Organisational Behaviour and Leadership Analysis: A CAPCO Case Study

This report analyzes the organisational behaviour, leadership styles, and structure of CAPCO, a financial services firm. It compares CAPCO's divisional structure and laissez-faire leadership to ASDA's hierarchical and autocratic model, examining their impact on employee behaviour, motivation, and performance. The report explores factors influencing individual behaviour at CAPCO, such as personality traits and work roles, and evaluates organisational theories like scientific management. It also investigates the application of motivation theories, the impact of leadership styles during periods of change, and the dynamics of teamwork, including the influence of technology. The document provides a comprehensive overview of CAPCO's internal workings and offers insights into effective management practices.

Unit Title: Organisation and Behaviour
Student Name: IonutGeorgescu
Student ID: HNDB14309
Tutor Name: YahayaAlhassan
Date: 08/08/2016

Table of Contents
Task 1.........................................................................................................................................3
1.1 Comparison and contrast between CAPCO’s structure and organisational structure and
culture of an organisation of your choice...................................................................................3
1.2 Relationship between CAPCO’s structure and culture and its impact on the
performance of its operations.....................................................................................................4
1.3 Factors which affect individual behaviour at CAPCO....................................................4
Task 2.........................................................................................................................................5
2.1 Comparison of the effectiveness of leadership at CAPCO and any other organisation.......5
2.2 Explanation of organisational theories and their influence on the practice of management.
....................................................................................................................................................6
2.3 Evaluation of different approaches to management as used by CAPCO and your chosen
organisation................................................................................................................................7
Task 3.........................................................................................................................................7
3.1 The impact of leadership styles of the motivation levels of the employees within the
period of change.........................................................................................................................7
3.2 Comparison of the application of two motivational theories...............................................8
3.3 The need of managers to apply motivation theories in the work place................................9
Task 4.......................................................................................................................................10
4.1 Explanation of the nature of groups and group behaviour within CAPCO or any company
of your choice...........................................................................................................................10
4.2 The factors that promote or inhibit effective team work in organisation...........................11
4.3 Impact of technology in team functioning in CAPCO.......................................................11
References................................................................................................................................13
2

Task 1
1.1 Comparison and contrast between CAPCO’s structure and organisational
structure and culture of an organisation of your choice.
Organisational structure is the structural outline and the principles and paradigms by
which a company conducts its business and caters to the needs and requirements of customers
by providing them with goods or services that are specifically tailored to suit their demands
and preferences. The work done by the organisation, the complexity and size of the project
undertaken by the company determines the basic organisational structure and framework it
has and how it fulfill its aims, goals and objectives. CAPCO basically has divisional structure
with a single layer of top level executives who act as the mentor and guide to the junior
employees and takes responsibility for their work. As it is a financial services firm
specialising in services like asset management, consulting and brokerage services , a strictly
hierarchical structure is not feasible since over their the orders and commands flow from top
to bottom and it usually takes a lot of time for the execution of the urgent and the important
tasks (Alvesson, 2012). The organisations is categorised into divisions like operations, sales
and marketing and human resources each catering to the different needs and requirements of
its high profile clients. On the other hand ASDA has a tall and strict hierarchical structure
with various layers of management from top starting with the CEO to the shop floor workers
who work in its retail stores. The work of each layer is supervised by the manager who
belongs to the next higher level of the hierarchy. CAPCO has a very friendly and free
organisational culture that brings out the best in each of the employees by challenging them
to focus their energies to find solutions to the complex problems of the financial world. The
employees are encouraged to think creatively out of the box and provide easy and simple to
understand solutions to the problems faced by its esteemed client. Team work and
cooperation between the employees is a special characteristic of this company and every
employee is motivated to deliver his best as rewards are given handsomely to the star
performers (Madlock, 2008). On the other hand in ASDA the culture is very orthodox and
rigid as the company is mainly concerned with the monetary revenue generated by each of its
employees. It is also very partial to the top performers when it comes to giving benefits and
rewards with the result that the average performer gets very little and is usually de-motivated
and discouraged.
3

1.2 Relationship between CAPCO’s structure and culture and its impact on the
performance of its operations.
The divisional structure of CAPCO encourages team work and a spirit of team work
among its employees such that each of them think that they belong to an extended family
where everyone is working his best to cater to the needs and demands of the clients in a
holistic and positive manner. Since there are specific demarcation between each of the
division ego clashes generally do not happen and even if they occur they are resolved in
timely and efficient manner. The divisions are the structural and functional units depending
on the nature of the work like financial modeling, brokerage, systems and marketing of fixed
income financial products. Due to the divisional structure the employees are encouraged to
work efficiently by taking the help of the more experienced and older colleagues when the
situation so demands ((Müller & Turner, 2007). The employees enjoy the freedom to make
their own decisions regarding the work they do as their bosses do not micro-manage them at
every step leaving it to them to take the small decisions regarding their work. This kind of
work culture has a positive impact on the organisation as the clients’ needs are fully satisfied
and the revenues of the company has shot up within a few years of time from the date of the
establishment. The company encourages its employees to take calculated risks as this is
essential to deliver superior performance in the competitive world of financial services
industry. The result of its efficient team work within the company is that the aims and
objectives of the clients are largely fulfilled in most cases and they seek the services of
CAPCO again and again due to the quick and accurate delivery of the tasks demanded by
them (Hall, 2005). The teams at CAPCO consist of people with different skill sets that are
trained as per the needs and demands of the project at hand. The divisional structure also
makes its possible to divide the work according to the specifications of the project that are
undertaken in the financial services industry.
1.3 Factor which affect individual’s behavior at CAPCO.
The basic characters traits, the educational background, work experience in past
companies, family upbringing of the employees play a crucial role in the individual behaviors
within the company. Factors like aptitude and intellect level also affect the behavior of the
individuals within the company. For example the employees who design the various fixed
and variable income financial products have an analytic bent of mind and they also like to
work alone in quiet as the work demands a very high level of concentration.They are rarely
4

seen in office parties as they are basically shy and introvert by nature. But they possess a
razor sharp intellect which helps them to design financial products that would generate the
highest amount of returns for their client (Madlock, 2008). They have an eye for detail as
they have to spot trends in volumes and volumes of market data including stocks and bond
prices and their daily or seasonal fluctuations. Contrasted with this the marketing department
people are more outgoing and extrovert by nature as they have to visit clients and persuade
them to buy the financial products developed by the company. They must have a presentable
appearance and should be able to think on their feet. Due to the difference in the manners and
nature of these two groups of people sometimes disputes do arise in the work place and hence
the upper level management has to keep their eyes and ears open so that the quarrels are
mitigated before things go out of hand. Thus the management should take care to hire those
employees who would be the best fit in the organisation and thus behavioral issues do not
undermine team work and the demands of the clients of the company. Thus it could be seen
that the nature of work assigned to different employees gives rise to different types of
behaviors within the organisation and thus the management should carefully hire people who
have the capacity to deal with different personality types of various people at work.
Task 2
2.1 Comparison of the effectiveness of leadership at CAPCO and any other organisation
The leadership style at CAPCO is Laissez Fairieas the employees enjoy a lot of
freedom to work in their own style provided they meet the needs and requirements of the
projects and submit the work before the deadline. Since the employees at CAPCO are all well
qualified they require very little supervision of their work by their bosses. Also the
employees are encouraged to actively participate in the decision making process of the
organisation. They are told to voice their opinions and views in relation to the work that is
undertaken by them. The senior level executives are a source of inspiration to all the
employees who treat them as their guide and mentor. This is possible due to the divisional
structure of the company. The heads of each division are all well known and able leaders in
their respective fields like finance and marketing and they set the right example for the entire
organisation to follow. They do not micro-manage or unduly harass the junior level
employees as they are also the brightest men in their field going by their age and college
degrees. On the other hand at ASDA an autocratic leadership exist in which most of the
5

workers are kept out of the decision making process (Alvesson, 2012). The employees are
coerced to do their work properly failing which they are reprimanded and told to correct
themselves before they are fired. Thus an atmosphere of fear exists in the company and the
staff members are generally de-motivated. The only positive thing about the work is the
monthly salary that is drawn by the staff and thus they find little room to exhibit their creative
powers. The bosses are very strict and stern and they always try to keep the workers on their
toes. Thus in contrast to CAPCO the employees are more burdened as they are always living
in the apprehension of losing their jobs ((Müller & Turner, 2007). The work culture at
CAPCO is such that the employees work without much of stress and this boosts their morale
thereby raising their performance level. The free work culture at CAPCO increases the
efficiency of the workers and thus everybody is happy and satisfied.
2.2 Explanation of organisational theories and their influence on the practice of
management.
The scientific management theories originated in the 1915 when Fredrick Taylor
proposed the scientific principles of management to boost the overall productivity of workers
by carefully designing and optimising the work processes so that the work of the organisation
becomes financially viable and effective. He stressed the importance of having a good
relationship between the field workers and their supervisors so that the work could be
delivered within the stipulated deadline (Schein, 2010). Before this the managers left the
workers to themselves to decide on the work flows with the result that they could not figure
out the fastest and the most efficient method to undertake their work. They usually took up
long time to do and redo the same work and redundancy became a problem leading to a
decline in the productivity levels. For example there were no fixed standards as to how each
work should be done and as a result there was much confusion among the workers. The main
motivation among the workers is to ensure their continuous employment with the agreed
wages. The workers and managers did not know how to optimism their work so as to produce
double the output with the same amount of resources in the same amount of time available.
As Taylor was an engineer he studied the work process of the steel industry where each big
task would be broken down to smaller components and each component was to be completed
within its respective time frame. This reduced the actual idle time spent by a worker on the
job ((Madlock, 2008)|. He also agreed to pay the workers fairly if they could do their work
properly. The natural outcome of Taylor’s theory was the human relations theory of
6

management which aimed to make the worker a truly organisational citizen who is concerned
with the growth and profitability of his company. These concepts of management gave a
boost to the productivity of the workers as manufacturing work flourished and brought more
revenues to the company.
2.3 Evaluation of different approaches to management as used by CAPCO and your
chosen organisation.
There are different approaches to management namely scientific approach,
administrative approach and bureaucratic approach. The bureaucratic approach consists of a
rigid hierarchical structure with many layers of management where orders and command flow
from top to bottom. The organisation is a part of a closed system and the company trains the
managers according to the functional roles they would play within the organisation. There is
formality throughout the organisation and the workers are made to follow a strict discipline
abiding by the rules and regulations. The main drawback of the organisation is that the
workers have no room to express their feelings as most of the communication takes place in
the mode of written letters (Somech, 2006). Hence this type of management is not followed
by CAPCO as it deals with a dynamic and competitive industry where time is critical. The
administrative approach to management which was proposed by Henri Fayol is followed in
CAPCO where importance is given to the unity of command and less on the regulative
principles. He laid stress on job stability and fairness in all the dealings of the organisation
with its employees. On the other hand a bureaucratic style of management is followed in
ASDA where the employees have less dynamic and flexible job roles and responsibilities and
have a strict set of rules and regulations to abide by. This approach establishes a sense of
discipline among the workers as they have to work in an orderly fashion.
Task 3
3.1 The impact of leadership styles of the motivation levels of the employees within the
period of change
The leadership style of different managers has a definite impact on the motivation
levels of the staff members during periods of change. As for example in the autocratic style
of leadership the employees have to carry out the orders and commands given out by their
bosses and they cannot ask any questions. They have no say in the decision making process
7

and thus they work with a sense of grudge against the senior level management (Hall, 2005).
The autocratic leader is very strict and is much feared by the employees for whom it is
mandatory to carry out the orders given by him failing which punitive action would be taken
against him. Thus the motivation level of the employees goes on decreasing and their level of
productivity suffers as the employees do not feel as if their concerns and opinions have any
sort of value with the upper level management. Compared to this in a democratic style of
leadership the employees views and opinions are looked into while making the decision even
though the ultimate authority rests with the leader. In this the employees feel a sense of self
importance as they are considered to be valuable resources within the organisation. Often
suggestions are taken from the employees regarding how the work should be done so that the
minimum amount of resources is expended in doing the job. There is another style of
leadership known as the transnational style in which those employees who do well are given
their due bonuses and commissions in recognition for the superior performance that they have
delivered and those failing to meet the standards are told to leave the company unless their
performance level increases and their productivity improves. This is the style of leadership
that is followed in CAPCO. Thus the employees try to perform as best as they can and deliver
a high level of performance.
3.2 Comparison of the application of two motivational theories.
According to Maslow each individual has needs at some level which must be satisfied
before he can think of satisfying his needs in the next level. The basic needs of a human
being is food, water , air and shelter which are the physiological needs to maintain his body
and ensure his sustenance in the world. After these needs have been met at the next level he
needs security like a job which provides him with a steady source of income and also his
immediate physical environment is free from physical threats to his body. The next level is
concerned with the emotional needs like love, companionship and a sense of belonging to an
esteemed group that is necessary for the emotional health of a person ((Müller & Turner,
2007). Thus it is imperative for managers to carefully understand the needs of the employees
following Maslow’s theory so that those needs could be satisfied. In CAPCO the employees
get regular salary and also bonuses from time to time to ensure that their basic needs are
satisfied enabling them to take care of themselves and their families. Also the managers try to
motivate the employees by giving appreciation for the good performance they have delivered
and also gives promotion to deserving employees on the basis of their performance.
8

Herzberg’s two factor theory consists of motivating factors like hygiene that are the
cause of job dissatisfaction and motivation factors that promote job satisfaction (Schein,
2010). The pay, the working conditions, compensation structure, the behaviour and attitude of
the supervisors and their inter-relationship are the hygiene factors. The nature and quality of
work, the benefits like social prestige associated with the work and the opportunities for
career progression are the motivating factors. These factors are there in CAPCO as ample
scope is given to the employees to improve their talents and skills by means of training and
development programs that cater to the professional needs of each people in the world of
financial services industry.
3.3 The need of managers to apply motivation theories in the work place.
Managers should motivate the employees such that they could achieve the goals, aims
and objectives of the organisation and this would lead to the success of its operations. The
managers should take into consideration of the fact that the mental makeup and the level of
enthusiasm of each employee is markedly different. The employees have a soul and they are
not just robots working mechanically. Even though the employees are paid to do the job they
also need encouragement to feel a sense of job satisfaction, contentment and self importance
when they are working for an organisation. The managers should look after the well being of
the employees so that they can deliver loyal and faithful service as and when required and
also be able to align their own mental makeup with the mission and culture of the
organisation. The managers must motivate the employees since enthusiasm plays a key role
in the success of any undertaking be it professional or personal(Hall, 2005). A company with
enthusiastic employees is in a better position than the rest to compete in today’s competitive
market where each company is trying to grasp a portion of the market share and curve out a
niche for itself. Without enthusiasm and motivation the workers would not get going on their
jobs and waste a lot of valuable time and resources as a result of which the overall
productivity of the organisation will go down. The managers for their part should make the
work as simple and attractive as possible so that the employees can do their work in relaxed
and easy manner without being unduly pressured for tight deadlines and quality deliverables.
The managers must understand that the employees feel needy at some level and those needs
must be satisfied to elicit their motivation and give a boost to their morale.
9

As per the Maslow’s, human behaviour is goal oriented. The needs of individuals act
as a driving force in the human behaviour. Moreover, managers must understand the
hierarchy of needs. The hierarchy model is given by Maslow’s which is described below:
Physiological needs: This is the basic need of the individual that includes food,
clothing, shelter etc. In such regards, CAPCO’s managers is required to make proper
arrangements regarding light, ventilation, drinking water, canteen & others for the better
survival.
Safety needs: These needs are also important for the human behaviour. Everybody
wants security, protection against danger etc. CAPCO needs to arrange medical facilities,
health insurance scheme, employee welfare & others
Social needs: It is all about social need of individuals, therefore, informal groups at
the workplace can be created to satisfy social needs of the personnel.
Esteem needs: It is considered as a want that human requires to have better
motivation. In CAPCO, employee have a two type of Esteem needs one is internal esteem
where the company provides freedom and achievements and other one is external esteem
needs in which the firm give recognition, power and attention to employees.
Self- actualization needs: These needs are established for growth and self
commitment in CAPCO. This need arises in those people who are satisfied with the previous
four needs and want to get more knowledge so that long term growth can be attained
effectively.
There are some advantages or disadvantages of Maslow’s motivation theory:
Advantages Disadvantages
 In CAPCO, with the help of motivation
employees carry out work with better
interests.
 In CAPCO work environment is flexible
so that long term sustainability can be
advanced effectively.
 De- motivated employees in CAPCO do
not take interest in their organization and
spread bad rumours about the firm.
 Increase lack of co-operation in CAPCO
 Some employees create problems for
CPCO managers.
10

Task 4
4.1 Explanation of the nature of groups and group behavior within CAPCO or any
company of your choice.
The collection of two or more persons that have come together to serve a common
social, professional or political purpose is called a group. There are different types of groups
like emergent group, concocted group, primary and secondary groups. Primary groups are
small groups where the members enjoy face to face interaction with each other and are
bonded to each other by a strong cohesive force which is nothing but the common fate or
goals that they all share. In CAPCO the employees working in various departments like
finance, marketing, operations and HR have formed groups as they share a common type of
work. The people in these groups tend to help each other regarding their professional and
personal needs. Secondary groups are larger groups like employees’ associations that look
after the welfare needs of the employees and stand united for common cause like pension and
other benefits related to the nature of the working conditions. Each group is distinct
depending on the type of members, their strength of bonding and the frequency of their
interaction (Schein, 2010). These two types of group interaction can be found in CAPCO
where the individual members share a friendly and warm relationship with each other both
inside and outside of the workplace. The task of the management is to ensure that the groups
function normally in a healthy manner such that the work of the company is not affected in
any manner. Disputes among the groups should be sorted out in a proactive manner so that
the inter-relationships do not affect the workings of the company. Campbell proposed that
groups are cohesive to the extent that they share a common fate or end result and have
something in common between them. For example in CAPCO the finance executives are
analytically sharp and by nature they are introverts and hence they get along with each other
very well.
11

4.2 The factors that promote or inhibit effective team work in organisation.
The factors that promote good team work in the company are the feeling of
camaraderie among the team members that they are a part of a large family wherein each one
works with a common goal in mind namely furthering the interest and growth of the
organisation that they are working for. In this regard it may be pointed out that a lot depends
on the effective leadership skills of the team leaders. In CAPCO there are various teams
headed by a team leader who sets the tone for team spirit which motivates the team members
to work better and beat their own previous records of good work (Alvesson, 2012). The team
leader is responsible to allocate the work to different team members based on their personal
skill level and the skill needed to do the job effectively. Effective team work is a kind of
symbiotic relationship between the team members where each of them depends on the other
for effective execution of the work. Factors which inhibit team work is the partial attitude of
the team leader to some of the members of the team. If the team leader gives undue favors to
some team members others who do not get the benefit will feel the resentment and thus not
put forward his best efforts to get the work done. Sometimes discrimination in pay structure
also cause resentment among team members as a result of which the overall morale of the
team goes down. But CAPCO is known in the financial services industry for its cohesive and
effective teams that puts the needs of the clients first (Müller & Turner, 2007).
4.3 Impact of technology in team functioning in CAPCO
Technology has a great impact on team work in CAPCO since it is a modern
organisation that uses technology to make its work simpler and easier for the employees
making it less time consuming. For example there is a online forum for employees where
they can post anything that might be an impediment to effective team work from personal
issues to professional issues. Tel conferencing and video conferencing is used for
communicating between the team members if they are located over a wide geographic
location. Fax machines are used to send important documents from one office of the company
to another. Also there is an online log book where each team member enters details of the
work done by him over a period of time. The performance appraisal reports are also
generated with the help of a computer software which is impartial and provides a scope for
free and fair evaluation ((Madlock, 2008). Also computer programs are used to allocate work
to different team members after making a careful study of the skills available within the
company. Thus it can be seen that technology has simplified the work schedules of many
12