Organizational Structures and Design

This assignment delves into the concept of organizational structure, exploring different types such as functional, divisional, matrix, and network structures. It examines the advantages and disadvantages of each structure and discusses how organizational design influences business management effectiveness.

ORGANIZATIONAL
BEHAVIOR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Comparison among different organizational structure and organizational culture..........1
1.2 Impact of organization's structure and culture relationship on the business....................2
1.3 Factors influencing employees behavior at work.............................................................3
TASK 2............................................................................................................................................4
2.1 Effectiveness of different leadership styles in different organizations............................4
2.2 Importance of organizational theory in the management practice of a business..............5
2.3 Different management styles used for organizations.......................................................5
TASK 3............................................................................................................................................6
3.1 Impact of different leadership styles on motivation of employees in an organization.....6
3.2 Different motivational theories within the workplace......................................................7
3.3 Importance of motivation theory for a manager...............................................................8
TASK 4............................................................................................................................................8
4.1 Nature of group and group behavior within organization................................................8
4.2 Factors affecting teamwork in an organization................................................................9
4.3 Impact of technology on functioning of team..................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizations are social system possessing their own structure and culture. There are
many factors affecting and governing the working of these firms. The concept of organizational
behavior studies the attitudes and actions of individuals or groups in context to the enterprise. It
covers three determinants of behavior in a corporation that are individuals, groups and structure.
The theories related to leadership, motivation, communication, change process, job design and
work stress are covered under this concept. The present study reveals the significance of
relationship between organizational structure and culture. Through a case study, it further
discusses various motivational and leadership theories which helps in making a new business
entity successful. The report evaluates the impact of effective teamwork in developing an
organization. It covers required aspects to be adopted by a new firm to ensure proper growth and
development of individuals and the company.
TASK 1
1.1 Comparison among different organizational structure and organizational culture
 Organizational structure: It represents that how business activities like supervision,
coordination and allocation are directed towards achievement of company's goals
(Gelfand, Erez and Aycan, 2007). There are different types of organizational structure
which should be considered before planning a new business:
Basis of
comparison
Line organizational
structure
Functional
organizational
structure
Matrix organizational
structure
Definition There is a direct, vertical
relationship between
different level of
management, which
draws clear line of
authority, responsibility
and accountability
among the managers.
Here the organization
is divided into number
of functional areas
like, production,
marketing, human
resources and finance
and work according to
their functions.
This type of structure
is a combination of
functional and project
organizational
structure. It is
designed to achieve
specific results by
using team specialists
from different
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functional
departments.
Example Educational institutes. TESCO. Hilton Hotels.
 Organizational culture: This concept includes business values, beliefs, experiences and
expectations. It helps to build unique social and psychological environment of the firm.
Below are different organizational culture that needs to be studied before setting up a new
business:
Basis of
comparison
Power culture Role culture Person culture
Definition It has centralized culture
where the head makes
rapid decisions and
controls on entire
organization.
In this type of culture,
each individual knows
their job and
responsibilities and
therefore works
accordingly.
Here, more value is
given to an individual
rather than the
company that develops
competition among the
managers.
Example Apple Thomas Cook Scientific institutions
1.2 Impact of organization's structure and culture relationship on the business
There are numerous factors affecting the working of a business entity. Organizational
structure and culture contributes to provide an efficient and effective environment to the
company. On one hand, business structure prepares the code of conduct to work depending on
the needs of the company. While on the other hand, organizational culture develops
individuality, integrity and openness in the working environment. The effective combination of
both these factors brings optimistic approach to the enterprise (Bakker and Schaufeli, 2008). A
person should understand the significance of positive structure and culture before setting up a
new venture, which are mentioned below:
 It draws outline for the employees and managers to understand the vision, mission and
purpose of the institution. The official protocol presented by its structure guides and
directs each and every individual about his duties and responsibilities.
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 They enable different departments to function smoothly towards a common goal. The
productivity of the company increases by the team effort accomplished by every
individual.
 A strong bonding is maintained among all levels and units of the company through proper
communication channel. The policies and procedures of enterprise are guided to the
employees and managers while feedback and suggestions are provided to the top level
management of the company.
 Motivation and leadership theories of organizational structure and culture help to
improve and evaluate the performance of employees and subordinates (Youssef and
Luthans, 2007). Adequate supervision by the managers examines their subordinate’s
performance and suggestions given by them. This helps the person to improve his skills
and abilities.
1.3 Factors influencing employees behavior at work
Each individual has different personality traits and qualities to perform a task. There are
several factors of an organization that have positive or negative impact on the employee’s
behavior, which are understood as below: Personal factors: Human resources are crucial element that is indirectly linked to the
production of goods and services. Talking about personal factor, it is further sub divided
in two types: biographical characteristics and learned characteristics. The physical
properties; age, gender, intelligence and ability of an individual help to inherit the goals.
While, the personality of person along with his /her abilities, values, attitude and
perception become a key element to achieve the tasks assigned. Organizational factors: Enterprises provide wide variety of resources to an individual to
grow and develop. The physical environment comprising of cleanliness, ventilation, light,
heat, nature of job if are in better condition; imprints positive impact on the performance
of the employee. The organizational factors also include structure, design, leadership and
reward system that influences the behavior of workers at the workplace.
 Environmental factors: On the other hand, this element focuses on the external forces
which directs and guides an individual performance in the organization. Economic
considerations, socio-cultural liabilities, political issues and legal formulation's come
under environmental factor. To a large extent employees are affected by economic
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elements. They are concerned with wage rates, employment level, technological
development and general economic scenario (McGunagle, 2012). Whereas, social ethics
and moral duties also reflects their influence on an individual working. Political stability
and implementation of legal rules and laws provides feeling of safety in the mind of
employees.
TASK 2
2.1 Effectiveness of different leadership styles in different organizations
There are different styles adopted by the leaders to motivate and encourage the team
members. According to the mentioned scenario, Mr. Smith leader of 'Scoops n Smiles Ltd.'
expanded his ice-cream parlor business at national level, which was started outside a local
school. He adopted highly authoritative leadership style from the beginning and failed to change
his leadership style with the changing environment. Though, he could have adopted various
forms of leadership theories instead of only autocratic style that are explained as below: Autocratic leadership style: Mr. Smith adopted this approach where most decisions were
taken by him or approved by him. He gave orders, assigned tasks and duties to the team
members without consulting or knowing their views. Due to this, the new generation felt
suppressed and exploited deterioration in their performance. It also resulted in ego clash
and revolting expectations. Democratic leadership style: This style will be appropriate to be adopted by the company
as it involves active participation from the followers. This style will provide higher
motivation to the employees and boost their morale (Luthans and Youssef, 2007). It helps
to build strong relationship and coordination with the leaders resulting in better job
performance.
 Free-rein leadership style: In this approach of leadership, no directions are provided to
the followers by their leaders. Leader plays a minor role in productivity of the
organization as the followers are equally efficient and responsible to perform the tasks by
their own. The firm doesn't require adopting this style of leadership as the individuals
need proper amount of training and experience while performing the task.
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2.2 Importance of organizational theory in the management practice of a business
There are several theories which explain the organization and its structure. Actually, there
are three types of organizational theory on the basis of time: classical theory, neoclassical theory
and modern organizational theory. 'Scoops and Smiles Ltd.' is a modern company so it applies
the characteristics of modern approach. Aspects such as Dynamic interaction, multidisciplinary,
adaptive, multilevel and multidimensional are some elements of the company in context of its
organizational structure. The modern theory is further classified into three divisions: system
approach, contingency approach and multivariate approach. Now, in the below section, there will
be studied the type of organizational theory which is appropriate for the mentioned company
(Sun, Aryee and Law, 2007).
System approach is based on the provision that the enterprise is an open system
consisting of inter-related and interdependent elements. According to the present scenario, this
approach is not suitable for the company because being open-system possibilities of clashes and
confusion will be at a higher rate. The managers and employees will not be able to recognize
differences in their working. Instead, multivariate approach is beneficial for company's structure
and culture. It features its environment with better interaction among the managers and
employees, also emphasis will be laid on technological developments. Four main interactive
variables i.e. task, structure, technology and people will interact and work together for achieving
the organizational goals. Though this approach has few disadvantages but the corporation can
resist them by taking some preventive measures while applying it.
2.3 Different management styles used for organizations Directive management style: In this type, the managers closely control and guide the
employees causing threat of de-motivation among them. The subordinates become
frustrated and underdeveloped. Though this style is a good remedy at the time of
emergency or crisis. Authoritative management style: Here, the structure of management is not much rigid
like directive. The workers are provided clear directions and instructions to operate a
task. It motivates the employees by persuasion and feedback on task performance. Affiliative management style: The primary objective of this approach is the employees
first and the task second. It develops harmony and togetherness among the manager and
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his subordinates which reduces conflict among them. It is effective to perform routine
tasks with adequate performance. Participative management style: This is a democratic pattern of management style,
where efforts are made to build commitment and loyalty among the group members. It
encourages employee’s opinion by their active participation in decision making process
(Chand, 2015). The workforce is motivated by rewards and monetary benefits. Pacesetting management style: According to this form, the manager performs many
tasks on his own scale and instructs the employees to follow his own set benchmarks.
Though, it hinders and decline creative and innovative ideas of the employees but is
fruitful at the time of training and development of the employees.
 Coaching management style: In this type of style, the manager focuses on the long-term
improvement of its subordinate. They work as development manager to encourage the
employees to enhance their strength and improve their performance.
TASK 3
3.1 Impact of different leadership styles on motivation of employees in an organization
Social psychologist, Douglas McGregor, proposed a theory explaining relationship
between employee motivation and different leadership styles. It elucidates the impact of
manager’s approach to deal with the employees, to motivate them and bring a feeling of
teamwork among them. It follows the principle that if the team members or subordinates are not
interested to work then autocratic style of leadership should be implemented. On the other hand,
if the employees are performing well and working with full dedication, then participative style of
leadership is followed.
The theory shows the two contrasting concepts of leadership and motivation factors:
Theory X and Theory Y. Considering the first concept, Theory X, which assumes that the
employees are eventually demotivated and eagerly not participative in the organization. They
avoid taking any responsibility in their hands and need to be directed (Adler and Gundersen,
2007). The employees are monitored and supervised at regular intervals by their respective
managers. Therefore, authoritarian style of leadership has been applied to guide the workforce.
Here, delegation of authority is little and decisions are held by the top level management. The X-
type workers are usually considered as minority but are large in an organization.
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Contrary, Theory Y is implemented to encourage and promote active participation of the
employees. The members are self-motivated and creative enough to build new ideas and
innovations. They take greater responsibility in acquiring the given task by maintaining their
personal growth and organizational goals. Here, the managers follow the participative style of
leadership and do not provide many instructions to the followers as they themselves are capable
enough.
3.2 Different motivational theories within the workplace
Every individual require some forces to bring out their skills and abilities for a job or
workplace. Motivation among them initiates, guides and maintain their behavior to work for the
organization (Mathieu and Taylor, 2006). There are some popular motivational theories to be
adopted by companies which are described as below:
Incentive theory of
motivation
It presents the interest of employees to perform the task for some reward
or monetary benefits. This is the major motivational tool to enhance an
individual towards his/her goal.
Drive theory of
motivation
An employee sometimes takes certain steps to cope up with their own
stress and tension. This motivation type brings back inner strength to
focus more on the work.
Arousal theory of
motivation
This theory helps to balance and maintain arousal levels of the
individuals in an organization. When the worker incense lowers, the
company organizes meetings and sessions. When it increases meditation
and relaxing activities, more efforts are made.
Humanistic theory of
motivation
According to this approach, one require that after fulfilling the basic
biological needs of an individual an upper step should be taken. The
employee’s self-actualization becomes their priority and motivation.
Expectancy theory of
motivation
This motivation tool implies various future expectations assumed by an
employee. The chances of promotion, transfer or better opportunities
empower them to work effectively in their present position.
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3.3 Importance of motivation theory for a manager
As discussed above, different theories of motivation plays a vital role in the growth and
development of an employee or manager. Among all these, though incentive theory of
motivation is popular but to work effectively the manager should imply humanistic approach.
Through this motivational tool, the manager will be benefited in many manners:
 The approach helps to improve the performance level of managers. The feeling of self-
actualization motivates the individual to focus on his/her merits and demerits. Due to this
analysis, certainly their participation increases in the company and desired output are
gained by the firm.
 Secondly, it helps to change the feeling of negative thoughts to favorable point of view.
The manager is able to divert their thought process in an optimistic manner. During rise
of any critical condition, they are able to focus more on the solutions rather than
complaining or getting depressed by the situation.
 There is reduction in rate of absenteeism of the managers. Proper working conditions and
self motivation restricts the manager to be unavailable in his/her area of work. It ensures
and excites them to stay regular and punctual towards the organization. Sense of loyalty
and responsibility builds in the mind of a manager.
 Another advantage of this motivational theory is that the manager’s resistance to change
reduces. Normally, there are managers who accept changes after a long process of
discussion and explanation. As they are also responsible to prepare their subordinates and
adopt the current or expected change in the company (Mullins, 2007).
TASK 4
4.1 Nature of group and group behavior within organization
A group is assembly of people gathered together to perform a common task or goal.
Generally, there are two types of groups present in the society; formal and informal. The formal
group frames an organization to accomplish the goals with the help of rules, regulations and
policies. While, the informal group develops due to individuals social needs and desires to
develop relations with its surroundings. Here, example of prominent British multinational retail
company, TESCO can be considered as formal organization. It provides wide range of consumer
items all across 12 countries in the globe.
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For better day-to-day working and productivity of the company, managers require
understanding and absorbing its group behavior. The top level decisions should be
communicated to the middle and lower level staff. The manager needs to develop good
relationship with the unit members and enhance task orientation among them.
4.2 Factors affecting teamwork in an organization
Team dynamics plays a critical role in company's profitability and individual
performance. Following are the factors affecting teamwork in an organization: Team Size: It is assumed that a unit performs better with small number of team members.
Communication and monitoring of each individual's work can be done effectively. Team norms: The informal guidelines of behavior results in successful operations. The
code of conduct is accepted by every individual of the team. Leadership: The formal group considers manager and supervisor as their leaders. He
must give guidance and support to the team members in achieving the organizational
goals. Cohesiveness: This term refers to the degree and strength of interpersonal attraction
among the group members. Moreover, the members are attached to each other more as
individual goals resemble with the team objectives.
 Team Efforts: In order to achieve team goals, coordination and cooperation among the
members is the necessity. It empowers each individual to feel secure and dedicated
towards some common objective.
4.3 Impact of technology on functioning of team
New and better technological developments help to strengthen and improve functioning
of team. There are various gadgets and software that have excelled team functioning. E-mail,
internet and social media are a boom for today's world. They have provided better
communication and awareness among the team members about each and every event happening
in the group. The software related to word processing, excel and power point presentation helps
to plan, analyses and communicate business activities prominently. Database management
system provides personal and professional attributes of each and every individual. This helps to
understand the needs and requirement of the individuals (Robbins and et.al., 2013). The
technology of groupware enables team to plan meetings, collaborate and delegate information
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within team. Thus, it can be concluded that by the coming pace, time technology will be
improved and teams will adopt them for fruitful results.
CONCLUSION
Based on this report, it has been highlighted that organizational behavior is one of the key
aspects that aids in boosting the performance level of employees. Through this, company is able
to incorporate appropriate steps that supports in motivating employees and gaining best out of it.
Additionally, this report signifies that company’s need to apply varied set of management styles
at different time interval for developing healthy relations with employees.
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REFERENCES
Books and Journals
Adler, N. J. and Gundersen, A., 2007. International dimensions of organizational behavior.
Cengage Learning.
Bakker, A. B. and Schaufeli, W. B., 2008. Positive organizational behavior: Engaged employees
in flourishing organizations. Journal of Organizational Behavior. 29(2). pp.147-154.
Gelfand, M. J., Erez, M. and Aycan, Z., 2007. Cross-cultural organizational behavior. Annu. Rev.
Psychol. 58. pp.479-514.
Griffin, R. and Moorhead, G., 2011. Organizational behavior. Nelson Education.
Johns, G., 2006. The essential impact of context on organizational behavior.Academy of
management review. 31(2). pp.386-408.
Luthans, F. and Youssef, C.M., 2007. Emerging positive organizational behavior. Journal of
management. 33(3). pp.321-349.
Mathieu, J. E. and Taylor, S. R., 2006. Clarifying conditions and decision points for mediational
type inferences in organizational behavior. Journal of Organizational Behavior. 27(8).
pp.1031-1056.
Mullins, L. J., 2007. Management and organisational behaviour. Pearson education.
Robbins, S. and et.al., 2013. Organisational behaviour. Pearson Higher Education AU.
Sun, L.Y., Aryee, S. and Law, K.S., 2007. High-performance human resource practices,
citizenship behavior, and organizational performance: A relational perspective. Academy
of Management Journal. 50(3). pp.558-577.
Youssef, C. M. and Luthans, F., 2007. Positive organizational behavior in the workplace the
impact of hope, optimism, and resilience. Journal of management. 33(5). pp.774-800.
Online
McGunagle, D., 2012. Importance Organizational Structure In Business Management. [Online].
Available through:<http://www.globalstrategicmgmt.com/blog/bid/83512/Importance-
Organizational-Structure-In-Business-Management>. [Accessed on 9th February, 2016].
Chand, S., 2015. Types of Organizational Structures. [Online]. Available
through:<http://www.yourarticlelibrary.com/organization/8-types-of-organisational-
structures-their-advantages-and-disadvantages/22143/>. [Accessed on 10th February,
2016].
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