Unit 3 Organizational Structure & Behaviour Assignment – CAPCO

Introduction

Organizational behaviour is defined as the way in which the people in an organisation behave with each other. The Unit 3 Organizational Structure & Behaviour Assignment CAPCO focuses on organizational behaviour taking example of CAPCO. The report has analysed the relationship between organizational structure and culture and the different approaches to management and leadership. Report has also identified the ways of using motivational theories in organizations. The study has also focussed on the mechanisms for developing effective teamwork in organization. Organisation considered for the study is CAPCO which is a leading international provider of technology management, managed services and consulting. It has 20 offices around the world and over 2000 employees. It is 27^th position among 100 best companies list. The employees of CAPCO think differently and are creative in solving problem. The employees of CAPCO have knowledge, excellence, commitment, integrity and respect. It has very large customer base over 70% of global financial services.

Task 1

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

Organizational culture consists of components such as norms, beliefs, mutual assumptions and attitude. Organizational culture is significant because it develops a frame of reference for interpretations, perceptions and actions of organization’s member (Schein, 2004). Thus, organizational culture influences company’s strategy, leadership style, organizational learning, employee reward system, knowledge management, commitment, etc. Organizational structure is the pattern of interactions and actions of organizational members with the objective to achieve goal. Organizational structure is significant because it integrates and differentiates the activities of individual organizational member. The organizational culture and structure has both positive and negative effect on the performance of the organization. CAPCO is a leading company in providing technology solutions, managed services and consulting for financial sector. CAPCO has a team driven and non-hierarchical flat structure. This organizational structure is adopted as it suits the entrepreneurial and innovative culture of the organization. Within the flat organizational structure of the organization, matrix structure is incorporated as the employees work on a specific project for a period and after completion of project, they switch to another project (Yukl, 2010).

The organizational structure of CAPCO nurtures creativity and flexibility in organization. This structure motivates every employee to access coaching and advice from others. The organizational culture of CAPCO is built on four key pillars which are opportunity, reward and performance, work, and learning and experience. CAPCO provides opportunity of personal growth to its employees. It is an organization which recognizes and reward performer. It provides challenging work environment to employees to test their skills. It believes in learning from sharing. Coco Cola Great Britain (CCGB) is presently producing and selling 18 brands and 82 different drinks. It’s headquarter is in London and it has 134 employees in it is headquarter who are responsible for its branding and marketing (Alvesson, 2002). The organizational structure of Coco Cola is Separate International Division Structure as the international staffs of Coco Cola operates in isolation and separately from its head office. It helps the company to control its all divisions in five continents which have separate vice-presidents.

The key features of organizational culture of Coco Cola are accountability, quality, diversity, collaboration, integrity, passion and  leadership style. As Coco Cola is operating globally, thus the workforce of company is diverse and it is able to understand, operate and embrace in multi-cultural workforce.

Table 1 Difference between organizational structure and culture of two organizations

	CAPCO	Coco Cola
Organizational structure	Flat and matrix structure as it deals in different projects	Functional or Division Structure as it is operating in various countries and dealing with large product line.
Organizational culture	The key pillars are opportunity, reward and performance, work, and learning and experience.	The key pillars are accountability, quality, diversity, collaboration, integrity, passion and leadership.

Table 2 Similarities between organizational structure and culture of two organizations

	CAPCO	Coco Cola
Organizational structure	Both the organizational believe in free communication among employees
Organizational culture	Both the organizations believe in developing a culture to nurture its employees as an asset.

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

Organizational culture influences organizational structure by its interpretive schemes formation by top management which defines the organizational structure of company (James.et.al.1990). Thus, organizational culture provides the frame of reference for formation of organizational structure. The impact of organizational culture can be positive or negative on the performance of company. When the organizational culture and its structure are compatible, then the effect is positive else negative. On the other hand, organizational structure directs the behaviour of employees in an organization. Organizational structure determines the manner and method of completing task, taking decisions and interacting with one another. If the organizational structure is compatible with organizational culture, it will result into positive behaviour of employees else negative. Cognitive dissonance among employees arises if the organizational structure is not compatible with organizational culture of company (Fiske and Taylor, 1991).

The organizational structure of CAPCO is flat which ensures better control as the chain of command is short and span of control is wide. It ensures effective and better communication in the organization. It reduces many management levels and thus is cost efficient. It fosters quick decision making, effective communication and increases sense of belongingness among employees. The innovative and entrepreneurial culture of CAPCO supports its organizational structure. The culture of CAPCO supports openness, integrity and individuality (Dow, 1988). This organizational culture allows quick and effective performance of tasks, employees become more receptive to change and they easily interact with each other. Thus, both organizational structure and culture of CAPCO raise creativity and flexibility in working environment for employees. There is compatibility between organizational structure and culture of CAPCO which results into better performance of CAPCO.

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

The individual behaviour of employees is influenced by the belief system of organization’s culture. The norms of the organizations are based on the value and culture of the organization which shape the behaviour of its employees. Organizational cultures are the effective way of directing the behaviour of individual employees toward achieving organizational goal. There are four cultures defined by Double S Cube and suggested that companies migrate from one culture to other (Goffee and Jones, 1998). On this basis, the organizational culture of CAPCO is communal which encourages deep commitment, clear vision and high energy among employees. CAPCO encourages team work which brings people from different department together. The organizational culture of CAPCO encourages effective and open communication. They encourage employees to put forward entrepreneurial ideas. It also uses social media to communicate. This helps in creating positive relationship among employees. It develops behaviour of taking risks and thinking differently among employees. The commitment of employees toward organization is influenced by the culture of organization (Cohen, 1993). Commitment defines the behaviour of employee to help each other, developing creativity among employees and relating to organizational goal. Organizational culture foster the actions of individual employees committed to corporate values and philosophies. It develops a tendency among employees to take initiative and solve their problems on their own.

Task 2

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

CAPCO reflects various leadership styles within company on the basis of necessary tasks and need of department. The different leadership styles at CAPCO and their effectiveness is discussed below-

• Participative leadership: At CAPCO, the group members are allowed to provide input and participate in process of decision making. The employees share opinions and ideas among each other. This type of leadership encourages employees to participate in decision making process (Rice, 2010). It results into more creativity, motivation, commitment and sense of belongingness among employees (Nyland, 1995). This type of leadership results into enhanced productivity of the organization.

• Transactional leadership: At CAPCO, management provides projects to employees and recognizes and rewards the employees who outperform in the given project. In this type of leadership, both management and employees are committed to accomplish goal. Management evaluates the performance of employees and provides required reward or training to the employees based on their performance (Rice, 2010).

• Transformational leadership: At CAPCO, management communicates regularly with employees to motivate employees to enhance their efficiency and productivity. High communication among management and employees in an organization results into high visibility and clarity of work. This helps employees to achieve goal.

Table 3: Comparison between Leadership at CAPCO

Basis of comparison	Participative leadership	Transactional leadership	Transformational leadership
Meaning	Management motivates employees to participate in decision making process	Management rewards employees to motivate them	Management motivates employees through communication and their charisma
Concept	Emphasis on employee participation	Emphasis on relationship between management and employees	Emphasis on needs, morals, ideals and values of employees
Nature	Proactive	Reactive	Proactive
Style	Innovative	Bureaucratic	Charismatic
Focus	Quick decision making	Planning	Innovation
Motivational tool	Employee participation and belongingness	Rewards	Communication

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

The theory of Scientific Management is based on work of F W Taylor. He gave four principles of management which has shaped the present business environment of UK also. One of the principles of Scientific Management is to develop scientific method of doing work and replacing traditional method with them (Boone & Bowden, 1987).  It has resulted into business practice in UK which involves quality management, increasing efficiency, increasing customer satisfaction and reducing waste. The second principle of Scientific Management is to develop scientific method of selection and development of employees. This has resulted into introduction of hiring the right person for right position and introduction of training and development programs. There are various organizations today which are providing services relates to recruitment and training. The third principle of scientific management is to adopt scientific method to analyze the training needs of employees (Parker and Lewis, 1995).  Today, the organizations of UK have identified the need of keeping employees motivated, healthy and happy. They also ensure the safety of their employees at workplace. The fourth principle of scientific management is to divide the work into four functions of management planning, organizing, leading and controlling. This principle is adopted by almost every organization of UK.

Scientific management has also shaped the practices of accounting today. The initiative of quality management adopted by various organizations is also an example of application of scientific management (Parker and Lewis, 1995). Today the organizations of UK recognize the importance of lesser working hours for employees which was suggested by F W Taylor. Scientific management has also lead to negative impact on workforce due to performing monotonous work resulting into poor job satisfaction (Robbins & Barnwell, 2002).  The Human Relation theory was given on the basis of Hawthorne experiment in 1920. It believes that human needs are not only materialistic but also social. This experiment found that the efficiency of the worker would be enhanced if there is improved incentive system and shorter working hours with breaks for lunch and rest. The human relation theory has changed the work environment of organizations of UK and worldwide. The change in social climate of work place has resulted into improved morale of employees and increased efficiency.

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

            The main approaches of management used by CAPCO are as under-

• Classical approach: The classical approach focuses on principles of management, technical requirement of organization and planning. The classical approach is criticized for its lack of involvement of personality factor in development of organizational structure. The principles of classical approach are principle of coordination, functional principle and scalar principle. The organizational structure of CAPCO is also kept flat to encourage proper planning and communication among employees (Luomanpaa, 2012).
• Scientific management approach: This approach believes in providing rewards to increase efficiency of employees (Parker and Lewis, 1995). Additionally, it suggested that there is a best way to perform every task and they are required to be standardized. CAPCO also recognizes and rewards the employees who outperform their task. This approach focuses on improving efficiency of both management and employees.
• Human Relation Approach: This approach emphasizes on employee behaviour and social factors at work. It provided a way to improve the motivation level and performance of employees (Martin, 2002). CAPCO encourages team work which brings people from different department together. Human relation approach has been successful in increasing productivity of organizations. But this approach does not consider the environmental factors which affect the productivity of individuals.

Task 3

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

Employee motivation is set of internal and external factors which enhances the performance of employee. The managers are required to understand those factors, expectations or needs of employee which motivate them to perform better. The important factors which influence employee motivation level are needs of employee, supervision, responsibility, working environment, rewarding, feedback, effort and employee’s training and development (Luomanpaa, 2012). Leadership styles which influences motivation are as follows-

• Task oriented leadership: The degree to which management defines the roles, goals and pattern of communication for employees is called as task oriented leadership. In this type of leadership, management motivates employees to perform task and accomplish goal (House, 1996). This leadership style encourages problem solving attitude, reduces stress, provide positive direction and enhance passion of employee.
• Relation oriented leadership: The degree to which management show respect, attention and express welfare and appreciation to employees is called as relation oriented leadership. This leadership style develops more motivation among employees than task oriented leadership. This leadership style develops motivation by supporting, developing, team building, delegating and consulting employees (Fleishman and Harris, 1962).
• Change oriented leadership style: The ability to manage and communicate change is termed as change oriented leadership style. In this leadership style, management build relation, make decision, influence, give and seek advice to employees by understanding the external environment impact. The leader is required to ensure that the resistance to change from employees does not stop innovation in organization.
• Participative leadership: In this leadership style, management encourages and motivates employees to participate in decision process of organization. The employees are motivated by participation because of the feeling of belongingness and feeling of doing something worthwhile (Daft, 2014).
• Charismatic leadership: In this leadership style, management is expected to have extra ordinary abilities and he influences and motivates employee.
• Autocratic leadership: In autocratic leadership, the leader is coercive and directive who does not take inputs from subordinates while making decision (Aaker and Joachimsthaler, 2012). In this leadership style, management provides direction and instructions in detail to employees.

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

Abraham Maslow in 1943 gave the need hierarchy theory. This theory is applicable in management in motivating employees. According to Maslow there are six levels of needs of human. An individual moves to next level only when first need is fulfilled. To motivate an employee, management is required to identify his level of need.

Frederick Herzberg gave Herzberg two-factor theory which defines two sets of factor which are hygiene, the absence of which causes dissatisfaction and recognition which cause job satisfaction (Herzberg.et.al, 2015).

Table 4 Compression between Maslow's and Herzberg theory

Base of comparison	Maslow’s need hierarchy theory	Herzberg factor theory
Definition	Based on concept of human satisfaction and need	Based on motivation factors such as opportunity to grow, recognition and achievement
Basis of theory	Based on hierarchy of needs of human	Based on motivational and hygiene factors
Nature of theory	Descriptive nature and based on experience	Prescriptive nature and based on actual information
Application of theory	It is widely accepted and applicable	Its applicability is comparatively low
Motivators	Unsatisfied specific needs	Hygiene at lower level and recognition in upper level

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

Motivation is a process which provides employees purpose to perform. Management is about getting things done through employees i.e. achieving organizational goal. If the employees are de-motivated, then they will lag behind in achieving the required goal. In this competitive environment, organization cannot manage to lag behind. They have to motivate employees to perform better. There are various theories to motivate employees (Herzberg.et.al, 2011). These theories provide an insight to management to understand the factors motivating employees. Motivational theories act as tool for managers to motivate employees to perform better. Today organizations are also realizing the importance of retaining and motivating employees.

Lack of understanding and knowledge of motivational theories will result into unsuccessful attempts of management in motivating employees. They will consider incentives being the only factor to motivate employees and will increase the cost of organization without any enhancement in productivity or efficiency (Koopman and Wierdsma, 1998). It can be said that if internal human resource is satisfied, then external customers will be automatically satisfied. The organizational performance is a feature of motivation and ability. An effective motivation system of organization will result into enhanced performance. It also requires an effective system to evaluate the performance of employees, benchmarking and policy of training and development and policy of reward. Thus, appraisal system, performance management, motivation are inter-connected. Thus, the main tools for motivation for manager are good communication, providing  financial resources, job enrichment, removing organizational barrier, loyalty, respect, trust, recognition, praise and approval (Weiner, 2013). Thus, there is no set way to motivate employing but motivational theories help the managers to understand the ways the motivate employees to enhance organizational performance.

Task 4

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

Group can be defined as two or more people interacting or working together for same goal. Group dynamics is the communication among members of group. It is the social characteristics of human to interact among themselves. There are three types of nature of group which are normative, group building and team dynamics. The normative nature of group defines the way team is managed and performance is carried out. Group building is the way of training members by role play and self-managed groups (Yukl, 2010). Team dynamics is the internal nature of the groups.

At CAPCO, there are formal and informal groups in the organization. Formal groups are formed by the members working on the projects and informal groups are formed when members collect for a social event (Wu.et.al, 2011). The team at CAPCO is effective team as they share common goal, support and respect each other, high commitment to accomplish goal, has clarity of roles and responsibility, good at sharing thoughts and ideas and has open communication system. The team at CAPCO is diverse and they work together and share skills, strength and experience. Group behaviour within CAPCO includes group viability, satisfaction among members and high level performance. The teamwork in CAPCO is successful because of well leadership, useful communication, diversity and plan for disagreement decision.

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

Teamwork is process which permits ordinary people to achieve extraordinary goals (Scarnati, 2001). The attributes of effective teamwork are commitment to achieve goal; interdependence team members have interpersonal skills; positive feedback and open communication among members; appropriate team composition; and commitment to team accountability. Factors that promote effective teamwork in CAPCO are as follows-

• Diversity: CAPCO has employees with diverse personalities, talents and cultures. Diversity promotes innovation and creativity. The team members in CAPCO respect the difference in ideas and way of thinking of others. A team with lack of diversity may face problem in solving problem and will not be creative and innovative as they will think in same way and draw same inferences (Wu.et.al, 2011). But in case of diversity, there are chances of conflicts but at CAPCO, they manage diversity successfully.
• Communication: CAPCO has organizational structure which facilitates open and clear communication among employees. Clear communication is required for building of effective teamwork. All team members in CAPCO feel comfortable in asking and taking advices from others. It makes the job roles and responsibility more clear to employees. CAPCO also encourage employees to give suggestions.
• Leadership: Effective leadership is required to coordinate an effective team. Managers of CAPCO motivate and encourage employees to participate in decision making process. This open communication helps manager to track the progress of project (Bakeret.al.2010).
• Team building exercises: CAPCO builds team from different departments so that people come to know each other. An effective team is built by sharing practice and experience. These team building exercises by CAPCO improves performance, communication, creativity and problem solving ability of team members. It promotes mutual understanding and boost morale of team members (Daft, 2014).

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

The impact of technology on team functioning within CAPCO can be positive or negative. The technology which have positive impact on team functioning are mobile phones, e-mails, groupware, blackberry and computers.

• Mobile phones: Mobile phones allow team to communicate freely. If team members are not able to connect each other then it will hamper the functioning of team (De Guinea.et.al, 2012).
• E-mails: E-mails helps to communicate, share documents, information and pictures among team members. It takes very less time to post information.
• Groupware: It enables team to collaborate, plan meetings and delegate all within a virtual  business environment.  It can be accessed from anywhere in the world.
• Personal computer: Laptops can be carried anywhere as they are lighter, longer battery life and more powerful. They are portable. If Wi-Fi is available and internet connectivity is there, then information can be shared via e-mails.

Conclusion

The organizational structure of CAPCO is flat which ensures better control as the chain of command is short and span of control is wide. The organizational culture of CAPCO encourages effective and open communication. CAPCO reflects various leadership styles within company on the basis of necessary tasks and need of department. At CAPCO, there are formal and informal groups in the organization. Group behaviour within CAPCO includes group viability, satisfaction among members and high level performance. The teamwork in CAPCO is successful because of well leadership, useful communication, diversity and plan for disagreement decision. Team members of CAPCO have interpersonal skills; positive feedback and open communication among members; appropriate team composition; and commitment to team accountability.

References

Journals and Books

Alvesson, M. (2002).Understanding Organizational Culture. London, UK: Sage.
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Daft, R., 2014. The leadership experience. Cengage Learning.
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Nyland, C. (1995). Taylorism and hours of work.Journal of Management History, 1, 2, 8- 25.
Koopman, P. L and Wierdsma, A (1998) “Participative management,” Personnel Psychology: Handbook of Work and Organizational Psychology, Hove, UK: Psychology Press, 1998, vol. 3, pp. 297-324.
Luomanpaa, R (2012) “Employee motivation at Tommy Bartlett, Inc,” B. thesis, Dept. Applied Sciences, Haaga- Helia Univ., Wisconsin Dells, USA,

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