Organizational Structures: Organizations and Behavior - Assignment Example

Organizational Structures: Organizations and Behavior 1. Task 1 a. Organizational Structures and Cultures of Baresi Restaurant v. McDonalds The organizational structure of McDonalds is based on a Franchising system in which every Franchisee is left to make strategic decisions for his outlets (McDonalds 2015). The organizational structure is hierarchical; the CEO of each franchise has subordinates below him who help him, report to him and communicate constantly with him. In terms of culture, the company is characterized by certain values including quality, cleanliness and services (O’Neil et al 2011). These cultural values guide the widely dispersed employees of the company across the world. Employees are all committed to providing good customer services with courtesy and respect. McDonalisation has created shared values around the world in which people value McDonald’s quality coffee and services. The organizational structure of Baresi is similar to that of McDonalds in terms of hierarchy, but Baresi’s is extremely hierarchical. Top managers at McDonalds keep close contact with subordinates, but Baresi offers little input from middle managers. The organizational structure of McDonalds is also different from that of Baresi because it offers independence for employees to perform their tasks. It offers a structured mechanism for managing information needs of its simple tasks. On the other hand, Baresi is split on departmental basis in which employees perform tasks according to what managers tell them. The organizational cultures of the McDonalds are different because Baresi’s is bureaucratic and McDonald’s is collaborative with all employees operating within common values to achieve common goals. The culture of Baresi is guided by rules and procedures while the culture of McDonalds is guided by values and principles. Employees at McDonalds perform individualized simple tasks in an independent manner. Employees of Baresi have little independence. McDonald’s employees are also well motivated because they perform simple tasks, have a well balanced work-family life, and get holidays and recognition often. On the other hand, employees of Baresi are motivated with financial rewards which do not have significant impact. They are always stressed and unsociable. b. Organizational Structure and Culture, and their impact on business performance Organizational structure is concerned with the formal lines of authority and responsibility; it is about how things are done and structured to achieve set objectives (Hamde 2002). It determines how formal rewards, punishments and rights are exercised in an organization. Organizational culture is also about how the organization works. On the other hand, organizational culture is the set of customs and shared beliefs of people working together to achieve a common goal (Stacey 2002). Organizational culture determines the right people, events and information that are needed to make the right strategic and operational decisions in order to achieve organizational objectives. From the analysis of McDonalds and Baresi, it is clear that Baresi has a formal structure. It is mainly concerned with organizational structure rather than culture. Organizational structure affects business performance by providing rules and procedures that can be followed in order to achieve higher performance. Organizational structure is a means of controlling behavior in an organization in order to achieve given goals (Robbins et al 2003). It influences business performance because it is an information processing tool that enables organizations to synthesise information and arrive at the best decisions through formal mechanisms. In situation of high work complexity, organic structures are needed to process information effectively in order to improve business performance (Stacey 2002). In terms of organizational culture, control of employees’ behaviour is achieved through the sense of identity, commitment and social system stability among employees. Organizational culture is also information processing tool which enables employees to share information and develop a shared interpretation of information in order to make decisions easily and achieve higher levels of business performance. Culture is a consensual schema which helps employees to make similar interpretations and develop a common set of values and principles that will enable them to make decisions and perform business tasks appropriately despite living in different locations (O'Neill et al, 2001). That is why McDonalds provides standardized products in all its franchises across the world. c. Factors which Influence Individual Behaviour at Work There are various factors that influence the behavior of individuals at the workplace. They include: skills and abilities, demographic factors, personalities, attitudes and perceptions (Mullin 2009). Baresi has many employees who come from different backgrounds. Each one of them has unique skills and abilities, demographic features, attitudes, perceptions and personalities. In terms of demographic factors that influence individual behavior at work include age, gender, race, education and social background (Robbins et al 2003). Most employees of are aged between 25 and 50 years. Therefore, they have attained the legal age to work. They are also mature enough to make rational decisions. This age bracket also represents a strong and able working age for improved work performance. The employees also come from different parts of the world, including Africa, Southern Europe, South Asia and Eastern Europe. This indicates that they are from different social backgrounds. Therefore, their cultural beliefs are different; their behaviors and decision making approaches are influenced by these different beliefs. The employees also speak forty different languages. This affects the coordination of activities and communication of restaurant staff. In terms of skills and abilities, waiting and kitchen staff of Baresi have the ability to do the job but they do not have academic and vocational qualifications. This means that the employees lack appropriate skills to perform their work as waiters and kitchen staff. This may result in lack of innovative ways of preparing quality food and providing effective services for enhanced differentiation of the company among its competitors. The employees of Baresi also have a negative attitude towards the management and their work because they work hard only to receive little rewards while the managers receive large bonuses. Attitude is the tendency to respond favourably or unfavourably towards a given situation (Mullin 2009). Employees of Baresi respond unfavourably to their situation at the workplace. This affects the behaviour of the employees at the workplace by being frustrated and performing their services poorly and with little motivation. 2. Task 2 a. Leadership Styles The major leadership styles of management include: Autocratic Leadership, Bureaucratic Leadership, Democratic Leadership and Laissez-Faire Leadership (Kippenberger 2002). These different leadership styles have unique characteristics that lead to different levels of effectiveness. Bureaucratic leadership involves following rules and procedures rigorously (Cole 2004). Employees are required to follow procedures precisely, failure to which they may face severe consequences. This leadership style is effective for a very complex work environment requiring a lot of special skills and adequate training. It also applies to risky work environment. Experience and expertise of leaders does not matter, as long as they follow rules and procedures. This is a rigid form of leadership and the company is not able to respond to changing customer needs and environment factors. Therefore, this leadership style is not effective for hospitality industry which is characterized by high competition and changing consumer needs. Autocratic style involves leaders making decisions without considering the contributions of team members. This is the kind of leadership that is practiced in Baresi. It is effective only when decisions are needed to be made quickly and there is no need for input from employees. This style is generally not effective because it demoralizes employees and may lead to high levels of absenteeism and employee turnover. Democratic leadership involves the inclusion of other people in decision making, but the final decision maker is the leader (Cole 2004). This style encourages creativity and engagement of people in decisions and projects. It may be ineffective when there is need to make quick decisions. However, it may be effective because it leads to high job satisfaction among employees and results in high productivity. Lastly, Laissez-faire involves giving employees a lot of freedom to perform their work independently (Cole 2004). Leaders give the resources and advice, but they do not get involved in work performance. This gives employees job satisfaction, but it may be ineffective if team members do not have sufficient knowledge and skills to perform their jobs, or if they are not able to manage their time well. The best choice for Baresi is democratic leadership. This will ensure that decisions are made by qualified leaders with full responsibility while at the same time reflecting the needs of employees. Kitchen and waiting staff get higher job satisfaction and perform better if they know that their contributions has been considered in the company’s decision making. b. How organisational theory underpins the practice of management at Baresi restaurants. There are various theories that underpin the practice of management at Baresi Restaurants. First, the classical and scientific theories of management suggested that organizations should have a clear division of labour and formulisation, hierarchy in terms of authority, the best way of management and standardisation (Child 1977). These theories were suggested by Smith (1776), Marx (1867), Fayol (1949) and Weber (1924). Fayol suggested that the most important roles of management are coordination, commanding, controlling, planning and organising. He was concerned with the most efficient way of management, suggesting that the management should secure the prosperity of the employer and his employees. The scientific theory was suggested by Fayol who said that managers should analyse work by selecting, developing and monitoring workers for each job. These classical and scientific theories of management underpin management practice and Baresi because the company’s management is in form of hierarchy and formal control as suggested by the classical theorists. The scientific management theory is also seen because Baresi provides the best way of management to benefit the employer through higher profits and employees through financial rewards. There is also a system and contingency theory, also known as modernism theory. It was proposed by theorists such as Parsons (1951), Goulder (1954), March and Simon (1958). They viewed the organisation as a complex system with interrelated parts, focusing on an input-output model. In practice, Baresi Restaurants are structured into several functional parts (known as departments) which make up the complex system of the organisation. This theory also argues that there is no best way to achieve a goal, and organisations need to adapt to changing situations in order to achieve its goals. Indeed, the Italian food industry is saturated with competitors, and situations are changing. However, Baresi does not respond to these changing situations. Employees are not given the opportunity to be involved in decision making in order to revolutionize services and offerings to respond to the changing situations. This leads employees to be disillusioned and not being able to achieve the organisation’s goals. Postmodern theories see management as a relationship in which a group is oppressed by others. They see an organisation as a source of conflict, contradictions and disorder. This is depicted in Baresi restaurant where employees and the management are in constant conflict, with disagreements across different departments. c. Approaches to Management There are various approaches to management that organisations may consider including classical approaches, human relations approach, systems approach and contingency approach. Classical approaches emphasize formal structure, purpose and hierarchy of management (Kippenberger 2002). Some of the classical approaches include bureaucratic approach, administrative approach and scientific approach. Bureaucratic approach views the organisation as a closed system with authority structures and description (Child 1977). It also emphasizes on economic efficiency, education, training and development of employees. The administrative approach entails organising, planning, coordinating, controlling and commanding. Human relations approach involves attention to social factors, leadership, groups, behaviour of people and the informal organisation (Child 1977). The systems theory integrates the classical and human relations approaches. It focuses on the socio-technical system of the organisation as well as its interaction with the external environment. Lastly, the contingency approach suggests that there is no best design for the organisation. The form of structure and success of the company depends on situational variables. McDonald’s uses the human relations approach while Baresi Restaurants use the bureaucratic approach. McDonald’s relies on the behaviour and shared values of its employees to achieve its goals (O’Neil et al 2011). It encourages teamwork and encourages its employees to provide quality products and effective services to customers. How employees relate with each other and with customers in order to strengthen relationships and avoid conflicts and disconnections at the workplace. On the other hand, Baresi uses a bureaucratic approach which involves a formal hierarchical structure of leadership. Official duties are provided to different departments and the top management makes decisions independently and imposes them on the lower level managers. Baresi’s organisational structure is a closed system with rules and procedures. The top managers develop strict objectives for staff in each department without the contribution of staff or consideration to any situational factor. This demonstrates a bureaucratic approach to management. 3. Task 3 a. Impact of leadership styles on motivation Transformational style of leadership challenges traditional approaches of leadership and allows flexibility in the organisation in order to respond appropriately to changes in the environment (Scott-Halsell et al 2008). As Baresi attempts to change its strategic direction, it needs to change its traditional bureaucratic organisational structure and the autocratic leadership by allowing employees to give their views in terms of service and offering for customers. This will enable them to respond to the changing needs of customers and gain competitive advantage. Through this style of leadership, employees are motivated through independence, recognition, and other non-financial rewards. It offers employees encouragements and job satisfaction. Leaders who practice this style pass enthusiasm to employees and allow them to express their ideas in order to feel good about their contributions and be motivated to perform better. The autocratic style of leadership as practiced in Baresi entails decision making from the top with little contribution from the lower level managers. Motivation under this system is enhanced through threats and punishment. Employees are not given the opportunity to contribute their ideas or participate in decision making. This demotivates employees and results in lower job satisfaction. Employees are not motivated to offer customers better service and product quality (Kippenberger 2002). This style does not also encourage teamwork; hence it lowers the morale and motivational levels of employees. Bureaucratic style of leadership encourages self-actualisation, collective responsibility and sense of achievement as motivational factors and means of attaining job satisfaction (Kippenberger 2002). The bureaucratic style of Baresi Restaurants sets rules and procedures to be followed by employees. Each employee is given objectives to achieve; hence encouraging self-actualisation and motivating employees to perform better. Democratic or participative style of leadership allows employees to participate in decision making. This improves job satisfaction and employees’ esteem. According to the Herzberg’s two-factor theory of motivation, there are two factors that encourage motivation – hygiene factors and motivator factors. Motivators such as responsibility and recognition give employees positive job satisfaction. Baresi’s change of strategic direction needs to improve decision making to include a participative approach that encourages responsibility of employees. Giving employees recognition and responsibility during decision making gives them positive job satisfaction and motivation. Lastly, Laissez faire enhances job flexibility and autonomy which improve employees’ job satisfaction and motivate them to perform better (Scott-Halsell et al 2008). Baresi needs to give employees independence in terms of job performance so that they can feel some sense of responsibility and freedom, and become motivated to perform better at the workplace. b. Motivation theories Abraham Marslow’s hierarchy of needs theory suggests that humans need to satisfy psychological and physiological deficiencies including physiological (basic needs), safety, belonging, esteem and self-actualisation (Cole 2004). These needs should be met in that hierarchical order. High level needs include self-actualisation and esteem. Responsibility of an important job, promotion, praise and recognition leads to high self-esteem (Scott-Halsell et al 2008). Self-actualisation can be enhanced through job flexibility, participation in decision making and autonomy. Organisations need to provide employees with an opportunity to meet these needs in order to be motivated. These factors affect the attitude and work performance of employees. Baresi meets the basic needs of employees through financial rewards, but the employees fail to attain self-actualisation and self-esteem because they are not recognised and they are not given responsibility to perform certain work. Fig 1: Hierarchy of Needs (Cole 2004). The second theory is the two-factor theory suggested by Herzberg. The theory suggests that the factors causing job satisfaction are categorized as either hygiene factors or motivators. Motivators include recognition, challenging work and responsibility. They arise from intrinsic conditions of the job and often result in positive job satisfaction (Cole 2004). On the other hand, hygiene factors include factors that do not give positive satisfaction but eliminate dissatisfaction including job security, salary, work conditions and fringe benefits. Baresi offers these motivating factors through financial rewards and job security. c. Usefulness of Herzberg’s two-factor theory for managers The two-factor theory is useful for managers in various ways. First, the theory enables managers to develop effective business promotion. This happens when managers develop responsibility, achievement and recognition of employees. These motivators increase employees’ morale and enable them to work harder towards the achievement of organisational goals. For example, one of the employees of Baresi claims that he was demoralised when he was not given the opportunity to offer certain superior services to customers. The Herzberg’s motivators will correct this deficiency and encourage improved customer offering, satisfaction and business image Motivating employees through motivation and increased autonomy and responsibility also allows managers to develop stronger positive relationship with employees. Managers are able to understand employees and meet their needs in order to improve their job satisfaction and their business performance (McJenna et al 2000). Baresi Restaurants operate in bureaucratic environment where the independence and participation of employees in decision making is limited. This situation causes a distance between the manager and his subordinates; hence encouraging a negative working relationship between the managers and employees. Herzberg’s hygiene factors also encourage an enjoyable working environment for employees, leading to trust and respect between the managers and employees (Kovač and Jesenko 2010). 4. Task 4 a. Nature of Groups and Group Behaviour Within Organisations In hospitality industry, groups can be categorised into formal and informal groups. Formal groups are set up by the organisation’s management as part of the organisational structure. They are based on the purpose and roles of each group, and each group focuses on achieving a common goal (Brooks 2007). The groups use policies and procedures set by the management in order to achieve the mission of the organisation. On the other hand, informal groups arise due to common interests or shared values and beliefs. The group members are loyal to each other and their decisions are based on what they feel. Groups in hospitality industries are composed of members from different cultural and demographic backgrounds (Miller et al 2007). Cultural awareness is therefore a necessary tool for members of the group. This diversity in groups brings in ideas that contribute to better decisions and higher job performance. Behaviour of effective groups in a hospitality industry can also be characterised by communication and coordination of activities within the group (Keating and Harrington 2003). A group of kitchen and waiting staff can work together in shift groups to ensure that food is ready at the right time and served to customers as fast as possible in order to avoid time wasting, minimise long queues and improve the quality of service. Each member of the group should be assigned a specific task and leaders should monitor and coordinate the task so that they are performed according to team expectations (Brooks 200). Team members also provide ideas and suggestions about work performance based on their experience, customer feedback and changing needs of customers. b. Factors Hindering Development of Effective Teamwork Baresi Restaurants face several factors that have hindered effective teamwork. Those factors underpin the management practice of the company. Dispute, disagreements and loathing may hinder the development of effective teamwork by preventing cohesive team work, team spirit and understanding (West 2012). The disagreements and conflicts within teams are usually caused by the diversity of team members in terms of demographics, values, beliefs, interests and attitudes. Being an international business, Baseri has diverse employees who encounter problems in terms of developing effective teamwork. Cultural norms and miscommunication in the company have increased conflicts among team members. Poor leadership and lack of well-defined roles and responsibilities among team members also hinder the development of effective teamwork. Lack of distinct balance and poorly defined members’ roles in Baresi also causes disharmony and conflicts among members. Poor leadership may lead to unclear or poor goals, vision and mission of the teams (Keating and Harrington 2003). Leaders of teams need to provide a clear direction for team members by setting goals and providing them with a vision and mission that will guide the direction of their team performance. Poor communication and inadequate support by the leaders also causes hindrance to effective teamwork. Baseri faces these challenges. The company’s employees suggest that they lack clear goals, support, trust and commitment. c. Impact of Technology on Team Functioning Technology is an important tool for enhancing superior team functioning. Given the dynamic nature of teams, technological development is necessary so that the team can adapt to the changing team environment and consumer needs (Hamde 2002). Technology enables team members to communicate effectively in order to improve their team functioning. For the case of Baseri Restaurants, technology can be used as a means of communication between different members of team. For example, the kitchen staff, waiters and cashiers may work as a team within one shift. Technology may be used to enable members of the shift from different departments to communicate effectively. For instance, a single computing system can be used so that the waiters can send the quantity and value of food requested by a customer through the computer to the kitchen staff so that they do not have to walk to and from the kitchen. This technology will reduce the time spent walking up and down. It also reduces the number of waiters needed to do the job; hence making coordination and team functioning more effective and less costly. It also helps to reduce long queues and improve customer satisfaction. References list Brooks, Ian. Organisational Behaviour: Individuals, Groups and Organisation. Harlow: Financial Times Prentice Hall, 2006. Print. Child, J. Organizations: A guide to problems and practice. New York: Harper & Row, 1977. Print. Cole, G.A. 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Harlow, England: Prentice Hall/Financial Times, 2003. Print. West, Michael A. Effective Teamwork: Practical Lessons from Organizational Research. Chichester, West Sussex: BPS Blackwell, 2012. Print. Read More