An Analysis of Organizational Behavior at CAPCO Financial Services

This report analyzes the organizational behavior of CAPCO, a financial services company, exploring its structure, culture, and leadership styles. It examines how CAPCO employs a horizontal structure and person culture, fostering employee involvement in decision-making to boost motivation and productivity. The report contrasts CAPCO's approach with that of Charter Court Financial Service Company, which uses a vertical structure and role culture. It delves into factors influencing individual behavior, including leadership, communication, work culture, and motivation. Different leadership styles, such as autocratic, democratic, and laissez-faire, are discussed in the context of CAPCO. Furthermore, the report covers organizational theories, including classical and modern approaches and concludes with human relation approach. It highlights how these elements impact employee performance, customer satisfaction, and overall business success within the financial sector.

Organizations & Behavior
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................5
TASK 2............................................................................................................................................6
2.1.................................................................................................................................................6
2.2.................................................................................................................................................7
2.3.................................................................................................................................................8
TASK 3............................................................................................................................................9
3.1.................................................................................................................................................9
3.2...............................................................................................................................................10
3.3...............................................................................................................................................11
TASK 4..........................................................................................................................................11
4.1...............................................................................................................................................11
4.2...............................................................................................................................................12
4.3...............................................................................................................................................13
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................15
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INTRODUCTION
Organization behavior is analyzing about how employer and employees behave in
specific business environment. The company follows proper structure and culture for maintaining
work surrounding and workforce relation. The main purpose of the study is to properly guide the
management and employees. In this report, various aspects of organization and behavior will be
studied in the context of CAPCO which provides financial service to their customers. The present
report covers different types of leadership style that are used by the manager for taking the
decision. Through the scientific approach, management and employees improves the quality of
work and maintain productivity of the business Various theories are used in human resource
(HR) which helps to maximize output provided by the individual and team members. Different
factors influence individual behavior at the work place. Through the motivation theory, manager
can increase the influence level of employees and encourage to perform the task.
TASK 1
1.1
The organization structure is related with managing different kinds of aspects within the
company. It helps in defining the roles, power and responsibilities of the individuals (Storey,
2016). The structure also defines how different activities are directed towards attaining the
company's goals. There are different types of structure in which the company uses horizontal and
vertical structure for involving the employees in decision-making process. Under horizontal
structure, manager takes decision with the help of employees at the different level of
management such as finance, HR, marketing department. Therefore, this structure aids the
employees for giving suggestion and ideas in decision-making process (Chiang and Hsieh, 2012).
Apart from this, under vertical structure. executive takes the decision with the help of the top
level of management.
This structure helps the manager to take effective decision within the time. In addition to
this, CAPCO follows horizontal structure (Flat). By using this structure, manger includes those
employees in decision making which help company to increace the high level of motivation of
workers. . On the other hand, Charter Court Financial Service Company follows vertical structure
under which manager takes decision with the help of supervisor and top management. By using
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this structure, manager circulates information from top to bottom level of employees in the
organization.
Organizational culture
There are different types of culture followed by the company like power, role, task and
person culture etc. According to case study, CAPCO applies person culture in the organization
under which the employee are involved in the decision making process (Vaccaro and et al.,
2012). By applying reward system, manager increases the employee’s interest level towards the
task and they contribute better services to their clients and customers. It affects performance of
the business and maintains overall productivity in the financial sector. On the other hand, Charter
Court Financial Service Company follows role culture which is based on the rules and
regulation. Employee delegates roles and responsibility as per his interest and qualification so
that they can work in accordingly in the organization. By following this culture, manager can
manage work based activities and work environment at the work place.
Similarities
By using these types of structure and culture, manager aims at increasing the sales
turnover and maintaining overall productivity in the financial sector. Furthermore, manager
directly and indirectly includes employees, in the decision making process which helps in
building effective process and increases the motivation level of workers.
1.2
The structure can be stated as infrastructure which are created by the organization for
managing day to day operation and workforce. Structure is the starting and crucial part of culture
in the firm.. (Organizational Behaviour Tutorial, 2016). There is direct relationship between
culture and structure which is followed by CAPCO. Here in present case study, company follows
horizontal structure whereby manager includes the employes because various department HR,
marketing employee have different skills, knowledge and experience (Fullan, 2014). For this
purpose, workers contribute their own knowledge in the decision process which helps the
manager to take right decision related to important topics, conflicts etc. It positively impacts the
performance of employees because they involves i these type of process and work in an
appropriate manner provided by - the manager. Through the culture,, executive can complete the
task with the help of all employees at the different level. therefore workers completed the work
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accordingly and meet the deadline set by the organization and clients (Ryan and Tipu, 2013).
Henceforth, they can easily fulfill their organization needs and attain business goals.
According to the case study, structure and culture helps the manager to increase the level
of motivation of employees because they are involved in decision making process and take the
task seriously which is provided by the executive. This structure helps the employees to
maintain day to day activities at the work place and environment and follow rules and regulation
set by the CAPCO. For this purpose, employee strives to satisfy customers and its clients. It
positively affects business performance which helps in increasing brand image and brand loyalty.
An organization follows the person culture under which helps employees to give
effective and innovative ideas for completing the task and decision process (Shareef, Mahmood
and Ishaque, 2012). Henceforth, if clients and customer are satisfied the employees will provide
effective service and complete their task within the time. It affects performance of the
organization and increases the market share in UK . Business performance can be improved by
confining roles and responsibilities of the workforce in an appropriate manner and by spreading
smart work culture. Properly organized structure with good and excellent work culture can lead
to effective productivity and output in the company.
1.3
There are various factors which influence the individual behavior in CAPCO and these
are stated below:
 Leadership- Manager plays an important role in influencing behavior of individual at the
workplace. Executive takes the responsibility for providing right direction to their team
members and employees which helps them to manage the day to day activities in the
organization. Furthermore, leader is strong source of inspiration for employees therefore
workers behave depends upon leader (Birasnav, 2014).Henceforth; it will positively shape
the subordinates behavior towards the organization goals. For example; if leader do not
fulfill rules and regulation then the employees will also break the legal norms (Price and
Weiss, 2013).
 Effective communication- Effective communication is an important element in all
departments. Manager is required to effectively communicate with the workers because it
will help in generating interest of employee towards the task. The leader can organize
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group meeting with all the team members for discussing issues and taking views
regarding decision which is provided by employees. If manger is not able to communicate
properly then it will reduce performance of employees which will result in delay in
attaining targets (Nuttin, 2014).
 Work culture- Under this factor, employee are required to feel comfortable at the work
place and work environment. By applying rules and regulation, manager can maintain
work based activities as well as work environment. It affects performance of the
employees and they can focus towards task and complete their work in an appropriate
manner without disturbing. Workers behavior also depends on organization culture, rules,
interest therefore manager provides the work accordingly employees interest and skills of
them.
 Level of motivation- Motivation is the good source of employees which helps in
completing the task effectively task. High level of motivation will result in effective
performance of employee in the CAPCO and they are liable to take the act positively.
Low level of motivation result in inefficiency towards the task. and they behaves
inappropriate manner (Gallois and Giles, 2015). Henceforth, it is essential for increasing
level of motivation of the employees and they work in right direction.
TASK 2
2.1
Leadership can be stated as the process in which an individual provides direction, guide
and influence others by a shared work towards the common targets. Effective leadership style
plays a significant role in CAPCO. There are various leadership styles which can be implemented
by the manager at the work place. These are described as below:
 Autocratic leadership style- Autocratic leadership style can be defined as the division
between leader and workers. By using this style, leader takes the decision with the no
involvement of employees (andle and Dolnicar, 2011). For this purpose, leader can
become more confident and comfortable when making decision and taking the
responsibility for the business plans. Charter Court Financial Service Company’s leader
follows this leadership style under no employees are involved in making the decision.
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Subordinates less contribute in the ideas and creativity in the organization or they feel
disconnect in the firm and different types of decision related to the management etc.
 Democratic leadership style- CAPCO follows democratic leadership style under which
the decisions are made by the leader, employees, and supervisor. Leader involves all
members of staff and after consulting they take the final decision. For this purpose, all the
employees have more knowledge, skills, content etc and contribute in the decision
making process which helps the manager to create an effective process and help in
managing day to day operations of the organization (Eberl, Clement and Möller, 2012). It
also maintains relationship with the employees and team members.
 Laissez- faire leadership style- Under this style, leader makes decision by allowing
employees to participate in the decision making process. By applying this style, manager
gives the authority and power to the efficient employees who are highly capable for
contributing in decision making related to the management or plans. Furthermore, it
affects performance of employees because other workers decrease the motivation level
and the interest towards the task (Leadership styles- Importance Leadership styles,
2016). Henceforth, both the organization Charter Court Financial Service company
leader and CAPCO uses this style for taking different types of decision and condition like
conflict situation, emergency etc. other employees not able to take the initiative and
decrease the interest towards the task.
2.2
There are various theories which define the organization and its structure under which
organization theory are classified into two types such as classical and modern theory. The
Modern theory says that business can adopt the changes as per market trends and new technology
which helps the employees to work in an effective manner within limited time period. Apart from
this, the classical theory emphasizes on maintaining old and traditional concepts of management
in the corporation. According to these concepts, company maintains the work based activities and
culture which assist the employees to deliver innovative ideas and suggestion in the decision-
making process. Classical theory can be classified into three approaches like scientific
management, bureaucratic theory and administrative theory.
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Scientific management theory is based on the concept of planning under which employee
work for attaining the efficiency towards the task and company. Moreover, this theory focuses on
improving overall productivity of the firm and its subordinates. The management and employees
should work together towards attaining the goals and objectives in the organization which will
build up the proper trust between company and employees.
Bureaucratic management theory explained that organization is based on principals and
its structure. This theory suggests that decisions are formulated in upper level and implemented
in the bottom level of management. (Storey, 2016). CAPCO provides the responsibility and
control or authority to the employees for regulating its structure and attaining business goals.
2.3
There are many different approaches used by CAPCO and these are explained below:
 Human relation approach- CAPCO uses this approach in which the manager maintains
their day to day operation of the business and manages its workforce. Through human
relationship approach, manager fulfills the vacant post and they appoint new employees
as per its qualification and skills. With the help of training, workers can increase the
knowledge and improve performance accordingly as needed by the CAPCO (Chiang and
Hsieh, 2012) . Henceforth, skilled worker work in an effective manner and contribute the
good amount of output for maintaining overall productivity of the business. In addition to
this, Human relationship approach helps the manager to identify needs and desire of
workers and accordingly management can accomplish the demand which assist in
building good relation with the workers.
 Contingency approach –This theory says that management of organization is ready with
the solution of problem. By changing roles and responsibility of the employees they are
able to meet requirement of different circumstance in the company. Through contingency
approach, manager can identify the any issues which occur at the work place and
implement the solution (Vaccaro and et al., 2012). In addition to this, manager designs the
different plan for meeting the problems in the organization which can be a time
consuming process.
 Scientific approach- Application of this approach was dependent on high level of
managerial control and man force practice in the organization. With the help of scientific
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approach, Charter Court Financial Service Company develops financial services and
functions in the organization under which it helps in increasing capital and provides
welfare to the customers and the clients (Fullan, 2014).
TASK 3
3.1
There is range of leadership style that can have impact on motivation of the company. By
applying the autocratic leadership style, management takes decision for helping employees
because they have no need for making decision. The leader can apply this style if they need to
take the quick the decision . Furthermore, it affects performance of employees because they
think and feel that management treats them as a machine in the company. Henceforth, as a result
they decrease motivation level and interest level towards the task so that employees are not able
to work in an appropriate manner (Ryan and Tipu, 2013). For example, manager knows what
software is required in the organization therefore they take the decision and install it in the
organization. Moreover, it beneficial for employees and organization under which they works in
an effective manner and save the time while they work. . Further, it highly affects the
performance of employees which help in improving quality and maintaining overall productivity
of business.
CAPCO uses democratic leadership style under which the manager takes opinion and
idea from employees in the organization. Through this leadership style, leader can handle the
conflict situation at the workplace because they take the group meeting with the help of
employees and give the suggestion related to disputes of them. Moreover, employees can feel
highly motivated because they can take suggestion regarding the decision making process and
share the idea. Apart from this, by following the democratic leadership style, managers are not
able to take quick decision because all the employees contribute their ideas (Ryan and Tipu,
2013).. Therefore, client and customer are not satisfied with its services and as result it has
negative impact on performance of the business.
3.2
An organization uses the find out the alternative ways for motivate their employees. This
will help employees for improving work quality and maintaining overall productivity of business
as well as its performance (The Role of Motivation in Organisation Behaviour, 2016). There are
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different types of motivational theories which can be applied in CAPCO. Here, now will discuss
about two motivation theory first one is Maslow and other one is Herzberg theories and these are
explained as below:
 Maslow's theory- It is represented in a hierarchical pyramid with the five levels under
which four levels are lower needs and other level is upper level. It includes self
actualization, esteem, belonging, safety and physiological needs. According to this
theory, people are motivated to fulfill the required needs. In addition to this, individual
are motivated when different needs at the various level are accomplished on the time.
CAPCO uses Maslow need hierarchy theory in the organization because it encourages
employees by satisfying their needs and desire (Shareef, Mahmood and Ishaque, 2012).
By using this theory, executive maintains work place and manages daily operation in the
organization which helps in building relation with their workers. Furthermore, it assists to
motivate subordinates and deliver better service to the clients and customers. It affects
performance of the business and increase market share in the financial sector. Apart from
this, if the company does not able to fulfill the employee’s needs under whichdecrease the
motivation level of the employees. . It affects its work and quality so that they can work
in an appropriate manner.
 Herzberg theory- The theory consider two elements one is the motivator and other one is
hygiene factor which help to motivate employees in the organization (Birasnav, 2014). In
motivator factor, manager can provide intrinsic reward to their workers which help the
employees get rewards and motivate towards the task. Furthermore, intrinsic reward
includes responsibility, promotional opportunity, gifts etc provided by the company
accordingly employees performance which creates high level of inspiration for the
employees. Apart from this, hygiene factor includes wages, salary, bonus, etc under
which if these factor are absencet in the company (Price and Weiss, 2013). Moreover, it
creates lack of motivation towards task and ineffective work provide by the subordinates
in the organization.
3.3
There are different types of motivational theories which are useful for CAPCO whereby
the manager can encourage employees towards the work. By applying the motivation theory,
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manager maintains the positive surrounding at the work place and manages human resource in
the organization. Company provides promotion opportunities as required by the employees so
that manager fulfills their needs as result, employees highly motivated towards the task. Through
the Herzberg theory, executive offer intrinsic and extrinsic which are required by the employees
for effectively performing the task (Nuttin, 2014). These turns in allotting the work as per
employees interest under which workers can works effective manner and improve the quality. It
affects performance of the organization and increases overall productivity. In addition to this, by
providing the incentive and bonus to their human resource as per its performance, they work for
attaining the business goals and target. Apart from this, manager follows the Maslow's theory at
the conflict situation which arises at the workplace which help to solve the issues and
accomplishing the needs required by the human resource. This turns in maintaining the friendly
environment and building good relation with the employees. Moreover, if employee needs high
motivation then the manager applies two factor theories like provide the training. Through this,
it assists in increasing the motivation of employee, improves its skills, managerial knowledge and
diliver the good amount of output in the organization (Gallois and Giles, 2015). Furthermore,
CAPCO uses different types of motivation theory under which the employees increase the
interest level because manager knows workers interest and they allot the work accordingly to
them. By applying all these theories, employees works as per attain the business goals and
effective manner. This highly impact on the performance of organization and increases market
share in the financial industry.
TASK 4
4.1
There are two types of group nature first one is formal and other one is informal groups
which are created to get specific outputs in CAPCO. Under formal team unit, company creates
group for attaining specific result in a formal way under which manager gives role and
responsibilities accurately to their employees. In this way, all the workers work in an effective
manner which helps in achieving the business goals. Apart from this, informal groups creates
employees interest, closeness etc under which employees works for long period of time. This unit
need to the working together so that all the workers can contribute the work for long time and
achieving their as well as business goals. Group behavior is the situation in which people interact
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and communicate in big and small groups. In this way, employees can share roles and
responsibility for attaining business targets (andle and Dolnicar, 2011). Individual behavior
depends on the nature of team unit. With the help of group, human resource can collect
information regarding data and any other required by the group and function. Henceforth, when
the employees work in the group they can easily solve all work-related problems.
4.2
There are various factors which promote and inhibit development of effective teamwork
in CAPCO and Charter Court Financial Service Company. These are stated as below:
 Communication- It is the crucial part of every business and individual’s life. Effective
team work is facilitated by the clear and open communication. All the group members
communicate with each other and discuss about the work and goals which helps to create
unity in the organization (Storey, 2016). In addition to this, manager takes the regular
group meetings with the team members to discuss regarding the short-term goals and
techniques to attain them. Communication helps in building effective team work and
guidelines which are provided by the supervisor.
 Environment-Good requirement is the basic requirement for perfect execution of
activities by the human resource in the organization. A positive environment offers
quality to the employees and encourages behavior of the individuals in different
condition. In addition to this, company is not able to maintain the work enviornment, it
can lead to dissatisfaction and disappointment among the employees. It affects the
teamwork because subordinates are not able to work in an ideal manner and feel
uncomfortable at the work place (Vaccaro and et al, 2012).
 Common goal- All the employees concentrates on common goals which create effective
work because workers give knowledge and skills. In this way, it states that group or team
shares the role and responsibility for common goal that is more valuable for the
organization and employees. The goal is important because it creates unity and
summation among them and diverts all their efforts in the one direction (Vaccaro and et
al, 2012). Furthermore, if Lack of common objective will create dissimilarity in the
corporation then each employee will focus on achieving its personal goal.
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4.3
The great impact on organization when CAPCO use the technology like laptop, the
different types of software in the corporation which helps employees to work in effective manner
and saving the cost incurred by the company (Fullan, 2014). Through the updated software,
workers work in time and meet the deadline assigned by the clients and customers. It affects
performance of the organization because clients are satisfied with the service offered to them and
increase the brand image in UK market and maintain overall productivity. With the help of
digital media, corporation promotes its service and website which helps to increase the visibility
of website and customer are attracted towards the service rendered by the firm. In addition to
this, an organization uses intranets for communicating with others. a c. Through the intranets,
corporation download the Google which helps human resource can search the any query and
market share etc. Along with this, CAPCO adopts the advance technology under through which
the subordinates communicates with the other members via email, smart phones. Technology
assist subordinates to improve quality and buildup effective team functioning. Through the
Skype, company and workforce communicate to the clients regarding deal and assignment done
by the human resource. (Ryan and Tipu, 2013). Moreover, it affects team functioning because
they work in a group for attaining the business goals. CAPCO can make effective utilization of
technological development to increase productivity in UK market and gain the revenue margin in
financial sector of the corporation.
CONCLUSION
Summing up the whole report, it can be concluded that, different types of leadership style
are used by the manager for making effective decision. CAPCO follows democratic leadership
style by involving the workers and team members for taking the right decision. With the help of
leadership, effective communication factor influence the employees behavior at the work place.
An organization follows culture and structure for maintaining work environment as well as work
force in the firm. The company should emphasize on conducting business operations in an
appropriate manner and generate better results by improving organization’s performance.
Through the formal and informal groups, employees can work for attaining business goals and
targets or strive to satisfy their clients and customer.
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