Program	Diploma in Business
Unit Number and Title	Unit 3 Essay on Organization Behaviour
QFC Level	Level 4

Introduction

The study of organizational behavior can be described as human behavior within an organization. The concept of organizational behavior is a multidisciplinary area comprising of management, communication, sociology and psychology and significant idea behind studying this subject is to implement the scientific approach for managing the employees and employing productive theories for maximizing the output of human resources. The study of organizational behavior primarily compasses of studying three broad areas namely micro-level, meso-level and macro-level. It has been observed that a company’s organizational behavior is dependent on administrative rules and standards, vision, culture and atmosphere and plays a key role in elaborating the corporate-society relations and employees ability to work for better execution of everyday operations. For developing a better understanding on what is organizational behavior and why it is important, the case study of CAPCO will be considered as an example throughout the report.

Established in 1998 in Belgium, relatively with 3,000 employees in its 20 offices across the globe, CAPCO is a leading financial consulting firm operating under FIS ownership.

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.

One can describe organizational structure as an arrangement specifying the organizational pyramid of authority, command and control in a company like CAPCO. Moreover, the structure of CAPCO assists in identifying the different jobs within the workplace thereby, establishing the designation of roles and coordination for maintaining information flow amid the various management levels for attaining the company’s business goals. The culture of an organization can be described as values, ideologies and beliefs that eventually CAPCO maintains and one can easily see them been practiced in the working atmosphere, interaction and subsequent business aspirations. (Isern, Sánchez and Moreno, 2011)

Organizational structures of CAPCO and BMI Healthcare Center:

CAPCO ‘s Flat Structure	BMI’s Hierarchical Structure
CAPCO’s flat organizational structure allows the management in maintaining a small chain of authority, which means that the command chain is lower with an extensive approach of control at workplace.	BMI’s hierarchical structure comprises of numerous managerial layers and authority line ensuring the effectiveness of command with lesser extent of management and control (Business Case Studies, 2016)
The practice of a flat organizational structure in CAPCO further empowers the employees in playing multiple roles, which eventually prepares them for the innovative and entrepreneurial culture of the organization.	The clear outlining of employees roles and responsibilities at BMI at different levels has established proficiency amid the employees in executing specialized activities that has further helped the uppermost management to maintain leadership and control.
CAPCO with its flat structure promotes receptivity at work where employees are encouraged to voluntarily share their ideas and information with superiors and subordinates thereby, leading to the establishment of enhanced coordination and communication within the employees as both a team and individual.	BMI’s hierarchical structure decreases the flow of communication between the employees at different levels across all departments. However, one can see a broader access of communication in every department as an individual that further leads to the roles transparency and efficacy. (Business Case Studies, 2016)
CAPCO’s flat organizational structure assist in enhancing the employees motivational levels further empowering them management support and participation resulting into the company’s overall success.	The hierarchical possibilities of growth and promotions incline BMI’s employees.
CAPCO executes cost effective operations as a result of fewer lines of command and the non-existence of middle level management. Although this kind of channel is effective at most times but can also at times bring confusion or failing of the command.  (Business Case Studies, 2016)	There is rise of competition across departments because of more layers of command thereby, leading to individual benefits and comparatively lesser flexibility towards a change. The process of decision making is also time taking due to different layers of command.

Organization Culture of CAPCO and BMI: One can see that the key focus of CAPCO’s organisational culture is to content its customers with maximum satisfaction against the faith they have on the brand and the money they invest in buying the financial products. In addition to customer satisfaction, CAPCO also aims of giving value to the employees through equal opportunities and fair practices at work and by propagating mutual respect for co-workers. It has been observed that BMI’s culture in comparison to that of CAPCO eventually focuses on its employees and their welfare. BMI believes in recognizing and rewarding the employees’ contributions in the growth and success of the hospital. Employees happiness is also key value that BMI takes to heart and has hence, generated a working atmosphere for attracting, motivating and retaining the employees. BMI also encourages the employees in taking risks. The reflection of the culture practiced at BMI can often be seen in its  decision making , which eventually are made in teams. Furthermore, the key focus of BMI is on furnishing disparity, evolution, training and learning to the employees. (Naranjo-Valencia, Jiménez-Jiménez and Sanz-Valle, 2011)

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

One can see that CAPCO’s organizational structure and culture significantly play a practical part in equalizing the everyday operations within the workplace, which facilitates the competent running of the overall business process. The structure and culture of CAPCO are inseparable thereby, helping the giving an instinctive shape to the behaviour of the employees in order to cultivate a sense of achiever within them. The organizational culture of CAPCO is more cooperative in nature and is team oriented while its organizational structure is flat. It is a known fact the structure and culture of an organization are interdependent. One can see both positive and negative influence of CAPCO’s flat structure at its workplace.  The impact of the culture and structure practiced in CAPCO can be seen on the performance of its everyday operations. Moreover, the organizational structure and culture of CAPCO provides assistance in establishing inflexibility within its comprehensive performance and productiveness to fulfil the needs of customers. CAPCO has significantly attained what it had aimed for through focusing its goals on quality, excellence and keeping the customers engaged to ensure that they repeatedly keep buying their financial products and services. (Lefifi, 2015)

Furthermore, CAPCO’s structure and culture often gives assistance to the uppermost management to establish an adequate flow of communication thereby, allowing the employees to clearly understand their individual job roles and responsibilities and restore a transparent communication amid management-employees.

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

The employees’ behaviour at work is influenced by numerous factors and the impact of it can be seen on their individual performances and productivity either positively or negatively. CAPCO’s workplace culture backs alacrity, resilience and a comprehensive working atmosphere further influencing employees’ behaviour and empowering them to grow. (MSG, 2016)

Mentioned below are the factors:

• Work relations: the practice of flat structure at CAPCO encourages the employees to be innovative and openly adopt the entrepreneurship culture thereby, letting them to directly communicate with their colleagues across departments. The employees are also encouraged to freely share their ideas and opinions with the managers that further evolve a sense of confidence within them. (MSG, 2016)
• Workplace culture: CAPCO’s organizational culture is supportive towards employees’  personal and professional  growth, distribution of rewards, work challenges and new learning to keep the employees morale high. Moreover, its open culture advocates creativity and employee empowerment. For keeping the employees integrated with the system, CAPCO ensures that policies are transparent and information flows clearly cross all departments irrespective of level. (MSG, 2016)
• Role clarity: CAPCO ensures that clear roles and responsibilities are delegated amid the employees by understanding their skills and capabilities. The managers are always there for providing guidance and support to the employees. This approach undertaken by the managers boosts the employees’ confidence levels further preparing them to face any challenge at work
• Resilience: the employees working at CAPCO are given the much needed flexibility and exemption of sharing their ideas, opinions and concerns and discuss with the managers or if required with the HR Manager. CAPCO has also adopted the technique of work time flexibility allowing the employees to strike a balance between their family and professional life. (MSG, 2016)

Task 2

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

The term leadership can be described as an art to lead others for purposely creating a result which otherwise would not have materialized. Leadership style that a manager adopts further has a role in influencing and shaping the behaviour of employees at work. The perception of an employee towards the leader who can also be the manager might be positive or negative that is highly dependent on their relations with the manager. (Germano, 2010)

Leadership styles effectiveness at CAPCO and BMI:  

• Authoritarian style: managers pursuing this leadership style are not an autocrat however, they have a clear approach of chartering the performance objectives of a team or individual employees. He/she competent and proficient in providing the employees with a structure thereby, clearing employees’ perception towards their respective job roles. An authoritarian leader can move into micro managing if the situation demands. Effectiveness of this style at CAPCO and BMI might be adverse as the leader is not much keen in taking suggestions and feedbacks from the employees, which further reduces their motivational levels in the long run. (Germano, 2010)
• Democratic style: managers pursuing this leadership style keep a friendly approach towards the team members and are very sensitive because of which they have a concerning approach towards the employees and treats them with respect. This approach is helpful in cultivating a sensibility of care, value and loyalty within the employees who further have faith on the manager that during a period of change he/she will guide them to deal with uncertainties. This style is effective at CAPCO because of its flat organizational structure where the employees are encouraged to bring creativeness at work while at BMI, the style might be ineffective as the tasks are straightforward and hinder the decision-making process if the employees take up immature actions
• Participative style: managers pursuing this leadership style firmly believe in engaging the employees in all process that also includes decision making. It helps the managers to build a healthy relations and rapport with the employees thereby intensifying team’s involvement further making fulfilling them with the feeling of empowerment and value. Practice of this style can benefit both CAPCO and BMI as both counts on the input derived from the team, which often generates new ideas and measures for resolving problems and business growth. (Germano, 2010)
• Transformational style: managers pursuing this leadership style believe that there always is a room for improvement hence, keeps pushing the employees to attain higher levels of achievements. He/she has full faith on the capability of every employee and encourages them to grow continuously. Moreover, such managers celebrate success with the team and analyze and improve every setback. Practice of this style can be effective for CAPCO as employees and managers skilled and committed to work however, this style might be perilous for BMI employees lacks mutual respect
• Laisse Faire style: managers pursuing this leadership style give the employees freedom to make decisions on their own and occasionally interfere or guide them. Practice of this style at CAPCO or BMI can be least effective as it lowers the employees’ productiveness and cohesiveness within the team. (Germano, 2010)

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

Various theories have been assessed by the researchers further clarifying an organization’s dynamics such as how the business decisions are made, how power is distributed and controlled, how are conflicts are resolved, how it promotes or confronts a change within the organization. The researchers have named these theories as organizational theories. (Feldman and Orlikowski, 2011)

Organizational theories are utilized for providing a centralized focus on the impact of the characteristics and actions of an employee on organization, its overall performance, success and durability and impact of the environmental effects.

The process of management depends on organizational theories as it eventually focuses on studying the structures, designs, patterns and relationships for coping with change and further attaining its purpose. Organizational theory plays a crucial role to underpin CPACO’s practice of management. (Feldman and Orlikowski, 2011)

• Scientific Management: Frederick Taylor’s theory is evident to optimize and facilitate the jobs, which eventually results into widening the productiveness of the employees. Under this theory, much importance is not given to the employees’ human factor and they are treated as machines that are expected to carrying out a given task. The theory of scientific management gives priority to technology over work force thereby, making it applicable on organizations irrespective of their business nature. The influence of scientific management can be seen on the practice of management in the areas of organizing, leading, planning and controlling the operations. Moreover, it helps in expediting the processes and business policies development. This theory is relative to CAPCO as the employees are encouraged to adopt creative ideas and innovation at work. (Feldman and Orlikowski, 2011)
• Human Relation Theory: the emphasis of Elton Mayo’s theory is usually made on employees’ contributions that drive an organization towards the attainment of its desirable goal and success rather than on machines. The theory is helpful in identifying the psychological and social factors that influence the productiveness of an organization. The theory gives stress that employees crave to become a part of supportive team that facilitates growth and expansion. Organizations practicing this theory consider the employees as invaluable assets further keeping them motivated in becoming productive thereby, culminating quality outcome. CAPCO has embraced various HR policies and employee engagement programs for keeping the morale of the employees high so they give outstanding performances that will eventually enhance the organization’s productiveness. (Feldman and Orlikowski, 2011)

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

Different approaches to the management used by CAPCO and BMI Healthcare:

• Scientific Management Approach: CAPCO and BMI has often followed Taylor’s approach in order to accomplish a task as both the organizations understand and are clear with the fact that an increase in production ultimately will rise the productivity levels. At CPACO, when this theory was applied, the employees were allowed in completing a job in a cost-effective way by determining the techniques that are relevant to execute a job without wasting the available resources. Practice of this theory at BMI has helped the management to delegate employees’ roles and responsibilities according to their skills in order to enhance their productiveness. (Cummings and Worley, 2014)
• Administrative Approach: Henry Fayol’s theory reiterates on self-control and self-restraint, integrity in direction, compensation, scalar chain, equity and actions. CAPCO has ensured a steady operational process by practicing this theory thereby, giving structure to pay, discipline, unity, initiative taking and communication flow. However, the application of this theory at BMI has helped in generating a systematic and formal working environment through its organisational structure and command line. (Cummings and Worley, 2014)

Task 3

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

One can relatively link the motivation of an employee with the leader and his/her leadership styles practiced at workplace. CAPCO is aiming of applying the technique of rotating of staff thereby, allowing the employees to expand the skills and be ready for confidently executing a role while in crisis.

To make the situation easier for the employees to readily accept the change with motivation CAPCO can use:

• Autocratic leadership: by pursuing this style the manager constantly gives efforts in maintaining the freedom of deciding, controlling and holding the employees who often are refrained from sharing their opinions. Employees in general are not allowed to judge or question the manager who is the lone decision maker. This style is most effective during a crisis to make quick decisions for gaining higher productivity under the supervision of the manager otherwise, it gets resulted into rise in absenteeism and employee turnover and hence, is unfeasible for CAPCO for its short term change. (Pinder, 2014)
• Bureaucratic leadership: it underpins to follow rules and proceedings even if it does not leave much change to the working atmosphere. By pursuing the top-down hierarchy, it bids in resolving the problems related to control and instructions. Because of its rigid structure, the style is irrelevant for maintaining employees’ motivation within period of change. This style is impractical at CAPCO’s culture where the employees are encouraged to adopt creativity, motivation and confidence thereby, affecting their thinking
• Democratic leadership: it allows the management in making a direct approach towards the employees for familiarizing them with the impending change and how it will benefit them thereby, encouraging them to clear their confusions and hear what they have to say in regard to the change. (Pinder, 2014) One can relate McGregor’s motivational theory with democratic leadership as motivated employees have the tendency of taking added responsibilities and walking the extra mile to successfully complete a job and become an inspiration for others
• Transactional leadership: it allows the manager inform the employees about the impending change and implement it through either rewards or punishment. Manager further disseminates the key objective behind the impending change within CAPCO and processes embraced to complete a task. Moreover, the manager introduces schemes like incentives, discounted lunch coupons, performance based awards for retaining the employees motivational levels. One can relate Herzberg’s Two Factor motivational theory with transactional leadership as employees asks for incentives and recognition thereby, enhancing their productiveness at work. (Pinder, 2014)
• Persuasive Leadership: it allows the manager to maintain transparency in communication and he/she will convince the employees accepting the change as a challenge and prepare them well in advance. Teams for doing smaller tasks will be created for avoiding any disruptions in the operations. Communication will help the employees’ in clearing their confusions that are related to the impending change. One can relate McGregor’s theory of motivation to this style as it allows the dissatisfied employees belonging to Theory X in getting motivated and are melded into Theory Y employees under the manager’s vision who makes the realize the need of change. (Pinder, 2014)

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

• Application of Maslow’s motivational at CAPCO: CAPCO satisfies the basic physiological and safety needs of its employees through job security which further empowers them to arrange and fulfil the basic human needs such as food, clothing and shelter for themselves and their families. It is essential that CAPCO fulfil the psychological needs of its employees that ultimately are based on relationships in order to keep their motivations at high. CAPCO ensures that healthy professional relations are developed at workplace so that employees can give their best performances and attain the desirable goals. To keep the employees morale high CAPCO has adopted appraisals based on performances, distribution of rewards and target based incentives that not only fulfils their needs but concurrently enhances their productiveness. (Accel, 2016)
• Application of Herzberg theory at BMI: It has been observed that a period of change at BMI often spreads confusion within the employees thereby, making them rebellious towards the change. Factors of motivation play a symbolic role in welcoming the impending change that will be resulted into expanded learning, responsibility, recognition and career growth.

It can be concluded that the application of Herzberg’s motivational theory is comparatively useful than Maslow’s theory at BMI as hygiene factors are intact at BMI with no need of any reinforcement so the healthcare centre should focus on bolstering the motivator factors further influencing employees motivation. (Accel, 2016)

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

The theories of motivation are a theoretical structure stimulating a person’s behaviour further driving them in attaining a preset target through intensifying their productivity. Motivational theories like Herzberg two-factor theory accentuate on motivator and hygiene factors. Motivators play a symbolic role in the stimulation of custmor satisfaction through improvement, growth, responsibility and recognition however, one cannot see much influence of hygiene factors like salary, promotion, administration, working condition and working relationships on employee motivation but its non-existence leads to dissatisfaction amid them. Another theory named Instinct theory of motivation identifies with a person’s behaviour through his/her inherited biological impulse that is governed by intuitions that keeps a person motivated further driving towards goals

Managers must evolve and possess their learning about motivational theories and its application at workplace for developing the performances of employees. It is essential that they understand that by using motivational theories in practical they not only can keep the employees motivated and encourage them to upgrade their skills but also simultaneously can instil commitment within them. Employee motivation comprises of various factors that are important for a  developing manager  to identify and exercise them at workplace. In a situation of brining an organizational change within workplace to meet the market demands and competition, it is the manager’s responsibility in keeping the employees morale high by gaining their trust. Motivated employees are more productive in business growth and accepting the uncertain challenges.

Task 4

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

At CAPCO, management creates different types of groups for deriving specified outcomes. Members within the team enter into a mutual agreement and dependent on each other for reaching a desirable outcome and driving the company towards its predefined goals. Groups within CAPCO are formed based on its objective. The first type is formal group, which the management forms with an aim of achieving the goals and the team members are allocated with designated and rooted tasks. Formal group can be divided into command and interest group where members of the command group report precisely to the manager while members of the interest group work together to attain a particular objective. (Herzberg, Mausner and Snyderman, 2011)

The second type is informal group and is formed over friendships, common habits, hobby or interest. It can be divided into task group where the members come together for accomplishing a job whereas the members of friendship group have similar interests’ and familiar attributes

Group behavior, which is an influential factor in identifying the effectiveness of a group, can eventually be related with Belbin’s team role.

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

Having a flat organizational structure, the employees of CAPCO operates in teams. Teamwork is also one of the essential features of its culture, as it believes in developing a collaborative working for gaining more profits. CAPCO’s employees are divided and subdivided into various groups with a manager heading each team. They are assigned specific projects and are expected to work in a cooperative way. Management interprets the long-term objectives to the employees for them to work accordingly and produce desirable results. (Wolski, 2016)

Team members respect and help each other for successful completion of the task. Each member’s roles and responsibilities are cleared for preventing confusions. Use of internet and advanced technology has made communication easier within the office premises or outdoor locations allowing anyone approachable anywhere, at anytime. In spite of working in teams, the opinions of each employee are respected. In certain cases, these suggestions are also put to use which elevates the employees’ self-esteem. Each team has its own target to achieve and all the members collectively work towards achieving that particular goal. All these factors enable proper team functioning within the organization. Employees are also provided with incentives and teams that have shown high productivities are rewarded. However, when so many people operate in groups there are always chances of conflicts among the employees as well as between the employers and the employees. (Wolski, 2016)

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

Employees at CAPCO are highly benefitted from the use of advanced technological services within the workplace. With the involvement of technology, CAPCO has significantly increased its profit margin by reaching more number of customers and attracting them to remain competitive in the market. The operations at CAPCO are mostly dependent on technology, customers can buy financial products and services without physically visiting the office. The financial experts interact with the customers over phones, Skype or mails for understanding their needs and fulfill it accordingly without any hassles of getting involved into too much of paperwork. Use of advanced technology has empowered CAPCO in reducing its staff capacity and preparing an employee in executing multiple roles thereby, increasing job  customer satisfaction  through communication. Technology has made it easier for the employees to remain in touch while at work or in a holiday. (HNC, 2016)

Conclusion

The study of organisation behaviour comprises of numerous facets whose impact one can see in the overall productiveness of CAPCO. For developing a better understanding discussion have been made on the organisational culture and structure of CAPCO and BMI Healthcare Centre. Throughout this report, emphasis has been made on CAPCO’s various aspects. Discussion have been made on how employee motivation have an important role to play in the growth of CAPCO’s performance, why there is a need to identify teamwork and group behaviour for building analytical process within CAPCO.

References

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