Organizational Behaviour in CAPCO company - Report

ORGANIZATION AND
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................2
Task 1...............................................................................................................................................2
1.1 Compare and contrast organizational structure and culture:.................................................2
1.2 Relationship between structure and culture, and its impact on business:.............................3
1.3 Factors influence individual behaviour in an organization:..................................................4
Task 2...............................................................................................................................................5
2.1 Compare effectiveness of different leaderships in CAPCO and any other organization:....5
2.2 Organizational theories influence management practice......................................................7
2.3 Evaluation of different approaches of management used by CAPCO and ASDA..............8
TASK 3............................................................................................................................................9
3.1 Impact of different leadership styles on motivation..............................................................9
3.2 Comparison of different motivational theories within Capco Company............................10
3.3 Evaluation of usefulness of motivational theory for managers...........................................13
TASK 4..........................................................................................................................................14
4.1 Explanation of nature of groups and group behaviour in CAPCO Company.....................14
4.2 Factors that may promote or inhibit the development of effective teamwork within
CAPCO Company.....................................................................................................................15
4.3 Impact of technology on team functioning in CAPCO Company......................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

Illustration Index
Illustration 1: Maslow's Need hierarchy theory.............................................................................11
Illustration 2: Herzberg's theory of motivation..............................................................................12
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INTRODUCTION
Organization behaviour is a direct way of knowing company's behaviour within the firm
from multiple aspects. A firm possess number of employees those who work together to
achieve common business goal. Main purpose of organization behaviour is to understand and
control the behaviour of employees working within it(McKenna,2000). Behaviour can affects
individual or group of people and organization structure also. For the present report CAPCO
company is being taken into account. It is globally spread capital market company and working
in several financial sectors; banking, capital market, finance, risk, insurance and investment
management.
Present report will cover organization structure and culture and its impact on performance
of business. How leadership, organization theory, motivation and technology impacts on
performance of business. Organization behaviour is very important to know authority, power and
status of each function perform by people within the firm, improve human behaviour and to
increase performance of company. It deals with individual or group of people, organizational
structure, and how these all information can help business for effectiveness and development
(Aquinas, 2006). Humanistic and optimistic approach of organization behaviour help concern to
perform better and to satisfy people working within the enterprises.
Task 1
1.1 Compare and contrast organizational structure and culture:
Organization structure:
Organizational structure helps to know task allocation, coordination, supervision of
organization and how they related to each other to achieve the goal. There are three types of
structure: Hierarchical(tall), horizontal(flat), Matrix structure. In tall structure business is
organized in many layers and decision is taken by higher authority (French, 2011). In flat there
are fewer layers, decision taken by these few layers and group of workers working within these
layer. In matrix skilled people are required. To compare CAPCO structure, ASDA stores Ltd. has
been taken into practise. CAPCO follows flat organizational structure. This Horizontal structure
creates high motivation in the organization among employees. There are few layers of authority
so that decision making is fast and also communication between different departments is too
effective due to less number of layers. It encourage people to share their ideas and contribution
to achieve company's goal. ASDA follows hierarchical(tall) structure. There are lot of employees
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working in an organization so information has to pass from one layer to another. And for
different layers there is different managers working so it take little time for decision making.
Organization culture:
Culture of organization show values, behaviour and its impact on environment of
company. Four types of culture are here. Power, role, task, person culture. In Power culture
power is held by few individuals . They take decision, how function will be done. In Role culture
responsibilities is distributed and controlled by everyone as per position. In task culture task is
important thing and decision is taken on behalf of team working. In person culture every one is
getting involved in decision making (Parikh, 2010). Being an entrepreneurial CAPCO'S culture
is person culture type. Employees has freedom and flexibility to work. Its culture emphasis
personal growth and rewards for good performance and also challenging portfolio so that people
can learn and take experience. Its culture is flexible, risk taking and creative. But in ASDA'S
culture because of mass employees working into organization, it is very difficult to keep updated
about individual performance so it focuses on customer service mainly. It believes that customers
are the heart of business so they should serve effectively by employees. Experience and strength
shared by each other.
1.2 Relationship between structure and culture, and its impact on business:
To achieve organization's goal it is very important to have a formal structure with good
values. Organization culture helps to define organization structure and also determines the
culture of firm. Structure determines roles and responsibilities of employees and monitoring of
employees (Singh,2009). In centralized structure all powers are in hand of higher authority and
in decentralized structure power is delegated to lower level so that worker feel satisfy with job
and their responsibilities thus work effectively for organization. In CAPCO structure and culture
are inter related. This impacts on culture and same it also impacts on structure as well. As
CAPCO is having less number of layers in its structure so communication in between several
employees are quite easy to perform. And because of this employees are satisfy with their role
and working their best that gives organization profit and more productivity. As it's culture is too
flexible and creative and its flat so employees need to meet with several changes and perform
these tasks so by this they will be able to learn new things and have experience to deal with
several changing conditions. This provides it competitive environment so that can serve better to
its customer. Due to flat structure follow by CAPCO so communication is easy, also decision
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making is frequent thus employees are highly motivated and do their best to achieve goal of
organization. By this way company will grow and increase its productivity and profitability.
Suitable culture and structure of an organization encourage risk-taking and innovation. As
CAPCO is following flat structure it increasing risk taking programme to innovate new thing in
business (Ranganayakulu, 2005). Because structure is simple and easy so it increases better
coordination between employees, and employees can take risk easily and thus it helps to know
new ideas and innovate new things which can help to achieve targets of company. If structure
and culture is good then loyalty increase and people get motivated and behave positive towards
company. These all factors help employee to perform better for organization thus business will
be profitable.
1.3 Factors influence individual behaviour in an organization:
There are several factors which influence individual behaviour in CAPCO:
1. Personal factor
2. Environmental factors
3. Organizational factors
Personal factor:
Personal factors which influence individual behaviour are as Biographic and Learned.
Biographic characters like age, gender, religion, marital status, experience, intelligence, ability
etc. affects individual behaviour. In learned factor personality, perception, attitude, values etc.
affects behaviour of individual.
Environment factors:
1. Economic factor:
 Employment level and wages: As CAPCO having few layers of hierarchy in its
decision making process so work pressure is too high so me times and employee feels
dissatisfy because according work pressure he is not getting salary (Singh, 2009). And
also other companies are giving more monetary values to employee then also he thinks
for leaving job.
 Technological development: As market is changing rapidly, new technologies are being
in used. Management of CAPCO try to give training in an effective manner so that people
can easily adapt new changes. But some times employees are not comfortable with these
changes and that show in their behaviour.
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