Organizations and Behaviour: A Study of GSK

This report is a study of GSK, a healthcare company, focusing on organizational behavior and its impact on employee behavior and performance. It covers topics such as organizational structure, culture, leadership styles, and their effects on employees.

Departament of HND Business and Managent Studies
Coursework
ORGANIZATIONS AND BEHAVIOUR
ORGANIZATION AND BEHAVIOUR
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INTRODUCTION
TASK 1 1
1.1 1
1.2 2
1.3 2
TASK 2 3
2.1 3
2.2 4
2.3 5
TASK 3 5
3.1 5
3.2 6
3.3 7
TASK 4 7
4.1 7
4.2 8
4.3 8
CONCLUSION 9
REFERENCES 10
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TABLE OF CONTENTS

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INTRODUCTION
Employees co-operate and co-ordinate with their capabilities and skills in
a positive manner to attain the assigned roles and tasks. The members of
organisation perform their assigned tasks with adequate devotion so that purpose
of entity will be fulfilled. Organisational behaviour is a study of performance
given by individuals as well as by the group. In today's dynamic business
environment, it is imperative for entity to adopt this technique in a way that
ensures their best interest (Diefenbach, 2013). The ongoing report is based on
“GSK”, a healthcare company, dealing in pharmaceutical and health related
products. Organisational behaviour study will help in analysing various aspects of
company and behaviour of employees within business entity while covering several
areas such as culture, team work, leadership, etc.
TASK 1
1.1
Organisational structure and culture are essentially associated and have
substantial affect on the performance of business. A layered design of
communication process, right and obligations of the entity, and arranged
structure which shares theorise, values, beliefs that administer the behaviour of
employee in the organisation. GSK PLC have a hierarchical structure which is very
important to consider when its structure is affecting a people. Specialisation of
work is most important factor of organisation structure(Glowinkowski, 2009).
Performance of employees is necessary for achieving the goals and objectives.
Entity can have any of structures of the following: tall and flat structure.
Hierarchical structure is adopted by GSK PLC and they are having so many
levels in the administration ladder whereas Adams Hlth. Adopts flat structure,
in this number of levels is less in administration and direct conversation can be
done. Chain of command is a responsibility and authority for the institution which
is assigned from top management level of entity. Chain of command has two types
that is long and short term. Span of control defines the position of the manager
and how he controls and coordinates with the subordinates. It has two types that
is narrow and wide.
Organisation culture is a set of beliefs, attitudes and the responsibility and
these factors can help the people in the entity(Brown, 2013). According to Charles
Handy model, four type of culture which the enterprise follow. First, power
culture- in GSK PLC and Adams Hlth. , employees having the power and only
they have the right to take the decisions. Second, task culture- in both the
institution, teams are formed to achieve the goals and the objectives or solve the
problems and having four or five members in a troupe. Third, person culture-
workforce feel that they are powerful. Fourth, role culture- in GSK PLC and
Adams Hlth., managers are having roles and the responsibilities according to their
interest, qualification and having the slave to accept the challenges and do their
best.
1.2
The key ingredients of an organisational culture consists of values shared by
a business entity. There are several issues which are being faced on daily basis
by GSK like code of conduct, working pattern of management, obligations by
the superiors and a process of complaint or issue that passes through different
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organisational levels that help in enhancement and development of the effectiveness
in working style of business firm (Dzimbiri, 2009). By adopting organisational
structure, GSK allows formation of different authoritative groups that will
regulate business activities to manage the roles and responsibilities efficiently.
This structural framework also help in effective communication and coordination
which builds and develops healthy culture in the organization and motivate
employees to work in the direction of attainment of set goals. Structure defines
roles and responsibilities of every individual and their interrelation to serve the
consumers. Thus, roles are delegated and monitored while managing the control in
business. This concept also defines a clear view to the roles and responsibilities
which help in increasing effectiveness of coordination between tasks that
facilitate in developing a positive culture. These factors help managers in setting
up the vision and mission of business entity as well (Becton and Giles, Schraeder,
2008). GSK success is depend on the management of the organization. Without a
management it is impossible to mange all business activities Its hierarchical
structure is very important because its used a flat hierarchy model which give a
executive power form the top down. Its cultural is built on the foundation of
mutual respect
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actively seeking. Its structure is flat so there is a proper communication between
employees and all deprtamtns.
1.3
Individual behaviour can be influenced by GSK at work place by the
following factor that are personal, demographic etc. Organisations are formed by
the individuals who have organised different data in some forms to achieve a
common objective. Their behaviour can be affected by both essential and the
environmental factors. Workforce of GSK PLC get highly affected by these
factors which are explained as below:
Personal factors: These have influence on the individual behaviour at
workplace with classified characteristics. These factors are generic in nature which
includes physical characters, age, gender, religion and experience. Learned
characteristics refer to permanent change in the behaviour as well as attitude,
personality and perception.
Environmental factors: These element which affected by the individuals
and having impact on the environment. It includes economic, political, socio-
culture and legal environment. The impact of economic factors on individuals
may be direct or indirect which involves employment level, wage rate, etc.
(Bolinoet, et. al., 2013)
Learned characteristics: These are defined as the relatively permanent
change in behaviour resulting from interactions with environment. It is the duty of
managers to lay stress on studying, learning and predicting the learned
characteristics of individuals.
TASK 2
2.1
Providing direction, implementing plans and motivating individuals are
the key components of leadership style. There are so many types of styles and
which can be followed by leaders on the grounds of political business. The
below mentioned are some of them which affects both the senior management as
well as new candidates of GSK PLC:
• Autocratic leadership style: - It defines the division between leaders and
workers. In this concept, decision making power rests with the seniors and
management level and there is less interference and involvement of staff
members or the middle level employees (Grant, Mayer, 2009.). GSK have
a managing team of leaders which are comfortable and confident with
the judgement in the areas such as daily operating activities and strategic
plans for corporates. Research indicates that autocratic leaders show less
creativity as compared to the comparative style.
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• Authoritative leadership style: - The sole control and decision making
power and authorities are assigned to leader in the team in this style. Tasks
are given according to the performance and capabilities of team members
and they are expected to complete the assigned work. GSK PLC has adopted
this style to enhance its position in the competitive market (Diefenbach,
2013). The style is of controlling nature and has the minimum flexibility
in decision making. It divides the duties and responsibilities and also guides
as per the tasks and process through which they have to be performed
which reflects high control but low employee involvement.
Democratic leadership style: - In this concept, leaders are more likely to be
involved in the team and activities carried out so that they would interact
with the individuals and can discuss the problems of team members. A
positive environment is created by solving the issues and conflicts which will
develop a mutual approach of working. Organization can make use of this
system by which they can create an open communication process with the
help of management team (Glowinkowski, 2013).
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As it is known that different leadership styles which are prevailing are effective in
different cases. Autocratic style of leadership is that type of leadership where
the leader is proactive in his actions unlike the leadership style of democratic
which lay emphasis reactive approaches further the appreciative style of
leadership also founds to be effective as in thi8s leaders try to be participate in
every task with workers.
2.2
In structured organization setting, management has to integrate with the
business roles to attain predetermined objectives. It helps in influencing efforts of
employees towards the same. Scientific management theory is an old approach
which is adopted in GSK with different aspects (Dzimbiri, 2009). It has been
adopted in business in the following ways:
• Division of work- It is the task which is assigned and completed by the staff
members for increasing the efficiency. GSK has made different departments
as per the functional areas in organization.
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• Authority- Concept of authority and responsibility are related with each
other. The organization has developed a process of centralised authority
system and side-by-side has also advanced leadership aspects to divide
authority in entity.
• Discipline- GSK PLC has developed a rigid code of conduct which has
created a significance of discipline aspects and these conditions are
managed by the quality management system.
• Unity of command- Business Corporation has applied this system in the
form of rigid structure which has helped the organization in developing a
sense unity of command in a flexible manner by developing the regional
outlets.
• Remuneration- Cost of living and the success of business determines the
labour pay rate. GSK has started many schemes and incentive plans for
the welfare of workforce and having a good management system for taking
care of the remuneration of staff members (Halbesleben, Bowler, 2007).
Management practices have been used by GSK have been effective for the but
they need to evaluate and measure the performance of its employees so that
further scope of decision making can be formed for more better future and
growth prospects.
Organization theory which is linked with style of management in organization area s follow
• Human relation approach: According to this approach people are emotional
and they are not only want financial security. Their need is required to fulfil so
that they work more effectively and efficiently. Further at GSK employee are
supported by manager and they are involved in decision making process. It help
in feeling like a part of the organization. Workers are afraid that they may be
fired from the job so they need to Provide job
security. It help in increasing the overall performance of employee at GSK
2.3
Mainly there are three types of approaches which the organizations can
use for management. These are classical, neoclassical and modern approach (Jain,
2007). GSK uses the following approaches in their administration process:
Classical approach
The organization is using classical approach for management.
Organizations have concepts that are commonly known as classical theories of a
corporation. Business entity is a structure of power, relationship, objective, roles,
activities, communication and other factors that exist when an individual works
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together with another. According to this concept, organization is more focused on
the physical aspects and structure of working rather than employee’s needs and
demands. It has developed a high level of frustration among employees and thus,
minimizes the employee’s retention rate.
Since evaluation of the operations and performance of employees have always
been the key in making the people work under different conditions. Also evaluation of
performance of employees will lift them to make necessary decisions in relation with
growth of the GSK.
Neoclassical approach
The organization can also make use of neoclassical approach. This
concept is also referred as a human relations school of thought which reflects
modification to improve over the classical theories. The theory will enable
organization to focus more on primary, physiological and social aspects of
employees. This has helped company in creating high motivational aspects among
employees that will influence their motivational power and bring innovation in
the business (Hoffmanet, et. al., 2007.).
TASK 3
3.1
Leadership styles have many significant effects on the business activities and
structures of organizations. These styles affect everyone from the management
level to new candidates or the interns. The corporate culture and performance of
organization is influenced as well (Bolino, et. al., 2013). Below mentioned are the
effects of these styles on employees of GSK PLC:
Different management styles followed by the leaders affect the
employees to build the motivation levels which carry the effort of making
different scenarios in positive way for the organization.
Autocratic style of leadership: The style can also be defined as authoritarian which
clearly makes division between leaders and workers. Leaders make decision with very much or
no involvement from staff members. The management of GSK PLC has taken the sole control of
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decision making responsibility for organization’s strategies and plans. This has resulted in low
employee involvement which has created an adverse impact on employee’s retention and
motivation in the business.
Participative style of leadership: The style is also known as democratic
leadership and is most commonly used organizations. It can also be followed by
GSK PLC to keep a healthy environment at workplace. This style is opposite to
autocratic one. The management of GSK should provide proper guidance and
training to its teams and employees in various departmen.
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In this concept, each and every individual is involved and their feedbacks are
considered to be important. Final decision making process is done by the leaders
but ideas, views and suggestions of team members and staff are encouraged and
motivated (Grant, Mayer). This style has a positive effect on employee’s
performance due to which they feel confident while performing their job and
making decisions. This will result in developing innovative working styles among
employees of GSK.
3.2
McGregor's X-Y theory focuses on leadership aspects of the business
which has a significant impact on employee's performance and their motivation.
Managers are influenced by theory X which in general focuses on controlling
employee’s actions and thus, provides poor results. On the other hand, using Y
theory produces better results as managers adopt participative approach to monitor
and control employee’s performance (Jain, Cooper, 2012). Following are the
impacts of X-Y theories on individuals of GSK PLC:
Organization has adopted traditional means where the workforce is
managed in a significant manner. There are different motivational theories
which helps in making the people work at the workplace in a significant
manner through providing different class of work which an organization
requires from its employees.A restricted level of communication is there
between the employees and their involvement is also low. Staffs are delegated
with the roles and responsibilities that they are expected to attain with minimum
support. The work pressure is high along with monetary terms in working style.
This has created an insignificant impact on the employees. Thus, it can be shown
that by adopting Theory X in GSK PLC, employees are less motivated. On the
other hand, corporation can also adopt theory Y for managing business. Here,
leaders are involved effectively in business activities and participation of
employees in decision making process is also there which enhances self-
motivation of them which in-turn develops high trust and loyalty. Team work is
another aspect of this approach. This helps company in attaining the desired and
favourable goals (Fischer, Mansell, 2009).
3.3
A motivation theory could be used to gain better performance and desired
goals and objectives of the organization. There is no methodology for increasing
productivity without using motivation. GSK PLC should use Herzberg's two
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factor theory for ensuring that the employees demands and needs are satisfied to
the full extent. This concept can also be termed as motivation- hygiene or dual
factor theory, the components also plays a significant role in the workplace by
providing job satisfaction(Becton and Giles, Schraeder, 2008).
This in turn results in an increase in productivity of the organization due to
an increase in the employee satisfaction. The managers benefits could be tied to
overall performance to ensure that he will be interested to make changes. A
motivational theory would be highly valuable in transforming and developing the
attitudes and behaviours of the staff and bring even better performance for them to
increase the organizational profits and consumers loyalty. Application of these
theories by employees in order to reduce the problem of mandatory
defection in workplace and workers disengagement(Dzimbiri, 2009).
TASK 4
4.1
Individual and group performance plays a significant role in the attainment
of desired goals and objectives of organization. Employees working together as a
team are proved to be profitable for business and also creates a positive
impact on the operational activities of corporation. Working as a team is one of
the most significant advantages for making business activities successful.
However, to determine the group behaviour, companies analyse formal and
informal aspects of firm (Diefenbach, 2013).
Formal groups are the one which are created to achieve specific and pre-
determined goals and objectives of corporation. A well structure of responsibilities
and authorities is maintained within team members. Tuckman theory of group
formation defines various stages which includes Forming (bringing employees
together), Storming (developing a basic formal relation) Norming (delegating roles
and responsibilities) and Performing (actual performance of the group). These
groups are developed to attain the business objectives.
Informal groups are those which are developed on a deliberate basis due to
common interest, needs, preferences etc. These groups are useful for managing
the positive working
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environment in the organization. City college has developed a well defined group
however lack informal behaviour in the business enhanced high level of
frustration for employees(Brown, 2013).
4.2
There are several internal and external factors which are significantly
important for an effective team work. Moreover the teams are built strong due to
competitiveness toughness or high energy levels and which can make other teams
weak(Bolino, et. al., 2013). Following are some of the factors which make an
effective team and that are adopted by GSK PLC:
• Trust among team members: - Trust is the most essential factor among
employees of a team. If trust is lacking among team members, it is the
responsibility of leader that he has to build a feeling of trust among
members for the growth and success of team. However, if there will be lack
of trust among members of a team, productivity of them will get affected
due to improper coordination with each other.
• Commitment of actions towards decision and plans: - Group results come after the
commitment of team that leads to take fruitful decisions for the firm. If
promise is not fulfilled by the team members, firm will not grow and
becoming successful in the competitive market would become impossible.
• Achieving the collective results: - Vision and mission of GSK plc should be
understood and accepted by the team members so that they can achieve
goals and objectives of firm in the desired manner. If the team is not
accepting any of the objective or ignoring the same then there are no
chances of success of organization (Hoffman, 2007).
Developing the effective team work at GSK, the mangers need to make the
decisions on incorporating different measures such as they should interact
more with each other which will help in making the employees develop traits
which will help in different perception. A positive and sound team working will
help the firm to achieve the objectives.
4.3
Technology at the workplace allows businesses to expand quickly and
efficiently. The advancements such as video conferencing, social network and
virtual office technology has removed workplace boundaries that previously
limited business expansion (Fischer, Mansell, 2009). With latest technologies,
corporations can target a wide customer base and grow to higher levels.
• Improves communication: It improves and develops communication
process at the workplace. The employees are not limited to phone calls
or inter office mails for interacting with each other. Business technology
has improved the communication of City College with clients and business
partners which develop a strong bond with them.
• Human capital: Technology in the workplace improves the efficiency of
screening, recruiting the candidates of higher potential. The managers of
Enterprise rent-a car are targeting the candidates by using digital advertising
technology that tracks the websites they visit. Technology like personality
assessment and screening tools allow business to determine whether a
potential candidate is an appropriate fit for the organization.
• Efficiency: Office technology used saves the time by speeding up the work
flow process. Digital filing systems save space, paper and printing costs. The
use of computers in City college have minimized the rate of errors and also
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the corrections are done instantly and an access to information technology
are available with a click(Halbesleben, Bowler, 2007).
CONCLUSION
From the above carried out analysis, it has been inferred that the
organizational structure and culture have many significant impacts on the
performance of GSK PLC. The employees are influenced by various factors such
as personal, demographic, physiological and environmental and are also motivated
by using different types of motivational and leadership theories. Further, the
management practices adopted by organization are evaluated in the report.
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