Unit 3 Aspects of Organizational Behavior Assignment CAPCO

Program	Diploma in Business
Unit Number and Title	Unit 3 Aspects of Organizational Behavior CAPCO
QFC Level	Level 5

Introduction

The study of organizational behavior can be described as analyzing of the structure, func­tions, and employee behavior of an organization. The behavioral study is related to employees as a group and as an individual. The range of organizational behavior is inter-disciplinary with its roots dug deep into sociology and psychology. The study of organizational behavior relates sociol­ogy with the use of word ‘organization’ which itself constitute to social collectivity. Through unit 3 aspects of organizational behavior CAPCO assignment the various aspects of organizational behavior will be discussed consider the case study of CAPCO.

CAPCO is into financial service business aiming in bringing a transformation into the future of finance and generating a flexible market based on transparency, trust and capital strength. CAPCO specializes in banking, wealth and investment management, finance, capital markets etc.

Task 1

1.1 Compare and contrast CAPCO’s structure and culture with another organisation of your choice. Show the differences and similarities in these two organisations.

The structure of an organization can be described as an arrangement use for defining the hierarchy within an organization further identifying each job and its functions and where it is reported. An organization’s structure is evolved for establishing how it must operate and concurrently assist the company in attaining the business goals and walk towards its futuristic growth. Moreover, the structure is illuminated with the help of an organizational chart.

Compare and contrast structures:

Functional	Divisional	Geographical	Matrix
A functional structure is helpful in aligning the positions within an organization based on employees’ skills and activities. This kind of structure promotes a transparent command chain and allows the employees in understanding their job responsibilities thereby, allowing them to focus on their individual roles.	In a divisional structure, generally the manager makes a division within the departments at workplace according to its importance to the business and is further helpful in cultivating a structure needed for meeting the market needs. This structure contributes in giving quick responses to the local market conditions.	A geographical structure usually can be seen in organizations having global business networks and thereby, deliberate management of time is essential to go hand in hand with that of the structure’s design. Moreover, this kind of structure is helpful in managing people, time and money in an efficient way.	A matrix structure allows an employee to report to two managing authorities namely Functional manager and Project manager. The functions of a Functional Manager flows in downward direction whereas in case of the Project Manager, functions flow sideward. Matrix structure is apt for organizations with diverse business interest.

One can define the culture of an organization as a way its members can relate with each other, their work and the outer world when compared to other organizations. Culture can either enable or act as a hindrance in the organization’s strategy.

Compare and contrast cultures:

Power Culture	Role Culture	Task Culture	Person Culture
In an organization with power culture, only certain employees hold the power and employees need to follow the rules, regulations  and the decisions made by the power holders The performances of employees are evaluated based on their achievements.	The role culture is based on rules and is immensely controlled by everyone knowing about their roles and responsibilities	In a task culture, specialist groups are formed for dealing with complicated conditions which needs specific skills. Also the power within the team is not defined and often depends on the mix of teammates and project status.	In a person culture employees have the tendency of placing themselves above the organization.
Power culture is helpful in making quick decisions although there may be times when the decision made cannot be implemented for long-term interests	In this kind of culture, an employee’s power in the workplace is determined by his/her position in the hierarchy.	The effectiveness of the culture depends of the dynamics of the team. A right blend of leadership, skills and  personalities only can be productive and creative for the team	In this kind of a culture employees tries and compete with each other from proving themselves better than the other
Basically a very strong culture nevertheless can turn harmful hastily.  Take for example, power culture is often blamed for the debacle of Enron, Lehman Brothers and RBS.	A role culture is built over the specified organizational structures mostly tall with a long command chain. A major drawback is slow decision-making process.	The process of decision-makings can either be slow or quick  Depending upon the  gravity of the situation.	Organisation’s with person culture is just an assemblage of individuals who are working directly or indirectly for the same organisation.

An organization’s culture and its structure are dependent on each other and in the world of business, one can see the structure determining the behaviors, attitudes, dispositions and ethics further needed for creating the work culture. In case, the structure is hierarchical where the power of  decision making  remains with topmost management, its consequences can be seen in the culture with lack of freedom and autonomy at the lower levels. However, if the structure is decentralized where both power and authority is shared with employees in every level, the culture is likely to be more independent, personalized and liable. Every organization for operating efficiently sets a structure which is a hierarchy of people and its functions. An organization’s structure describes its character and the core values. Depending on the values and business nature, an organization gravitates in adopting a structure for the purpose of management. In certain unprecedented cases, it has been found that departments and teams within an organization follow a completely varied organizational structure from the one followed by the organization itself. For answering this question we will compare CAPCO’s functional structure with the matrix structure of Google. (Keyton, 2010)

CAPCO’s Functional Structure	Google’s Matrix Structure
The organizational structure at CAPCO is functional where decisions are made by a centralized body within the organization and employee groups are formed on the basis of their specializations which further helps in establishing a level of efficiency in performances.	Google’s organizational structure is matrix where the team or project manager is the most valued position and is authorized in taking decisions, assigning resources and managing the project.
Apart from this, CAPCO’s functional structure is immensely structured helping in eliminating the scope of any miscommunication amid the employees. (Keyton, 2010)	Groups are eventually formed by considering a similar background or skills needed for the execution of a project. The structure promotes flexibility in groups which can be changed for bringing out a desirable outcome. (Keyton, 2010)
CAPCO’s functional structure promotes specialization, better control, reduced work load, higher employee efficiency, flexibility and easier staffing.	Google’s matrix structure focuses on single project and is highly flexible. It promotes effective chain of command and better usage of services.
The functional structure of CAPCO has a CEO with 3 subordinates for regulating all the departments and employees.	The matrix structure of Google helps the management in dividing the structure on the basis of functions and divisions. Google as a divisional structure can be divided over products, markets or geographical region.

An organization’s culture can be described as a way the employees relate with each other as compared to their competitors. Culture is a consistent and perceptible pattern of behaviour within organizations. The culture of an organization comprises of its assumptions, values and norms of the employees and their behaviours.

CAPCO’s Role Culture	Google’s Task Culture
CAPCO follows role culture where the organization is various functions and every employee within the function is charge of a certain role and has benefited CAPCO in establishing specialization and since every employee focuses on his/her role, there has been a relative increase in productivity. (Keyton, 2010)	Google’s task culture is eventually relies on an approach based on teamwork for completing a certain task lead by a leader. This kind of culture has helped Google in keeping the employees motivated as they are empowered of taking decisions. Task culture allows prompt decisions and has helped Google in remaining competitive in the global market.

1.2 Explain how the relationship between CAPCO’s structure and culture can impact on the performance of its operations

CAPCO’s culture and structure directly influences its overall performance. The flexible organisational structure of an organization ensures that the operations and functions are executed smoothly with the help of enhancement in collaboration and cooperation amid the various departments of the company. The implementation of a flatter organisational structure has helped CAPCO in ensuring a wider span of control eventually helpful in minimizing the communication gap and establishing a kind of communication amid the management and employees that is both clear and effective. (Zheng, Yang and McLean, 2010) Apart from the structure, CAPCO’s matrix organisational culture has helped it in to work successful projects that need specialized employees skills. The use of this kind of organisational culture also further helps in improving the scope of knowledge amid other employees. CAPCO’s flat organisational structure has not only helped in empowering the employees but simultaneously motivates them in giving their best performances and driving the organization towards its desirable growth and success. Whereas CAPCO’s matrix organisational culture has helped in facilitating flexibility and creativity in the workplace and make improvements in the inter-personal and intrapersonal relationships in the organisation that helps the management in reducing the rate of employee conflicts. It has been observed that CAPCO’s organizational structure and culture has helped in facilitating team building and ensuring successful accomplishments of the predefined goals of the business. (Zheng, Yang and McLean, 2010)

1.3 Discuss the factors which influence individual behaviour in CAPCO or in any organisation of your choice.

An employee’s behaviour at CAPCO is influenced by various factors and discussed below are a few such factors:

• Work Culture – the kind of culture CAPCO’s advocates helps in motivating the employees in working hard and simultaneously enhances their loyalty towards the company as a whole. CAPCO also ensures that employees are provided with opportunities of personal and professional growth that eventually will help in increasing their level of satisfaction and confidence in turn reducing their stress related to work. Furthermore, CAPCO’s flexible work culture cultivates improved relations amid employees at different levels and departments eventually helpful in facilitating collective functioning within the workplace. (Yu, Lu, and Liu, 2010)
• Effective Communication – the organisational structure pursued by CAPCO is flatter with a wider span of control that eventually aids in minimizing the communication gap amid management and employees. Practice of clear communication helps in well defining of employees’ job roles and clearing confusions or miscommunications related to job. 
• Leadership – An employee’s behaviour is immensely influenced by the kind of leadership style practiced by the manager. At CAPCO, bottom up leadership approach is followed that encourages the employees in improving their individual capabilities by challenging them to think in a different way. CAPCO’s leadership style helps in improving the employees’ knowledge, skills and abilities eventually helping in bettering the organisation’s overall performance and simultaneously promotes career growth of every employee. Moreover, it helps in rejuvenating the employees and making them more passionate towards their work. (Yu, Lu, and Liu, 2010)

Task 2

2.1 Compare the effectiveness of the different leaderships at CAPCO and any other organisation of your choice

A leader or manager with the help of leadership styles can show the employees a proper direction for reaching the goals further ensuring an adequate implementation of plans and simultaneously motivating them in working harder for attaining the company’s preset goals.  (Anderson and Anderson, 2010)

Stated below are the leadership styles and their effectiveness on CAPCO and Google:

• Authoritarian – This leadership style helps in maintain a professional relation amid the manager and the employees. Such leaders are believers of direct supervision for maintaining successful relationship at workplace. Both CAPCO and Google do not consider this style as they believe in providing the employees with independent opportunities where direct supervision is necessarily not needed.
• Paternalistic – this kind of a leader is like a father figure to the employees helping in enhancing their loyalties towards the leader or  developing manager . However, employee growth gets limited in this style as the tendency to become dependent on the leader raises eventually decline the probability of innovative ideas. CAPCO believes in challenging the employees rather than inhibiting their scope of bringing innovation at work. Likewise, at Google too paternalistic leadership is not encouraged. The employees are encouraged to come to new innovative ideas helping them to grow individually along with that of the organisation as a whole. (Anderson and Anderson, 2010)
• Democratic – This kind of a leader allows the employees to participate into decision makings further promoting their interest by practising social equality. Both CAPCO and Google consider this style. CAPCO encourages the employees to actively be a part of strategic decision making process. Being a globally renowned MNC, Google also gives preference and importance to employee suggestions but the key strategic decisions are generally taken by the top level authorities
• Laissez-faire – This kind of a leader gives the right of taking decisions to the employees. Earlier Google used to follow this leadership, where it was found that certain employees develop in such leadership whereas others not and later on found democratic style to be more effective in bringing an improvement in the overall performance in comparison to Laissez-faire. Despite believing in employee empowerment, CAPCO does not believe in this style.  (Anderson and Anderson, 2010)
• Transactional – Such leaders believe in employee motivation through both rewarding and punishments based on performances and enhancing employee efficiencies by following a structure of policies and procedures. Both CAPCO and Google believe in distribution of rewards to the hardworking employees. This approach also motivates the others to work hard for winning the rewards.

2.2 Explain how organizational theories (e.g. scientific management and human relations theory) have had influence on the practice of management

Organizational theory can be defined as the study of the designs, structures of an organization, organization’s relationship with its external environment and the managers and technocrats behaviour with the workplace. Moreover, it recommends the ways through the help of which an organization can survive the swift changes. One can define management as a process of planning, organizing, directing and controlling the employees within an organization for achieving its preset purposes and goals. Furthermore, this process is supported by the organizational theories that eventually focus on the study of structures, designs, patterns and relationships of the organization for surviving the change and attain its purposes.

Organisational theories have an important role to play in underpinning the practice of management at CAPCO.

• Scientific Management: According to Frederick Winslow Taylor the theory of scientific management can be described as jobs escalation and simplification where the productivity will undeniably magnify. The 4 key principles of scientific management are that there should be no thumb of rule at workplace and must advocate flexibility helping the employees to deal effectively with critical situations. Ahead of allocation it is important to analyze the capacity and motivation levels of the employees. Also the employees’ performances must be evaluated on certain parameters and they must be guided for ensuring the level of efficiency.  Moreover, job allocation amid the managers and subordinates must be done effectively. Scientific management theory relates to CAPCO as its management ensures there is creativity and innovation at work where one size fit all is confined according to the theory. The team leader is chosen based on his/her experiences. At CAPCO, training is an essential aspect where every employee is given adequate training for making the best use of their knowledge for the benefit of the company. (Jones, 2010)
• Human Relation Theory: This theory states the contributions made by employees at work over the machines. According to Elton Mayo, psychological and social are the factors influencing an organisation’s productivity. Other modes of motivational factors such as pay structure, supervision, break times are taken for granted to increase the employees productivity rather than machines. The theory relates CAPCO’s practices of management which promotes and provides continuous opportunities of training and development making the employees more motivated and effective in their approach towards work. In addition, CAPCO also frequently arranges for sports, happy hours, ski trips for creating a positive and healthy workplace. (Jones, 2010)
• Contingency theory: it emphasizes on the fact that different situation which an organization faces must be tackled with different approaches that suits best to the situation’s needs. The theory also lays its focus on flexibleness and adeptness with the environment further leaving an influence on the practice of management for evaluating different leaders or employees capabilities to survive the change as it’s a proven fact that it is not necessary that one who might be good in dealing with a certain situation may be good in handling every situation.
• System Theory: it states that an organization is a combination of various elements like employees, resources, assets, products and information that when joined form a convoluted system.  Moreover, this system is manmade with mainly 2 parts namely internal and external. The internal attains the set goals while external collaborates with the environment. This theory is also helpful in making quick perception and better planning
• Behavioral theory: it stresses on the human aspect of work and eventually focuses on human relations and behavior by making an emphasis on the factors of motivation, expectations, group dynamics and managing of conflicts that assist in improving employees productivity who are considered as invaluable asset by the organization.
• Quality theory: it backs the aspect of quality management within an organization for improving the efficiency of process and profitability. The theory entitles the management for encouraging the employees in making use of numerous knowledge resources and tools in order to improve continuously, building a cohesive team and focusing on facilitating customer services by delivering quality products.
• Quantitative theory: it emphasizes on focusing on the mathematical and statistical models and processes for dealing with various practices of management and conditions within organization and eventually forces the management for making decisions that are effective and concurrently undergoing the process of problem solving through better applications and information as there is an increase in the understanding and awareness for complicated situations thereby, making the control much easier.

2.3 Evaluate the different approaches to management used by CAPCO and your chosen organisation

• Contingency Approach: it states that one can evolve various concepts of management and successfully apply the same within the business environment only if the various features of environment which can either be internal and external are considered. The internal environment comprises of structure, process and technology while the external environment covers factors like social, economic and political. The key advantage of this approach is that the suitability of the management relies on the situation and so it uses if-then approach whereas the principal disadvantage is its complexness in analysing the various variables a manager needs to employ  in different situations, the level of difficulty in experimental testing of the theory and its nature which eventually is reactive and not pro-active to environment.
• Decision Theory Approach: in  this theory both manager and employees are considered as decision makers within the organization who are also responsible for resolving problems. Control lies with the management and quality of decision making eventually establishes the efficiency. Various tools such as MIS and decision-making techniques are practiced in this theory. The key advantage of this approach is that it employs various tools and techniques for making right decisions while the only disadvantage will be that it does not covers the complete view of management and is limited to the aspects of decision making.  
• Socio-Technical System Approach: it states that an organization can maintain its effectiveness only when there is an interaction between the social and technical systems as an organization is governed by the social laws and psychological forces while the technical systems can be  altered  only when the social aspects gets modified.

Different approaches to management used by CAPCO and Google are evaluated based on positive and negative areas:

• Scientific Management Approach: this approach is generally followed at CAPCO for accomplishing tasks based on this approach rule than pursuing a thumb rule for enhancing the organisation’s flexibility. The outcome can be seen in the escalation of CAPCO’s productivity level by further optimising a job’s structure. The positivity of this approach is that work is allocated to employees based on their capacities further ensuring greater productivity and cost reduction because of non achievement of targets. The negative side can be the absence of consideration of techniques like Management by Objective or Business Process Re-engineering. Instability in markets will result into adjustments or looking for alternatives needed to be considered for deriving a positive outcome. Google makes the most use of this theory for carrying and developing its business activities. The main aim of Google is to utilize the theory in bringing development in the science involved in every element concerned with an employee’s work eventually proving to be significant in the replacement of older rules and making use of methods that are scientifically proven for teaching, training and developing the skills of employees. (Koontz, 2010)
• Social System approach: in this theory emphasis is given on relationship amid the internal and external environment. At CAPCO, teams are formed based on sub systems which eventually are groups based on specializations whereas Google pursues this approach for deriving an outcome where groups are formed on the basis of clients’ requirements. The positive impact of this approach is that it addresses both factors and forces influencing the business whereas the negative impact can be the lack of consideration of management approaches like planning, controlling etc.  (Koontz, 2010)

Task 3

3.1 Discuss the impact that different leadership styles may have on motivation within period of change

Different styles of leadership and its link with motivation:

• Autocratic leadership: A leader pursuing this style single-handily takes decisions, controls and manages the employees with zero participation from the employees. In this leadership style, employees are not given the freedom of sharing their views even if can be beneficial for the business.  The style is apt for crisis situations where quick decisions are needed leading to greater productivity under the supervision of the leader elsewhere it will reduce employees morale leading to rise in absenteeism and employee turnover. Hence, this style is not appropriate for CAPCO because of its short-term change
• Bureaucratic leadership: this leadership style pursues top-down hierarchy and emphasizes on following the rules and procedures of the company although they might not bring much change to the environment. The biggest advantage of this style is the strictness and systematic discipline maintained by the leaders however, the rigidness of the structure is mostly not suitable for adopting any change quickly thereby, influencing the ability to think creatively of the employees, their motivation and confidence and therefore, this too is not suitable for CAPCO
• Democratic or participating leadership: the management of the organizations practicing this style make a direct approach to the employees for making the aware of changes it would implement in nearby future and allows them to clarify their doubts and make a note of their views and opinions regarding the change. Once the change is executed, employees are encouraged to discus the problems they face in an open meeting where solutions are identified. If CAPCO makes use of this leadership style, it will help the management in cutting short the rate of employee conflicts and concurrently propagate a healthy working environment. One can relate the McGregor’s motivational theory with this style. Use of this leadership style will keep the employees motivated and once when they are motivated, they will tend in taking added responsibilities and give 200% best in completing a job and concurrently becoming an inspiration for the co-workers.
• Persuasive Leadership: by practicing this leadership style, CAPCO can establish transparency and open communication. The manager will be liable making the employees aware of the impending change well in advance and convince them in accepting the changes. Teams will be formed for accomplishing small tasks in order to have an uninterrupted operation. McGregor’s theory of motivation can be related with this style too further allowing the dissatisfied employees under Theory X to get motivated and mutated into Theory Y employees under the strong and visionary leadership of the manager who will make them understand the need of the change.

Leaders or managers through their broad knowledge, competency and specialised skills leave a significant influence on the team members. It is the responsibility of the leader/manager for motivating the employees in a way for meeting the management’s expectations. Take for example, we assume that CAPCO is undergoing a period of change through staff rotation where few employee are being shifted to a new team to enhance their skills of multi-tasking. For successful execution of this change, CAPCO needs to adopt participative style of leadership where management will eventually reach to the employees to explain the change and its need. The orientation about the change will help in clearing doubts or confusions amid team members. Once the orientation is done, employees can be invited to share their opinions about the change. With this style CAPCO can effectively briefly explain the team the benefits this change will have on increasing their skills, competencies and generate confidence in them. McGregor’s motivational theory can be connected in this respect where motivated employees will make added efforts and will also influence their co-workers in following the change giving CAPCO an added advantage. (Zhang, and Bartol, 2010)

With the help of transformational leadership CAPCO can effectively influence the team in following the company’s goals and objectives. The change is eventually interlinked with the business goals and employees pursue the same as a result of a communication structure that is clear and transparent. Furthermore, training and development provided at CAPCO will prepare the employees in facing the unpredictable challenges that can occur in practicing the change. When this style is related with McGregor’s motivational theory it will keep the employees satisfied and happy in accepting the change as needed by CAPCO for attaining company’s objectives and goals. However, dissatisfied employee will evade from taking responsibilities and will show their displeasure towards the change. If CAPCO considers the transactional leadership, then management will design a structure of reward or penalty for the change. (Zhang, and Bartol, 2010)

3.2   Compare the application of two motivational theories (e.g. Maslow’s & Herzberg theories) within organizational setting

There are basically two types of motivation theories namely Content theories: Maslow, Herzberg, McClellands, Alderfer ERG Theory and Process Theories: Goal, expectancy, equity, reinforcement

Content Theories:

• Maslow’s theory: stresses on the need to understand the factors which motivates the employees and emphasizes that an employee gets motivated in achieving a certain need and once the need is fulfilled, seeks the fulfilment of next need and the cycle continues.
• Herzberg Theory: emphasizes on two factors of motivation, one that keeps them satisfied and the others that dissatisfies them. Motivators are related to growth needs and job satisfaction that comprises of achievement, recognition, work, responsibility and advancement. The deficiency needs called as hygiene factors like company policy, supervision, salary, interpersonal relationship and working conditions. When the hygiene factors are fulfilled, it generates less dissatisfaction but one can see no impact on motivation while the motivator factor is helpful in pushing motivation. (Heckhausen, Wrosch and Schulz, 2010)
• McClelland’s theory: stresses on three needs namely achievement, affiliation and power. Employees with outstanding performances are driven by achievements lesser driven by affiliation and power and hence, they are self-motivated in comparison to the others which can be used in gaining benefits in work situations and conditions.
• Alderfer ERG Theory: reduces the five levels of Maslow’s hierarchy into three needs specifically existence, relatedness and growth. The theory has amended the Maslow’s concept of one way progression and states that unfulfilment of any lower level needs might lead to regression which is more realistic approach.

Process Theories:

• Goal theory: helps in motivating employees by driving the behaviours that trigger the needs for fulfilling the set goals and as employees are feeling more need to take part in setting a goal, this feeling is further helpful in pushing them towards objectives.
• Expectancy theory: further relates the efforts of an employee to the desired outcomes once they assume its utility successful. It maintains that once an employer gets success in creating the perceived expectation and predict outcomes, employees tend to make use of all information to turn them into reality eventually motivating them. Expectancy theory is dependent on three variable namely valence, instrumentality and expectancy where valence focuses on expected rewards, instrumentality on repeating actions to achieve desired outcomes and expectancy on the  capability of an employee
• Equity theory: stresses on motivating the employees by measuring their skills and the investments made on the behalf of the employer in term of salary, promotion and other perks. When employees are assured that both employer and employee have equally invested in each other they tend to get more motivated
• Reinforcement theory: stresses on changing the behaviour of an employee by making use of reinforcement, punishment and extinction. Rewards trigger positive reinforcement while punishment will rule out undesired behaviour. On the other hand, extinction will stop someone from putting leaned behaviour to practise. (Heckhausen, Wrosch and Schulz, 2010)

Application of Maslow’s motivational theory in the organizational setting of CAPCO:

At CAPCO, an employee’s basic physiological and safety needs are satisfied by giving employment and job security enabling them to arrange for the very basic needs of a human like foods, cloths, shelter for their loving ones. CPACO needs to take care of the employees’ psychological needs which are based on relationships for keeping their motivational levels high. It is important for developing amiable and healthy professional relations at workplace allowing the employees in giving their 100% best performance. For motivating the employees CAPCO has introduced performance based appraisals, rewards and recognition events and incentives based on targets. Arrangement of a stable incentive structure keeps the employees motivated with the fulfilment of their needs eventually enhancing their productivity levels.

Application of Herzberg theory at Google: 

At Google change can bring a certain amount of confusion amid employees which might even make them resistant towards the change. Hence, motivator factors have a significant role to play in accepting the change that has been implemented in the workplace, as it will result into increased learning, more responsibility, higher recognition and growth in career. Thus implementation of Herzberg theory would be more useful compared to Maslow because Google has hygiene factors at place so there is no need for reinforcement of these needs. Hence, focus should be made on strengthening motivator factors that have influence on work motivation.

3.3   Explain the necessity of managers to understand and apply motivation theories within the workplace

Conferring to the authors Maehr and Meyer, motivation theories can be defined as a theoretical framework stimulating an employees or an individual’s behaviour and concurrently drives them in attaining the desirable results thereby, escalating their level of productivity.

Motivation theories:

Herzberg two-factor theory: stresses on the factors of motivator like advancement, growth, responsibility and recognition that are needed for stimulating satisfaction within employees while the factor of hygiene such as are salary, promotion, administration, working condition and working relationships has no direct influence over motivation but its absence creates dissatisfaction amid the employees.

Instinct theory of motivation: relates the behaviour of individual or an employee with the biological tendencies that are ingrained and thereby, such behaviours are in general driven by the intuitions that are driven towards goals and keeps the employees motivated.

In order to improve an employee’s performance at work, it is important that the manager develop their knowledge that eventually revolves around the theories of motivation and its utilization at workplace. Managers must understand that by using the  motivational theories  , they not only can motivate the members in a team by improving their knowledge and enhancing their professional skills but concurrently can instil sincerity towards work. Multiple factors are involved in employee motivation and thereby, a manager needs to determine the driving factors of every employee. It is equally for the managers in keeping the employees motivated and wins over their trust for implementing an organizational change at the workplace in order to overcome competition and rapidly changing demands of the market. This will further allow the employees to openly and willingly accept the changes needed for its long-term success. Thus there is a closed circle relationship between motivation, performance, productivity, profitability and remuneration within workplace.  (Parker, Bindl and Strauss, 2010)

Task 4

4.1 Explain the nature of groups and group behaviour within CAPCO or your chosen organisation.

Conferring to author Alvin Zander one can define a group as a social assemblage of individuals as an employee in a workplace that eventually is both interdependent and inter-related to one another with similar interests. On the other hand, group behaviour is a kind of behaviour that is originated from the causes eventually governing effectiveness take for example, good leadership, well defined roles, tasks delegation, group cohesiveness etc. within the group.

One can view nature of the group from four varied approaches namely:

• Perception approach: where an individual views himself/ herself as a key part of the group such as Team further making up a mature group that has been formed in order to  achieve a common purpose thereby, having interconnection and motivation.
• In Organization approach: groups are usually formed in view of certain characteristics eventually bringing a group collectively linked with each another. 
• Motivation approach: accentuates on group as an assortment existed in order to satisfy certain needs.
• Human relation approach: asserts that individual’s comes together as a group for interacting with each other in order to attain a familiar goal and it is further driven by size, interaction and purpose.

Roles in group: A task oriented role is performed by groups for ensuring that the tasks that are allotted to them are accomplished whereas the maintenance role are usually executed by members with a group for ensuring good social relations.

At CAPCO, various types of groups operate in its internal environment which can be typically categorized into formal groups and informal groups. Formal group is further subdivided into task and command group where employees belonging to the task group usually comprise of employees at lower level such as executives, clerks who are mainly accountable for day to day tasks execution whereas command group comprises of the leaders largely involved in the process of strategic decision makings and are also responsible to plan CAPCO’s areas of improvement in nearby future and company’s CSR activities. Task group members are responsible for effective and efficient execution of the plan. They are bound to adhere to the direction provided by command group and execute tasks allotted to them. (Champoux, 2010)

Informal group, on the other hand combines of friendship group and interest group where CAPCO’s interest group is an amalgam of employees, customers, stakeholders or shareholders who are significantly considered for the company’s existence. The members of interest group are in general, benefitted from salaries, services or products including profit earned by CAPCO. Other than this, CAPCO’s friendship group covers the employees operating in different management levels and are responsible for monitoring execution of the tasks revolving around the business. Friendship group’s prime focus is on ensuring the improvement of CAPCO’s performance for being successful in the long run and simultaneously enhancing employees’ satisfaction levels related to work. (Champoux, 2010)

4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO or your chosen organisation

Conferring to author M Rasing, one can define team work as a kind of process that is reciprocal in nature further allowing a normal person in achieving extraordinary results either as an individual or an employee.

Teams or groups within CAPCO are considered the building blocks playing a momentous role in developing the company’s performance. Various factors are involved in facilitating or inhibiting teamwork in CAPCO.

• Communication– a communication that is both clear and open helps CAPCO in promoting team building at workplace and simultaneously ensuring effective teamwork. It is equally important that team members are well aware of their roles and responsibilities along with the group’s target and that of every individual involved for performing in collaboration towards the improvement of CAPCO’s overall performance. This can be achieved by eventually minimizing the communication gap amid the team members. (West, 2012) 
• Leadership- teamwork is often supported by credible and effective leadership and eventually has a crucial role to play in influencing and motivating team members. Leaders help in ensuring a kind of teamwork that not only promotes collaboration and coordination but simultaneously inculcates discipline in the team members while carrying out their individual job responsibilities.
• Team Building Exercises– programs of employee engagement, for example, behaviour training programs and simulation exercises are helpful in gaining behavioural knowledge  and understanding the employees attitude that eventually will help in improving the inter relationships amid the employees.
• Varied Opinions– this common factor is bound to exist amid any team where members belong to different cultural backgrounds, education etc. and might often leads to workplace conflicts conclusively hampering effective team work in CAPCO. (West, 2012)
• Diversity- culture, social beliefs, talents and personalities diverseness further endorses effectiveness in teamwork eventually resulting into creativity, innovation, rise in awareness and respect for differences. Furthermore, it leads to an improved way of resolving problems as result of difference in the perspectives’ of members involved ultimately drawing into better outcome. However, if not managed accordingly it can also at times lead to conflicts within team
• Physical factors- the size of a team might leave a major impact on deciding teamwork’s effectiveness. In case a team’s size is more in comparison to the available resources it will result into much greater productivity and team performance. But at times it can also lead in a possible conflict, reduced cohesion and feeble productivity.
• Background- when individuals who belong to different backgrounds are coming together in a group although it might advocate the effectiveness of teamwork with greater scope knowledge, ideas and concepts increases eventually leading to greater innovation, creativeness and decision making it might also obstruct the effectiveness by creating communication gap leading to damage.
• Skills- people with varied skills can result into effective teamwork because different experiences will bring in more fresh ideas and problem solving intelligence but it might also lead to differences of opinion further inhibiting teamwork by ruining the  team’s cohesiveness.
• Organization structure and culture- the structure and culture of organization that is well defined endorsees effectiveness of teamwork through proper delegation of role, power and control while in case the structure and culture is not well defined it will eventual result into lack of team focus, performance and misconceptions.
• Difference in age- although it advocates effectiveness of teamwork in a group to the individual who are older than the others will have the natural tendency of acting in a more mature way that has come with experience and learning where as it might also lead to non-acceptance of newer ideas and thinking of the employees who are younger in age and experience ultimately leading to frictions at work.  

4.3   Evaluate the impact of technology on team functioning within CAPCO or your chosen organisation 

The term technology advances can be described as new inventions further influencing developments by concurrently bringing in both new improvements and risks.

Automated systems are helpful in removing the need of a human hand for accomplishing a given task. This technique is mostly utilized in areas of production and industries for enhancing the level of  productivity and simultaneously lessen the operational cost. Take for example, ATMs i.e. Automated Teller Machine has further wiped out hand-operated job of a teller  It has been observed that technological advances have brought in numerous advantages such as advancement in communication, information processing and its access, enhanced productivity, innovation and creativity. It also has certain disadvantages like  reduction in face to face interaction resulting into social isolation, increase in unemployment  as a result of increased automated systems and more dependency on unreal intelligence.

Use of technology at CAPCO has helped in smoothing the organisation’s functioning however, its implementation involves certain cost. In long term prospect, the investment made will give more return that incurred as a result of effective communication, saving of time, printing cost can be cut down and effective evaluation of employees’ performances can be done. Impact of technology on team functioning in CAPCO can be measured seen when the consultants can easily visit their customers for providing them better financial services and advices at the comforts of their homes. (Ahuja, 2010) During a client visit if a situation arises where the consultant needs to discuss an issue with the superior, he/she she can easily communicate with the help of the smart phones.  Use of technology has also made it relatively easier for recording employees’ activity. Various technologies like SAP has made it easier to keep a record of customer database and use of accounting software has helped in maintaining the financial expenses and figuring out the budget eventually directing the team about its expenses. Teams are responsible for managing customer details which can now be easily recorded and retrieved with the use of technology and can also be protected with the help of the privacy features. Measuring team’s performance can also be done with the use of technology. The manager administers appraisal tools for collecting employees’ feedbacks that can be secured with the help of a technology enabled voting system. (Ahuja, 2010)

Conclusion

At the end of this project I would state that the main purpose of this report mainly focuses on understanding organisational behaviour through the case study of CAPCO which operates into financial services. Several aspects of CAPCO have been emphasized throughout this report. The role of employee motivation on the upliftment of the CAPCO’s performance has been discussed. Apart from employee motivation, the need of identifying teamwork and group behaviour for establishing a structured process within CAPCO is highlighted. Need of the leadership, application of different leadership styles and its impact of CAPCO’s productivity has also been discussed.

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