which promotes staff and increased their productivity.

3.3 Usefulness of Motivational theories to Managers

The motivational theories in the organizations need to be implemented and monitored. Motivation in simple term means to stimulate, move or induce. It is important for managers to well aware about motivational theories. According to the Maslow’s theory the needs and requirement of the individual are considered necessary and the managers should keep in mind the requirement of every employee to achieve the desired objectives of the business. And the serious effort should be made by the managers to fulfil the needs of the employee by providing incentives and promotions.

It has been noticed that if the  business management  follow top down approach in their working or in communications without giving chance to lower management to give feedback it would de-motivate the lower management by following the instruction given by top management. Operational staff should be motivated by the managers by actively involving their participation in decision making and considering their feedback in their outcomes (Robbins.et.al. 2013). This approach would help in productivity and growth both of the employee and management.


From above task, the main focus is on leadership style and motivational theories. In the given case study, the agency is applying leadership style in his working and also motivational theory. The only working it has to do that to use it in the appropriate manner so that it would be effective for the organization growth.

Task 4

Zico Computers will be discussed as the organization for the study of nature of groups and behaviour of groups. The task will also assess the factors influencing the development of effective teamwork in an organization. The technological impacts also will be determined in Zico organization for team functions.

4.1 The nature of groups and group behaviour

In Zico Computers, the team members are skilled and work together to share their knowledge and experience with others. The collaborative working is required to enhance the quality and productivity in workplace. For better management of resources, organization has two types of groups in workplace: formal and informal group. Grouping of employees helps Zico to manage the business operations and activities in effective manner.

Formal groups are created and controlled by the top management of Zico. Formal groups have a leader to guide and measure their performance. Formal groups are set of skilled employees to perform the certain objectives in workplace. For instance, budgetary committee and task forces are formal groups in Zico (Stewart and Shamdasani, 2014). Formal communication and participation of employees are characteristics of formal groups. The groups are formed according to requirement of organization to accomplish the specific objectives and static in nature. The members of formal groups are liable for their responsibility and role in group and needs to work according to leader’s command.

Unit 3 Organizations and Behaviours Motivational theories 6

                                             Figure 6: Group formation in Zico

At other side, informal groups are not official in nature and neither in control of management. But still, management encourages the employees to form informal groups as they are effective to share and communicate the knowledge in workplace and helps to determine the hidden skills of employees. Normally informal groups are based on the interest and events in workplace. Employees come together in a group due to their similarities in skills, interests, religion and origin. Informal groups have no liability on members and they are free to add or join. There is also no specific procedure to withdraw from participation (Gentil.et.al.2010). Informal groups are effective to create the learning as well as competitive environment in workplace.

4.2 Factors that promote and inhibit the development of effective teamwork

Effective teamwork is required to deliver high performance and quality in work along with proper utilization of knowledge and resources available in workplace. Teamwork helps to reduce the work load on members as they are assisted by other members for requirements in their processing. There are certain factors those can promote the development of effective teamwork in Zico Computers:

  • Communication: The Zico Computers has effective communication among employees as they can communicate on mails and instant messages along with meeting and seminars. Zico offers the formal communication in decision making and work distribution which encourages employees to participate and suggest an idea. Open communication and interaction with liable bodies in workplace helps to develop teamwork (West, 2012). Employees come together with their open ideas, skills and experience to contribute with others in workplace as helps to determine effective teams.
  • Leadership:Zico Computers has effective leadership as employees are encouraged to participate in organizational business processing and management practices. The leaders in Zico are effective to utilize the potential of employees along with to motivate them for collaborative working. Leaders help the groups to accomplish their objectives with proper work and responsibility distribution and encourage them to be connected with others. The leadership style in Zico helps employees to work with others for sharing of skills and knowledge.

Inhabiting factors:

  • Size of team:the size of grouping in Zico may affect the development of teamwork as larger size may have big conflictions in thoughts and implementation. The decision making power may be affected and employees may become less liable for their duties and performance if the monitoring and controlling is not so effective to handle large groups (DeChurch and Mesmer-Magnus, 2010). In comparison, small group size helps to create effective teamwork.

4.3 Evaluation of impact of technology on team functioning

Technology is helping team members in Zico Computers to work together with effective communication and sharing of resources. The overall accuracy, efficiency and accessibility are improved with the use of technologies. For instance, the developers in EMF (Elementary Management Framework) project are connected to each other with wireless devices and internet. Also the mails and instant messaging is helping them in communication. The file sharing and transmission among team members and branches are effective because the time and cost is reduced along with effort. The most of work in Zico are being with automation of process. The back up and security in Zico is handled with automation technologies. The employees are also free in work performance as they can take help from various sources and team member and work from remote locations also (Buyl.et.al.2011). The flexibility is increased along with proper simulation of project with software technology. The accuracy in performance management and employee details has been improved with implementation of technical equipments in workplace.

However, there are some negative impacts of technology on Zico Computers. Technology has improved the accessibility to business data and process, therefore, there is always a thread of data loss and security in team functioning. The liability management in team functions is somehow difficult because the all members have access to specific set of information. Also the initial cost for technical setup may be not favourable according to performance and quality of work return form team members. The set up cost may be high or not practical for workplace conditions (Davenport, 2013). Addition to it, technology makes the Zico fully centralised on processing of systems and servers.


The task has been addressed the nature of groups and group behaviour in Zico Computers. The task also has been concluded the factors those are liable for promoting and inhabiting the development of effective team work. Later task has been identified the impact of technology in  business environment  and team functioning.


Books and Journals
Aragón, A.O., 2010. A case for surfacing theories of change for purposeful organisational capacity development. IDS Bulletin41(3), pp.36-46.
Aydin, A.M., 2015. The influence of task and time on information behaviour in organisations (Doctoral dissertation, University of Leeds).
Buyl, T., Boone, C., Hendriks, W. and Matthyssens, P., 2011. Top management team functional diversity and firm performance: The moderating role of CEO characteristics. Journal of management studies48(1), pp.151-177.
Carlson, M., 2013. Performance: A critical introduction. Routledge.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.
Cummings, T. and Worley, C., 2014. Organization development and change. Cengage learning.
Davenport, T.H., 2013. Process innovation: reengineering work through information technology. Harvard Business Press.
De Souza, L., 2013. Multiple sclerosis: approaches to management (Vol. 18). Springer.
DeChurch, L.A. and Mesmer-Magnus, J.R., 2010. The cognitive underpinnings of effective teamwork: a meta-analysis. Journal of Applied Psychology95(1), p.32.
Gentil, C., Betbeder, M.L., Beziat, J. and Bruillard, E., 2010. Virtual learning communities and groups dynamics in the overcoming of obstacles. Guest Editors, p.78.Gready, P., 2013. Organisational Theories of Change in the Era of Organisational Cosmopolitanism: lessons from ActionAid’s human rights-based approach. Third World Quarterly34(8), pp.1339-1360.