Define the word organisation culture and the various types of culture that are available to an organisation stating advantages and disadvantages of each of them. Identify and describe the different types of organisational structures and cultures and compare and contrast including an argument for and against the structures of City College and Enterprise. (LO 1.1)
An organization can be defined as the rational coordination for the work activities for large number of people who have been combined in order to achieve a particular goal. This goal decided by the members of organization would be attained through division of labour & functions and allocating responsibility and hierarchy within the organizational context. Organizational culture can be defined as the behaviour exhibited by people who are a part of the organization and this also represents the meaning that human reacts to their action. There are mainly four types of organizational culture which are role culture, achievement culture, power culture and support culture. The division of organizational structure can be done along two parameters which are degree of formalization and centralization. The four types of organizational structure divided on basis of these two parameters can be given as under:
The first organizational culture is power culture which is attained through exercising control and influence behaviour. Power culture can be defined with the inequality to access of resources in the organizational context (Schrodt, 2002). Power culture can be characterized by low formalization level and high centralization. The major advantage of power culture is to unify individual efforts made in the organization, can give proper directions for future and can quickly leverage on the knowledge of leaders. Disadvantages for power culture would include working according to Boss’s wish despite of choosing wrong directions, employee feedback is not provided, low employee morale and people with power would break the rules.
Second organizational culture is role culture which can be defined as substitution of structure and procedure with the naked powers from the organizational leaders. Role organizational culture would be characterized by high degree of formalization and high centralization. The major advantages of role culture would include well developed system for higher efficiency, fair rules and higher degree of system security. Disadvantages of role culture would include strict guidelines hampering work progress, deviation from procedure is not allowed and employees are not able to showcase their talent & innovation.
Third organizational culture is achievement culture dimension which can be defined by the fact the organizational members would be focusing upon the set goals and objectives for the organization. Achievement culture in the organization would be characterized by high degree of formalization and lower degree of centralization. The major advantage of achievement culture would be unity in efforts made, high self esteem for members, change adoption and maximum use of talent. Disadvantages of achievement culture would include isolation for group members and higher system inefficiencies (Schein, 1992).
Fourth organizational culture is support organizational culture which can be defined as the culture based on the mutual trust and understanding between members of the organizations. Support organizational culture can be defined through low centralization and low degree of formalization. The major advantage of support organizational culture is to develop efficient internal communication, to sense internal environment, showing commitment towards organizational decisions and sophisticated skills to manage people issues. Disadvantages of support organizational culture are neglecting work for relationship, higher time delay in decision making and avoidance for personal decisions.
Exploring the two case studies given in the present context it can be said that City College has high degree of formalized structure and there is low degree of centralization so as to make overall organizational structure as support culture. Looking into Enterprise which is having high degree of centralization and high degree of formalization making it role cultured organization.
Explain the relationship between an organisation’s structure and culture and the effects that both culture and structure has on an organisation’s performance. Citing examples from the case study identify and examine in detail, the effects that both culture and structure has on the performance of City College. (LO 1.2)
City College and Enterprise has the view that any organization need to have continued improvement in their processes and develop innovation so that they can lead the market into their particular industry. Organizational structure of the organization would help to ensure active communication between various stakeholders of the organization and communication between different departments of the organization. The pre-bureaucratic structure can be considered for the ‘Enterprise’ as this would lack in standardization of task but would lead to success for the organization in case properly managed by the different stakeholders of the organization (Needle, 2004).
Bureaucratic structure of the organization would be helpful for the companies which required defined structure and having lot of paper work in their processes and for City College bureaucratic structure would suit well. This structure in the organization should not be considered negative as in some business organization this can be of great use so as to avoid recurring problems. City College has written its code of working which are highly formal and define the management practice adopted in the organizational context. These defined set of objectives for City College would include be reliable, be straightforward, understanding learners need and to be responsive.
Hence organizational structure of the businesses such as City College and Enterprise would define the overall culture of the organization. It is important for the organizations to match the organizational culture and structure so as to attain success in their overall business venture. Another example can be taken from the merger of HP and Compaq as HP is one of the successful business and its merger can be justified basis on the strategic objectives of the two organizations as there are common goals for the two organizations in context. But it is important to understand that the two organizations are having different organizational structure and culture as well. In case the culture of the two organizations is not merged well and is not well managed by the newly merged organization their overall organizational performance can diminish in future leading to destruction for the two organizations (Cooke, 1987).
Define the word behaviour and identify the various factors that might influence the way individuals behave at work. Using different examples from the case studies, discuss what you would identify as the influencing factors in the way City College behave (LO 1.3).
Behaviour for the individuals would define their action or reaction for a particular work activity in the organizational context. Work behaviour for individuals would be affected by several factors at workplace and these factors would decide the overall behaviour for an individual. Psychological behaviour or thinking for a person would determine the thought in order to decide what an individual would contribute to the organization and the reward which would be obtained in return for the individuals (Islam and Zyphur, 2009). An individual would be able to contribute several things to the organization such as efforts, ability, loyalty and time. In return to this an individual would expect to get tangible and intangible assets in form of reward for themselves.
Self esteem of an individual would show the extent to which an individual considers himself deserving for a particular reward while motivation is the main cause behind involvement of an individual into a particular behaviour rather than in some alternative behaviour. Hence at workplace there are different factors affecting the individuals such as psychological, motivation and leadership style. City College understand the importance of happy individual working at the workplace in order to ensure the success of the business organization. Hence in order to manage the happy workplace City College tends to motivate and create happiness for their employees so that they are engaged in organizational activities and can contribute to the success of the organization (Islam and Zyphur, 2009).
City College invest high amount of money in development and training of their human resource so that training along with facilities can be provided to the employees of the organization so as to make them happier. Enterprise has strong belief that an organization with happy workforce and satisfied customers would be able to get success since motivation, psychological behaviour and leadership style adopted in the organization would be able to shape the workplace behaviour for the individuals so that they are contributing to the best possible extent towards the success of the organization.
Taking the case studies to support your discussion, compare the effectiveness of different leadership styles in the two different organisations. Explain the various approaches to management and leadership theories and their relationships to the way organisations are managed and their importance. (LO 2.1)
Behavioural leadership style can be defined as the study of leadership in order to understand the action and behaviour of individuals at workplace. The theoretical approach presented in the current context would help in order to develop the categories for different styles in order to align the actions of leaders or methods used by them in order to reach towards organizational goals. Situational leadership theory would deal with the application and effectiveness for the leadership style followed by leaders in organizational context under different situations and operating environment (Atkinson & Joel, 1978). The aim of behaviouristic leadership style in the organization is to explain the type of leader existing in the organizational context such as bureaucratic leaders. Leadership style exhibited in Enterprise can be considered as the suitable example for behaviouristic leadership approach wherein leaders are being empowered at workplace.
Similarly situational leadership theories suggest how particular type of leadership would be effective under particular circumstances. For example the Coercive leadership style adopted can best suit the City College environment wherein turnaround is required for the organization so as to attain the objectives set by the college. The aim of behavioural leadership theories adopted in the organizational context would be to explain the behaviour of transactional leadership as compared to the transformational leadership style. Bureaucratic leaders prevailing in an organization such as City College would be highly structured in their approach and methods of working. Such leaders would be process oriented and there would not be any space for these leaders in order to innovate and develop new things in the organizational context. The leaders in City College would be little slow in order to make decisions and their working as they would be following the processes and guidelines given to them rigorously without deviating from any policy or processes framed within the organization. These leaders would be quite conscious towards forwarding a business action or activity to next level wherein they would ensure that all necessary actions have been taken so that higher level management does not need to check for the process and policies in the organizational context. City College is perfect example as Universities, banks and hospitals can be considered as the ideal example under this leadership style adopted for the organizations (McClelland, 1953). These leaders are more concerned towards enhancing quality, security and reducing corruption from the overall organizational environment. Those leaders who want to speed up the processes in such organizational environment would face the adverse consequences and frustration from the organizational environment.
From your understanding of the different approaches to management and leadership theories, explain which of these theories you think that both City and Enterprise have adopted. Evaluate the different approaches used by the City College and Enterprise. You may include examples from other organisations to support your evaluation. (LO 2.2 & 2.3)
Organizations are considered as the organizational settings in order to accomplish particular work role assigned to the members of the organization. Leadership is the process of directing people towards their objective and this would help in raising performance for the people in organizational context. There are different types of leadership which can be given as under:
Participative or democratic leadership style
Free reign leadership or delegate leadership
Autocratic style of leadership or authoritarian
Authoritative style of leadership would involve directing their employees for doing some particular work in the particular manner. For Enterprise authoritative leadership style would be best suited as the organizational structure is such that it supports the authoritative leadership style. This style of leadership can be considered for the Enterprise when the leaders pertaining to the organization have complete information basis on which action need to be taken, leaders are short of time and employees in the organization are well motivated to complete the allotted task (Schultz & Schultz, 2010).
Taking example of the leadership style in City College it is advisable that college should adopt the participative or democratic leadership style in order to manage their organization and attain organizational objectives. City College has required time in order to develop commitment among their employees so that they can develop participative leadership style wherein employees would be contributing equally to the organization with full freedom and they would be motivated. The participative style of leadership would make use of the sentence such as “Let’s carry out the work together in order to attain the organizational objectives”. City College structure has been divided into different departments and accordingly that environment would suit this type of leadership environment wherein leader would involve other participants in the decision making process while final decision making would be done by the final leader only. This type of leadership would be more suitable in case leaders are not has complete information and part of the information would be formed by the other employees of the organization. Leaders in the organization are not expected to know each and every thing and there would be benefits of deploying knowledgeable and skilful employees in the organizational environment.
Delegate leadership style is adopted in an organization wherein work responsibilities are delegated to the particular members of the organization and statement such as “You two take care of the particular work responsibility and would ensure attaining the objectives of this task”. This leadership style is best suited for the Enterprise wherein leaders at lower level are allowed to make decision on their own while upper leaders in hierarchy would be held responsible for decision made by their subordinates even (Steinmetz, 1983). It is important organizational leadership style wherein it can be understood that same person can’t do every task hence in order to manage them efficiently it is important that organization should allocate work responsibilities and rights for making decisions on behalf of organization.
Identify the difference leadership styles that are available and discuss the impact that different leadership styles may have on motivation at the time of a change at Egg and Taylor Woodrow’s workforce. (LO 3.1)
There are different leadership style prevailing in the organizational context and usage of these leadership styles can have significant impact on the overall motivation for the employees working in the organization. Autocratic leadership style adopted in organizational context would allow leaders to make decisions themselves without involving other stakeholders in the organization. The leadership style can manage speedy decision making process but there is negative impact of this leadership style on the motivation level of employees as they would not be part of the decision making process and their moral would be quite low. In such situations employees would not be loyal to the organization and they are just following the rules and regulations depicted by higher management team (Rogoff, 2011).
Participative leadership style would be the one in which all team members would be given the opportunity to take part in the decision making process and their opinion would be taken. Though the final decision would be made by leader but the opinion of team members would be heard. This leadership style is being adopted in both Egg as well as Taylor Woodrow wherein employees have been included as an integral part of the decision making process. This leadership style would be importance to enhance the motivation level of employee as they would feel themselves important to the organization and their morale would be high.
Democratic leadership style would share the work responsibility of leaders to the lower hierarchy in order to accomplish the work. This would allow empowering employees in the organization and making them responsible for the results of task allotted to them. This leadership style would develop sense of responsibility and higher loyalty among the employees of the organization. Overall motivation level for these employees would be much higher as compared to the motivation level among employees where autocratic or participative leadership style is being adopted.
Compare the application of the different motivational theories adopted by the two organisations, Egg and Taylor Woodrow’s workforce. (LO 3.2)
Motivation theory adopted by Egg is McClelland’s three social motive theory which highlights that there are mainly three factors which are responsible for motivation among employees and these factors are need to achievement, need for affiliation and need for power. Need for achievement factor is further divided into three parts which are drive to transcend, drive to succeed and drive to succeed in relation to particular benchmark. Employees in Eggs are motivated to achieve their objectives by setting high standards (Wilfred, 1969). Need for affiliation would showcase the employee’s need for attaining friendly and close relationship with other employees and other relatives & friends. Eggs encourage formation of informal groups wherein team members can develop specific interest groups and share good relationship between each other. This would help the employees in attaining need for affiliation. Need for power is third major requirement for the employees wherein employee would force the employee to behave other in a particular manner in which employees would not have behaved normally. Employees are empowered in Eggs so that their need for power can be accomplished.
Herzberg motivation theory is being adopted by Taylor Woodrow where in monetary rewards are given to employees in order to motivate them regarding their work responsibilities. Taylor Woodrow has developed the method of performance related pay wherein employees are being paid according to their performance so that they get the pay according to efforts put by them in order to attain the individual as well as team performance in the organizational context. Adopting this method for motivation can have positive as well as negative impact on the motivation level for the employees as excessive usage of monetary rewards would create de-motivation among the employees of the organization (Maynard, 2004).
While comparing the two motivation theories used by the Eggs and Taylor Woodrow it can be said that Egg has stronger motivation theory for their employees wherein employees would strive for achievement, power and affiliation. This would accomplish all their needs while motivational theory adopted in Taylor Woodrow is mainly focusing on the monetary aspect and this may also lead to the de-motivation of employees as other needs of employees would not be fulfilled.
Evaluate how the management of both Egg has and Taylor Woodrow’s workforce applied these motivation theories and practices in the company and what benefits, if any, have the companies derived from their chosen motivation practices (LO 3.3)
The two organizations i.e. Egg and Taylor Woodrow have applied the motivation theories in order to enhance the motivation level of employees so that overall organizational performance can be improved. Egg has applied the motivation theory by deeply analyzing three social motives for the employees which are achievement, power and affiliation. Egg helps in achieving personal and professional goals of their employees, develop informal teams so as to provide affiliation and empower their employees so that they can accomplish need for power. Hence all the three needs of the employees can be fulfilled this way. Similarly Taylor Woodrow has created the motivation among employees through pay and this has been applied by linking the employee performance with the pay provided to them so that employees are encouraged to enhance their workplace performance to get better pay (Weiner, 2000).
There is strong relationship between motivation theory and practice of management wherein motivation is understood as the force to drive people towards work. Employees are motivated to attain their needs and these needs are associated with the work in organizational context. Hence employee’s performance in the organizational context would be as a result of their desire to accomplish their needs so that by accomplishing work they can easily fulfil their needs and remain motivated towards the work responsibilities allocated to them.
Explain the nature of groups and group behaviour within Egg and Taylor Woodrow’s workforce (LO 4.1)
There are mainly two types of groups formed in the organizational context which are formal groups and informal groups. Formal groups are being formed by the organization in order to accomplish specific tasks while informal groups are formed by employee themselves. Informal groups are not formally structure and have power to influence as their members would be having common objectives and good relationship with each other. In a big command group there would be some sub groups managing the other people under that particular group. In order to manage a group the team leaders need to understand both individual goals of the team and overall team objectives. Looking into the examples for case study of Eggs and Taylor Woodrow it can be observed that organization has specific individual as well as team rewards for the performance of the employees and accordingly rewards are being allotted. This would help the organizations to enhance both individual as well as team performance of their employees.
Taylor Woodrow has the performance review policy where in proper attention is paid towards both the performance aspects i.e. team performance as well as individual performance of an individual. It is taken care that people who are a part of the successful team and have not individually performed, they would be assessed on their individual performance rather than the performance of their team so as to avoid any disparity within the organization (Arvey et al, 2006).
Formal team within the two organizations i.e. Egg and Taylor Woodrow would be divided by management in order to accomplish the organizational goals and according to the requirement of the organization for the particular resource while informal teams would be developed by employees of the organization themselves with common interests. Formal teams within the two organizations would behave with high formalization and following the organizational hierarchy. Such teams would be objective oriented and does not share a healthy relationship between them. There can be conflicts in the formal teams and group members may not have the common goals to achieve. Unlike the formal groups informal groups in the two organizations would be quite different and the team members would decide group themselves based on the common interest level for these members. The group members of the informal team would be sharing common interest and would be having high degree of relationship with each other (Tagger et al, 1999). This relationship among the group member would help in order to resolve conflicts within the team and there would be lesser conflicts within the team. Performance of such groups would be quite high as compared to the formal teams formed in the organization.
Identify with examples the various factors that could make a team effective and also those factors that may be likely to threat the success and effectiveness of a team. With reference to the case studies, discuss to what extent you believe that these factors have impacted on the effectiveness of the teamwork of the organisations (LO 4.2)
Looking into the two cases i.e. Egg and Taylor Woodrow it can be observed that teams are the essential part of the organization which are formed in order to obtain the collective efforts so as to accomplish a particular task. Teams are developed in Eggs and Taylor Woodrow so as to develop different departments and project groups so that organizational objectives can be attained through these teams. There are several factors which can enhance the effectiveness of team in Eggs and Taylor Woodrow and these include information flow, communication, focus on team goals, conflict resolution, healthy working environment and motivation among team members (Graen et al, 1982).
Managing proper information flow in the teams would help the individual team members to share their knowledge with each other and overall knowledge level of the team would be enhanced e.g. in small organizations instead of spending higher financial resources on training information flow between team is strengthened so that employee can learn within teams. Communication between various team members would be an important element for the organization because it would define the culture of the organization in order to manage good understanding between different team members e.g. an organization with open communication policy would have effective teams as compared to an organization with restricted communication policies. Team should be such that entire focus of the team should be towards on the goals of the team without looking into the individual preferences as this would help in developing coordinated efforts for the team e.g. an organization providing rewards for team performance is expected to attain higher success as compared to the organization providing rewards for individual performance. Conflict resolution is an important process which should be implemented in the teams for enhancing coordination between the team members e.g. documented process for conflict resolution would help the team members to manage teams in proper manner (Gardner, 1965). A team leader should be motivate the team members towards achieving team objectives as motivated team members would be able to contribute highly towards the team goals e.g. a project manager with leadership skills would prove better as he can motivate the team. Similarly health working environment in the organization would help in development of team and attaining their objectives e.g. healthy workplace environment would shape the organizational culture and this would lead to formation of effective teams.
Factors which can create threat to team effectiveness would include conflict, individual goals, disparity and unclear roles & responsibilities. Conflict between team members can spoil entire working environment within the team and can lead to lower performance for the team members in the organizational context e.g. frequent conflict incidents between team members would lead to division of team into separate members having different objectives and hampering attaining team objectives. A conflict resolution process can help in resolving team issues efficiently. Focus on individual goals for the team members can create problems for the entire team as there would not be focus towards the team objectives. Disparity among team members from the team leader and higher management can create problems as other team members would feel de-motivated e.g. an unclear reward policy can lead to disparity among team members leading to inefficient teams. Unclear roles and responsibilities would reduce overall team effectiveness as there would be conflict between team members e.g. unclear division of roles would create conflict (Baumeister et al, 1988).
In organizational context to Egg two important elements contributing to overall team effectiveness are motivation and healthy work environment. Motivation is the major element which enhances the team effectiveness and Eggs deploy several critical methods in order to motivate their employees. Similarly a healthy workplace environment has been created which enhances overall team effectiveness. In context to Taylor Woodrow clear roles and responsibilities have been managed and information flow have been managed smoothly in order to enhance overall effectiveness of the teams.
Explain the role of technology in the success of a business that you know. In view of your argument, evaluate the impact of technology on the performance of Egg’s and Taylor Woodrow’s company teams and groups and the company’s overall performance (LO 4.3)
The two examples of case studies in present context clearly show the overall role which technology plays in order to develop successful business model for the two organizations i.e. Egg and Woodrow Taylor organization. Egg has created the entire business for completely online bank which is complete application of technology to develop a successful business in the organizational context. Similarly Woodrow Taylor is making use of the technology in order to contribute success to their organization. Some of the major success criteria ensured through technology in business context can be given as under:
Vast information availability: Technology can help in collecting, organizing and storing large amount of data in information systems of the organization and this information would be helpful in order to make decision pertaining to organization.
Lower setup cost and human resource cost: Technology can help an organization to setup online platform for carrying out the business which would have lower setup cost and human resource cost. Hence overall business model developed would be cost efficient (Zaccaro, 2007).
All time availability: Technology can help in continuous business availability wherein consumers can make purchase at any point of time without having time constraints unlike physical store established by the organizations.
Capturing large consumer segment: Technology can help in capturing large consumer segments for business organizations as geographic barriers are eliminated and business organizations can trade in foreign countries with high cost efficiency means.
Role of technology in performance of Egg can be explored from the fact that it’s the online bank and have more than 3.7 m customers. Further with the help of technology Egg has developed good customer experience. Importance of technology is quite high for Taylor Woodrow as company have housing construction operations in different countries such as UK, Spain and US (Bono & Ilies, 2006). These wide spread operations are being managed through technology so as to form a coordinated system. Further company have technologically advanced human resource due to which they have all engineers required for the housing construction work in house and this provides cutting edge for the company.
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