Organizational Structure, Culture, and Leadership at CAPCO: Report

This report delves into the organizational behavior of CAPCO, examining its structure, culture, and the leadership styles employed. The report highlights CAPCO's matrix organizational structure, emphasizing its impact on communication and employee motivation. It explores the cultural environment, considering its influence on individual behavior and the company's approach to corporate social responsibility. The analysis further investigates factors affecting individual behavior within the organization and the effectiveness of various leadership styles, including autocratic and participative approaches. Organizational theories, such as scientific management and human relations theory, are also discussed in the context of their application within CAPCO. The report provides a comprehensive overview of the interplay between organizational elements and their influence on employee behavior and overall company performance.

ORGANIZATIONS
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
1.3................................................................................................................................................3
TASK 2............................................................................................................................................4
2.1................................................................................................................................................4
2.2................................................................................................................................................5
2.3................................................................................................................................................6
TASK 3............................................................................................................................................7
3.1................................................................................................................................................7
3.2................................................................................................................................................8
3.3................................................................................................................................................9
TASK 4..........................................................................................................................................10
4.1..............................................................................................................................................10
4.2..............................................................................................................................................11
4.3..............................................................................................................................................12
CONCLUSIONS............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The present report is prepared focusing on drawing an understanding on the structure of
organization. The organisation's structure defines that how an organization will work and how it
will delegates authorities at various levels. Delegating authority according to the organizational
structure selected influences on the leadership style to be adopted (Hiriyappa, 2009). Leaders
have to importantly perform the task of motivating each employee and thereby combining the
efforts of each of them to promote teamwork for successfully achieving the organizational goals
and objectives. All of these elements build a specific culture of the company which in turn
influences the behaviour of each individual employee .Here considering the example of CAPCO,
the procedure of application of motivational theories and the different leadership styles followed
will be defined.
TASK 1
1.1
ORGANIZATIONAL STRUCTURE AND CULTURE
The organizational structure of an organization is designed and structured on the basis of
its purposes and objectives that it wants to achieve. For achieving the objectives and goals it is
necessary to plan out an action plan that will work in accordance with the structure developed by
the top executives of the company. Organizational structure determine that how the company
will operation and what kind of managerial techniques will be implied using leadership styles.
The organizational structure that determines the way it will be interpreted by the list of
stakeholders and investors. The organizational structure is transparent and therefore shows that
what are the cultural aspects of the company (French, 2011). Organisational structure thus
determines the individual behaviour of each of personnel and thereby collectively influencing the
achievement of objectives.
The organizational structure of the company mentioned here that is CAPCO, is the blueprint of
success of the company being attaining a successful and a leading position in the industry of
providing consultation and managerial assistance to the financial institutions. Amongst different
organizational structure looking upon the industrial environment and the operational activities of

the organization, it follows matrix structure of organization. Following this type of modern
business structure enables easy flow of communication within the organisation. This matrix
structure of the organization is a blueprint of success for the other similar companies working
within this industry wherein the company includes the elements of both type of structures such as
functional and divisional structure (Griffin and Moorhead, 2011). The company therefore
follows top to bottom and bottom to top chain of flow of communication, the motivational
morale of the employees improving the performance of company as well as increasing quality
standards of the services offered.
On the other hand, for analysing another type of structure the example of a customer oriented
company that is NEXT PLC is undertaken wherein it is observed to follow the functional matrix
system. The company has a complex existence producing range of products such as footwear,
clothing and home accessories. The company has therefore divided its task into different
functions such as human resource, financial and production department, etc. Each of these
functions are undertaken by an coordinated teamwork of different groups possessing specific
skills in there respective fields. The human resource department recruit and hires personnel
whereas the financial department looks after arrangement of obtaining funds and allocation of
the same.
As mentioned above both the company also have a cultural environment influenced by the
organizational structured adopted by the authoritative executives. The cultural environment is
made up of individual behaviour of each employees thereby building an environment that
reflects the beliefs and behaviour of the human resource. The cultural environment thus reflects
that what motives the company follows and on what principles the company operates to serve the
society on account of its corporate social responsibility as a duty towards the society. CAPCO'S
cultural environment has a distinctive feature of accepting the values adopted by its employees
and thereby framing the policies considering different cultural beliefs of its employee so that
none of them would experience discrimination on the ground of culture. On the other hand the
cultural environment of NEXT PLC needs to be enhanced to expand the operational activities for
capturing other geographical areas of the globe (Henry and Pilati, 2011).
1.2
The organizational structure of the company has well considered the importance of
building an efficient cultural environment that includes the beliefs, assumptions and shared

values of the employees. There are various elements that contribute towards success of this type
of organizational structure one of them being the cultural environment. The cultural environment
therefore can be commented to be having a wide scope of acceptance of various cultural
dimensions and working on positively to impact the performance of the company to a greater
extent. The shared common values of the employees determine that how they act, dress and
behave within the functional area of the company (Ardichvili and Yoon, 2009). The cultural
environment of the nation in which company operates also plays a major role in influencing the
language, habits and beliefs followed by the company. The company's logo is designed on the
basis of influence of cultural aspects. The cultural environment can influence on the achievement
and success strategy of the company by considering the impact and issues related to the cultural
aspects. This answers that what assumptions will be made by the company to draw conclusions
on same. It can thus be said that the cultural values followed by the company can have a positive
impact on the performance and profits margins if it considers the importance of serving the
society wherein it sells its services. The profit level will be increased if the aspect of culture
adopted by society and employees is acknowledged. Thus the company must design its
organizational structure in a manner such that it increases the morale and standard of living of
employees thereby contributing to the society by equally contributing to develop the society to
which its customers belong. The operational activities are followed in a manner such that the
company delivers high quality and standardised services to its customers and the various
stakeholders (Atak, 2011). Thus the cultural aspect cannot be avoided by the company or
regarded less important otherwise the company would not be able to survive in the severe
competition as it is very much important to serve the society and promote the social background
of the employees and various other personnels. The company's shares are considered to be highly
valuable in the market as the customers believe that the company considers the cultural aspect of
its customers and employees to the maximum.
1.3
FACTORS AFFECTING INDIVIDUAL BEHAVIOUR IN AN ORGANIZATION
CAPCO being an internationally operating company has achieved a benchmarking
position in the industry as it considered its employees as asset an not as its cost. It is being
acknowledge by the company that it not just simply has to pay wages and salaries to its
employees but also equally make efforts to understand there behaviour individually as this could

affect the company's performance in long run (Bakker and Bal, 2010). It is very obvious and well
understood that the operational and administrative activities success is dependent greatly on how
its individual employee adjusts himself according to the organizational environment of the firm.
The organizational success is possible only if the organisation has a well trained and developed
team of human resources. The individual behaviour of the personnels must be such that its
accepts the implications and modification in the policies issued. The individual behaviour of an
employee is strongly influenced by factors such that includes the social background and personal
beliefs of the employee. Further moving it can be said that the stress level induced by the
company on its employees also influence the behaviour of each individual. Whereas attitude and
personality are the internal aspects influencing there behaviour individually. Perceptions show
that to what extent an employee will adjust with the policies and how he will respond.
Understanding the individual behaviour is helpful in making sure that the policies framed would
not exploit or harm on the feelings of any of them. A company therefore accepts positive
attitude from its employees and a personality that is effective in building a strong image in the
market (Bakker and Demerouti, 2008). Understanding of individual behaviour is thus important
to analyse the individual expectations of each employee from the company and to frame the
employee related strategies accordingly that would be beneficial to the company as well as its
employees.
TASK 2
2.1
EFFECTIVENESS OF DIFFERENT LEADERSHIP STYLES
The organizational structure requires contribution of personnels providing assistance for
managing and controlling the human resources. The managers and senior executives of the
company possess a super quality of controlling its personnels. Based on different situations and
organizational conditions different leadership styles are adopted by the executives to control and
evaluate the performance of the employees. By applying various leadership styles and techniques
for monitoring the performance of the personnels working at various levels, the company is able
to maintain the standard of quality operational and administrative activities (Cadwallader and et.
Al, 2009). These leadership styles state that within what time frame the company will complete
its tasks by successfully coordinating the work of each group commonly working to achieve the

objectives of the firm. Depending upon the nature of task to be completed and the departmental
needs, managers and supervisors adapt any of the following mentioned leadership styles in
combination or in separately as below:
 Autocratic style: If the conditions are such that it requires compulsory appliance of
required policies on account of management change or such other major changes within
an organization where the inputs cannot be taken from other personnels. None of the
employees can challenge the application of changes made by applying autocratic
leadership style as these changes are made by the top most executives holding maximum
authority. The changes brought within the organization are thus of long term nature and
cannot be changed on account of non acceptance under any case(Carmeli and Spreitzer,
2009).
 Participative style: This type of leadership style is adopted by the leaders or senior level
managers when they need to make short term changes with the organization thereby
considering the inputs from individual personnels to make them feel that there
suggestions are important for the company for improving the performance of company by
making change in the environment where employees work to make them feel more
important. This type of leadership style have proved to motivate the employees and
increase the level of trust and satisfaction with respect to the company of which they are a
part. Participative leadership style makes it very easy to adjust the employees to the
changes coming thereby.
Thus both of the companies working on a global ground have expanded there scope of
acceptance of different leadership style according to the changing market and industrial
conditions.
2.2
ORGANIZATIONAL THEORIES AFFECTING THE ORGANIZATION
The organizational theories are used to analyse the organisation. These theories are
basically the approaches that helps the managers to understand the organizational behaviour.
Below mentioned are the organisational theories applied by the company:
 Scientific management theory: This theory comprises of applying science to the process
of management generally to increase the labour productivity and economical performance
of the organization (Conway and Lance, 2010). The theory holds its existence

traditionally in analysing and managing the work flow in an scientific manner ensuring
discipline within the firm. The theory therefore if applied to control the operational
activities would not ensure there completion of task within the time but also will improve
the per labour productivity.
 Human relations theory: The human relations theory works on the basic principle that an
individual expects better workplace environment within an organisation which promotes
team work by coordinating the efforts of each personnel thereby improving the
performance and quality standard of the employees. The human relations theory ensures
that the employees are provided with ample of opportunities that develop their carrier as
well enhance the performance of the organisation. The human relations theory states the
importance of employees for production and not the machines. This theory implies the
importance of constant research and analysis of the researchers on the performance of
employees that increase their motivation (Crawford, LePine and Rich, 2010).
Thus the company uses both of the above mentioned theories to organize its activities in an
scientific manner and develop human relations of the employees. If these theories are implied
effectively, it will improve the company's performance.
2.3
DIFFERENT APPROACH TO MANAGEMENT
 SCIENTIFIC APPROACH: The principle of scientific management was developed by
Fredrick Taylor who is known as the father of scientific management. It determines that
which is the best way of doing a job or a task. The scientific theory includes the elements
such as studying time and motion studies, hiring best qualified workers and designing
incentive system for output.
 GENERAL ADMINISTRATIVE THEORY: This type of approach is used to find out
that what the managers are assigned actually and what constitutes good management in
the organization. This theory thus focuses on drawing conclusion about which factors are
positively affecting and which activities need to be removed from the activity flow.
According to Henry Feyol's principles of management the theory answers as to how the
division of activities will be done and the extent of authority to be delegated for the same.

These are the theories utilised by CAPCO for managing the activity flow efficiently and
effectively. On the other hand NEXT PLC uses the contingency theory of management (Garvin,
Edmondson and Gino, 2008).
 CONTINGENCY THEORY: This theory states that as the company operates on
international basis, frequent and continuous changes are emerging in the organization
therefore the industrial environment is changing accordingly. For adjusting with these
changes , modifications might be done to work aligning with the environment in
international environment. Thus the company brings in necessary changes depending on
the situation.
It can be said that both the companies follow smart way of using the approaches for making its
management efficient and a successful one (Hakanen, Perhoniemi, and Toppinen-Tanner, 2008).
TASK 3
3.1
IMPACT OF DIFFERENT LEADERSHIP STYLES ON MOTIVATION
The company follows different leadership styles depending on the internal environment and
group behaviour of the employees with respect to acceptance of guidelines and instructions
given. The results of applying various leadership styles depends on efficiency of the leader or
manager. The leadership style must therefore be selected or chosen after considering the
necessity of its impact upon the organisation's personnels. The leadership styles must therefore
be able to motivate the performance of employees. The leadership style followed by the
company is as below:
 IMPACT OF AUTOCRATIVE LEADERSHIP STYLE: This type of leadership style is
very much dominating upon the employees and does not encourage any involvement of
suggestions or ideas of the employee. Autocrat style proves to be frustrating for the
employees sometimes if they feel that there ideas are not accepted by the company and
their importance is not considered by the company. Therefore autocrat style must be
applied with due care so that it does impact the organisation's performance negatively.
The morale and motivation of employees might be decreased (Hirst, Vanknippenberg
and Zhou, 2009).

 IMPACT OF PARTICIPATIVE LEADERSHIP STYLE: This type of leadership style
includes considering the importance of involvement of employees in making new
changes within the organization. This style has a very positive impact upon increasing the
motivation of employees by acknowledging the fact that there participation is equally
important to the organization. This increases the morale of employees.
 IMPACT OF TRANSACTIONAL LEADERSHIP STYLE: Transactional style follows
issuance and appliance of guidelines and policies within the organization to improve the
performance of organization by improving the working ability of the employee. The
employees are therefore motivated on account of continuous training and developmental
programmes conduction as well as rewarding the employees for extraordinary
performance as compared to others. This type of leadership style therefore improves the
motivational level of the organization by positively improving the performance of
employees (Ho and et. al., 2011)
3.2
APPLICATION OF MOTIVATIONAL THEORIES
Maslow's theory of motivation
Maslow's theory of motivation includes a hierarchy of needs as introduced in 1943 by Abraham
Maslow on motivation of employees to enhance the company's overall performance. This
psychological theory is applied to improve the performance of employee by following the
hierarchy of needs for motivating the employees. This hierarchy is considered as below by the
company considering the five stages of the hierarchy :
 The process starts with satisfying the physiological needs of the employees wherein the
company makes sure to provide necessary elements for human survival. The basic needs
are satisfied at this stage.
 The second stage of increasing motivation of employee includes satisfying the safety
needs of the employees as safety needs are considered important for the protection of
life of employee and his family. The safety can be with respect to matters such as
financial, personal , health or accidents/illness.
 The third stage of hierarchy of needs includes the feeling of belongingness and love
towards the organization or any social groups. The company considers the employees as
assets and on the other hand the employee must work believing that they are a part of

the company to which they belong. The company therefore makes sure that the
employees are motivated with no effect of negative elements such as being avoided or
feeling of loneliness (Ho and et. al.,2011).
 The fourth stage of Maslow's theory states that the employee must be motivated by
considering the fact that they have reserved and build up a level of respect in the
organization.
 The last stage of hierarchy states that a sense of self actualization must be promoted to
ensure that the employees are given enough opportunities to develop there carrier by
improving self actualization.
Herzberg’s theory of motivation
Frederick Herzberg’s theory of motivation also known as dual factor theory or hygiene theory
states that there are specific set of elements causing job satisfaction and other elements causing
dissatisfaction. This dual factor theory states that a specific set of incentives could yield
satisfaction or dissatisfaction among the employees and both of these results acting on
independent of each other. The company therefore strongly believes that the employees are not
much concerned about lower level needs like small incentives and salary only but are
importantly concerned about motivation enhancement on account of promotional activities,
recognition, advancement or responsibility. All of these factors result in a level of satisfaction or
dissatisfaction being build upon among the individual employees (Nimon and et. al., 2011)
3.3
NECESSITY OF UNDERSTANDING AND APPLYING MOTIVATIONAL THEORIES:
The main task of a manager in an organization working at different departmental levels is
to ensure the completion of the task or set of activities on time. The following is the list showing
importance of understanding and applying the motivational theories:
 Making out the best use out of employee's skill is the ability of an manager and the
performance of personnels is thereby the results of different managerial principles and
motivational approaches utilized to increase the performance of employees.
 In this era of rapid industrialization on international level , the manager's efficiency is
measured by analysing that how effectively and efficiently he utilizes various
approaches to motivate the employees. Acknowledging the fact that employees are

important human resource for the company the motivational theories assign them an
equal value as that of other financial and physical assets of the company.
 Considering the competitive condition prevailing in the market it is necessary to give
due importance to the employee that also increases there motivational level for achieving
the objectives and goals of the company (Pieterse and et. al.,2010 )
 If the managers are successful in motivating the employees it shows that they are
recognized by the company as important as the other employees working in the
organization. The company thus serves the society indirectly by improving the standard
of living and providing self recognition and self esteem to its employees.
TASK 4
4.1
NATURE OF GROUP AND GROUP BEHAVIOUR WITHIN AN ORGANIZATION:
Human resource being an important part of an organization requires a a great deal of
concentration upon understanding and analysing the behaviour of employees individually as well
as a team group. The study work on group behaviour considers the same. The section shows that
which factors affect the group behaviour and how the process of interaction works in an
employee' group. There are two types of group in an organization namely formal and informal
group but the below mentioned list shows the other types of groups too (Hiriyappa, 2009).
 Formal group: These groups are defined on the basis of organizational structure and the
assignment of work.
 Informal group: These types of groups have no legal existence in company's record of
group management thereby having no identity based on organizational structure. These
groups are build by the employees themselves.
 Command group: Within this type of groups the individual report to there respective
managers. The personnel need to follow the commands and instructions given by the
managers (French, 2011).
 Task group: These groups are formed organizationally in accordance with task assigned.
Each of the group does specific assigned task.
 Friendship group: This group includes those personnels who share one or more of the
common values.