Understanding Organizational Behavior

This assignment focuses on analyzing key concepts within organizational behavior. Students are required to delve into topics such as leadership theory and practice, group dynamics, cross-cultural competence, and organizational socialization. The analysis draws upon provided scholarly articles that examine various aspects of organizational behavior in diverse contexts.

Organisation and
Behaviour

TABLE OF CONTENTS
TASK 1.................................................................................................................................................1
1.1 Compare and contrast different organisational structure and culture.........................................1
1.2 CAPCO'S structure and culture impact its operation.................................................................2
1.3 Factors that influence the individual behaviour at work:...........................................................3
TASK 2.................................................................................................................................................4
2.1 Comparison of effectiveness of the different leaderships at CAPCO and ALBRIGE Financial
Solution............................................................................................................................................4
2.2 Impact of organizational theories on practice of management...................................................4
2.3 Different approaches used by CAPCO and ALBRIDGE Solutions...........................................5
TASK 3.................................................................................................................................................6
3.1 Impact of different leadership styles on employee motivation..................................................6
3.2 Application of motivational theories within organizational setting..........................................7
3.3 Usefulness of motivation theory for managers:.........................................................................8
TASK 4.................................................................................................................................................9
4.1 Nature of groups and group behaviour within CAPCO.............................................................9
4.2 Factors that promote or inhibit the development of effective teamwork................................10
4.3 impact of technology on team functioning within CAPCO....................................................11
CONCLUSION..................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
Organizational behaviour refers to the study of the way people interact within the groups. In
general it if the study of the human behaviour within an organization. It is the study of the
behaviour of both the group and individual (Adeniyi, 2007). This study is applied to create working
of the organization more efficient. To make it more efficient the scientific approach can be applied
to the management of the workers. It is use to maximize the output from the individual. The study
of organizational behaviour is divided into three groups: study of individuals (micro level), work
groups (meso level), how organizations behave (macro level). OB is a multi-disciplinary field
which is influenced by the development in different fields like psychology, sociology, economics,
engineering, etc. it examines the human behaviour at work place and determine its impact on the job
structure, communication, performance, leadership, motivation, etc. CAPCO is an international
financial sector company. It has around 2000 employees across the world. It is the one of the best
company in financial sector in world. The organizational behaviour plays a vital role in CAPCO. It
requires the proper study of the human behaviour at workplace to create the work in effective way.
TASK 1
1.1 Compare and contrast different organisational structure and culture
Every organization has its own structure which defines the hierarchy that describes the chain
of accountability and responsibility. There are different organisation structure that is been embedded
in the organisation. All the people working together to attain the objective of organisation is mostly
affected by the culture in which they work.
Organisation structure and culture of CAPCO
CAPCO is one of the best company that serves the financial sector follows the Functional
structure which means that structure of the organization is based on different functions like
marketing, finance, human resource, sales department, and so on.. All the people in the organisation
performs the task in which they have expertise so the work done is refined task. There is a proper
coordination between the people of same department and the major drawback of this structure that
the employees are more focused on their department and do not support the functioning of other
department and the flow of communication is restricted to their functions only. The knowledge of
the workers of these types of organization is not versatile (Bhatt, 2002). Culture of CAPCO has a
flexible people where they are ready to mould themselves into dynamic environment, innovative
workers and are always ready to take challenges. This organisation's culture belongs to role culture
where people are more focused on the roles and task assigned to them. It will help the company to
grow and develop as employees posses the specialisation in the task performed by them.
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Organisation structure and culture of ALBRIGE
ALBRIGE is a organisation dealing in the same sector as CAPCO but follows a different
structure that is divisional structure. ALBRIGE follows this structure because it works in a wide
area that have in its ambit many market areas. They have divided themselves on the basis of
different market areas . Under this, all the functions work together for a single division, so the
requirements and need can be fulfilled in a fast pace and in a efficient manner. ALBRIGE e follows
the task culture where the team of worker are focussed on accomplishing a particular task or project
within the specified time (Densten, 2002).
Differences between these organization
Figure 1: Organisation Structure
CAPCO follows a functional structure so the people are more focussed towards their
functions and achieve specialisation in them but in case of ALBRIGE, have divisional structure, so
it is costly in operating and employees have the knowledge of all the fields. There focus is towards
their market area. CAPCO's responsibility is fixed on a particular department and is economical
whereas responsibilities are fixed on the basis of performance and are expensive as it involves
repeatition of resources.
Similarities between these organisation
Both of them works together to achieve the goals and objective of the organisation, and
performs its task for the overall productivity. They both needs to manage their people. They both
have defined roles and responsibilities to the employees and designed the specific route of
communication and accountability. They follow the concept of division of work and the
performance is supervised by the higher authority
1.2 CAPCO'S structure and culture impact its operation
The environment in which the people work and the structure of their accountability and
responsibility affects the business operations. They are the major factor that affects the working of
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the individual. CAPCO have a functional organisation structure, each employee of the organization
belonging to different department is holding expertise and command in the task performed by it.
This specialisation ultimately contributes to the efficient working and growth of the organisation.
There is a proper coordination between the people of same department which creates the friendly
environment for the people (Analoui, Doloriert and Sambrook, 2013). Here the role of the people
are defined are defined on the basis of their calibre. But the communication within the employees is
mostly within their department so the positive part is that it will keep on adding to their knowledge
but will keep their knowledge limited to their particular fields. If there is a proper coordination
between each department, it will move the organization towards the high peak. There will be better
understanding between the people and can help each other as one or the other day they all have
come across the same path (Cantwell, Dunning and Lundan, 2010). There will be friendly and
healthy environment that always motivates the people to work harder. But this structure can also
negatively impact its operation, as the workers of one department may not support the functioning
of other department.
1.3 Factors that influence the individual behaviour at work:
All individuals have different behaviour and way of dealing with the situation at work place.
Individual nature is affected by many factors. In briefly, can explain the factors affecting the
individuals behaviour are:
first and the foremost factor is Personal factor and further can be bifurcated into:
Biographical characteristics: individuals working in CAPCO have characteristics which are
inherited and is stagnant and will not change easily. If the management are aware of these
characteristics, they can make their strategies and decisions accordingly. Age is also one of the
factor that may help the organisation to allot work. For example, young people are more energetic,
ambitious and have fresh innovative ideas whereas old people are mostly experience holder and less
flexible and many other characteristics that can aid the HR department for better understanding.
Learned characteristics : These characteristics means modification in the behaviour of the people
due to the environment in which they are living and working. One of the learned characteristic is
personality that does not mean physical appearance of the person but the way of behaving and
attitude towards people, such as persistence, bossy nature, dominating etc. these features helps the
manager to determine the work suitability for employees (Hay and Hodgkinson, 2006). It can also
be said that extroverts individual will become better manger then introvert person. Other important
factor is perception, that the way employee interprets the meaning, and the manner deals with the
dynamic situations. Different people may have different perception for the same thing that their
viewpoints regarding the same thing. Person who takes positive out of every situations will work in
a better way then a person who understands and derives the meaning of everything in a negative
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way. If the employee wants to retain in a working environment for a longer time it needs to
understand the things in the same manner in which it needs to be understand. Employee should have
a positive attitude towards the work and people with which they are working (Staw, 2004).
TASK 2
2.1 Comparison of effectiveness of the different leaderships at CAPCO and ALBRIGE Financial
Solution
Leadership refers to an act of leading a group of people or team or an organization. It is a
skill of a person to encompassing the individual or an organization for the better management of it.
There are different leadership styles at different level of management.
CAPCO is one of the best international financial sector company. It modify the future of
finance to move a resilient market of transparency capital strength. It create the relevancy and
business value for their clients and alter the experience of the users or end consumers.
 Autocratic leadership: It is a type of an autocratic company where the all decisions
are taken by the top management of the company. There is no participation of the
employees in the decision making process. It is an authorization leadership in which
leader is authorized to take all decisions without involving the team members and the
other members of the organization. They take the decisions quickly as compare to
other styles (Peng and Zhao, 2012).
 Laissez-faire leadership: The other style of leadership is suitable for this company
is laissez-faire style in which management give a choice of making decisions
themselves to work. Here, the leaders guide the team and delegate the decision
making power to work in efficient way. It will increase the motivation level among
the employees, which in result enables in quality work and growth of the company.
ABRIDGE Financial Solutions is such an institution which provide solutions to the
other firms and work as an advisor to them. It helps them to make better decisions
and smart management of their funds. In total, they enables their customers in
investing their money at right place (Klein, 2011).
 Participative leadership: It follows the participative leadership style where it
involves all the employees in decision-making. In this, the management or leader
takes the suggestions from all of the members of team or organization and then take
the decision on the basis of it to improve their working (Robbins, 2009). From this
employees' motivation level will increase that they are a part of decision-making.
The autocratic leadership style helps the business organisation to make quick decision and
implement them, but employees feel pressurised and demotivated whereas in participative
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leadership styles, the leaders consider the viewpoints of subordinates in making informed decision
and designing strategies. But ultimately decision is taken by the management only. In contrast to
this style, Laissez-faire leadership style make the employee self dependent and believe that the
employees are making the wise decision for the organisation.
2.2 Impact of organizational theories on practice of management
Organisational theories are generally known as the approaches of it. This theory includes
system perspective, division of labour, bureaucratic theory, contingency theory, system theory, etc.
Organizational theories are divided into three categories such as classical theory, neoclassical theory
and modern theory. The two basic theories are discussed as follows:
 Scientific management
This theory was introduce by Frederick Tylor to promote product efficiency and productivity
. There are four principles of management under this head which include rule of thumb method,
providing place of training for the workers, co-operation between management and workers and
equal division of work between them. Through this management principles the working condition
of workers improved and they showed their willingness towards their work. This management
principle is very effective in CAPCO (Johnson, Lenartowicz and Apud, 2006). The rule of thumb
method is accurate and very reliable in nature which suits the environment of this firm. Here, the
proper training sessions are provided to the employees by the management. Through which the
working efficiency of each employee increases and they find a different environment of working.
They also follows the rule of equal division of work between management and workers. It create the
friendly environment between them. Through this, the productivity and the efficiency of product
increases.
 Human relations theory
It is a type of neoclassical theory. Human relation movement is a tough and authoritarian
structure of classical theory. Human relations movement define as a researchers of the organization
who study or observe the behaviour of the individual in groups at workplace. The human relations
theory is very much in line with COPCO as it focus on developing its employees as it is apart of
business strategy. Employees at COPCO work within developing and learning team. Information
are shared by them and are viewed as partners as well as internal customers. Management or leader
provide motivational trainings to the employees time to time. For this, firstly they plan and organize
to provide proper training (Robbins, 2003). Under such trainings management communicate with
the employees about their vision, strategies and values of the organization. Through trainings
management develop employees' skills, self-reliance, confidence.
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2.3 Different approaches used by CAPCO and ALBRIDGE Solutions
The following theories are used by the CAPCO:
 Contingency approach
It is a type of modern approach. It is a best way to organize a corporation, to make decisions
and to lead a company. Organizations are such that need to be carefully managed to satisfy the
needs or requirements of the environment. The best way to organize is generally depends on the
nature of the environment. Under this theory the leaders applies their own style of leadership and its
shows that the decisions are depended on the leaders. This theory explains about the conflict that
they are inescapable but can be managed in proper way. Under this managers has the authorization
to take decisions over their field (Jackson and Carter, 2009).
 System approach
This is also a type of modern approach. System approach is based on generalization that
everything is inter-connected and inter-dependent. A system is combined of related and dependent
elements those when interacted forms a unitary. The main feature of this system is composition if
hierarchy of sub-systems. Here, the different sub-systems are studied in their inter-relationships. It
is an arrangement of such activities which are performed to achieve certain objectives. Thus, it has
three components such as arrangements, objectives and plans. For achieving the objectives all
arrangements are planned and designed (Heifetz, Grashow and Linsky, 2009). It generally follows
the dynamic and static system. CAPCO considered a dynamic system of approach which acts and
interacts with the environment. It is consists of interacting and interdependent sub-systems.
ALBRIDGE Financial Solution
The following approach is followed by this organization:
 Socio-technical approach
It is also a form of modern approach which involves both social and technical approach. It
refers to the interaction between society's infrastructure and human behaviour. This system is
adopted by this company as it is more accepted by the end users. It is generally consider on human
social, technical and organizational factors. As it is a social and technical factor it influences the
usage of the computer based systems, which is very much popular in today's generation (Nickels,
McHugh and McHugh, 2011).
TASK 3
3.1 Impact of different leadership styles on employee motivation
Leadership styles have a great impact on the motivation of the employees. Growth and
development of each employee depends upon the way leaders performs its duties. Leaders act as a
role model, its leadership style have a positive or a negative impact on the motivation of the
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employee. There are different leadership styles that are followed by different leaders: Autocratic: it is a leadership style in which leader don't take the viewpoints of employees
while making decisions that sometimes might demotivate the employees. This type of
leadership style is mostly suitable in the firm where they need to take the daily decisions on
a fast pace. But it sometimes might motivate their employees that they would have
confidence in the managers ability to take wise decision that would enhance productivity of
the company (Saks and Gruman, 2011). Employees tend to gain more knowledge and learn
from the decision making power of leaders.
 Democratic leadership: it is considered as one of the effective leadership styles where
leaders take the advise of their employees while making decision. Here leaders allow their
workers to give their viewpoints regarding that part. Employees feel motivated as they
considered themselves to be one of the important part of an organisation. It helps the
working of the organisation in a smooth manner. They take interest in their work, as they
take active part in the designing of overall policies and programs (Hossan, Dixon and
Brown, 2013). But taking decisions under democratic leadership is a time consuming
process, and might create confusions. Situational leadership: Best leaders tries to follow this strategy. Situational leaders follows
different leadership styles based on different situations. For example, if the leader needs to
make confidential decision for its firm, it can't take the views of everyone even can't
disclose that matter to everyone (Jashapara, 2003).
 Quite leadership: It is a kind of leadership style where leaders have a faith on their able
employees. Leaders sit quietly and allow the employees to take the decision that will boost
up the confidence and motivates the worker. But it can impact the quality of decision taken.
3.2 Application of motivational theories within organizational setting
Manager needs to understand their employees and tries to find out the ways in which they
can motivate their employees. So the experts have given their theory to motivate their employee
which are explained below:
 Maslow's theory: this theory was given by Abraham Harold Maslow. Managers of CAPCO
can identify the needs of each employee to find out their driving factors. The set of needs are
grouped under physiological, safety, social, esteem and self-actualization (French, 2011).
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Figure 2: Maslow Need Hierarchy Theory
(Source: Brown, 2007)
Employees will not move to higher levels of need until their lower level needs are satisfied.
Lower level needs are defined in physiological, safety and social needs that comprises of basic
needs that is related to monetary term, stability in their job and friendly work environment. CAPCO
can motivate these class of employees by providing monetary benefits such as incentives based on
performance, bonuses. Self-actualization and esteem falls under higher level where employees
wants that their work should be recognised. So the manager of CAPCO can reward these class of
employees by promotions. By understanding and meeting out the needs of the employees of
CAPCO, will improve the performance and give their potential to work for the betterment of the
organisation.
 Herzberg's two factor theory- this theory was propounded by Frederick Irving Herzberg.
They have divided it into parts. First is the hygiene factors includes organizational culture in
which they are working, salary which has been offered and position and status of the
employee, job stability that affects the employee (Alles and Cabrera, 2006). If the employee
is satisfied with these factors, they will be motivated as they will feel that if the CAPCO is
thinking about their employee they should also work for them. Second one is personal
growth that is some employees join the CAPCO for their personal growth, recognition for
the work done by the employee, achievements, etc. these factors are the driving force that
can motivate the employees to perform their task in a better way. So CAPCO should
consider both these factors to motivate the employee of the company and enhance theur
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performance.(Craig and Campbell, 2012).
CAPCO can use these motivational theories to improve the effectiveness and efficiency of
work of their workers. The management of CAPCO should find out the expectations of employee
and should take necessary steps to fulfils them with time.
3.3 Usefulness of motivation theory for managers:
One of the important task of mangers is to use different motivational theories to align the objective
of employees and employer. Leaders can use different motivation theory for different organisation.
If the manager effectively uses the motivation theory, can proves out to be favourable both for the
employer and employee. It will create a healthy working environment where employees are
energetic to work for the firm. Managers shall find out steps to understand their employee needs
and then tries to implement the motivational theory which the leader considerer as the most
appropriate. Positive motivation can boost up the confidence of the individual, they can give
incentives and appraisal based on their performance, appreciate them for their work, provide them
certificate for the achievements, creative and innovative ideas should be given recognition (Haller,
Fisher and Gapp, 2007). But the crucial task of manager is to evaluate the needs of their people and
serve them accordingly. This will result in changing negative attitudes of people and will
enthusiastically to achieve goals and motive of company. But sometimes managers need to use
negative motivation when they are unable to meet out their expectations and are not satisfied with
the performance with their employees after repetitive warnings. Managers can use different
motivational theories to motivate their employees such as Maslow or Herzberg as explained above.
This depends upon the needs of organisation but both tries to say the same thing that the needs are
required to be grouped and then management needs to give rewards on the basis of motivating
factors (Randeree and Chaudhry, 2012). For example, under Maslow theory, if set of employees
who belong to 1st level have a certain physical needs. Hence these needs of individuals can be
motivated if firm offers them financial reward in the form of bonus, incentives, appraisals and if the
workers fall in the self recognition stage then they are motivated by promotions, etc.
TASK 4
4.1 Nature of groups and group behaviour within CAPCO
Group refers to the bunch of people who perceive themselves as a group. Group include two
or more persons who interact with each other in such a way that each of them influences and
influenced by each person. The nature of group and group behaviour is an essential part of CAPCO.
In organization context, group behaviour and thinking are important conception as they regulate the
cohesiveness and connection of organizational culture and communication. The effectiveness of the
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group bring outs the effectiveness of the organization which result in the growth and prosperity of
the organization (Marchington and Wilkinson, 2008). The behaviour of the group is measured
through its effectiveness. The effectiveness of the group can be judge through its productivity,
attendance, job-satisfaction, attitude, learning, retention, etc. The groups can be classified into two:
 Formal groups
Formal group is part of the organization which is created to accomplish the organizational
tasks. A formal group is formed in CAPCO also. A group form in an organization is an example of
formal group. This group is generally created by the higher management and therefore, are bound
by the hierarchical authority. These groups have to follow the rules, regulations, values and policies
of the organization. It is such group where the work is done in a formal way. This group aid in
achieving goals without any trouble. Formal groups are subdivided into two command group and
task group. Command group is such which is directly responsible to the superior. This group are
formed by the organization (Aldrich, 2008). The task groups are those which are formed to
complete the task or project. This group is known as task force. The job of this group is to complete
the allotted task or project before deadline.
 Informal groups
The another group which is formed in CAPCO is informal group. This groups exists within
the formal organizations. This groups are not formed by the organization but arises because of the
social needs, desires and development of the individuals. This group is generated in the formal
environment only because they work together and it leads to the interaction among them. This is
arises at the same level or department of the management. Employees themselves form this group
while working together. This groups are very effective and powerful (Gagné, Sharma and De
Massis, 2014). These groups are of four types namely interest group, membership group, friendship
group and reference group.
4.2 Factors that promote or inhibit the development of effective teamwork
An effective team is that which achieves the high level of task performance and member
satisfaction. There are so many internal and external factors that differentiate the effective and
ineffective teams. There are few factors of effective teams which are as below:
 Diversity
This is consists of social cultures, personalities, knowledge, talents of an individual. It
promotes creativity and innovative things which will support in effectiveness of the team. Lack of
diversity can make it difficult to solve the problems. This factor influence the work of the effective
team in CAPCO. When each member of the team will think in same direction about the problem
then there will not be any innovative solution of it (Aasland and et.al., 2010).
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 Communication
An effective communication enables in development of the effective teamwork in CAPCO.
Here, the communication between the team members effects its functions effectively. A good
communication among the team members is essential for the better work in team. All members of
the team should feel comfortable in asking questions regarding the jobs, responsibilities towards the
organization, etc.
 Leadership
Leadership plays an important role in promotion of effectiveness of the team. A formal
group have superiors and managers as their leaders. He should motivate his team members so that
they can work with full efficiency. A leader must know how to manage the team and how to assign
the work to them so that it will completed on time (Blomme and Bornebroek-Te Lintelo, 2012).
 Cohesiveness
It defines the degree and strength of interpersonal attraction among members of the team.
High degree of cohesion enables in high motivation level in achieving the objectives of the firm. In
CAPCO this factor influence the effectiveness of the team. It includes the attitude of the individuals
such as loyalty of the group, friendliness, responsibilities of the group, willingness to defend group
from outsiders, etc.
4.3 impact of technology on team functioning within CAPCO
There are so many technologies which affects the functions of the organization. The use of
technologies can improve as well as harmful in management functioning. A team must be updated
with the introduction of new technologies in order to function effectively. A technical change will
make changes in managerial functions. It tends to increase in the responsibilities of the management
regarding to planning, controlling, decision-making and coordination of the organization (Carroll
and Shabana, 2010). The technologies which have improved the team functioning are e-mail,
mobile phones, group ware, computers, etc.
 E-mail – it allows asynchronous communication, it means the members of the team
need not to be on the same place to communicate with each other. They can sit on
there places and can communicate to each other through e-mails, which will save
their time.
 Mobile phones – it enables the team members to communicate with each other even
when they are not present at the workplace or outside the office. Generally, this
technology helps the team to communicate with their clients.
 Group ware – this enables teams to plan meeting and delegate all within an
environment which can be accessed from anywhere in the world (Northouse, 2010).
 Computers – this helps the members to carry work at anywhere they want and it
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makes the communication for effective.
CONCLUSION
In nutshell, it can be concluded that in today's ever changing environment, it is very
important to understand organisation behaviour to manage the business effectively and efficiently.
Management should have a practical knowledge about different leadership styles, motivational
theories and organisation behaviour. Although all these things are interconnected as the manager
who follows appropriate leadership style can motivate the people to work enthusiastically after
studying the individual's behaviour of an organisation. Company needs to be updated with
technology and employees should be flexible enough to work in team and groups. Management
should always try to create a culture where people are comfortable in sharing their views and have a
organisation structure which can improves the work of workers and contribute in the goals of
organisation as well as keeping in account their personal growth.
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