Unit 3 Organisational and Behavior Assignment

Program	Diploma in Business
Unit Number and Title	Unit 3 Organisational and Behavior
QFC Level	Level 5

Introduction

Organisational behaviour is the understanding of the behaviour of all the people involved in the organisation and who contribute their efforts to benefit the organisation. In the present context of organisational behaviour, the importance of the role of managers and employees in an organisation has been explained, taking into consideration their interaction and behaviour within the company. Analysis has been done on the role of leaders and motivation theories, and relevant theories have been summarised to support the understanding.

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Task 1

1.1 Compare and contrast at least any three of the following organisational structures and cultures using a table format to present the differences and similarities

Talking about organisational structure it represents the format of hierarchy about why one is responsible to that of other and displays the level of a person. The organisational structure comprises various pillars which are required to build the organisation. In addition, work specialisation is the main element as it helps the employees to become specialised in their respective works and accurately represent their field, however after a certain period the workers might feel dissatisfied with their jobs and ultimately their level of motivation will fall (Schermerhorn, Osborn and Hunt, 2005). 

After work specialisation, another important key factor of organisational structure is departmentalisation which splits the jobs into various tasks and then performs them under separate groups. Some useful examples of these groups are customer, geographical, functional process etc. Since different activities in an organisation are controlled by managers organisational structure consists of a SPAN OF CONTROL which provides different methods to handle the work of different sub-ordinates. In the present case, we will study the elements of the organisational structure and culture of HSBC Bank the following are the similarities and dissimilarities between the different organisational structures discussed above.

 

Organisational Structures	Organisational Cultures
Tall    Very close supervision of the employees    Control measures    Effective communication    Distance between top and lower-level   employees	Power culture    Control is the key    Found in small or medium-term organisations    Efficient decision-making process    Manager based approach
Flat    Less Supervision of employees    Less Control    Effective Communication    Distance between top and lower-level   employees	Role culture    Less control    Found usually in large organisations    Efficient decision making process    Employees based approach
Centralised    Supervised control    Effective communication    Low degree of delegation of power    Close relationship between employees and   managers	Task culture    The balance between control and efficiency    Found in small, medium and large   organisations    Efficient decision making process    Team-based approach

 

 

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1.2 Relationship between an organisation structure and culture and its impact on the performance of a business

The organisational structure of HSBC is mainly the rules and books of the business. They reflect the aims and objectives of HSBC and the central character of the business and its players. Organisation structure is the base for the designating of the roles and responsibilities of the business staff. It is the role of organisational structure to explain the decision-making process to the managers and the employees and make use of their expertise for the benefit of the business (McShane and Glinow, 2014). The organisational structure of HSBC is based on the strategy of the business and is categorised accordingly. Some of the major kinds of structures are as follows:

• Functional structure

• Matrix Structure

• Divisional Structure

Organisational Culture on the other hand is the cultural behaviour of the people of the business organisation which consists of the values, beliefs and interests that they share (Wilson, 2015). It is this culture that motivates their interaction with each other and with HSBC.

Some of the different types of organisational cultures are as follows:

• Hierarchy – Hierarchy is a formal culture which focuses on the control of the business by the management and is very stable and secure.

• Adhocracy – This is an innovative type of culture where the employees are free to experiment on a given project.

• Market – In this market, the competitiveness is very high and is formulated according to the results achieved.

• Clan – This type of organisational culture focuses on the employees of the organisation in terms of freedom of expression and joint effort in the decision-making process.

It’s the need for a formal structure that gives rise to organisational efficiency. Groups are assigned different tasks in the business and their efficiency is monitored to get the best out of them (Wilson, 2015). An adverse impact of these is the formation of informal groups in HSBC like interest groups or friendship groups. These hamper the smooth functioning of HSBC. This disturbs the natural organisational structure but constructs an organisation culture. Thus, it can be said that organisational structure defines the organisational culture whereas organisational culture helps in understanding the organisational structure of HSBC.

 

1.3 Factors influencing the behaviour of an individual at work

An individual at work gives their efforts for the welfare of the organisation. But some factors influence its behaviour in HSBC, such as:

• Behaviour in a workplace is influenced by the moral principles and business exercises of the managers or the owners.

• The natural environment of the workplace

• The achievement rate of the business

• The attitude of the lower-level managers and employees

• Intrinsic factors such as salaries, raises, appreciation, etc.

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Task 2

2.1 Comparison of the effectiveness of different leadership styles in different organisations

Leadership is the direction that employees follow in achieving a certain goal. However, leadership is different for different people and different organisations. Some of the most common styles of leadership are democratic, autocratic and laissez-faire (Malmir, Esfahani and Emami, 2013). Let’s take an example of two of the TIMES 100 (operating in the UK) companies and their leadership style.

OVO Energy: OVO Energy is an energy provider company operating in the UK and the leadership style followed by the company is authoritative style and participative style. The reason for this is that the owners involved the managers in the decision-making process. The leaders only guided the managers and authorised the work done by them. A leader must be enthusiastic and strong and it must be reflected in its personality. Owners have paid special attention to the recruitment and selection of the employees and as such have retained the most suitable person for the company. The owners then gave authority to the managers to select the subordinates themselves and as such showed trust in their decision. Nonetheless, the owners exert a little amount of autocratic style of leadership to check for details and improve any issues that arise. This mixed style of leadership has shown great success for OVO Energy in recent times.

Red Carnation Hotels: Red Carnation Hotels is a big company employing more than 10000 employees and as such has a complex leadership style. It has a mix of participative and autocratic leadership styles. As Red Carnation is a flat structure of business, its managers give direct orders to the subordinates and they also trust their subordinates. Workers at Red Carnation understand their job profile and as such don’t like to be told what to do and what to not. The owners thus wanted to hire efficiency that could be a part of the integral process of the business and follow the goals of the business. Both the above-mentioned companies follow a different set of leadership styles in their organisation and create an environment where employees are much more progressive and optimistic. But Red Carnation seems to have the better of the two both in employee retention and profit making.

 

2.2 Organisational theories that underpins the practice of management
 

 

Some of the organisational theories that underpin the practice of management are as follows:

• Scientific Management – Red Carnation doesn’t apply this theory in its business organisation because scientific management suggests breaking down the operations of the business into smaller parts. This theory favours productivity but it also creates the issue of de-humanity in the organisation. This theory is somewhat obsolete to modern-day business and super-efficient employees who understand their role in an organisation (Bush and Bush, 2003).

• Theory of X and Y – From the above-mentioned two companies, it is evident that they follow the theory of Y where employees are very happy and want to work more for the benefit of the company. Theory y explains the willingness of the employees to work more and they are paid accordingly by the management. Management in this situation must trust the employees and their skills. Theory Y helps in building a strong relationship between employees and management which ultimately leads to a strong organisation.

• Bureaucracy – This theory was in use by OVO Energy a few years ago. It was one of the worst periods for the company the employees suffered the most under the bureaucracy. It created a situation where the employees were always trying to impress the bosses to gain special favours instead of working for the company. This was considered an inefficient system of management that hampered the relationship between employees and management.

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2.3 Different approaches to management used by different organisations
 

• Scientific Management Approach – This method is about increasing the efficiency of the employees by dividing the tasks into smaller or simpler parts and the workers will be motivated by increased earnings. Red Carnation was never in favour of this theory as it created a sense of hierarchy between the employees of the same level (Robbins and Coulter, 2005).

• Classical Administration Approach – Fayol’s administrative theory mainly focused on the managers and managerial duties. It also gave more respect to the workers by not defining them in terms of money. OVO Energy used this theory for a long time but later discarded it for more advanced and user-friendly management approaches (Kinicki and Williams, 2008).

• Bureaucratic approach – As mentioned above, this form of management was applied by OVO Energy which caused havoc in the business operations of the business. This theory only focused on the managers and directed the employees to follow the orders of the managers (Golding and Currie, 2000).

• Human Relations Approach – Both OVO Energy and Red Carnation use this form of management approach as this method takes into consideration the feelings of the workers in building the organisational environment. Both companies want positive effects on their employees that will ultimately dictate their work.

• Systems Approach – This theory explains an organisation as a system, which is more often an open system which means that it gets affected by its natural environment. Both companies used this approach to better understand the business environment. It defined a proper system that helped both Red Carnation and OVO Energy to mitigate any issues and plan for a better tomorrow (Robbins and Coulter, 2005).

• Contingency Approach – This is a more adaptive approach as it tries to find the best suitable way to manage the employees. Both companies understand the needs of the employees and the organisation itself, which is prone to change. This is the best management way to deal with this situation.

 

Task 3

Outline and define Maslow’s 5 Hierarchy of Needs.

Abraham Maslow defined the “hierarchy of needs” theory in psychology which explains the different stages of needs a person moves.

• Physiological Needs – According to Maslow, these are the basic needs of a human like food, water, home, pleasure, etc.

• Safety Needs – These include safety and security from personal life, money, health, accidents and also protection from law and order.

• Love and belongingness Needs – Needs of love and affection from family, friends and close associates which also include friendship, love, intimacy, etc.

• Esteem Needs – The esteem needs of a person include individual success, achievement independence, prestige, self-respect, etc. that gives a person respect in front of others.

• Self-Actualisation Needs – These are needs that mean mastery of personal potential, personal growth and self-fulfilment (Adair, 2006).
   

Under Maslow’s theory what can chronic frustration of a person’s needs lead to:

Chronic frustration is a situation where a person’s non-satisfaction with the needs can lead to adverse issues. In this scenario, according to Maslow’s theory, chronic frustration can lead to psychopathological issues. Now, psychopathological issues are issues that relate to mental disorders that may affect a person’s social, psychological and biological understanding (Adair, 2006). A person may not recognise the need for safety for himself and others, their sense of essential needs will reduce, they may lose appetite, leave all social relations and live life without any sense of direction and self-actualisation.

 

Define and outline McGregor’s theory X and Y:
 

Douglas McGregor’s human motivation theory of X and Y is a contrasting theory that explains two different theories of employee motivation.

Theory X is based on Maslow’s lower-order needs where an employee is usually de-motivated to work and must be pushed by the management to get things done. This is a negative perspective of employee motivation and behaviour.

Theory Y is based on Maslow’s higher-order needs and is a positive view towards employee motivation and behaviour. Theory Y states an enthusiastic employee who is happy to work, takes responsibility is creative in their skills and enjoys working (Hersey, Blanchard and Johnson, 2001).

 

Outline Herzberg’s Hygiene theory:
 

Herzberg’s Hygiene theory of motivation states certain positive and negative factors that arise in an organisation and cause job satisfaction or dissatisfaction in an employee. Hygiene factors include environmental factors such as job security, salary, supervision, working conditions, company policy, etc. that may affect an employee.

 

List Herzberg’s 6 motivations:

Herzberg’s 6 motivations are as follows:

• Recognition and status from managers and management

• Growth and promotional opportunities

• This means full and challenging work

• Reward of achievement from the job

• Own responsibility for work

• Advancement opportunities

Outline and define Vroom’s expectancy theory.

Victor H. Vroom’s “Expectancy theory” states that an individual will choose to behave in a way that is the best according to a certain outcome and will suppress other behaviours in them over the selected behaviour. Organisations looking to motivate employees need to ensure that all 3 of Valence, Instrumentality and Expectancy must be high or positive. If only two or more of these are achieved, employees will not be motivated.

 

Why should managers know about motivation?

One of the responsibilities of managers is to get things done by including and motivating employees. Managers must choose the right employee for the right job and get the work done in the specified time. In that context, managers must understand the role of motivation for an employee and how to use motivation for the benefit of the organisation (Furnham, 2013).

According to (Tracy, 2013), motivation is a psychological process that involves listening to a person that you value the most and respect. Employees only get motivated when they listen to great leaders or managers. An organisation wants to achieve its targets and employees are the force behind achieving the said targets and objectives. It is the role of the manager to effectively motivate its employees. It is not always that a business organisation achieves its targets and it is only because of de-motivated employees and in that sense, it is the manager that must motivate the employees by his cognitive skills of leadership and motivation.

Conclusion

As depicted from the above-mentioned explanations, organisation behaviour is an obligatory tool in an organisation. It is essential to increase the adeptness of an organisation in the modern world. Organisational behaviour rules the concept of group and group effort and contributes to an effective business model. It is an effective medium for the employee to understand the rules, standards and culture of an organisation. Only then an organisation will move towards a better tomorrow that rewards its employees appropriately.

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References

Adair, J. (2006). Leadership and motivation. London: Kogan Page.
Bush, T. and Bush, T. (2003). Theories of educational leadership and management. London: Sage Publications.
Furnham, A. (2013). The Secrets of Motivation. Cork: BookBaby.
Golding, D. and Currie, D. (2000). Thinking about management. London: Routledge.
Gunasekaran, A., Khalil, O. and Syed, M. (2003). Knowledge and information technology management. Hershey, Pa.: IGI Global (701 E. Chocolate Avenue, Hershey,
Pennsylvania, 17033, USA).
Hersey, P., Blanchard, K. and Johnson, D. (2001). Management of organisational behaviour. Upper Saddle River, N.J.: Prentice Hall.
Kakabadse, A., Bank, J. and Vinnicombe, S. (2004). Working in organisations. Burlington, VT: Ashgate
Kinicki, A. and Williams, B. (2008). Management. New York: McGraw-Hill/Irwin.
Malmir, M., Esfahani, M. and Emami, M. (2013). An investigation on leadership styles in different cultures. 10.5267/j.msl, 3(5), pp.1491-1496.