Organisation and Behaviour

This report provides a comparison between CAPCO and HSBC, explores the relationship between structure and culture, discusses factors influencing individual behaviour, compares the effectiveness of leadership styles, examines different organisational theories, and explores various approaches to management. The study material and solved assignments are suitable for the subject of Organisation and Behaviour.

Organisation and Behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Comparison between CAPCO and HSBC.............................................................................1
1.2 Relationship amongst structure and culture...........................................................................2
1.3 Factors influencing individual behaviour..............................................................................2
TASK 2............................................................................................................................................3
2.1 Comparing effectiveness of leaderships................................................................................3
2.2 Organisational theories..........................................................................................................4
2.3 Approaches to management...................................................................................................5
TASK 3............................................................................................................................................6
3.1 Impact of leadership on motivation.......................................................................................6
3.2 Comparison of motivational theories.....................................................................................6
3.3 Managers requirements..........................................................................................................6
TASK 4............................................................................................................................................6
4.1 Nature of groups and their behaviour....................................................................................6
4.2 Factors inhibiting development.............................................................................................6
4.3 Impact of technology.............................................................................................................6
CONCLUSION................................................................................................................................6

INTRODUCTION
Organisations are formed by collective functioning of some individuals towards a
particular aim. There are several attitudes portrayed by these people inside the functioning
environment. This report is based on the concept of organisation behaviour and the 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 of finance sector. Organisational
structures can be complex or simple depending upon the choice of people who are implementing
it. CAPCO inhibits functional structure of organisation and HSBC portrays divisional structure.
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). CAPCO’s
cultural environment is quite adaptive to work pressures and emergency situation. The company
has been dealing with deadlines efficiently which is also valid in case of HSBC. Functional
structure helps in fostering and supervising groups and teams which have similar skills. While
divisional structure is based on complete breakdown of the organisation. Separate departments
are made which do not involve interference of other functions (Hashim and Wok, 2014).
Considering the partition of responsibilities amongst employees, functional structure
doesn’t allow allocation of fixed duties. There are chances that other functions have to fulfil each
other’s duties. On the contrary, divisional structure defines fixed responsibilities which are
allocated by leaders and managers (Dooley, 2014). Authorities initiate a particular culture in
organisation. CAPCO has power culture in its organisational structure while HSBC has role
culture. The key attributes of power culture is decision making authority in hands of particular

people. Despite of quick accomplishment of goals in company with this culture, employees often
face dissatisfaction. The reason behind this lack of interest is sort of dictatorship which is
formulated through power culture (Fitzgerald, 2014). However, role culture is kind of democracy
inside the business environment of HSBC. People feel free to take initiatives and push their
limits in meeting deadlines.
1.2 Relationship amongst structure and culture
Organisational structure and culture have a deep routed relationship. The performance of
operations or business processes and this relationship go hand in hand. For CAPCO to develop in
international markets, the structure of organisation must be designed in a way that positive
working culture is established. This company has adopted functional structure which is most
productive for multinational organisations (Harper, 2015). Since, CAPCO has power culture in
its functioning structure; the operations are easily and quickly accomplished. Decisions which
are made for particular action are taken by managers or leaders of every functional department.
It is not easy to manage efficient operations in an environment where employees share
clashes and conflicts due to differences in working styles. Organisational dynamics play a vital
role in managing behavioural attributes of staff (Scott and Davis, 2015). If their interest level
towards work is decreased, then strategies and action plans will slow down. Power culture helps
in finding solutions to such clashes which finally result in overcoming of barriers. Strict
alignment is provided to workforce who results in serving the purpose of working effectively.
For instance, if CAPCO’s human resource department wants to hire some employees for
marketing department. The functional structure allows efficient interactions and communications
between various functions (Rosemann and vom Brocke, 2015). This feature contributes
positively to the culture of the company. Hence, selection and recruitment operation of the firm
is easily accomplished. All these facts together depict that CAPCO’s market position can be
enhanced if functional structure and power culture is groomed and maintained. Moreover,
performance standards will be raised for the company which will threaten competitor’s position
in domestic and international markets (Goetsch and Davis, 2014).

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: Every individual who provides his/her services to CAPCO so that
business objectives of the company can be attained; gets impacted greatly 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.
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.
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 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.
TASK 2
2.1 Comparing effectiveness of leaderships
Leadership Style CAPCO HSBC
Autocratic styles CAPCO has functional
organisational structure. The
impact of autocratic leadership
Divisional structure is
practised in HSBC which
involves separate functioning

on the company’s operations
will be quite positive.
Overall operations of the
company are easily managed
when autocratic leaders will
rule (Miner, 2015).
They have a tendency to take
clear decisions but do not
entertain other’s opinions.
of various operational
departments.
Autocratic leaders tend to
impose their decisions over
their subordinates or
followers.
Every functioning department
have their own style of
working which cannot tolerate
high levels of interferences
(Naylor, Pritchard and Ilgen,
2013). Hence, HSBC will face
certain difficulties in this
leadership.
Transformational style Basically, transformational
leaders have an attitude which
involves complete
development of the company
with a long term vision of
future.
They do not believe in
individual progress. So,
CAPCO can prosper a lot with
help of transformational
leadership in its working
atmosphere.
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
will also emerge and flourish
if transformational leadership
is implemented.
The above comparative table describes the effect of two leadership styles in the
functioning structure of CAPCO and HSBC. The significance of leadership style is felt when
businesses face certain crisis situations. Since, leaders and managers provide working path to
employees, their attitudes and behaviour will help in forming better organisational culture. Apart

from transformational leadership, transactional approach can also be implemented by these two
companies for achieving excellence (Clegg, Kornberger and Pitsis, 2015).
2.2 Organisational theories
Business enterprises like CAPCO can opt for two organisational theories i.e. scientific
management and human relations theory for managing their daily operations. Generally, schools
of management thought consist of various theories and frameworks which are theoretical but can
be applied by business organisations (Lee and Lawrence, 2013). Scientific management was
proposed by Frederick Winslow Taylor. This theory is based on four basic principles that include
complete control and authority relies amongst managers and leaders, effective allocation of job
duties, monitoring performance and strategic management. If CAPCO engages its operations by
applying scientific management theory, then profit levels of the company will drastically
increase. In this framework, managers have to take initiative of distributing jobs amongst
workers according to their capabilities (Cummings and Worley, 2014). If people are assigned
tasks and projects according to their abilities, then their interest will enhance. Cooperation and
coordination will also improve. Company shall witness greater customer satisfaction with
implementation of this management style.
Growth and development are two sides of a coin. Every individual and organisation
perceives to be the part of such functions that is continuously progressing. Human relations
theory is based on this concept where employees want to progress with success of the company
(Proehl, 2013). When CAPCO implements this practise of management, its workforce will feel
aligned with organisational objectives. They would not feel alienated when successes or failures
will be shared. Although it involves proper engagement of leaders to devise strategies that will
help in development of employees, but results that arrive simultaneously are commendable. This
theory when combined with scientific management can bring drastic changes in performance
standards at both internal and external levels (Bartsch, Ebers and Maurer, 2013).
2.3 Approaches to management
Three basic approaches to management that can be used by CAPCO are depicted as
follows:
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). Despite
of viable increase in economic graph of the company, it is less acceptable. The reason behind this
lacking feature is high level of formality and strictness which often restricts innovation and
creativity amongst employees.
Administrative Approach: This management approach was proposed by Henry Fayol.
Accordingly, the complete management principles are segregated into five functions that are
discipline, direction, remuneration, equity and initiative. The administrative approach is also an
efficient management practise when implemented in CAPCO’s functioning. 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.
Scientific Approach: Aforementioned scientific management theory is the basis of this
approach. When jobs and responsibilities are distributed amongst employees with a calculative
technique, 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). Not only human competencies but financial capabilities of the
company are improved when scientific management approach is applied effectively.
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.
2. Democratic leadership is a form where active participation is entertained by leaders and
managers. CAPCO can experience a cheerful working atmosphere when democratic
leadership is predominant in functioning structure. Decision making process engages all
employees and welcomes their opinions and ideas. Moreover, the increased involvement
motivates individuals to actively participate in future discussions.
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.
Once transparent governance is established, the motivation amongst company employees
is never decreased (Dooley, 2014). In addition to this, comprehensive strategies which
are designed by transformational leaders are successfully processed.
3.2 Comparison of application of motivational theories
Maslow’s Theory of motivation Hertzberg’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 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
motivational levels can be judged
 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
defined in this theory. Hence, managers
or leaders gauge hygiene and
motivating factors as the basis of
decision making.
 Instead of evaluating results, the
application of this theory brings in
suggestions and recommendations. This

easily. Any of the various levels that
are defined in this motivational theory
can turn into motivator for individuals.
makes use of Hertzberg’s motivational
theory quite complex and prescriptive.
 HSBC can experience little bit
difficulty when applying dual factor
model of Hertzberg.
 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).
HSBC’s functioning can be enhanced when judgements are made for eradicating factors
that lead to demotivation of employees. It is recommended to implement Maslow’s hierarchy of
needs in HSBC’s structure. The company will be able to access basic needs and requirements of
employees according to various levels which are defined in the structure of Maslow’s theory.
Precise and accurate results will be obtained which will enhance performance levels of working
staff. Moreover, a substantial outcome of this motivational theory is broader insight in human
behaviour and the factors that can affect this subject (Goetsch and Davis, 2014). The differences
that are often created amongst individuals due to ineffective management and biasness in
organisational culture can be treated with help of this motivational 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.
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). These groups do not indulge in unfair practises or activities which are
not beneficial for firm.
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.
4.2 Factors affecting team effectiveness in CAPCO
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.
1. Synergy: Synergy is a component that implies that combined working energy of even two
people produces profits that are equivalent to hard work of five people. Teamwork’s
effectiveness is increased when group members share synergy.
2. 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). Whereas 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.
3. 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. This implies that communication can inhibit or
restrict effectiveness of teamwork.
4. 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.
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 technicalities are introduced.
Team functioning can turn out to be fatal on the contrary. In cases where people misuse
emails and mobile phones for their own benefits and to fulfil unfair intentions, technology can be
detrimental (Bartsch, Ebers and Maurer, 2013). The essence of collective working is lost and
people start fighting over pity issues. Several instances of damage to property and ineffective
management have been experienced by team members because of technology. CAPCO’s overall
functioning is disrupted if teamwork is not adaptive to technology. Hence, there are certain
complications in using technologically advanced equipment but if handled properly and
efficiently by leaders and managers of these teams.
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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