Assessing Specific Organizational Behaviour Concepts - Assignment Example

Organizational Behaviour Table of Contents Introduction 3 Task 1 Scenario 3 Question 1.2 4-5 Question 1.3 6-7 Task 2 Scenario 7 Question 2.1 7-8 Task 3 Scenario 9 Question 3.1 9-10 Question 3.2 11 Task 4 12 Question 4.1 12 Question 4.2 12-13 Question 4.3 14 Task 5 15 Question 5.1, 15 Question 5.2 15-16 Question 5.3 17 Bibliography 18 INTRODUCTION Organizational Behaviour (OB) is comprehensive discipline which aims to discuss the independent variables of individuals, groups and organization for the purposes of improving and enhancing the effectiveness of an organization. The objective of this assignment is to apply the learning outcomes of the module to business situations and case studies presented below. The assignment assesses specific Organizational Behaviour (OB) concepts such as organizational structure and culture, contemporary and traditional approaches to leadership, motivation theories and the foundations of effective teamwork. Furthermore, the aforementioned concepts are applied with regards to modern businesses such as Siemens AG, Nucor and Tesco. Scenario You work for Tutor2u as a Research Assistant, you have been asked to collect data on two businesses in order that a case study can be put together for students to use for future HND Business assignments. Task 1 Question1.1 There are 4 different types of organisational structure that are generally used in business, flat, matrix, divisional and functional, complete the table below by identifying the correct structure and describing its characteristics, then consider the types of businesses or examples of actual businesses that would have this structure. Diagram of structure Type of structure and description Types of business that use this structure Functional Structure – an organizational structure that is categorized by teaming individuals according to their area of expertise or specialization such as marketing, finance and R&D (Gusev and Mitrevski, 2011). Businesses that cater to a small or medium sized market rather than a mass market are most likely to use a functional structure. Thereby, reaping benefits out of the specialized knowledge, talents and skills of organizational members who play various functions within the organization. Moreover, large manufacturing organizations producing homogenous or highly similar products also employ a Functional structure. Divisional Structure – an organizational structure where departments are established in relation with a product, service or the market for a product (Bartol and Martin, 2005). Multinational organizations that have several product lines are most likely to use a divisional structure in order to ensure that each product line is handled exclusively by concerned managers rather than by one manager who controls each product line or market. Examples include Unilever, P&G and Siemens. Flat Structure – Unlike a functional or divisional structure a flat structure does not feature a high degree of specialization and is categorized with possessing a short chain of command, with fewer managerial levels and decentralized decision-making (Gitman and McDaniel, 2008). Colleges and Universities and other educational institutions are most likely to use this structure as the relationship between the principle or dean and the faculty is not distanced by the existence of several levels of hierarchy (Gitman and McDaniel, 2008). More and more companies however are now focusing on developing a leaner and flatter structure, a real world example of which is Steelmaker Nucor (Robbins, 2001; Glader, 2006). Question 1.2 Based on question 1.1, identify 2 businesses and compare and contrast their organisational structures and culture. Siemens AG is a multinational organization providing engineering solutions to more than 190 countries worldwide. Siemens AG has divided its operations and presence in various industries into what is known as ‘sectors’ or products of the organization. Therefore, the global network of Siemens AG is managed through a Divisional structure whereby a Managing Board and Supervisory board governs sectors that are run by their respective CEOs. For each of the four sectors of Siemens AG which include Energy, Healthcare, Industry and Infrastructure & Cities with functional specialists working exclusively for each of the four sectors (Siemens AG, 2013a). On the other hand, Steelmaker Nucor focuses on establishing a leaner and flatter organizational culture. According to Glader (2006) the U.S based steel producer has traditionally had only three levels of management, the inexistence of complex levels of hierarchy has enabled the plant managers at Nucor to communicate any issues, problems and suggestions directly to the organization’s CEO without going through several layers of management. On the other hand, it should also be noted that Siemens AG’s Divisional structure can be attributed to its global operations comprising of 360,000 employees across several continents (Siemens AG, 2013b) while, Nucor famously employees 66 staff members in its corporate headquarters (Glader, 2006). Robbins (2001) notes that an organization’s culture has the ability to distinguish one organization from the other because it is in fact a mechanism that influences the perceptions of an organization’s members and how they interpret their environment. At Siemens AG, the organizational culture focuses people orientation (Siemens AG, 2013b) and allows for the progress of employees who belong to diverse backgrounds by removing any obstacles or hindrances to progress, innovation and risk-taking. Therefore, the organizational culture at Siemens AG is open, such that communication, discussion, employee engagement and employee participation is appreciated and welcomed by the management. As organizational culture is critical to any company’s success and progress, Nucor inspires its employees to adopt a culture of innovation and risk-taking by specifically focusing on team orientation to openly share ideas and opinions that help stimulate innovation and idea generation to successfully aid the optimization of operations at the corporation (Nucor, 2013). Question 1.3 Pick one organisation you used for question 1.2, and explain how the organisation’s structure and culture can impact on the performance of that business Siemens AG’s people oriented and open culture also encourages employees to generate ideas by stimulating innovation and risk-taking. The organization’s high performance norms postulate that the management expects each and every employee to deliver a given benchmark standard of performance. The main principle behind a people oriented culture is to encourage open discussion that is not hampered by any barriers to communication. According to Ogbonna and Harris (2001) the organizational culture is critical to establishing a relationship between the leadership style of the management and the performance of employees, this concept also holds applicability in the case of Siemens AG, for example, a people oriented culture proposes that the management actively engages in initiatives to motivate its employees by using participative management techniques to incorporate the suggestions of staff members in decision making. Moreover, developing an innovative and risk-taking culture means that employees are encouraged to challenge themselves without the fear of reprisal from the management. Innovation is also stimulated by organizing trainings and workshops for employees which is a widely employed practice at Siemens AG, therefore, personal growth and development lies as a core value of the organization which aids in the enhancement of employee performance as a result of a strong organizational culture. Task 2 Scenario Founded in 1845, Siddall Colour has over 160 years experience in the print industry offering an extensive range of printing services. Originally established by John Siddall as John Siddall (Printers) Ltd, and have now become Siddall Colour. This is a small family-run business with 20 employees, who has retained its traditional beliefs while moving with the times to remain extremely competitive in offering an unbeatable service. John Siddall (family descendant) has managed the business from the last 30 years and has total control of all the key decisions made within the business. Question 2.1. As a consultant brought into Siddall Colour to look at change management, you are requested to prepare a letter to Mr Siddall illustrating the effect the organisations culture may have on the behaviour of his employees. Perhaps the most important implication of organizational culture is its impact on the development of a company’s organizational climate. Unlike the general perception regarding the concept of organizational culture, the phenomenon is not limited to its application to the structural level. In fact, organizational culture is more applicable and influential in the light of assessing and evaluating its consequence on employee behavior and attitudes. Several researchers have concluded that culture creates climate, which in turn is the system of shared meanings, values and perceptions that employees have about their organization. Henceforth, organizational culture lies at the very core of understanding the positivity and team spirit within an organization. A strong organizational culture that is shared by each and every member of the business suggests that each individual’s perceptions have arrived at equilibrium or a state of agreement, once this scenario develops individual attitudes and behaviors can in turn assist in improving the job satisfaction level of employees while also increasing their productivity and deterring negative aspects such as workplace deviance and turnover. The profound effect of organizational culture on employee behavior is also backed by several researches and empirical studies. Lund (2003) concluded that certain organizational cultures exhibit a positive relationship with job satisfaction, while another research found that the culture of an organization has the ability to direct the behavior of employees within a business as well as their habits. For example, by incorporating diversity within the organization it is highly likely that staff members will start becoming more open to diverse backgrounds and will readily collaborate with colleagues regardless of their age, gender or religion amongst other attributes. Certainly the significance of organizational culture in shaping employee behavior cannot be ignored and should be considered by Siddall Color when initiating change management. Task 3 You have been brought into the local TESCO METRO store in Liverpool Street Station to observe and report back to head office on the management style within the store. Michael is the manager of a medium-sized Tesco store. He directly manages a team of around 10 departmental managers, who between them are responsible for almost 150 people. Michaels preferred leadership style is to take a democratic approach. He consults widely as he feels that staff responds better to this approach. For example, when planning a major stock reduction programme, he encourages his managers to put forward ideas and develop plans. Question 3.1 How effective is the democratic style of leadership in a situation such as Tesco? Would this also be the case if Michael were working in a Local Authority. According to Bartol and Martin (2005) there are three distinctive leadership styles that are democratic, autocratic and laissez-faire. Michael’s leadership style being democratic is governed by employee involvement in decision-making while, providing employees a certain extent of autonomy in deciding various aspects related to their jobs such as how they conduct or perform their tasks. The most important element of a democratic leadership style however, is that democratic leaders believe in providing staff with feedback that could be positive or a source of constructive criticism as a method of mentoring and guiding employees. By incorporating the Job Characteristics Model in this scenario it could be assessed that evaluated that the job design of departmental managers that are being managed by Michael poses high skill variety as the managers have to lead 150 employees who belong to diverse backgrounds. Hence, it is appropriate for Michael to adopt a democratic leadership style when managing departmental managers because it is important to take their input and feedback in the existing scenario as the managers are closer to the staff members at TESCO who directly serve the store’s customers. By engaging departmental managers in decision-making Michael can have a better awareness of the ongoing and prevailing situation in the store that could assist in optimizing the performance of the business. It should also be noted that the adoption of various leadership styles is a contingency approach that is greatly dependent upon situational factors. Therefore, if Michael were working in a Local Authority it would have been appropriate to adopt a more autocratic approach to leadership to ensure that staff members are under the control of the management and meeting targets and performance expectations that are set by the business. Furthermore, the adoption of a democratic leadership style when managing staff members at a Local Authority would have caused employees to deliver below par performance because of a lack of regulation and control. Question 3.1 How effective is the Situational management approach compared to a more Bureaucratic approach within Tesco? How does The Bureaucratic approach affect the real life running of Local Authority compared to the Taylors Scientific Management approach? The Bureaucratic approach to management rests on the tenet of operating an organization on the basis of rationality (Bartol and Martin, 2005). This notion postulates that managers should focus on the fixed characteristics of an ideal concept of Bureaucracy which include aspects such as specialization, formally established rules, hierarchal considerations and meritocracy. Therefore, a Bureaucratic approach completely discredits the contemporary notion of leading by the means of acknowledging and recognizing situational factors and contingency variables. In the case of Tesco , the first and foremost implication to highlight is the nature of the business itself as Tesco operates in an industry where customer-centeredness and customer orientation are the key to profits and the achievement of organizational goals such as profit maximization. Henceforth, the effectiveness of Situational approaches in the case of Tesco surpasses the suitability of a Bureaucratic approach, as a dynamic business environment revolving around the creation of value-based relationships between the customer and the business cannot function successfully under rigid and inflexible regulations. The formalization of Local Authorities however, is greatly dependent upon the implementation of Bureaucratic management to ensure that activities are regulated through the implementation of procedures and rules, on the contrary Scientific management proposes four principles to tackle the issue of soldiering in organizations (Bartol and Martin, 2005) that is essentially different to the aspects related to Bureaucratic management when examined in the context of Local Authorities. Question 3.2 Evaluate which would be the most appropriate approach to management for Tesco or a Local Authority. The management of service sector businesses and retailers is dissimilar to the operations of production-based businesses and manufacturers because the former requires a direct interaction between the customer and the business in order to build profitable relationships based on the exchange of value. In the light of the above argument the Situational management approach is most appropriate for Tesco as it takes account of the contingency variables and situational factors in managing employees, whose performance levels are expected to vary due to changes in the external environment. For example, managers would have to adopt a democratic leadership style when seeking ideas, opinions and suggestions from employees regarding ways through which to improve customer service or perhaps deal with increase in demand during peak seasons. While, some decisions at Tesco such as handling the delivery of shipment would demand that the manager adopt an autocratic approach to leadership because the task involves the incidence of a deadline. The setup of a Local Authority however would operate in the most effective manner under the principles of Bureaucratic management, partially because the existence of a well-established hierarchy means that each and every employee has to play their part in running the system of the organization and ultimately report to a higher authority (Bartol and Martin, 2005). Therefore, it can be concluded that such a system would work most effectively under a Bureaucratic management. Task 4 Tesco use a variation of ways to motivate their staff from Employee Rewards Programme, pay increases, target setting as well as good job conditions, opportunities to socialize and be part of a wider family. Due to their tall structure it allows for promotional opportunity. Question 4.1 Michael has stated (in Task 3) that he prefers a Democratic approach towards management, what impact might this have on the motivation of his staff if his Tesco branch budget was cut in half? A democratic approach towards management is based upon the principles of intrinsic motivation that comes from within the employee rather any extrinsic motivators such as monetary rewards or perks. This view postulates that Michael is employing the elements of Goal-setting theory of motivation and Management by Objectives by involving employees in decision-making and removing any hindrances in goal attainment by giving effective feedback to enhance employee morale and performance. Furthermore, another intrinsic motivator of Michael’s democratic approach to management proposes that democratic leaders involve their employees in decision-making by permitting them to take decisions regarding their tasks and work. According to the Job Characteristics Model, autonomy is integral to the achievement of a high Motivating Potential Score (Robbins, 2001). This means that as a democratic manager Michael allows his staff member to enjoy autonomy over their work that acts as a source of intrinsic motivation. Therefore, by employing a democratic approach to leadership Michael would still be able to inspire intrinsic motivation in his employees; however, extrinsic motivation of staff members would suffer negatively due to the reduction in monetary rewards and benefits. Question 4.2 Compare how Taylor’s Motivational theory and Maslow’s theory are applied within Tesco, and evaluate how useful Maslow’s theory is for managers today. Further research will be required. Taylor’s motivational theory postulates that the primary source of motivation for workers is pay, which is a very narrow and closed view of the complexities of employee motivation in organizations such as Tesco. Michael’s approach of adopting a democratic leadership style at Tesco has yielded positive results as staff members appear more willing to contribute to problem-solving and decision-making by putting forward ideas and plans for business development. Maslow’s theory of Hierarchy of Needs postulates that employee motivation comprises of five needs that are physiological needs such as food and water, safety and security needs, belongingness needs that include relationships with colleagues and supervisors, esteem needs and lastly the state of self-actualization that comes through innovation, growth, training and challenging work (Bartol and Martin, 2005; Robbins, 2001). Applying Maslow’s theory to Tesco, it should be noted that the management should first focus on fulfilling lower order needs of employees that are needs that can be realized through money. Then the management would have to address higher order needs of employees that are consistent with delivering opportunities to enhance intrinsic motivation by providing opportunities for training, job redesign through job enrichment, autonomy, feedback and reward systems that go beyond monetary benefits but focus on appreciation, praise, status and recognition of effort. According to Maslow, each lower order need of the employees must be fulfilled before an employer can move on the next one; this concept also negates the notion that employees can be happy and satisfied with their jobs solely on the basis of intrinsic motivators when basic needs are not being fulfilled. This understanding is similar to the notion presented by Herzeberg in his Two-Factor Theory in which he stated that Hygiene factors such as pay, supervisor relationships and perks can only remove employee dissatisfaction but cannot motivate the employees on their own (Bartol and Martin, 2005). Robbins (2001) notes that while the applicability of Maslow’s theory has made it a theory that is widely favored by managers, studies conducted on the Hierarchy of Needs have declared in unempirical as evidence does not prove a similar pattern and design of needs as proposed by Maslow. Therefore, researchers have shown support for similar but more refined theories such as Alderfer’s ERG (Existence, Relatedness and Growth) in their application to the workplace environment. Question 4.3 What motivational theories might be of most use for Michael in the situation described in Question 4.1 The two most appropriate theories in the situation are Alderfer’s ERG theory and Herzeberg’s Two Factor theory. While, Maslow’s Hierarchy of Needs has been accredited by managers in its application to the workplace environment, the fact that the theory has certain fundamental flaws cannot be ignored. This raises the need to apply a more practical and empirical theory to the context of Tesco. As manager Michael would have to concern himself with identifying whether the Existence, Relatedness and Growth needs of his employees are being fulfilled in order to assess their levels of motivation. From the perspective of Herzberg’s Two Factor theory, Michael would have to ensure that his staff member do not have complaints as far as the availability of Hygiene factors is concerned before moving on to integrate motivators within the business by employing a democratic approach to leadership. This theory proposes that as manager, Michael would have to acknowledge that a reduction in Tesco branch budget would adversely affect the motivation levels of employees and a greater degree of motivators would not assist in reviving the motivation levels. Therefore, Michael would have to strike a balance between the provision of hygiene factors and motivators thereby, improving the motivation levels of employees. Task 5 Question 5.1 Within Tesco, explain what formal groups and Informal groups are and how do individuals behave differently in them? Formal groups are integrated within the organizational structure of a business and are responsible for completing tasks that have been assigned to them specifically by the management (Robbins, 2001). An example of a formal group within Tesco could be that of a command group that reports directly to Michael as the manager. Due to the formal regulations governing a formal group, employee behaviour is most likely to be reserved and limited to the work itself, moreover, formal group members would prefer adjourning the group’s activities as soon as the set deadline for task completion arrives and the work is finished. Informal groups on the other hand are not established along formal lines within the organization but are a result employee interaction and social contact that has a significant impact on how individuals within an organization perceive their environment and communicate with each other (Robbins, 2001). An example of an informal group within Tesco could be that of a friendship group that is formed because employees within the store have similar values, attitudes or interests. Behaviour of individuals in informal groups is more likely to be free, friendly and social. Discussions within informal groups regarding work will also be more truthful and constructive as employees do not have the fear of reprisal in informal groups and are more likely to convey their true feelings regarding the procedures and processes in the workplace and about the management. Question 5.2 Fill in the below table with regards to Tesco: Factors that promote the development of effective teamwork Factors that inhibit the development of effective teamwork High degree of cohesiveness Lack of Cohesiveness Mutual Trust Members do not trust one another Common Goal Conflicting Goals Effective Communication and Discussion Barriers to effective communication Discuss how these factors may promote or inhibit the development of effective teamwork within Tesco. Effective teamwork rests on the pillars of four important factors that could promote or inhibit the development of effective teamwork within Tesco. The most fundamental group property is that of group cohesiveness that essentially distinguishes a group from a team, with the latter being high in cohesiveness. Cohesiveness refers to the extent or degree to which individuals are motivated to remain members of the team and work towards helping the team achieve its goals in a successful manner. High cohesiveness allows teams to enjoy great levels of productivity as concluded by research (Robbins, 2001) as team members become more willing of maintaining participation in the group by delivering optimum or expected performance, the incidence of cohesiveness therefore, also reduces instances of social loafing that could result from in large teams. The key to effective teamwork is a combination of variables such as effective communication that is not hindered by any barriers within the group such as power distance or status differences. Communication and discussion allows members to solve disputes and clear confusions that may hamper the achievement of goals and objectives. At Tesco, teams should be established with the criteria of meeting a common goal or objective rather than serving conflicting interests that inhibit team effectiveness. For example, a team that has been assigned to successfully conduct a marketing effort to raise sales of a product by a certain percentage should work cohesively in order to achieve the goal that they are expected to complete, as instances of members deviating from the set target would not only cause inhibition of teamwork but also be unfair to members who expended considerable effort in achieving the set objective. Question 5.3 In your opinion, how has the self-checkout till system affected the way in which a team functions? The self-checkout till system that has evolved over the years at retail stores has extensively replaced the traditional checkout systems that were administered by cashiers. Changes in technology therefore have contributed significantly towards how teams function today across organizations throughout the world. While the customer accessibility and convenience has increased because of the emergence of such solutions, team functions are now becoming increasingly important in other areas of business such as planning and decision-making. It is important to note here that the emergence of technology has mostly assisted team functioning rather than diminishing its utilities specifically by aiding effective communication through the medium of the internet and cell phones. Therefore, teams in the organizations of today are more focused towards tackling the complex nature of business decisions as technology such as the self-checkout till system has replaced traditional teams. Bibliography BARTOL, K. M., & MARTIN, D. C. (2005). Management: a Pacific rim focus. Australia, McGraw-Hill. GITMAN, L. J., & MCDANIEL, C. D. (2008). The future of business: The essentials. South-Western Pub. GUSEV, M., & MITREVSKI, P. (Eds.). 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