CAPCO Case Study: Organizational Structure and Employee Behavior

This report presents a comprehensive analysis of CAPCO's organizational behavior, focusing on its structure, culture, and leadership practices. It begins with an introduction to organizational behavior, defining key aspects like motivation, satisfaction, and group dynamics. The report then delves into CAPCO's organizational structure, contrasting its tall structure with the flat structure used by the Tate Company, and analyzes the impact of these structures on decision-making and employee involvement. Furthermore, it examines CAPCO's task culture and compares it to the power culture of the Tate firm, assessing their influence on employee roles and responsibilities. The report also explores the factors influencing employees at CAPCO, highlighting the importance of management strategies, employee perception, and the roles played by employees in achieving organizational objectives. It discusses leadership styles, emphasizing CAPCO's democratic approach and the autocratic style of the Tate Company. Finally, it examines the application of organizational theories such as scientific management and human relations theory, illustrating how CAPCO integrates these principles to enhance its organizational structure and improve employee relations. The report concludes by summarizing the key findings and insights into CAPCO's effective management practices.

Organization & Behaviour
1

Table of Contents
INTRODUCTION ........................................................................................................................... 5
TASK 1............................................................................................................................................ 5
1.1................................................................................................................................................ 5
1.2................................................................................................................................................ 7
1.3................................................................................................................................................ 7
TASK 2 ........................................................................................................................................... 8
2.1................................................................................................................................................ 8
2.2 ............................................................................................................................................... 9
2.3 ............................................................................................................................................. 10
TASK 3 ......................................................................................................................................... 10
3.1.............................................................................................................................................. 10
3.2.............................................................................................................................................. 11
3.3.............................................................................................................................................. 12
TASK 4.......................................................................................................................................... 12
4.1.............................................................................................................................................. 12
4.2.............................................................................................................................................. 13
4.3.............................................................................................................................................. 14
CONCLUSION ............................................................................................................................. 14
REFERENCES............................................................................................................................... 16
2

Illustration Index
Illustration 1: ORGANIZATIONAL STRUCTURE.........................................................................6
3

·INTRODUCTION
Organization behaviour refers behaviour and actions of workforce for growth and
development of corporation. The organizational behaviour consists of different aspects such as
motivation, satisfaction, groupism and other related aspect of workforce. It depicts that interaction
between employees and their dedication towards work. Present report is based on case study of
CAPCO which offers financial services to clients. In this regard, different organizational structure
and culture are compared with its impact on performance of business. Further, factors influencing
employees at workplace are also discussed. Apart from this, different approaches to management
and leadership are understood. In addition to this, mechanisms for developing effective team work
in organization are explained.
·TASK 1
·1.1
Organizational structure is defined as a systematic process under which task allocation and
other activities of the company are performed (Ng and Feldman, 2012). In the structure,
management levels that exist in a company are explained and furthermore span of control and
decision making process of an organization is described under this method. CAPCO is a leading
business group and provides quality services to its consumers. More than 2000 employees work in
the firm and it is required that they should be managed in a proper way so that all the desired
operations of the business should be performed in an effectual manner (Cucina and McDaniel,
2016). The management of the enterprise uses a long chain of command under which multiple level
of management is followed. The chain of command runs from top to down, further the order and
commands are given to employees by the superiors. Tall organizational structure is followed and
due to that it becomes complex to involve all employees in the decision making process (Harms,
and Luthans, 2012). workers report to the senior manager and staff members are supervised
properly under this method. Small span of control is followed under the tall organizational
structure. Proper monitoring of the work performed by each employee is done under this method.
Job security is given to employees in the tall organization structure. Staff members feel that their
positions are secured and they can work with sense of security.
4

Illustration 1: ORGANIZATIONAL
STRUCTURE
(SOURCE - Epitropaki, 2013)
Promotions and progressions are ensured to employees and due to small span of control, it
becomes easier for workers to achieve higher job positions. Communication channel works in an
efficacious way and decision making process faster and productive in this type of organizational
structure. More supervisors are employed under this method and due to that overall investment cost
of the company increases (Petrou and et.al., 2012). However, in the Tate Company, flat
organizational structure is used in which there are fewer management levels and every supervisor
controls a large employee group. Decision making process is slower in this system as compared to
tall organizational structure. Employees are involved in the decision making process of the
business. Wide span of control is followed and each manager supervises more number of staff
members (Fisher, 2012). Top management people are interested in providing proper directions and
instructions to the subordinates. Democratic style of leadership is followed under this method and
centralization of authority is done in which all the decisions are taken by top management people.
Organizational culture is defined as the procedure of developing attitude, beliefs and values
in the work place. According to Charles Handy's model of organizational culture, there are four
types of systems which persist in an enterprise and it includes power, task, and person as well as
role culture (Bissing and et.al., 2013). In CAPCO, task culture is used where all the employees are
assigned particular job which they need to accomplish in a given time frame. Proper appraisal of
work is carried out and the tasks are allocated properly which aids in executing required activities
of the business in a proper way. In the Tate firm, power culture is used under which the top
management people render instructions and give directions to the subordinates. Less involvement
5

of employee is taken in the decision-making process. Authority and responsibilities are held by the
people working at superior level in the company (Allen and Shanock, 2013).
l壱1.2
CAPCO works in retail market divisions and serves the financial sectors on the international
basis. It provides employment to 2000 workers across globe and it was ranked as the top companies
to work with. Tall organizational structure is used in the enterprise for managing its business
activities. It assists in dividing roles and responsibility to all the staff members in a proper manner
(Carter and et.al., 2013). A positive relation exists between organization culture and structure of the
company and it helps in achieving desired objectives of the business. Roles and responsibilities are
allotted in a proper manner and all the staff members are assigned particular tasks which they need
to complete in a scheduled timeline (Epitropaki, 2013). Due to adoption of tall organizational
structure, decentralization of authority is followed and responsibilities and accountability are
transferred to many individuals.
Employees are supervised by their successive managers and their opinions and suggestions
are taken for making decisions of the business. Task culture has been implemented by the
management of CAPCO and every staff members are assigned particular duties which he needs to
complete on the described time. Freedom of working and job opportunities are given to employees
and a healthy and conductive business environment has been created in the enterprise (Bolino and
et.al., 2013). Sometimes, critical business situation arises in the company and management involves
staff members for taking appropriate decisions for the business. The innovative and valuable ideas
suggested by the management helps in making improvements in the organizational culture. Overall
performance of the business is improved and due to this the desired set targets are achieved by the
enterprise (Miner, 2015). The organizational structure of CAPCO is an integral part of its culture
and roles, responsibility and duties are assigned to the employees in a proper way. Teams are
divided under structure and a proper task is assigned to the group. When employees get involved in
working with each other than various types of information, ideas and messages are shared by them
which assist in improving competence of the workforce.
l壱1.3
Management of CAPCO put their best possible efforts for rendering an effective and
conducting work environment to its employees. Perception and attitude of employees works as
significant factor that aid in attaining objectives of the business (Hogg and Terry, 2014.).
Management formulate various strategies and policies for running the business activities in an
effective manner. Employees of the organization work as the most important assets and help in
6

gaining desired targets of the business. Role played by employees of CAPCO is defined as
follows:-
Mutual and positive efforts made by the workers aid in achieving joint interest of the management.
Proper coordination and cooperation given by the staff members assist in completing the fixed
targets on due time as per the agenda.
Ideas and opinions acknowledged by the staff member’s aid in making improvement in
organization structure and culture.
All the operational activities of an institution are executed by the employees of the firm (Pinder,
2014.).
Productiveness and efficiency of the enterprise is improved when workers provide their valuable
efforts.
Efforts given by the individual in a team aid in achieving objectives of the group.
Knowledge and skills possessed by an employee can be shared with other staff members and it
helps in improving potential and competence of the entire workforce (DuBrin, 2013).
Leadership provided by the management helps in taking proper work from the employee and work
culture of the company also influences the behaviour of the workers in the company. Rules
regulations and policies formulated by the management aid in developing work culture of the
business (Langton, Robbins, and Judge, 2013). It is essential that proper training should be
provided to workers so that they can understand working environment of the company.
Communication channel of the organization also affect performance of the employees. Effective
communication channel helps in rendering proper directions and instructions to the staff members.
The relationship existing between staff members also affect behaviour of employees (Wilson,
2013). If healthy and positive interaction exist between staff members than it aid in involving
mutual efforts of the staff members for performing the organizational goals. When workers share
their ideas, knowledge and information with each other than it aid in making improvements in the
skills of overall workforce.
·TASK 2
·2.1
CAPCO firm ensures that effective leadership and directions should be provided to the
subordinates so that required work of the business should be completed in due time. The
management of enterprise uses democratic leadership style and participation of employees is
encouraged under this method. In this technique, staff members are encouraged for providing their
valuable suggestions (Cummings and Worley, 2014). An open discussion session is arranged in the
7

company in which all the employees are asked for giving their recommendations for making
necessary changes in the organizational structure. potential workforce are developed by making use
of this leadership style (Daft, 2014). Management offers guidance and directions to the team
members and help them in completing their work in proper time.
The leader plays a significant role and invites group members for the discussion sessions
(DuBrin, 2015). Shared vision and goals is developed by the leader and it aid in building
commitment and loyalty among group members. The leadership style adopted by the management
aids in achieving objectives of the business by involving support of all the group members.
Empowerment of all the workers is done and this method proves beneficial for getting best and
effective work from the team members. On the other hand, Tate company uses autocratic leadership
style under which power to take decisions lies with the top management people. Policies and rules
of the business are decided by superiors and vary less involvement of employees is taken while
formulating policy of the business (Dunning, 2013). Proper directions and commands are given to
the subordinates and they are asked to complete their assigned task on the due time. Autocratic
leadership style which is used requires involvement of top management people for rendering
supervision and directions to the subordinates.
l壱2.2
Organizational theories and guidelines suggest under it affects the practice of management
in the company (Schunk and Zimmerman, 2012). The theory included under it are scientific
management theory and human relation theory. The management of CAPCO makes use of all the
good points mentioned under the theories for making necessary improvement in the organizational
structure. Human relation theory focuses on making improvement in the interrelationship of the
employees (Rothaermel, 2015). Mutual understanding between staff members aid in completing
the desired targets on due time. Team working and group performance of the employees is
improved by rendering them effective support. It is responsibility of the top management to provide
directions and instructions to the subordinates. It has been explained under this theory that
participation of employees should be encouraged in the decision making process of the system.
CAPCO company take regular feedback and recommendations from the employees for making
necessary changes in the organizational structure. It is responsibility of the manager to encourage
all the staff members for working in a group and for supporting each other.
Scientific management principles focuses on using a systematic and strategic approach for
managing the manpower of the organization. Equal division of work to employees and providing
them sufficient wages for performing the assigned task (McEown and et.al., 2014).
8

Decentralization of authority has been suggested under this method and giving responsibilities and
accountability to staff members has also been mentioned under the same. Group working has been
encouraged under this technique and supervisors and line managers are made responsible for
providing effective directions to the subordinates (Hadfield and Dörnyei, 2013). Management of
CAPCO uses guidelines suggested under these methods for making necessary changes in the
organizational structure. Use of the theories in management practices aid in improving the overall
performance of the organization.
l壱2.3
Various types of management approaches are used by various organizations for running and
executing their operational activities. CAPCO uses classical bureaucracy approach for executing its
business functions (Harper, 2015). Under this system a long hierarchy is used and top management
is responsible for rendering directions and commands to the subordinates. Proper work and job
allocation is done under this method and responsibilities and accountability of each employee is
decided. Line managers assist subordinates for completing their assigned work as per the given
time schedule and proper monitoring of work performed by the employees is also done under this
approach (Lichtenberg and et.al., 2016).
The company works with the objective to provide superior satisfaction to its clients and
management controls overall operational processes of the enterprise. On the other hand Tate
company uses system approach for managing its business activities (Powell and DiMaggio, 2012).
Overall functions of the business has been divided into subsystems that includes HR department,
Marketing department, operations department. All the departments are further subdivided and for
every subsystem one manager is being appointed for inspecting functioning of their individual
department (Tate, 2016). It is a effective technique under which the whole organization is being
separated into subsystems according to their working area (Schunk, Meece and Pintrich, 2012). All
the departments work as interdependent and open parts and functioning of all the departments is
interrelated to each other. Information, data and other details are shared by all the subsystem and
mutual support is provided to staff members that are working in same department and various other
departments. Top management focuses on improving the functioning of all the systems and sub
systems. This technique aid in achieving desired targets of the firm by involving mutual
cooperation of all the workers.
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·TASK 3
·3.1
There are different types of leadership styles used in the organization for the purpose of
higher level of motivation among workforce. Basically three types of leadership styles are used in
the corporation such as autocratic, democratic and laissez faire which tends to affect performance
of corporation to a great extent. For example, autocratic style of leadership has typical approach
under which workforce are not provided chance to involve in the decision making process
(McEown and et.al., 2014). Such kind of leadership style is appropriate to implement immediate
changes occur in the company. Owing to this, CAPCO can use autocratic style of leadership to
manage personnel in an effectual manner. For this purpose, strict regulations and rules will
communicated among personnel so they can work accordingly. It proves to to be effective to
increase their motivation level and shift their focus towards achieving long as well as short term
objectives of firm.
On the other hand, democratic style of appropriate in case workers have necessary skills and
abilities to perform the task. This in turn corporation can deliver good quality of service to end
users because they will be motivated to implement potential changes (Schunk and Zimmerman,
2012). However, managers follow effective approach under which strategies will be communicated
to workforce. Apart from this, laissez faire leadership style is adopted in that kind of situation
where workforce are damn intelligent and possess necessary skills to show upward direction of
business. It can be critically evaluated that use of laissez faire leadership might affect performance
of corporation due to incorporation of poor skilled workforce. Owing to this, different leadership
style are used in case of change for effective management of personnel.
l壱3.2
There are different types of motivational theories are used by the CAPCO under which
manager can motivate to their employees for attaining the business goals and work quality. Here,
now discuss about two theories first one is Maslow's and Herbergs theories these are stated below:
Maslow's hierarchical need theory- This is an effective theory which can be adopted by CAPCO
which helps in motivating the employees. According to this theory, there are different level of needs
which are required by the workers to the management for fulfilling. It includes self actualization,
esteem, belongingness, safety and physiological needs (DuBrin, 2013). In addition to this, company
accomplish the safety needs like insurance which required by the employees to feel safe and work
accordingly (Strode and Fink, 2013.). After that, human resource feels need for promotion and
10

recognition which should be given on time on the basis of performance rendered. Henceforth, if
organization fulfills these needs of workers as result they are highly motivated towards the task and
its performance. It affects performance of employees and they work in effective manner and
achieve its goals.
Herbergs theory- This theory consider tow elements such as motivator and hygiene factor which
help to motivate the employees in the corporation. Under motivator factor, manager can provide the
opportunity like promotion, responsibility to their employees which are highly encourage towards
the task and improve the quality of work (Pinder, 2014). Apart from this, hygiene factor, executive
provide the bonus , incentives, wages to their employees which are create the interest towards the
task activities. It help to employees can improve work quality and increase the motivation level. It
affects on work based activities which are properly manage and maitain overall productivity of the
business.
l壱3.3
There are two types of motivational theories such as Maslow's need hierarchy and Herzberg
which tend to affect overall performance of corporation. It is very important to apply suitable
theory of motivation for increasing motivation level ofworkforce. Here, Maslow's need theory
reflects that human need arises in structure under which at first management should focus upon
basic need of personnel and then accordingly the same should be satisfied. At this juncture,
personnel can be offered both monetary and non-monetary reward in the form of job security and
higher level of motivation. However, those are in need of love and belongingness are provided
good working condition so as to ensure their recognition at workplace (Bissing and et.al., 2013). It
proves to be effective to increase workforce motivation and enhance their satisfaction level. On the
other hand, Herzberg theory is also important under which two factors are highlighted such as
motivators and hygiene. The first one consists of challenging work, responsibility, opportunity and
involvement of workforce in the decision making process. Apart from this, job security, status and
salary as well as working condition are included in the hygiene factors. It shows that hygienic
factors must be presented for increasing motivation level. However, for motivating personnel,
motivators should also be there. On the other hand, Maslow's need hierarchy is applied in small
level organization whereas larger corporation tends to follow Herzberg theory. This aids to retain
workforce by increasing their motivation level (Schunk and Zimmerman, 2012). Moreover,
Maslow's need hierarchy facilitates to determine growth and success of corporation with increased
rate of return. Owing to this, CAPCO can use appropriate theory to motivate workforce and
increase their attention towards achieving long as well as short term objectives of business.
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·TASK 4
·4.1
Group are the significant part of the corporation like CAPCO and Tate company under
which all the employees focuses on business goals and work for achieving the common goals. The
decisions made by a group is better as compared to decision taken by an individual (Carter, and
et.al., 2013). In a group of people ideas and suggestions come from persons of different views
which provides bigger platform for innovative decisions. There are different types of groups in the
organization and get the specific result. In addition to this, company provides the role and
responsibility to their human resource under which employees communicate with each other
(Petrou and et.al., 2012). Company follows informal group whereby manager provide the task
accordingly employees interest. Furthermore, all the workers works as per its interest and skills so
that its easy for them to complete their task and achieving the its goals and business targets.
Workforce working together and complete the task on the time so that clients and customers are
satisfied his services, as a result increase the market share in UK. On the other hand, group
behavior is the situation in which individual make interactions and communications in different
type of team unit (Harms and Luthans, 2012). In this way, it depends upon organization culture and
structure under which human resource works as per provided by the manager and company.
Through the team units, employees represents the unity in the organization under which employees
interact with each other and find out the solution occur at the work place. Furthermore, It helps in
maintain the day to day operation and wok environment in CAPCO and Tate company.
l壱4.2
There are various factors which promote and inhibit the development of effective teamwork in the
CAPCO and Tate company. These factors are explained below:
·Diversity- Under this factor, It depends upon organization culture, employees talents and
personalities. Through diversity, human resource creates the creativity and innovative ideas which
help to team members work in effective manner (Harper, 2015.). Furthermore, employees solve the
all issues and conflict are arisen at the workplace which help to maintain positive environment and
develop the team spirit. Apart from this, lack of diversity in the teams under which employees not
able to solve the issues related to assignment provided by the clients and customers.
·Motivation- Motivation is the crucial part of the organization and individuals life. By applying
rewards system, manager encourages to the employees towards the task via bonus, incentives as per
its performance is provided by the executive (Herzberg’s Two-Factor Theory of Motivation, 2016.).
It affects performance of the employees because they are highly motivated and perform in
12

appropriate manner which helps employees to achieve good results.
·Leadership- A good leader has the ability to influence individual and push them towards the
objective and goals of the CAPCO (CAPCO, 2016). Team leader follows the leadership style such
as participative, charismatic at the workplace under which employees gives the knowledge and idea
in decision making process. Henceforth, employees thinks piller of the organization and work
effectively. Furthermore, manager adopts styles like autocratic, transnational etc will result in
unsupportive and unhelpful behavior of the individuals in the team.
·Personality- Every people has different behaviors , personalities, likes and dislikes. Accordingly
if any one team member is not happy with allotted work by the manager then it will disturb
performance of the whole team and the working environment as well.
·4.3
Information technology is one of the important aspect of which brings success to the
organization. CAPCO uses of new technology like laptop, different types of software in the
organization which help to the employees work and team functioning. Human resource works in
efficiently and without time wasting so that save the cost incurred by the firm (Powell and
DiMaggio, P 2012). With the help digital media, Tate company promotes its services and website
which help increase the visibility of website under which save the cost while firm adopts the
traditional methods. Corporation develops the advance technology like smart phones, email etc
which help to employees for interacting with each other. If affects team functioning because they
are communicate with in seconds and discuss the work as per required by the clients (Epitropaki,
2013). With the help of technology, employees work in effective manner and complete the work on
time which help to meet the deadline provided by the clients. Furthermore, It affects performance
of the organization and team function because its clients are satisfied his service rendered by the
employees. With the help of software, employees works in effective manner and manage day to day
operation in the organization (Bissing and et.al., 2013). Through the intranet, employees can search
every thing which are required by the team work and get the relevant information. In addition to
this, technology assist subordinates to improve the quality and buildup effective team functioning.
All these technology are used by the CAPCO and Tate company for increasing the productivity in
the UK market and gain the profit margin.
·CONCLUSION
The aforementioned report concludes that organizational behaviour determines success of
corporation because of inclusion of highly satisfied and motivated workforce. It facilitates to create
competitive edge of the business with increased rate of return. It can also be concluded that factors
13

like open communication, delegation of authority and effective working condition tends to promote
team work. Further, technological innovation make it possible to have positive impact on team
function and contribute towards good performance of corporation. Apart from this, scientific
management and human relation are effective management approaches through which employees
are managed and motivated. In addition to this, role of different leadership style is significant
through which business can handle the potential changes occurring.
14

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