Exploring the Effectiveness of Different Leadership Approaches

The provided content includes various texts and online articles that discuss organizational behavior, leadership, and management. The texts cover topics such as quality management, organizational structures, and processes, while the online articles explore different types of leadership styles, approaches to organizational design, and functional versus divisional organizational structures. Additionally, there are articles on enhancing team effectiveness, top management shared leadership, and business process management.

Organisation and Behaviour

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Comparison between Capco and HSBC................................................................................3
1.2 Relationship amongst structure and culture...........................................................................4
1.3 Factors influencing individual behaviour..............................................................................5
TASK 2............................................................................................................................................6
2.1 Comparing effectiveness of leaderships................................................................................6
2.2 Influence of organisational theories on management practise...............................................7
2.3 Approaches to management...................................................................................................8
TASK 3............................................................................................................................................9
3.1 Impact of leadership on motivation.......................................................................................9
3.2 Comparison of motivational theories...................................................................................10
3.3 Managers requirements .......................................................................................................13
TASK 4..........................................................................................................................................14
4.1 Nature of groups and their behaviour..................................................................................14
4.2 Factors affecting team development....................................................................................14
4.3 Impact of technology...........................................................................................................15
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Organisations are formed by collective functioning of some individuals towards a
particular aim. The behaviours and attitudes of employees affects organisational structure and
culture. This report is based on the concept of organisation behaviour and factors that enhance or
affect this component in business environments. Capco being a renowned firm in finance sector
and HSBC, a dignified corporate bank of UK are considered for conducting research on this
subject. Since, these two companies are operating smoothly with strong foundational dynamics;
it would be easier to grasp an understanding of organisation and behaviour. This assessment will
cover a clear understanding of structure and culture of both the companies. Moreover, certain
brief details shall be provided regarding leadership, management and motivation techniques that
can be applied in an enterprise for enhancing its functioning.
TASK 1
1.1 Comparison between Capco and HSBC
Capco and HSBC are two leading companies in finance sector. Organisational structure is
designed for systematic management of various business activities. The purpose behind
functioning of a company must be served when selecting a structure. Capco has a flat
organisational structure with matrix influence. The reason behind choice of this arrangement is
business process of the company. Capco has to deal with projects that require diverse set of
skills. Matrix structure helps in getting this quality in work while flat structure decreases the
complications of managing different levels (Champoux, J. E., 2016). Employees are arranged
according to this structure within a company. It is significant that culture is completely based on
this choice of structure (Wood and et. al., 2016). Charles Handy proposed a theory that relates to
four types of culture in a business organisation. According to this theory, Capco has task culture
in its working environment. This type of culture is initiated because task culture provides
flexibility and innovation to business processes.
On the other hand, HSBC has a divisional structure. Business organisations that have
divisional structure, consists of separate functioning departments or teams. Basically, HSBC
chose this structure to semi-automate its business operations and manage complete processing at
international level smoothly. The first division is made at international level that is according to

continents and then separate business centres or banks are established in each operational
country. Since, individual working departments are functioning in the organisational structure of
HSBC; a person culture is developed. HSBC Bank Middle East Limited is not answerable to the
business centre that is operating in Egypt. This implies that individual departments function
independent and seek only HSBC Holdings UK as the chief authority.
1.2 Relationship amongst structure and culture
Organisational structure and culture have a deep routed relationship. For Capco to
develop in international markets, the structure of organisation must be designed in a way that
positive working culture is established. The organisational structure that is developed in Capco is
a flat structure. Employees are assigned specific roles and responsibilities in accordance to this
structure. Basically, structure or arrangement is the foundation of communication channels
within business organisation. When employees will have effective communication, they will
develop certain bonding amongst their colleagues. This enhances a healthy corporate culture.
According to Charles Handy's theory of organisational culture, task culture is based on
team formation that leads to accomplishment of particular tasks or projects. Capco organisation
requires teams which are innovative and competent enough to meet deadlines. The structure and
culture of company have deep interlinks. Flat structure with matrix combination has helped the
organisation to experience flexibility with greater employee support and easy management.
Matrix combination helps in grouping individuals with diverse skills. Although certain risk is
involved, Capco has been experiencing great success with this organisational structure and
cultural environment. It has helped the company to fight complex challenges that often occur in
finance industry. Task culture complements flat structure because employees are completely
aligned with business objectives.
Structure and culture of Capco has a deep impact over performance of the company.
Currently, this organisation has task culture with flat organisational structure. Since, employees
have their own zone or workspace which is not disturbed by external influences their
engagement in organisational projects is maximum. As a result, productivity of the company
increases. Employees do not indulge in distracting activities and provide hundred percent of their
skills and talent to Capco's benefits. For instance, if a person is quite dominating and has

negative approaches towards every situation then he will disturb other efficient workers which
definitely affects performance.
1.3 Factors influencing individual behaviour
Individuals or employees that provide their services to Capco must be completely
satisfied with their working environment and job. There are certain factors that can influence this
individual behaviour. These are described ahead:
Personal factors: Individuals working in a business enterprise like Capco are highly
influenced by personal factors. Employees’ behaviour is a display of his inner attributes and
attitudes. Age, gender, personal well-being, mental and emotional health, cultural perceptions,
religious beliefs, etc. are certain components that form the personal factors affecting behaviour
of individuals (Rothaermel, 2015). A person can be productive and profitable only when there is
balance in his personal attributes. Personality is also a part of personal factors. Different traits
which are portrayed by an individual in several circumstances are conscientiousness,
extraversion, agreeableness, neuroticism and openness. All these traits create certain barriers
while developing relationships with colleagues. For instance, a person has introvert
characteristics and finds it difficult to communicate with other people and on the other hand,
other people in his group are quite open. This creates a conflicting situation because other people
perceive the introvert person as too proud to talk to people. As a result, team functioning is
affected and proposed goals and objectives are not met. This depicts that individual behaviour is
largely impacted by personal factors.
Leadership: Managers and leaders are the initiators of a culture inside a company. Their
actions and decisions have a great impact on behaviour of employees. If leaders cross their
professional boundaries and take biased decisions, then inequality and injustice will be
predominant in functioning structure (Tourish, 2013). This will lead to production of negative
atmosphere inside the culture. Hence, it is very important for Capco to take appropriate decisions
regarding selection of particular leader and manger. Personalities of individuals are categorised
into two sets that is Type A and Type B. People with more competitive and outgoing nature are
said to be Type A while relaxed personalities are called Type B. Leaders must have Type B
personality because it requires patience and calmness to run an organisation and take effective

decisions. Capco's performance standards will improve if Type B personality leaders take the
initiative and responsibility.
Job responsibilities: Work pressure and ineffective time management from the
administrative side of company is also a factor that affects individual behaviour. The type and
amount of responsibilities must be divided in accordance to skill level and capabilities of a
person (Mihalache and et. al., 2014). Overburdening will automatically result in frustration and
anxiety towards company. Moreover, individuals will not be able to maintain work life balance
which will affect their health and mental status simultaneously. An individual must be selected
for a particular job according to his/her personality traits. This helps in deciding the best role in
which he/she can fit in.
TASK 2
2.1 Comparing effectiveness of leaderships
Capco has flat organisational structure. Autocratic leadership when implied in this
structure may result in quick decisions but innovation levels and creativity will decrease. Overall
operations of the company are easily managed when autocratic leaders will rule (Miner, 2015).
But autocratic leaders have a tendency to rule like dictators and do not entertain views and
opinions of other individuals. It also disrupts company's working environment. However,
transformational leadership is witnessed in HSBC. This type of leadership involves development
of a motivational atmosphere which boosts confidence levels of employees. People tend to
develop interests when transformational leaders are at power (Shafritz, Ott and Jang, 2015). This
means that HSBC's success is a result of this leadership style.
In case of autocratic leadership style, a dominant governance is established with
minimum involvement of other employees in the decision making. On the other hand,
transformational leadership style has a collective approach towards decision making.
Transformational leaders have long term vision while autocratic leaders develop strategies for
securing near future. The divisional structure and role culture of HSBC can have positive impact
over performance with transformational leadership style. It helps in developing better mutual
understanding within different departments.

On the other hand, the effectiveness of autocratic leadership style in Capco's
organisational structure and culture is depicted in the form of growth or progress in current and
foreign markets. Both these styles are highly effective and create positive impact over the
functioning of respective companies.
2.2 Influence of organisational theories on management practise
Organisational theories are general approaches that are used for managing business
processes. Capco is a finance sector company and requires continuous innovation in its
approaches. The company is operating with a functioning structure that is based on a blend of
scientific management theory and human relations management theory. The influence of these
two organisational theories has been described below:
Scientific management theory: This theory is based on managing time and actions that
employees have to take for performing business operations. The authorities of Capco are able to
assign specific tasks to individuals based on their capabilities and skills. It helps in managing
client deadlines and generating better quality work within stipulated time. The influence of this
theory is positive and more productive for the company. On the other hand, scientific
management theory has helped Capco to inculcate innovation with efficiency and quality control.
Administrative Theory: According to administrative theory of organisational
management, basic functions are outlined for the company's manager or management. These
include:
1. Forecasting and planning
2. Organising different activities
3. Commanding and directing subordinates or staff members
4. Creating coordination between different functions
5. Controlling entire group of functions
This theory helps in simplifying complex job functions into basic steps and activities
which if executed sequentially can give better results. This attribute of administrative theory
depicts that application of such principles is quite easy and smooth. A better understanding can
be attained by following example: Capco recently recruited 12 new candidates for conducting

basic ground operations. They are appointed on the post of customer service executive. The
manager has to take care that all 12 recruits complete their training in an efficient way and do not
leave the company before completion of their probation period. If the manager sticks to
administrative theory of management then, planning and scheduling operation of basic trainings
for the recruits is performed in advance. This helps in avoiding chaos during implementation.
Organisational benefits are gained when all the recruits completed their basic training
systematically. s
The management practise of Capco is efficient because it consists of adaption of two
management theories that is scientific and administrative management theories.
2.3 Approaches to management
Following are the basic approaches to management that is being used by Capco and
HSBC to manage their business activities :
Bureaucratic Approach: The management style or approach which involves a dominant
reflection of autocratic leadership is bureaucratic. Managers that adapt this approach for their
governance in Capco, emphasise on instructing their subordinates. They tend to give orders and
commands which must be followed without any delay and negligence. Educational trainings are
organised by the company in this approach for betterment of management skills of the leaders
and practitioners (Functional Versus Divisional Organisational Structure, 2017). Bureaucratic
approach as a specific advantage that staff members are clear about the tasks they have to
complete. It doesn't involve overlapping of other functions. HSBC can also use this approach of
management for better efficiency because of its organisational structure is divisional. Managers
will be able to easily deliver trainings with help of this approach.
Administrative Approach: This management approach was proposed by Henry Fayol.
The administrative approach is based on five principles that is planning, organising,
commanding, coordinating and controlling. The company can gain huge profits though this
technique but less attention is given to employee benefits because complete system is centralised
(5 Different Types of Leadership Styles, 2017). A disciplined structure is maintained which
prohibits development of negative politics or culture in the working environment. The
administrative approach for management practise helps in smooth functioning of business
processes which leads to increase in productivity levels. The disadvantage of this approach is

development of stress and immense competition. Internal environment is also disturbed. When
applied to Capco's organisational functioning, administrative approach will help in handling
minute tasks with much more ease. As stated before, there are five basic functions in this
approach. The manager or senior head who takes initiative of strategic planning or management
has to follow these functions sequentially for obtaining estimated or desired results.
Scientific Approach: Aforementioned scientific management theory is the basis of this approach.
When jobs and responsibilities are distributed amongst employees with this approach, then
customer expectations are easily met. Since, Capco is a finance sector company; people invest
their money to get good returns. The application of scientific management approach results in
efficient management of client demands. Despite of a centralised approach, it maintains better
management of resources (Five Approaches to Organisational Design, 2016). The disadvantage
that is often faced when scientific approach is applied is rigidity towards workforce. The
workforce experiences a excessive oppression and work load which limits productivity and
efficiency. HSBC handles its multinational operations with use of scientific approach to
management. It helps in gaining accurate results because specific functions are given to people
with suitable capabilities.
TASK 3
3.1 Impact of leadership on motivation
HSBC is a multinational bank based in UK. This company has been known for its
qualitative and quantitative decisions in both financial and business sectors. Mainly, business
decisions are made by leaders and managers. The working staffs of HSBC experience varying
motivation levels because of different leadership styles managers and leaders adopts. The
following points describe impact of variable leadership styles on motivational levels.
1. Autocratic leadership is not open to ideas and opinions of other employees. It is
completely based on commands and instructions that manager give to their subordinates.
When effective communication is not maintained, motivation gets deteriorated and
efficiency of company is decreased (Wood and et. al., 2016). On the contrary, the ability
and knowledge levels of leaders become a motivational factor for their followers.
Negative impact on motivation levels is more due to autocratic leadership. The reason
behind this aspect is lack of interest of managers to identify needs and requirements of

individuals. According to Maslow's motivation theory, if basic needs of employees are
not fulfilled then their productivity and interest towards working in the company
decreases.
2. Democratic leadership is a form where active participation is entertained by leaders and
managers. Decision making process engages all employees and welcomes their opinions
and ideas. Moreover, the increased involvement motivates individuals to actively
participate in future discussions. Democratic leaders use Maslow's hierarchy of needs as a
motivational approach for understanding the requirements of employees. Active
participation of employees with leaders helps in overcoming minute organisational issues
or ego clashes. Maslow's motivational theory is a self-sufficient tool for leaders. The
impact of democratic leadership is positive because it helps employees in achieving job
satisfaction with active involvement and participation.
3. Transformational leadership is attributed by charismatic leaders and managers. They
develop a strong coordinated bond with their subordinates. During conflicting situations
or crisis and emergencies, employees find it easy to convey their ideas and problems.
This dimension of transformational leadership, develops motivation amongst staff
members. Hence, transformational leadership has a positive impact over motivation
levels of staff because chances of oppression and exploitation is minimum.
Transformational leaders create a feeling of togetherness amongst employees. This
causes individuals to be self motivated and their willingness to work with the company
increases. As a result a positive impact is felt over motivation levels of these leaders.
3.2 Comparison of motivational theories
Maslow’s Theory of motivation Herzberg’s Theory of motivation
 The Maslow’s theory of motivation is
based on a hierarchical identification of
needs of individuals that are
functioning in a company and their
satisfaction levels. Five levels are
proposed in this theory which
determines various needs of employees
 Herzberg’s theory on the other hand is
completely based on motivator’s
achievement, recognitions and
opportunities for development and
growth (Harper, 2015).
 There are no levels or parameters

at these different levels. Simple yet
descriptive this makes it easy for
application (Fitzgerald, 2014).
 When applied in HSBC’s internal
environment, employee needs and
motivation levels can be judged easily.
Any of the various levels that are
defined in this motivational theory can
turn into motivator for individuals.
 HSBC's working staff will experience
will experience certain importance
when their needs are focused. Be it
safety or stability trust towards
company shall increase when Maslow's
theory is applied.
defined in this theory. Hence, managers
or leaders measure hygiene and
motivating factors as the basis of
decision making.
 The Herzberg's theory of motivation is
complex and prescriptive. Company
shall achieve suggestions and
recommendations for improvements in
current strategic management with help
of this theory. But accuracy of results is
not assured because of complexity.
 Another drawback that occurs with this
theory of motivation is that only higher
order factors are eligible for motivating
employees (Rosemann and vom Brocke,
2015).
The selection of motivational theory can be made with reference to above made
comparison. HSBC Holdings plc has to maintain the brand reputation it has acquired in these
many years of operation. It won't be incorrect to infer that both these theories i.e. Maslow's
hierarchy of needs and Herzberg's motivational theory are different in many aspects but they
share certain similarities too. The purpose behind application of these theoretical concepts is to
understand motivation levels of employees and recognise their needs and demands for
motivating them.

HSBC can use both these theories in different aspects. Maslow's theory of motivation
when applied to this company helps in categorising employees according to their need. For
instance, the ground level employees shall be placed at the level of basic needs. On the other
hand, leaders and senior company heads have a requirement of gaining prestige and recognition.
This means they are placed at the level of psychological needs.

Hezberg's motivation theory will help HSBC cover satisfaction and motivation factors
like achievement, recognition, responsibility, etc. for all the employees irrespective of their
working position or functioning level in the company. This basic difference in application helps
in understanding that Maslow's hierarchy theory is more precise and yields better results as
compared to the other theory.
3.3 Managers requirements
As discussed earlier, motivation is a key factor in driving performance of employees. It is
important for managers of HSBC to recognise factors that are demotivating or breaking morale
and support of employees. The reason behind this need of understanding the importance of
motivation by managers is the responsibility and duty towards employees and company.
Corporate businesses function to maximise their profits (Rothaermel, 2015). This is only possible
when workforce is efficient enough to perform assigned tasks and projects. Motivation theories
are a source of informative frameworks which when applied to organisational dynamics yield
high labour turnover and reduce working costs of the company. Managers have the responsibility
to execute strategies that will meet business objectives. If they do not apply motivational
theories, then it would become difficult to identify barriers that are deteriorating productivity
levels.
It is important for manager of HSBC to understand motivational theories. For instance, if
employees are not feeling safe and secure while working in the company then a need is arise.
When managers are aware about this need, quick actions can be taken and a solution can be
provided for making the working atmosphere more secure.
There are various factorial elements which can decrease motivational spirits of people in
a workplace. These can be no appreciation or rewards for great quality work, cultural
differences, non-transparent governance, unhygienic working conditions, imbalance in work and
personal life, etc. When managers make efforts to detect and understand the source of these
factors, then a need is felt for applying motivational theories (Mihalache and et. al., 2014). Well
defined frameworks help in effective application and better outcomes. Hence, HSBC must
inculcate a strategy that will help managers and leaders to develop better organisational
behaviours inside the structure of its company.

TASK 4
4.1 Nature of groups and their behaviour
Teams are formed inside the organisational structure of a company so that operations can
be easily executed. It provides a clear management at each level. Leaders and managers perform
this task of dividing employees into groups because it simplifies complex processes into small
units (Miner, 2015). These units when perform their respective functions helps companies in
achieving business objectives with more efficacy. There are two types of groups which are
explained below:
1. Formal groups: These types of groups or teams are the ones which function
systematically and professionally inside the workspace. Capco’s corporate structure
concentrates on formation of these groups because their purpose of functioning is for the
benefit of the organisation. Since, formal behaviour is attributed; every member that
functions in it has to fulfil their own set of duties and responsibilities (Naylor, Pritchard
and Ilgen, 2013). Company and its employees share a corporate social responsibility
which assures that formal groups do not involve in activities that are unfair and illegal.
2. Informal groups: When employees build a bond of friendship or rivalry or mutual
understanding then a natural group formation takes place. Such groups are called
informal groups. People identify their needs and requirements but do not function
together to achieve company’s goals and objectives (Shafritz, Ott and Jang, 2015).
Informal groups can portray positive and negative behaviour in Capco’s culture. Their
orientation is unprofessional and not relevant to corporate principles. No person
belonging to organisation can intervene in activities of informal groups unless there is a
threat to corporate culture and internal functioning of the company.
4.2 Factors affecting team development
The formation of teams and groups inside business organisations is just not the only task
of leaders. Teamwork principles must be instigated amongst employees so that purpose of this
team is served. Following factors are responsible for supporting or hindering teamwork.
Diversity: This factor can several times lead to development or deterioration of the team.
Diversity can bring in innovation and creativity amongst members. Groups with members that

have diverse variety of skills are more successful in designing innovative strategies (Five
Approaches to Organisational Design, 2016). However, conflicts and clashes can arise due to
different working style and cultural beliefs of people. Capco’s working structure has teams that
are working efficiently with diverse skills and talents. Hence, for the organisation, diversity
becomes a contributing factor in teamwork. On the other hand, if there is no proper
administration or management of diversity then entire discipline of company can get disturbed
which further leads to ineffective teamwork.
Communication: it is significant to develop effective communication channels amongst
team members. When people are unable to exchange their views and opinions then essence of
team is lost. Consequences of ineffective communication results in breaking of groups and
development of rivalry (Batenburg, van Walbeek and in der Maur, 2013). This implies that
communication can inhibit or restrict effectiveness of teamwork. Capco doesn't have high
number of management levels i.e. barriers to communication between employee and the senior
executives are minimum. This facilitates a path for quick solutions and effective decision
making. Hence, communication is efficient and contributing to development of teams.
Leadership: Entire management is handled by leaders in a team. Their decisions and
actions are responsible for every outcome a team faces. Leaders can turn out to be inspirers and
directors for strategies. Therefore, team leader should adopt effective leadership so that positive
contribution is given to teamwork. Capco has a separate division that allows team leaders and
members to bond and explore all positive possibilities. Leaders if implement appropriate strategy
or theoretical concept like Tuckman theory or Belbin theory for managing team and its functions
(Couchman, 2015).
4.3 Impact of technology
Technological developments have resulted in automation of various business industries.
From manufacturing to service industry, companies have evolved and developed with help of
technology. Capco being a finance sector company functions with aids from information
technology. It has software that helps in managing customer requirements with at most accuracy
and precision. The probability of committing mistakes is decreased when technological
intervention is experienced (Proehl,s 2013). Considering the case of team functioning there are
two types of impacts felt. These are positive and negative. Capco’s different functioning teams

can use technical advancements in enhancing their researches, marketing techniques, customer
support, etc. The efforts and resources which are required for performing such team functions is
reduced when technologically advanced instruments and devices are used by team members.
The greatest impact of technology which is felt in team dynamics is development of
virtual teams. Basically, virtual teams concept has enabled teams to perform their business
functions without physically meeting each other at a particular place. For instance, Capco's
marketing team at London can interact with its team in other country or city through Video
conferencing and calling. This enables team members to stay connected and implement their
strategies efficiently. This feature of technology has created a positive impact over functioning of
teams and their project management skills.
Technology can have both positive and negative impact over team dynamics or
functioning. Modern day equipments and technology have helped in making execution of daily
operations more easier. For example, internet has helped in getting detailed information from
different sources without making any physical efforts or investing much capital. Emails,
electronic newsletters, video calling and conferencing are some of the key technological
developments that have developed efficient communication channels amongst team members.
If this technology is misused then severe consequences can disturb team dynamics. For
instance, incorrect use of language while communicating over internet shall create differences
amongst employees. Moreover, if a person uses other person's email-id in unfair manner then
misuse of technology takes place. As a result, team dynamics is disturbed and team members
shall develop negative feelings towards each other. Cooperation is hindered and overall
performance is deflected towards negativity. Hence, technological use should be monitored and
secured for avoiding negative consequences.
CONCLUSION
This report contains several findings that relate to behaviours of individuals in an
organisation. The impact of leadership and management on the culture and functioning dynamics
is bit deep. In addition to this fact, culture and structure of Capco and HSBC are also compared
and elaborated in this assessment. On can easily understand the effect some factors can have on a
person’s behaviour in a business enterprise through the facts that have been described above. It is

important for the managers or leaders to adopt a motivational theory which can help in assessing
internal needs and requirements of employees. This will not only increase efficiency but also
help in meeting business objectives effectively.

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