Organizational Behavior: HSBC Case Study, Spring 2024

Desklib offers solved assignments and past papers to help students succeed.

ORGANISATIONAL BEHAVIOR
1

Table of Contents
INTRODUCTION............................................................................................................................. 3
LO1.................................................................................................................................................4
P1 AND M1................................................................................................................................ 4
LO2.................................................................................................................................................8
P2............................................................................................................................................... 8
M2............................................................................................................................................11
LO3............................................................................................................................................... 12
P3............................................................................................................................................. 12
M3............................................................................................................................................13
LO4............................................................................................................................................... 15
P4 & M4................................................................................................................................... 15
CONCLUSION............................................................................................................................... 17
REFERENCES.................................................................................................................................18
2

INTRODUCTION
The behavior and attitude of the team, human and the staffs in the organization can be termed
organization behavior. It is also the study of human behaviour in the organization that makes
and produces a connection between the human and organizational behaviour. The main goal of
this is to apply the models and theories that can improve the organizational behaviour concept
in the group.
The first part of the assignment covers the effect of power, culture and politics on the team and
individual in the organization. This will also cover the evaluation of the motivation of the
individual and team for achieving the goals. The next part provides the understanding of the
formation of the effective team with the explanation of the group and team development
theories. The last part will provide insights into the philosophies and concepts of ob.
This assignment is based on the HSBC that is a multinational financial and banking service. It
comes at the seventh largest bank in the universe. HSBC has its total assets of US$2.558. The
organization is spread over 67 countries.
3

LO1
P1 AND M1
ORGANIZATIONAL CULTURE AND ITS INFLUENCE
Organizational culture is associated with the behavior of people and humabthat is utilized by
the HR department for understanding and analysis of the behaviour of the employee with the
analysis of the factors and factors that have the huge impact on the organization. It also reflects
the values, attitudes and behaviour that help to form the social and psychological environment
of the organization (HSBC, 2019).
The organizational culture has a affirmative and negative effect on the team and individual
behaviour and also on the performance of the team and group.
The organizational culture is very helpful, thoughtful and sociable. The staffs of the HSBC also
have the same view and opinion. The culture of the HSBC reflects the sense of the
responsibility, determination of the behaviour and decision making and risk attitude. The
distinctive culture of the HDBC also reflects their values which are at their heart. Their
distinctive culture reflects organizational diversity and history. They also maintain cultural
diversity in the organization (HSBC, 2019).
The influence of culture can be understood with the assistance of Handy’s model which are as
follows:
Power culture: In this type of culture all decisions are made by the only few main people and
the people and juniors have to follow the order. This is based only on central power. This type
of culture has the pros that it does not affect the work and the work is completed on time. But
on the other hand, this culture affects the team and individual behaviour in a negative manner.
This culture makes pressure on the team and their productivity decreases due to this. The
positive aspects of this theory are the quick decision making and it is covered by the strong
culture. But theory is not so successful in the long term (Kitchin, 2017).
Role culture: The employees are having clear roles, responsibilities and functions. The role
culture follows the assigning the work and task according to the employee's specialization. This
4

helps in completing the work with high competence and efficiency. The positive of this type of
culture is it's highly controlled with the awareness of the roles and functions but on the other
hand, the decision making by this type of culture can be slow (Taylor, 2018).
Task culture: This type of culture is formed when the teams of the organization are being
formed for addressing the specific and particular problems and the progress of the project. The
teams are developed for solving the problems. This is mainly followed by the matrix
organization. The employees have the joint and multiple roles and here task is the vital thing
where the power of the team will shift on the basis of the team member’s mix and the project
or problem status. But there is no single power source (Al Saifi, 2015).
Person culture: The person is centred at the one point. The personal culture is adopted by the
HSBC and this is the secret of the rapid expansion and growth of the organization. The power
culture also depends on the motivating the people to take participate in the organization. The
culture of HSBC follows the potential in a good environment that encourages and motivates the
right and good behaviour. HSBC provides the long term and exciting careers with the different
opportunities that help in developing the skills (Taylor, 2018).
HSBC also recognize and provides rewards for the right task. HSBC also support their staff for
adopting the alternative and flexible working way that includes work from home, part-time
roles and sharing of job.
HSBC also maintain the cultural diversity in the organization that also affects the behaviour of
the team and individual in the organization. This helps to affects the team and individual
behaviour in an effective manner. The team and individual work with high motivation and
encouragement with the help of good behaviour in organization (Al Saifi, 2015).
Influence of power:
The assessment of the power influence is very important and it can be done by the analysis of
the different types of power that are adopted by the different leaders of the HSBC. The power
is distributed equally according to the roles of the individual that forms an effective
relationship. The power is also embedded in the structures.
Bases and types of power
5

The politics and power distribution theory will provide a better understanding of bases of
power and Following are the different types of powers:
Coercive power: This power is related and concerned with the performing of the task that is
being assigned to the individual with the utilization of the fear. If the requirements are not
being met then the employees are left with no authorities and they are forced to perform the
work effectively. This power is kind of aggressive that affects team behaviour in the
organization (Blowers, 2017).
Reward power: This is related to the monetary and non-monetary rewards with the help of
performance. HSBC can also set the basis to measure the performance and rewards are
provided to the employees for this. HSBC can also use this to increase the employee’s
involvement.
Legitimate power: This includes the reward strategy and giving punishment for affecting the
behaviour of the employees of the organization. HSBC provides a friendly environment with no
fear and pressure from upper management.
Referent power: this kind of the power is related with the setting the good example in front of
the employee and due to their loyal and good behaviour towards the leader they affects the
team and individual behaviour.
The control of the power lies with the top management but it can also be used by the juniors
and other staff according to the delegation of the power. The sources of power come from the
top management and forwarded to the juniors. The main source of power includes structural
position, expertise, personal characteristics, and opportunity (Blowers, 2017).
Influence of politics:
Politics within the organizational structure have a huge and excessive influence on the
behaviour of the employees. HSBC has ensured that the political behaviour that is possessed in
the organization does not result in the elimination of the members of team and alliances
formation.
Organizational politics: This is related to the behaviours and attitude that are outside through
which the organization has taken a particular position and the behaviours. Organizational
politics have more focus on group goals as well as personal. It also creates the am
6

Structural Power: Power is determined with the structure of the organization. The structure is
the control method by which the organization is being governed. The structure also allows the
decision making an allocation to the discretion to the different positions, have an effect on the
communication pattern with the specifying certain individual for performing the specific job
tasks and make certain decisions (Blowers, 2017).
7

LO2
P2
Motivation is a feeling that is developed in individuals for achieving the goals of the
organization. There are different types of motivation that can be developed with the help of the
factors that results in increasing the motivation among individual. In context to the HSBC, the
content and the process motivational theories will be discussed as this help to achieve the
organizational goals and objectives. There are two types of motivation and which are intrinsic
and extrinsic motivation. Intrinsic motivation is the situation when the internal stimulus and
work hard and develops motivation within the internal environment. This can be for personal
goals satisfaction and social recognition. The extrinsic motivation comes from the outside
environment (Chadwick, and Raver, 2015).
Following are the discussion of the content theories of motivation that can help in the effective
attainment of goals and objectives:
Content theories:
Alderfer’s ERG theory: This theory reflects that the employees are being motivated with the
needs which are not still met. It can be used with the help of fulfilling three important needs of
employees and which are existence needs, growth needs and relatedness needs. This theory
helps organization for sustaining the highly motivated employees through satisfying their basic
needs, social need and development of the needed for the self-development gaols (Miner,
2015).
Maslow hierarchy theory: This theory has implemented by the HSBC and it has been proved
successful in the organization. With the help of this theory, the minimum needs of the
employees are being met with the help of providing the basic needs, fulfilling social needs,
sating the self-actualization needs etc., This helps in improving the motivation among the
employees. HSBC has applied this theory and it has been proved very successful in the
organization (Chadwick, and Raver, 2015).
8

Figure 1: Maslow theory
Source: (Chadwick, and Raver, 2015).
Herzberg two factor theories: This theory can be applied by the HSBC and it includes two main
factors that affect the employee motivation which are hygiene factors and motivation factors.
Hygiene factors are factors that result in the dissatisfaction of the job if it is not present within
the individual and the second one is the motivational factors. In the absence of motivational
factors, the employees do not feel demotivated but if these factors are present then it results in
the motivation among the employees (Miner, 2015).
Figure 2: Herzberg two factor
Source: Miner, 2015
Process theories: These models are those types of motivations that assist in achieving the goals
of the organization and which are as follows:
9

Vroom's theory: this theory reflects that the employees are motivated when they behave in a
certain manner and their behaviour is obstructed by the selection they make. It is also the
process of the decision making that assesses the performance and efforts of the individual and
people. It also goals at the cognition process and has an effect on the individual goals (Miner,
2015).
Adams Equity theory: This model emphases on reflecting the balance an employee puts into
their work and the result they get in the form of output and return. Input includes skills, hard
work and enthusiasm While Output can be salary, responsibility and recognition. There must be
a proper balance between the input and output ensuring that an employee feels motivated and
satisfied and leads to productivity.
Latham and Locke theory: According to this theory there are five principles that make the
goal setting principles that can improve the success chance and which are clarity, challenge,
feedback, commitment and task complexity. The setting clear goals are very important for
achieving success in the organization. To set the challenging goals are also important for setting
the goals gaols (Miner, 2015).
10

M2
Motivational theories are developed for the thoughtful of the employees and human
behaviour. There are different theories having an effect on the behaviour of the individual. As
for instance the Hertzberg theory brings and develops the sense of situations and motivation
for increasing job satisfaction but on the other hand the absence of this factor it results in the
dissatisfaction among employees. The second is Maslow theory aims that aim on the
satisfaction of the five needs and which are being followed in the form of the pyramid. This
needs to bring motivation among the employees. But it fails to recognize the differences and
culture of the individual. Also, some needs are fulfilled prior and it is not necessary that it must
be followed in the hierarchy (Lazaroiu, 2015).
The behavioural theory brings the development and some of the factors among the employees
that affect employee behaviour. Promotion, recognition, achievement, learning, responsibility,
Growth etc are those factors. On the effective implementation of this will bring the feeling of
high involvement among the employees (Kanfer and Chen, 2016).
There are several behavioural approaches adopted by the HSBC which are listed below:
Psychodynamic behavioural method: This includes all theories that determine the reason
behind the employee motivation. Along with this approach, the managers of the HSBC establish
and develop the employee behaviour which is highly affected by the past experience and our
unconscious aspects.
Task v/s relationship: This approach is the mixed approach that reflects the relationship
oriented and task oriented leadership where the leaders of the HSBC focuses in the motivation
through the task accomplishment and motivating with the interactions of the different people.
This helps in having a clear idea about the roles and creating a healthy working environment
(Kanfer and Chen, 2016).
11

LO3
P3
The team members of the HSBC has the opinion that only the presence of the team and the
working group in the organization does not help to achieve the success of the effective group. It
promotes the discussion on the agreement and also makes a healthy relationship among all.
Different organizational teams types:
Functional teams: This kind of team is formed for a long time period. The functional team of
the HSBC has different team members that work for the same functional role with the different
roles. This team is authorized with a manager who manages the whole team and helps to
achieve goals.
Problem-solving teams: this team is formed for a short period of time and this focuses on the
resolution of the problems. This team is made for solving certain problems and providing quick
answers (Mannix and Neale, 2014.
Project teams: This team aims to solve the problem of the specific project with the common
goal and objective. A team of the project for the HSBC involves different team members who
work to achieve the common goal.
Virtual team: These are teams involving the members who do not work within the organization
but work in the different locations across the globe. With the help of this team, HSBC can hire
the experts that do not pay any cost for the relocation. This type of teamwork on
communication and to achieve the team goals (Karmakar, and paneerselvam, 2014).
The technology has a huge impact on the organization. It also affects the team and infidel of the
organization in a direct and indirect manner. The continuous updating and development of the
technology put a major effect on the system of the organization and employees need to change
their working style to adopt the new system. This affects and changes the behaviour of the
individual.
12