Organizational Behavior

Organizational Behavior

Table of Contents

Introduction. 1

Task 1. 1

1.1 Comparison and contrast of organizational structure and culture between CAPCO and Astrazeneca UK   1

1.2 How the relationship between CAPCO’s structure and culture can impact on the performance of its operations. 2

1.3 How individual employee’s behaviour at work might be influenced by different factors of “Astrazeneca UK”

. 3

Task 2. 3

2.1 comparison of effectiveness of different leadership between CAPCO and Astrazeneca UK.. 3

2.2 How organizational theories influence the practice of management 4

2.3 Different approaches to management at CAPCO and Astrazeneca UK.. 4

Task 3. 5

3.1 Discuss the impact that different leadership styles may have on motivation at Capco during periods of change. 5

3.2 Compare the application of two different motivational theories within organizational setting. 6

3.3 Explain the necessity of managers to understand and apply motivation theories within the workplace  7

Task 4. 8

4.1 Explain the nature of groups and group behaviour within CAPCO.. 8

4.2 Discuss factors that may promote or inhibit the development of effective teamwork within CAPCO   8

4.3   Evaluate the impact of technology on team functioning within Capco. 9

Conclusion. 11

References. 12

 

Introduction

Every organization divides its structure to facilitate its task for the employees in order to achieve its corporate goal. In this process of delegating the task, the organization assigns leaders who will be able to make people work to achieve company vision and mission. For this reason, the leader needs to motivate people to make people work. In this field, different researchers provided different motivational theories which significantly affect the team performance. This report is assigned to gather comprehensive knowledge about organizational behaviour of employee of CAPCO and to assess different situation with a valid comparison with another similar companies.

Task 1

1.1 Comparison and contrast of organizational structure and culture between CAPCO and Astrazeneca UK

Organizational structure can be defined as the hierarchy or chain of command residing in an organization (Cao & Taylor, 2004). In another words, organizational structure presents an illustration of every job description, the line of authority, delegation of duties, divisions of responsibilities and power and functions. Usually organizational structure is presented with the help of organizational hierarchy.

While organizational culture is a package containing values, beliefs, norms and behaviour which determine and control the behaviour of individuals within an organization (Huitt, 2004).

From the given case study it is obvious that CAPCO uses such a structure which can be considered under “flat organizational structure” but it needs to mention that it is non-hierarchical in a sense that the subordinate is not accountable to report to immediate superior rather this hierarchy is based on team work. Because of this team driven hierarchy, employees are motivated to work together and empowerment of employees has been increased due to having easy access to the superior. This culture of easy access has decreased the problem bureaucracy within the organization.

“Astrazeneca UK”on the other hand uses typical organization structure called as functional organizational structure. The hierarchy of “Astrazeneca UK” has eight directors in top level, one CEO and one chairman. Besides all these divisions are further divided into many subdivisions such as CFO, HR, compliance board etc

CAPCO maintains friendly culture inside its corporate houses. Its organizational culture is based on stimulant of entrepreneurship and innovative characteristics in the mind of the employees. Consequently employees enjoy the environment of personal development and also a challenging workforce. Organization culture of CAPCO is based on reward and performance that is why employees become motivated towards job engagement.

On the other hand “Astrazeneca UK” uses “Role Culture” inside their organizational structure. It can be concluded directly from the organizational structure of the company. Top level employees own the highest rank of the organization and thus they direct the whole organization by setting company goal and dividing this goal into many small missions. Ifofficers of any department leave, then still the objective of that department remain unchanged.

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

CAPCO’s corporate culture is somewhat flat which indicates that employees in this company get opportunity to interact directly with the superior. Consequently it reduces the time needed to take decision and cost of decision making. Some of the key features of CAPCO is:

It ensures growth for the employees, task related with performance and reward, challenging job description and opportunities to gather experience.

Alongside having these tough and competitive environment, corporate culture of CAPCO also ensures flexibility and creativity.

This innovative characteristic of CAPCO enables the company to win 27^th position among the 100 best companies according to The Sunday Times. Its’ cooperative work place environment encourage women participation in workplace which is reflected by the Times magazine statistics which includes CAPCO among the top 50 women employer in the world.

Besides CAPCO provides the opportunity to express their own view for the employees, it can be proved by the doctrine provided by the employer to the employees to have permission to change some terms and conditions according to the need of the customer. Consequently employees can reach to larger group of customer which would not be possible if terms and condition are strict.

1.3 How individual employee’s behaviour at work might be influenced by different factors of “Astrazeneca UK”

To begin with, “Astrazeneca UK” is committed to its employees to provide a favorable workplace environment such as facilitate with proper sanitation, hygienic food and water supply, healthy atmosphere and sufficient ventilation. This healthy and hygienic environment motivates the employees to increase job engagement in the workplace and give their best effort to the employer. Because this positive environment will create a possessiveness for the employees towards the company. This possessive perception of the employees will guide them to concentrate more in the job (Skogstad et. al, 2007). Some of key characteristics need to be mentioned here, which cause the company to create possessiveness perception towards the company, such as: comfortable working hours, non-stressing workplace, participation in equity and share, reward winning system based on performance, proper communication system among the employees.

Besides these apparent characteristics, some ethical practices of the company influences employee behaviour of “Astrazeneca UK”, these are transparence in official formalities, practice of showing respect to others, mutual respect, integrity and patients. In spite of having demographic variation in “Astrazeneca UK”, the company successfully achieved to direct employee behaviour positively due to having these characteristics.

Task 2

2.1 comparison of effectiveness of different leadership between CAPCO and Astrazeneca UK

Leadership style in CAPCO can be defined as “Dispersed leadership style”. CAPCO wants to create more leader within the organization rather enjoying the position of a leader autonomously.For example the company has kept the opportunity to become socialize by creating own social media websites. It indicates that the company believes in innovation and wants to increase creativity of the employees. Besides the company operates its business based on team work. The company divides its employees into many small groups and assigns the groups different tasks to achieve. Through this process, the company tends to create so many leaders among the groups. The company always encourages innovation and idea generation. For this purpose the company formulate “Rocket Team” which creates idea among the group and ensures that idea are being generated. This leadership style works best where employees are free to think and innovate and this situation is present in CAPCO.

“Democratic leadership” is prevalent in the organizational hierarchy of “Astrazeneca UK”. It can be noticed by observing organizational hierarchy of the company. From the hierarchy it is obvious, power and authority are transmitted through top to bottom with proper channel. Alongside this, the company emphasize on research and development work within the organization. Consequently it offers the employees some kind of freedom in workplace to think and to create.

2.2 How organizational theories influence the practice of management

Management field has been developed by the study of various organizational theories. Some of these theories are different from each other. Few important theories are discussed here.

Scientific management theory is the classical theories in this regard. It enables the top level management to walk hand in hand with the subordinate employees. It implies as developing and formulating plan and procedure with the cooperation of subordinate employees. In other words it ensures the employee level participation with the superior authority. Management level of CAPCO goes along with this approach. It is evident from the case study that “Rocket Team” has been established to support the team with mutual trust.

Another approach to management is “The System Approach” which implies that an organization will be divided into small inter-related teams or groups on where each other group put their trust on. This approach is also fit with the strategy of CAPCO, management of level of CAPCO believe in team building strategy. It is evident from the case study.

2.3 Different approaches to management at CAPCO and Astrazeneca UK

Bureaucratic approach to management: Bureaucratic approach of management believes in hierarchy and put emphasize on this (Hiller, Day and Vance, 2006). It enables an organization to operate the business following any systemic way rather than following arbitrary way. According to this approach chain of command is maintained tightly and exertion of power and authority is channeled through proper way. Both Astrazeneca UK and CAPCO both follow this approach. Both of the company follow strict organizational hierarchy and ensure proper flow of power and chain of command.

Behavioral approach to management: Behavioral approach considers the human resources in formulating strategy. From the case study CAPCO widely use this strategy. CAPCO gives the opportunity to make decision to the employees. This is for the positive view of behavioral approach. Evident for this is that, CAPCO allows the employees to use own social media which ultimately helps to increase sales volume.

Socio Technical System approach: Socio technical system approach considers the human traits and group effect over the management (Matveev and Nelson, 2004).CAPCO also follows this strategy in management. Management of CAPCO divided its management into small teams. Besides this group, the management formulates “Rocket Group” to assist and to build trust among the group. This view clearly supports socio technical system approach.

Task 3

3.1 Discuss the impact that different leadership styles may have on motivation at Capco during periods of change.

Leadership in the organization has a greater impact as many researchers have shown on the motivation of the employees. The changes in the leadership style work as a catalyst for the changes in the motivation. Making people working toward a generic goal and guide them in a way to achieve it is what leadership is (Robbins, 2013). But the success of leadership depends upon the success of the followers a leader has and their competence shows how much the leader has achieved (Saha, 2006). That’s how motivation comes into force. For leaders motivational tools work as a way to entice the followers and influence their behavior. Lewit, Lippin and White in 1939 published their work by dividing leadership style in three prevalent still in organizations.

Autocratic Leadership          

Autocratic leaders exercise all the powers and leave nothing for the employees. The freedom employees have in decision making is close zero and no flexibility. Autocratic leadership style keeps all the controlling power and therefore, monitors every follower and dictates them. Even though autocratic leadership may seem to be well disciplined it has a negative relationship with efficiency (Bhatti et. al, 2012). Employees perform less than usual if they are exposed to such. In 2015 the CEO of Capcom Rob Heyvaert left and Lance Levy took the seat. Though the leadership in Capco isn’t autocratic, some employees have not liked Lance Levy for his favouritism. Thus if any decision of upper management has any amount of autocracy it prevent the employees flexibility.

Democratic Leadership

More flexible leadership can described as democratic where leader indulges employees in decision making process. Many of the times only problems and guidance are added and it is employees who find the solution. Democratic leadership rises the loyalty in employees (Foels et. al, 2000). Capco upper management shows their reliability on their employees and thus accept them in decision making progress. It is a tradition in Capco that employees may have the full access to share their ideas and there must not be any ideas blocked in any way. The CEOs of Capco are said to be more democratic in their leadership style as the evidence shows.

Laissez-Faire Leadership

Without blocking the employees on making decision or even reducing the restriction, laissez-faire provides the employees with full freedom in their action. Employees get full independence in their actions, no accountability for those and can be destructive (Skogstad et. al, 2007). Thus its effectiveness relies largely upon the condition prevailing in the organization. Capco when recruits consultants provide them with flexibility and they are independence in their actions.

3.2 Compare the application of two different motivational theories within organizational setting

Motivating people depends upon the knowledge of the specific persons. How a person behaves depends directly on what motivates him and therefore, it is essential to consider the motivational theories to achieve set goals.

Maslow’s Hierarchy of Need

An individual’s needs have been divided in five different levels by Abraham Maslow. An individual first tries to secure his basic needs and securing one need make him to strive for another and thus he continues to until every need is fulfilled. Their needs are divided into physiological, safety, social, esteem and self-actualization and every individual seeks to fulfill one after another (Huitt, 2004). If employees are to be motivated application of Maslow’s hierarchy of need can be crucial. By understanding what need an employee is striving for, the organization can increase his motivation towards it by adding goals. At Capco, employees are offered with personal growth opportunities. This helps them to grow by levels of their need. Capco thus needs to know which employee wants what and no employee can be treated similarly.

McGregor’s Theory X and Theory Y

Employee psychology has made McGregor to generate two theories, Theory X and Theory Y. That employees hate their work or dislike and they have to be coerced or guided to fulfill the activity is explained by Theory X. On the contrary Theory Y suggests that employees are responsibility seeker as they accept the work as part of their life (Kopelman, Prottas& Davis, 2008). So, in the workplace understanding employees has a great deal of concern. Employees who take work for natural process may have to be motivated by providing more responsibility where employees hating work may have to be guided in a coercive manner. Employees at Capco also have similar psychology. Many of the employees are responsibility seeker and therefore, they are provided with challenging portfolio of work and they work towards their personal growth. Those who hate work are provided with performance and reward opportunity which leads them to perform better or reward will be none.

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

Managers have to acquire the knowledge of motivation and apply them in the workplace for many a reason. Motivated employees are great asset for the organization which ensures least absences, higher performance, higher input and loyalty. Only when employees are motivated, managers can have an increased productivity and reap more benefit (Kini& Hobson, 2002).

At workplace different motivational theories can have different feedback from the employees and it is upon the managers to select the suitable one. Hertzberg two factor theory provides motivational factors and factors that dissatisfy the employees. To implement such a theory managers have to motivate employees with proper motivation and support them by providing and environment to grow (Panay, 2017). With right reward and environment dissatisfaction can be removed. Capco managers can apply such a theory easily as their already organizational setting matches the same.

For applying Maslow’s need hierarchy theory every employee has to be asked of their needs and their present condition has to be kept in mind where McGregors theory needs the manager to understand the psychology of their workers and motivate or reward them for their work according to their psychology. Victor Vrooms’ expectancy theory implementation may need the manager at Capco to set goals and provide proper reward which they want.

Necessity of motivational theories and their application can a great source for additional productivity, efficiency and loyalty. Only do the managers reap benefit of such if they are interested in applying those theories.

Task 4

4.1 Explain the nature of groups and group behaviour within CAPCO

People when gather to accomplish a project with their complementary skills and they all are accountable for their works collectively is known as groups (Schermerhorn, 2014). Prevalent groups in an organization can be categorized in two, namely formal and informal. Formal groups are formed officially to pursue specific tasks and for such ranks are provided by the organization. But informal groups are formed by people with similar motives.

Teams at Capco are similarly divided into both those category and Capco believes team working to be integral in its operation. Capco’s teams are composed of different people from different areas of business. Their complementary skills, strength and experience deliver Capco’s projects in the way they want. For formal groups in Capco, they are formed by Capco to take on specified activities such as project management. On the other hand informal groups are formed to hold social occasion.

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

Teamwork is crucial to pull off a project successfully and in big organization it has more importance as it can hamper the ongoing activities. Capco has different teams in its organization and they are performing different projects. It is thus essential to know what may inhibit the development of effective team work within Capco.

Team’s performance and cohesiveness increases if the leadership in the organization is effective. A strong and experienced leader can tackle a team well where a weak and inexperienced leader can’t control his follower. As for teams are with different capabilities collective leadership can also result in high productivity (Hiller, Day and Vance, 2006). At Capco where employees are given equal opportunity in sharing their ideas, leader has to be consultative and flexible in nature to motivate and provide good feedback to his followers.

If roles are not defined it may cause problem in the formation of the team. Team members are not all similar in their skill and experience. Members have to be put in roles they are supposed to be good at and this will increase productivity (Senior, 1997). At Capco for team’s better performance their roles are defined after they have been evaluated and their skills have been measured. Capco also considers definitive roles to be one of the important factors to effective teamwork.

Cohesiveness among the team members is important but generally members are from diversified places to form a team. A cohesive environment may become necessary as it will bring them closer and increase the effectiveness of the team (Stashevsky and Koslowsky, 2006). Members of team at Capco enjoy their individuality and therefore, readily accept any other members and cohesiveness is formed.

Capco insists on sharing ideas and views among the teams and their members as it believes stronger communication is a key to success. Lack of communication within a team can break the team down. Better communication within team members can increase their acceptance level and make the team go a long a way (Matveev and Nelson, 2004). Blocking of ideas in Capco is about forbidden and so they provide communication medium to better connect with each other.

4.3   Evaluate the impact of technology on team functioning within Capco

In this modern era every increase in productivity is assessed including technology. Team performance can greatly be increased with the proper technology. With every new technology coming, teams need more knowledge about it and better communication capabilities. Many technologies increase team performance and they are also found to decrease team performance (Cao & Taylor, 2004).

Capco being a large financial company it has to work with data collected instantaneously and for such it has to be connected with modern technology. Technologies found to be increasing team performance include phone, internet, computer, email etc. Capco’s team members are well trained with such modern technology to make decision. A term ‘Futurology’ used by Capco is to think ahead of time. Proper technologies are in place at Capco and team members are connected via CupInTouch, a groupware created by Capco to keep its members close anywhere. Capco’s commitment to the training of its team members has earned them loyalty as a survey indicated.

Conclusion

Organization culture, structure, leadership and motivation are all what forms organization behavior. Job performance can be called as a equation of attributes, work effort and organization support (French, 2011) Capco being a multinational company has its own developed culture, values and structures in place. Its well-developed organization culture has only brought better performance by it. Even as its leadership changed in 2015, it has not fall short of its performance. Its commitment to its employees is showed in its activities. This forms a better organizational environment for the employees.

 

References

Robbins, S. and Judge, T. (2013).Organizational behavior. Boston: Pearson.

Saha, J. (2006). Management and Organizational Behaviour. Excel Books India.

Bhatti, N., Maitlo, G. M., Shaikh, N., Hashmi, M. A., & Shaikh, F. M. (2012). The impact of autocratic and democratic leadership style on job satisfaction. International Business Research, 5(2), 192.

Foels, R., Driskell, J. E., Mullen, B., & Salas, E. (2000). The effects of democratic leadership on group member satisfaction an integration. Small Group Research, 31(6), 676-701.

Stashevsky, S., &Koslowsky, M. (2006). Leadership team cohesiveness and team performance. International Journal of Manpower, 27(1), 63-74.

Skogstad, A., Einarsen, S., Torsheim, T., Aasland, M. S., &Hetland, H. (2007). The destructiveness of laissez-faire leadership behavior. Journal of occupational health psychology, 12(1), 80.

Kopelman, R. E., Prottas, D. J., & Davis, A. L. (2008). Douglas McGregor's theory X and Y: Toward a construct-valid measure. Journal of Managerial Issues, 255-271.

Huitt, W. (2004). Maslow's hierarchy of needs. Educational psychology interactive.

Kini, R. B., & Hobson, C. J. (2002). Motivational theories and successful total quality initiatives. International Journal of Management, 19(4), 605.

Panay, M. (2017). 5 Psychological Theories of Motivation to Increase Productivity. Contactzilla. Retrieved 18 February 2017, from https://contactzilla.com/blog/5-psychological-theories-motivation-increase-productivity/

Schermerhorn, J. (2010). Organizational behavior. Hoboken, NJ: Wiley.

Hiller, N. J., Day, D. V., & Vance, R. J. (2006). Collective enactment of leadership roles and team effectiveness: A field study. The Leadership Quarterly, 17(4), 387-397.

Senior, B. (1997). Team roles and team performance: is there ‘really’a link?.Journal of occupational and organizational psychology, 70(3), 241-258.

Matveev, A. V., & Nelson, P. E. (2004). Cross cultural communication competence and multicultural team performance: Perceptions of American and Russian managers. International Journal of Cross Cultural Management, 4(2), 253-270.

Cao, C. G., & Taylor, H. (2004). Effects of new technology on the operating room team. TUFTS UNIV MEDFORD MA DEPT OF MECHANICAL ENGINEERING.

French, R. (2011). Organizational behaviour. John Wiley & Sons.