Catalyst Housing Ltd. Organisations Behaviour - Essay Example

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Organisations behaviour Table of Contents Introduction 4 Identification of the structure and culture of each organisation, comparison and contrast the organisational structure and culture of each organisation 5 Relationship between an organisations structure and culture and its impact on the performance of the business 8 Three factors which influence individual behaviour at work 9 Comparison and effectiveness of different leadership styles in different organisations 10 Explanation of how organisational theory underpins the practice of management 10 Evaluation of different approaches to management used by different organisations 11 Impacts that different leadership styles may have on motivation in organisations in periods of change 12 Comparison of the application of different motivational theories within the workplace 13 Evaluation of the usefulness of a motivation theory for managers 16 Explanation of the nature of groups and group behaviour within organisations 16 Factors that promote or inhibit the development of effective teamwork in organisations 17 Evaluation of the impact of technology on team functioning within a given organisation 18 Reference 19 Bibliography 20 Introduction Catalyst Housing Ltd accounts for one of the leading housing associations based in London and South East providing a range of housing solutions and community development initiatives. It works closely with its partners and local residents in order to serve the needs and requirements of its local customers. The company works with the aim of acting as a catalyst in the process of change and improvement wherever it works for the creation of better homes and better services for customers along with betterment of the future of customers too. The need for housing services, community development and affordable homes being high in the region, the company has been evolving adapting itself to the changing needs of customers in the region. On the other Volkswagen is a German automotive manufacturer, which a leading quality provider of luxury cars for the elite class in society. The increasing trend in demand for luxury cars in Germany accounts for one of the main reasons for establishment and success of the company in Germany. Additionally the availability of technological knowhow and expertise is also wide spread in the region also accounts for the radical development and success of the company in the region. The project seeks to present a comparison and contrast between the two organizational structures and cultures of Catalyst Housing Ltd and Volkswagen. This is done in close association with the impact is causes on the business performances of firms respectively. The suitability and applicability of leadership styles in the two organizations are also discussed in the project and its impacts on the present motivation levels of employees. Finally the effectiveness of group behaviours and team work is provided in the project along with the factors promoting it inhibiting it respectively. Identification of the structure and culture of each organisation, comparison and contrast the organisational structure and culture of each organisation Catalyst Housing Ltd represents a geographic organizational structure in which the organization is divided into small business units and offices which have their own independent entities based on the place where it is located. Catalyst Housing Ltd has units based on West London, Kensington and Chelsea, Brent as well as the South East. Each of these has their own local boards responsible for handling their own local operations. This kind of structure is particularly important and applicable for a large organization like Catalyst Housing because of its presence at different places and locations and the need to carry out business activities as per the needs and requirements of the local regions. The company has a flat hierarchical structure because of the wide dispersion of its unit’s location in different regions (Catalyst Housing, 2012). Following is an organizational structure of Catalyst Housing Ltd. Figure 1: Organizational Chart- Catalyst Housing Ltd. (Source: Reference for business, 2012) The divisional structure demonstrated by Volkswagen can be used as a contrast against the geographic structure of Catalyst Housing Ltd. This divisional structure can be product based or even market based. The organization is divided into numerous divisions and units responsible for a particular product or catering to a particular market. Some of the divisions in Volkswagen responsible for handling different product units are as follows; Volkswagen brand group, Audi brand group, Commercial Vehicles, Remaining Companies, Financial Services, Europcar etc. The company represents a narrow span of control in which a few number of employees remain under the control of a single manager. This allows space greater communication and feedback between employees and managers (Langer, Alfirevic & Pavicic, 2005, p.128). Figure 2: Organizational Chart- Volkswagen (Source: Reference for business, 2012) The most important contrasting character between the organizational structures of the two companies is that Catalyst Housing is divided into units and sub-units according to the geographic locations in which they are located while Volkswagen is structured according to products and product divisions in which each of the units are responsible for undertaking operations related to their product or product lines. Another contrasting aspect between the two structures is that the geographic structure represented by the former enjoys more authority and liberty on their own units and subunits while the latter, which is the functional structure, demonstrates less authority and more collaboration and association between the different business units. Catalyst Housing Ltd represents a role culture in which also reflects bureaucracy in its structure. Although the small units and sub-units are spread across different regions and function considering the external environment in those region they are broadly guided by the decisions taken by the apex body. Interaction takes place between the functional groups rules by procedures, systems and rules and procedures. On the contrary Volkswagen represents a task culture which is based on extensive research and development. This is because of the changing nature of information and technology and dynamic nature of the company’s business. They are subjected to constant change and form temporary task teams with the aim to meet future demands of the business (Sherwin, 2009). Relationship between an organisations structure and culture and its impact on the performance of the business Organisational structure and culture determines way in which the company operates in its regular business activities. This is additionally influenced by the values, beliefs and behaviours which are maintained in the organization. Organizational culture is referred to as the system of shared values and beliefs that interact within the organization, its structure and control systems such as to produce the behavioural norms. This includes the physical settings, building, office layouts and even the behavioural aspects of the members. The set of values and beliefs are further influenced by the organizational missions and objectives. All activities in the organization are directed and aligned with the aim of attaining that mission. This is how structure and culture poses a strong influence over the productivity and performances of firms. The flow of activities is primarily directed towards the way in which the short and long term goals and objectives of the firm can be attained. This further influences the way in which regular work processes would be conducted and proceeded with. In other words the structure and culture of the organization sets the business vision of the firm which is responsible for leading all activities, performances and actions towards realizing those aims and objectives consequently influencing the productivity and performance of the firm (Lytras, Karwowski, & Lee, 2010, p.102). Three factors which influence individual behaviour at work Organizational culture is one of the aspects which influence every individual’s behaviour at the workplace. Schein (1990) has identified a number of factors such as the language, conceptual categories, criteria for friendship and intimacy, criteria for rewards and punishments which influence behaviours of personnel in solving a particular problem arising in the organization. Moreover, individual behaviour can also be influenced by the several skills and abilities possessed by the individuals in the organization. Skill can be defined as the ability of an individual to behave or act in a particular way in which allows him or her to perform well. However, in this context it is important to mention that the individual’s skills and abilities must match with the requirements of the job. In this context an important role is displayed or played by the managers in the organization in matching the abilities and skills of employees with the requirements in the job. Organizations can influence the behaviour of employees if they are powerful in the sense that such aspects as rewards and punishments and their prevalence in place so as to attain particular behaviour of members. Such aspects influence the values, loyalty and norms of behaviour of employees in the organization (Furnham, 2005, p.17). Comparison and effectiveness of different leadership styles in different organisations In Catalyst Housing Ltd, since the various units and divisions have their own authority and responsibility of operations catering to the conditions and circumstance of the place where it is located, it is important that the leadership style must be autocratic in nature. This is because in absence an autocratic leadership and management style, work activities would be highly haphazard and lack focus and this would reduce integrity and collaboration between the units. It is seen that each individual boards have their own way of operating but it is crucial to maintain strict control over activities within the organization which is why the autocratic leadership style is called for. On the other hand the condition in Volkswagen represents a situation where there is high demand for sound technology and product innovation. Under such circumstances members and employees must be provided with maximum liberty to work freely. They are required to come up with as much innovation in products and product categories as possible. This is difficult to be attained under strict and controlled environmental conditions. This calls for the participative or democratic style of leadership which allows participation of employees in decision making and provides them adequate authority and independence to work. However, it does not mean that they are not subjected to evaluation or supervision. There is adequate accountability and responsibility for the job they conduct which is also subjected to evaluation, rewards and punishments. Explanation of how organisational theory underpins the practice of management Organizational and management theories affect the principles and practices of management in various ways and working businesses. People might try to pay adherence to the theories for the betterment of their job performances and attain success by following the set standards of performance and behaviours. However, this might sometimes lead to sacrificing some of the personal disciplines for the purpose. For example, organizational theories in the financial sectors would be defined and preset for employees and employers to follow in order to attain goals and objectives. Following the set structure is helpful in attaining organizational goals and objectives of the organization. However, this might not be true for the human resource management sectors. In such cases managers and employees might have to make their own decisions which not are completely according to the set rules and disciplines in the organization, but which might be suited for the purpose completely. It is crucial that individuals try to fit their activities into organizational theories in order to attain success in business. However, in certain circumstances and conditions this might not be enough. In certain business conditions employees might be required to undertake activities other than his regular job roles and responsibilities. In such cases he might have to break the usual norms and rules of operation in order to serve the purpose of a sudden urgent and adverse condition in the organization (Crowther & Green, 2004, p.23). Evaluation of different approaches to management used by different organisations The management approaches for Catalyst Housing and Volkswagen are different from one another. The former represents a contingency or situational approach as the different business units of the organizations are placed in different locations and operates considering the conditions prevailing in that location. This means that these units are subjected to varied conditions of the environment and such external factors as economic, political, technological, legal and even socio-cultural. The direction of operations of each unit is different from the other and catered to the conditions solely surrounding that unit. The contingency or situational approach is based on the proposition that there is no best way doing a thing. The theory recognizes the influence of the given situation on the behavioural patterns of the organization (Koontz, Heinz Weihrich, 2006, p.17). Since Volkswagen is an organization which is highly dependent on information and technology, it demonstrates the systems approach to management. Each business unit is responsible for handling a particular product or product line. The work procedures are highly specialized, systematic and organised. Their system activities are more closely related to the adjacent work processes and less with the external environment. The management realizes the inter-relatedness of planning, organising and controlling of activities and work processes in the organization and the numerous sub-systems. Due to highly organised work structures and strong dependence on technology, knowledge and expertise, the systems approach of the management has gained prominence in Volkswagen (Koontz, Heinz Weihrich, 2006, p.17). Impacts that different leadership styles may have on motivation in organisations in periods of change Although the autocratic style of leadership ensures smooth flow of work activities and ensures maximum results from employees it might not be appropriate during conditions of change in the organization. This is because of the tendency of this particular leadership style to overrule the suggestions and views of employees and implement strategies best suited for the prevailing conditions but which might not always be favourable for the employees. Thus in the case of Catalyst Housing Ltd, although the autocratic style of leadership would benefit the regular work activities of the organization, it could result in fall in motivation level of employees during times of change. The changes implemented might not be appreciated by employees and under this leadership style they would not have adequate chance of voicing their opinion or grievances about the same. On the other hand, the case of Volkswagen having participative or democratic style of leadership would be more suitable for the periods of change in the organization. In this case change management strategies would deliberately consider the views and suggestions of employees on how could the change process be implemented or improved. Attaining the participation and commitment of employees through the change process would be beneficial for motivating them during the change processes. Motivation level of employees is expected to get a boost under the participative style of leadership during periods of change. Comparison of the application of different motivational theories within the workplace Motivation has been defined as the process which initiates, maintains and guides goal-oriented behaviours in individuals. It is cause for individual’s acts and behaviours for attaining a particular goal or objective. Two of the motivational theories can be used for explaining real life experiences. The theories chosen for the purpose are Maslow’s hierarchy and Herzberg’s two factor theory. Maslow's hierarchic theory is represented in the form of a pyramid, where the lower order needs the fundamental needs of humans and the upper levels represents the growth and being needs, followed by the ultimate need for self-actualization. During one of the project assignments we were provided with stipends which were equal for all. However, it was seen that some were extremely happy and satisfied with the stipend while some were not. It was noted that those who belonged to economically inferior background and were in urgent need for money were extremely satisfied and motivated by the amount of money while those who belonged to economically stronger background were not much happy with the same. This means that their lower order needs such needs for survival and security were already and they seek to satisfy their higher order needs such as self esteem and self actualization. Figure 3: Maslow's Hierarchy of needs theory (Source: Milliken & Honeycutt, 2004, p.73) According to the theory, the higher needs in the hierarchy become evident only after all the needs that are lower down in the pyramid are met. The Herzberg’s two factor theory can be explained through another real life experience. Herzberg’s two factor theory provides a set of factors that causes job satisfaction at the workplace and a separate set of factors which causes job dissatisfaction at the workplace. Hygiene factors are those which do not give satisfaction from their presence but results in dissatisfaction in their absence such as salary, job security, fringe benefits, etc. Motivators are directly related with motivating employees in their presence such as job responsibilities, challenging works, recognition etc. When we were allocated a class assignment in which we were supposed to work in groups and teams and each one of us were allocated particular roles and responsibilities for the work. It was seen that such aspects as the work conditions, incentives etc did not motivate us much for the tasks as much as such aspects as the responsibilities and challenges in the role. It was particularly noticed that those whose roles were challenging and provided them with greater recognition were more motivated and thus performed much better than those without these facilities. Although the stipend provided for all were equal and attractive, it did not act as a motivating factor unlike the challenging responsibilities and recognition that the work provided. Figure 4: Comparison between Herzberg’s two factor theory and Maslow's need hierarchy (Source: NEIU, n.d.) It is seen that the lower order needs of Maslow’s need hierarchy can be compared with the hygiene factors represented in Herzberg’s two factor theory. Some of the lower order needs such as physiological needs, safety and security needs and social needs are similar as the hygiene factors such as work conditions, fringe benefits etc. Evaluation of the usefulness of a motivation theory for managers Motivational theories are particularly useful for the managers because they provide the basis for understanding people’s perceptions, motivation, attitudes and behaviours for attaining organizational and management effectiveness. It is crucial for them to understand the various theories in order to apply them in particular organizational settings in order to get the best performance of people. Managers constantly need to gain knowledge about the behaviours of people in different conditions and the way they are expected to behave. The various environmental variables which are likely to affect human behaviour are also needed by managers which is possible through the study of various organizational theories. However, it must also be noted the work situations might not be always compatible with the management theories and might demand a different course of action from the managers. In such cases questions might arise regarding the suitability of management theories in organizational settings (Pride, Hughes & Kapoor, 2010, p.271). Explanation of the nature of groups and group behaviour within organisations The group structure in Catalyst Housing Ltd is formal and nature and can be represented as command groups. Under this the tasks are not very defined and all members report to one common supervisor. There is existence of functional relationship between these groups. On the other hand the group structure in Volkswagen is also highly formal are created to perform specific and particular task activities. The tasks are technical and specialised and require high expertise. Both group members and leaders need to be accustomed to the task activities in order to perform them successfully (Robbins-a, 2010, p.125). Intergroup relations in the case of Volkswagen are more prominent and apparent as compared to that existing in the case of Catalyst Housing Ltd. There is greater interdependence of group activities in Volkswagen in comparison to Catalyst Housing Ltd. Factors that promote or inhibit the development of effective teamwork in organisations Factors which promote the development of effective teamwork are clear definition of work activities and job roles and responsibilities, existing of effective training programs, effective leadership etc. It is important individual roles are defined so as to avoid any kind of confusion and clashes between members. Moreover, teamwork is considered to be a very complex social process which cannot be expected to develop properly without proper training and development activities. The role of effective leadership is particularly important in this context. Effective leadership is required for removing barriers from the work activities of teams and removing difficulties that might be confronted by the teams also. Any communication barriers must be removed. Hierarchy, job roles and responsibilities must be clearly defined for effective team activities. Very complex work systems are seen to inhibit teamwork and activities. In such cases it is difficult to align workflow with the organizational objectives or even define the role of team members properly. This consequently results in clashes and conflicts among them and damages or shakes the basic foundation of the group. The need for advanced communication systems can be effective in such cases for removing communication hurdles so as to ensure that there is collaboration, integration and coordination of group activities and teamwork (Jones, 2004, p.17). Evaluation of the impact of technology on team functioning within a given organisation The importance of technology in team functioning cannot be ignored. Technology plays an important role in effectiveness of team work. However, the role of technology in Volkswagen in enhancing teamwork is much more prominent and advanced as compared to that in Catalyst Housing ltd. This is primarily because of the systematic and organized nature of the automotive company which is primarily based on the application and successful implementation of technology. Technology plays an important role in removing communication barriers from the system which is the prime factor for effectiveness of teamwork. Several tools have come up with the advent of technology for enabling and enhancing communication between team members more effectively. Moreover technology also plays the role of organizing work structures efficiently and orderly such that every role is defined clearly and there is not confusion or struggle in understanding each individual’s role. Moreover it also removes chances communication clashes, conflicts and disagreement among team members. Finally technology has been the major role player in globalization and has dissolved national cultures to a considerable extent. It has deeply interfered into human interactions and has effectively removed the impersonal and spatial aspects of communication (Khosrowpour, 2000, p.583). Reference Catalyst Housing. (2012). Board and leadership team. [Online]. Available at: http://www.chg.org.uk/about-us/board-and-management-team. [Accessed on February 02, 2012]. Crowther, D. & Green, M. (2004). Organisational Theory. CIPD Publishing. Furnham, A. (2005). The psychology of behaviour at work: the individual in the organisation. Psychology Press. Jones, R. (2004). 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