Understand the relationship between organisational structure and culture
1.1 compare and contrast different organizational structures and culture The learner’s evidence shows, for example:
Demonstrate basic understanding of theories.
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1.2 explain how the relationship between and organisation’s structure and culture can impact on the performance of the business Explain the relationship between organisation’s structure and culture. Describe the impact on the performance of the business for different structure and culture. 1b
1.3 discuss the factors which influence individual behaviour at work Identify relevant theories and discuss factors influencing individual behavior at work.
LO2 Understand different approaches to management and leadership:
2.1 compare the effectiveness of different leadership styles in different organisations Explain various leadership theories and concepts.
Using the identified organizations, compare the effectiveness of different leadership styles.
2.2 explain how organizational theory underpins the practice of management Identify and explain organizational theories.
Explain how these theories underpins the practice of management. 2b
2.3 evaluate the different approached to management used by different organizations Evaluate and compare different approaches to management using the chosen organisations 2c
LO3 Understand ways of using motivational theories in organisations: 3.1 discuss the impact that different leadership styles may have on motivation organisations in periods of change Explain various kind of motivation
theories and concepts.
Discuss the impact on motivation in selected organization due to different leadership styles.
3.2 compare the application of different motivational theories within the workplace Explain and discuss the application of different motivational theories.
3.3 evaluate the usefulness of a motivation theory for managers Discuss and evaluate the usefulness of various motivation theories for managers.
LO4 Understand mechanisms for developing effective teamwork in organisations:
4.1 explain the nature of groups and group behaviour within organisations Demonstrate understanding of the theories and techniques in developing effective teams. Explain different group behavior within the chosen organizations.
4.2 discuss factors that may promote or inhibit the development of effective teamwork in organisations Discuss factors that promote or inhibit the development of effective teamwork within the chosen organizations.
4.3 evaluate the impact of technology on team functioning within a given organisation. Evaluate the impact of technology on team functioning within the chosen organizations.
The purpose of this assignment is to explore organizational structure and culture, examine different approaches to management and leadership and theories of organization, examine the relationship between motivational theories and demonstrate an understanding of working with others, teamwork, groups and group dynamics.
2. Understand the Relationship between Organizational structure and culture 2.1 Compare and contrast different organisational structures and culture. Use organisations you identified as examples to justify your answers Waterman (1996) defines an organization as: “Organisation exists for only one purpose: to help people reach ends together that they could not achieve individually.” There are four main types of organizational structures in common use today: Functional-based structure, Product-based structure, Geography-based structure and Matrix structure. First of all, we use my existing working company which is one of Top 10 global pharmaceutical companies Eli Lilly Hong Kong Branch as an example of Functional-based structure:
As shown in above organizational chart, Eli Lilly Hong Kong Branch allows individuals to be grouped together on the basis of their specialism and
expertise. Each individual department can work individually under specific expertise. However, it is difficult to remove individuals from the original department. The overall effectiveness will be affected. Another organizational structure is called Product-based structure. We used another pharmaceutical company Merck Sharp & Dohme Hong Kong (MSD) as an example of Product-based structure:
As shown on the above organizational chart, MSD has its different catergories of product pipelines for different market and customer needs. The biggest advantage of Product-based structure is to specialize and focus on individual market for individual customers. Like MSD example, for Business Unit Product X, it can specialize drugs for primary care and Business Unit Product Y for Secondary treatment use.. Nowadays, Geographical-based structure is commonly use in larger organization such as global companies. One of Top 10 pharmaceutical companies Eli Lilly can be used as example:
As one of the global pharmaceutical companies, Eli Lilly is typically implementing a Geographical-based structure. The advantage of this structure enhanced quicker decision making and faster responsiveness to the local market and enhanced customer understandings with the common language make sure the organization can “Think globally but act locally”. The last one is Matrix organizational structure, TVB can be used as example: Matrix structure is an organization which put different specialties together to achieve a task or project within a fixed period. The advantages are high organizational flexibility, challenges and development of people, motivates people for end product and allowing movement. The disadvantages are encourage of political struggle, require high interpersonal skills, duplication of work and may be de-motivation of work. 2.2 Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business. Organisational structure and culture are critically important to organizations that it can impact on the performance of the organization’s business. Effective organisation structure can make company performing well. However, structural deficiencies result in bad consequences such as low motivation and morale, late decision, conflict of co-ordination and rising cost. Below is an example of Eli Lilly Hong Kong
from my real experience:
Eli Lilly Hong Kong Branch has a Flat Hierarchies rather than a Tall Hierarchies. The major advantage is lower overheads because of limited managerial level. But the disadvantages are limited opportunities for career development, difficult to supervise and poor communication between managements and frontlines due to high p of control especially in sales department. Apart from Eli Lilly Hong Kong’s organizational structure, the particular culture is another critical factor which impact on the performance of business. Basically, there are four types of commonly culture, power culture, role culture, task culture and person culture. Eli Lilly Hong Kong is basically divided itself into a series of functional layer such as functions, rules, job description, hierarchy, supervision and bureaucracy. The internal relationships between roles are set up by job description guidelines called The Red Book. Under this type of culture, the position is power. That means individuals easily to replace and has limitation on career development. Furthermore, Eli Lilly’s has its own core value, i.e. Integrity, Excellence and Respect for People. It reflects the founder’s philosophy. After selection criteria, top management’s promotion and socialization to the firm’s core values, belief and norms, then finally reinforce outcomes. 2.3 Discuss the factors which influence individual behavior at work. For any organization, it is important to realize the factors which influence individual behaviors at work like turnover and absent among staff, change of job features, workplace design, the development of kills and attitude, working attitude, time management in the work place, etc. There are a lot of concepts and theory about the factors influencing individual behavior at work including positive and negative reinforcement, punishment, The Phenomenological approach, perception, the nature of individual difference, personality, traits and types (Extrovert and introvert, neuroticism, conscientiousness, agreeableness, openness to experience), self and self-image, etc. Perception is actually one of key factors which influence individual behavior at work. Managers always perceive the behavior or personality of subordinates. So the best thing to do for a manager is to avoid developed any biased or distorted views. It is because it will eventually affect the
relationship between managers and subordinates. The nature of individual differences critically affects the individual behavior at work. Individuals have variations on physical difference such as hearing, seeing, smelling, etc. Different physical ability directly affects individual behavior at work. For example, a wine taster needs good smelling, a pop-singer needs good hearing and musical reaction. Personality as well as the traits and type can determine an individual which type of work or organizations should be more suitable and effective at work. H.J. and M.J.Eysenck (1985) have identified five key personality factors that are Extroversion and Introversion, Neuroticism, Conscientiousness, Agreeableness, Openness to experience. Extrovert person should be more suitable to a sales role rather than introvert person. In contrast, office-based job should be suitable to an introvert person. All above factors can influence individual behavior at work. 3. Understand Different Approaches to Management and Leadership 3.1 Compare the effectiveness of different leadership styles adopted in different organisations, using the organisations identified as examples. Nowadays, the leadership and management styles became more and more important in 21th century. This part we are going to compare the effectiveness of different leadership styles in some identified organizations. The first one is the scientific management. The typical example is Mcdonald. Mcdonald use scientific management concept to divided its labours into different part and work through standardize process to achieve a task, e.g. Hamburger making process. However, it neglects the subjective side of work, the psychological needs, job satisfaction and recognition. The classical management style promotes a militaristic organization. It makes the staff working under stress environment. It is also based on unreliable personal experience. The interaction of people becomes worse. Also, the management misunderstand people’s thinking and conflict of interest. The benefits of Bureaucratic management style are focus on economic and labour market. It also makes people more specialized and organized in modern societies. However, rules influence the acceptance of performance and minimize people’s decision contributions. Human relatioln management style is more focus on people relation. It encourage working as a team and the considerate culture but management with over concentrate on people will result in negative effect, Finally, the
contingency management makes the organization in any specific case depends on the circumstance at an appropriate time.
3.2 Explain how organisational theory underpins the practice of management. There are various organizational theories that would underpin the practice of management. Henry Mintzberg divided managerial role into 3 specific areas which are interpersonal role, information role and decision role. Managements who have strong interpersonal skills and relationship such as coaching and face to face communication with both internal and external customers is critically important. Information role in today’s business world is also essential as management have to analyze process and make use of information to enhance the companies a competitive role in the market. Last but not least, the decision role, management has to make different kind of decision such as strategic, periodic control and short term operation control decisions in the planning process with SMART criteria’s. Furthermore, Weber defines POWER as “the probability that one actor within a social relationship will be in a position to carry out his own will despite resistance.” So theories of power including personal power, legitimate power, expert power and political power influence the practice of management. Finally, delegation is a key success factor which can underpins the practice of management. Managers who are lack of time, skills or knowledge can make use of delegation to achieve specific task. Delegation is also one of development skills for management. 3.3 Evaluate the different approaches to management used by different organisations you have chosen. Henri Fayol (1916) defined management as: “To manage is to forecast and plan, to organize, to command, to co-ordinate and to control.” There are many different types of management style including scientific management, the classical approach, Bureaucracy, the human relations approach, the systems approach and the contingency approach. The scientific management was developed by Frederick Winslow Taylor (1856-1917). It is actually a one right way management style. The manager directly tells the workers what to do and supervises them. However, it doesn’t work in today’s business world because of new concepts development such as ownership, respect for people, open discussion, etc. So Henry Ford modified the scientific management in a way that remove waste and efficiency and then develop into today’s six sigma
concept. The classical approach is similar to scientific management but it was modified by Henri Fayol (1841-1925) to six common managerial activities, forecasting, planning, organizing, commanding, coordinating, controlling, commonly use in today’s business world. Bureaucracy is one of management style. Max Weber said that Bureaucracy has six characteristics, job specialization, authority hierarchy, formal rules and regulations, impersonality, formal selection and career orientation. Apart from the rational approach, the human relations approach was developed due to attention of human behaviors and motivations. The focus of this approach is to put more effort on the social relationship of the organization, not just the profit and loss of the organization. Then the combination of scientific management and the human relationship approach is the system approach. Finally, the contingency approach which is depends on the circumstances of the organizations. It depends on five key circumstances, technology, environment, size of organization., diversification and internationalization. The example of Eli Lilly Hong Kong has applied both rational and non-rational approach of leadership style such as Six Sigma Project, “Respect for people” culture, VEEVA report system (Customer call plan), Task Force Team and projects, etc within the organization. 4. Understand Ways of Using Motivational Theories in Organisations 4.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change. There are a number of leadership styles including Autocratic, Democratic, Paternalistic and Laissez-faire leadership style. Autocratic leadership style means the leader makes decision alone and the staff just follows and completes the task. Example is the police force. This type of leadership will resulted in little cohesion and low motivation. Democratic leadership style encourages sub-ordinates to participate in decision making. It can be persuasive or consultative. Persuasive leader makes the decision alone and then he will persuade subordinates to obey his decision. Consultative leader let everyone participate in decision making, consults the ideas and opinions and then make final decision. Today more and more global business companies are using this type of management. Eli Lilly Hong Kong is one of an example which is applied both persuasive and consultative leadership style in management.
Democratic leadership improves communication, making more staff engagement, higher motivation than Autocratic and committed. Paternalistic leadership style is quite similar as Autocratic leadership but a Paternalistic leader is more focus on the welfare to his staff or sub-ordinates. A typical example is Singapore government which has good welfare system but limited in speech freedom. The last one is the Laissez-faire leadership style is the leadership give a freehand to staff with few guidelines and directions. The staff can work in a freedom and relax environment. The disadvantage is lack of motivation and direction, especially for some new or junior staff, can’t learn from the leader and eventually lead to poor productivity and performance. 4.2 Compare the application of different motivational theories within the workplace. The motivation theory can be examined to two main types of theories within the workplace: Content theories and Process theories.
The content theories include theories by Maslow, Herzberg, McGregor and MacClelland. The process theories include the theories of equity, reinforcement and expectancy. Maslow’s theory indicated that individual needs are divided into five level of hierarchy: Self-actualization needs, Esteem needs, Social/Affiliation needs, safety/security needs and physiological needs.
One of five needs has been satisfied then another one will be motivator. McClelland theory believed that people are looking for something from their work. So McClelland developed people’s need into 3 main areas: Need for achievement, Need for affiliation and Need for power (personal and institutional) which is called McClelland’s Acquired-Needs theory. Then we go through the Process theories including equity, reinforcement and expectancy theories. People will consider the equity or inequity of their situation by using outcomes and inputs such as pay, benefits, working hours, effort, pressure, etc to make the judgments. People also are motivated or de-motivated by rewards and punishment according to four types of reinforcements: positive, negative, extinction and punishment. Finally, Vroom’s expectance theory believed that the motivations are produced by expectancy (the belief that effort can affect performance), instruct mentality (the belief that performance will be awarded) and Valency (the perceived value of the expected rewards).
4.3 Evaluate the usefulness of a motivation theory for managers with the organisations you identified. According to the above motivation theories, we know that the rationale behind the motivation theories. However, the most important thing is how to turn it into effective ways of motivations, financial and non-financial methods of motivations. Below example is from my real experience: My Sales Director always promotes the job enlargement and job enrichment theories to all sales team members. He encourage sales person to do other department’s role such as medical, HR, training, marketing etc for the purpose that everyone can develop himself while responsible for many different aspects. In order to build the rapport, better understand sales team’s needs and clearly communicate the expectation and objectives, Sales Director arrange a breakfast session with individuals every Friday. He introduces and enforces norms of behavior and rewards update to sales person. He focuses more on both monetary and non-monetary rewards, especially focusing on the personal development and career pathway. For the purpose of job enlargement and job enrichment, Sales Director encourage senior sales person or managers responsible for more task, for example, STA (Short Term Assignment) like sales training workshop. Through the sales training, the individuals can show the potential of personal growth, achievement and recognition to management teams.
Besides, a lot of team building activities such as celebration dinners, recognition dinners has been launched to manage and maintain good relationship and communication with sales team members. There are a lot of advantages regarding above examples. It can attract and retain sales person in a “bright prospect” way through the job enrichment ways. Also, it can develop more capable person for other departments, e.g. training, medical, and marketing. However, individuals who want to be a “Happy Salesman”, is difficult to motivate by this kind of method. 5. Understand Mechanisms for Developing Effective Teamwork in Organisations. 5.1 Explain the nature of groups and group behavior within organisations you identified. Basically, there are two different groups, formal and informal groups. Formal groups are groups in an organization which have been created to accomplish the organization aims and goals. These formal groups are aim to complete a special task, brainstorm ideas, further communication and liaising between group members. It always has formal structure; task oriented and tended to be permanent. An example of formal groups in Eli Lilly Hog Kong is Incentive Task Force which is created for the planning of incentive scheme for an organization. Informal groups are groups which have been created by more on personal relationships.
It can have positive or negative impact on employees. Informal group also can maintain and straighten the norms, help members to improve communication and solve problems. An example of informal group in Eli Lilly Hong Kong is a group which is created for the purpose of wine tasting. An organization uses groups for different purpose such as the distribution of work, the management and control of work, problem solving and decision making, information processing, co-ordination and liaison, increase commitment and improvement, negotiation and conflict solution and testing and ratifying ideas. Effective groups basically have aim and objective sharing, sense of commitment, low turnover rate, acceptance of group values and norms, feeling of mutual trust and dependency, etc. Basically, there are five stage of group’s development from start to final stage, that is forming, storming, norming, performing and adjourning. Organizations try to be made a group which will be effective and good collaboration. Group members, group task and group development. Continue to use The incentive task force in Eli Lilly Hong Kong to elaborate the theory. The selection of the group members in Incentive Task force is really important.
This group actually needs different members on expertise in incentive calculation or create professional excel file, familiar with other companies incentive scheme, breakthrough ideas and logical thinking, familiar with sales team operation and objective and most important is a person who know how to set up a motivate incentive for sales team. 5.2 Discuss factors that may promote or inhibit the development of effective teamwork in organisations you identified. There are a lot of factors including team purpose, team member’s selection, team roles, stage in team development, team identity and loyalty, team dynamics and team norms that may promote or inhibit the development of effective teamwork in organization. First of all, clear team purpose and the selection of team members are really important. As the example in Task 5.1, my company set up a Incentive Task Force Team for the purpose of evaluation and setting of incentive scheme for sales team. This is a typical example of a problem-solving team which only set up for a specific problem or task. In this case we can’t create a management team or a work team for this purpose. After that the team will be disbanded at the end.
The selection of team members and team role are also critical in the effective teamwork. Incentive Task Force needs someone who has specific ability or traits to work together. For example, individual who familiar with internal and external incentive, individuals can have better knowledge on incentive calculation, individuals can know the salesman’s behavior, etc. Similar as group development, there are four stages in team development including Forming, Storming, Norming and performing. For the purpose of team identity and cohesiveness, Incentive Task Force team proposed a team reward which is rated by all sales people. Within the team, the team leader also organized team dinner sponsored by company to develop more interpersonal interactions. In order to make sure the team members get into the team, team leader presented next year incentive comparison benefited from the new scheme. There will be resulted in more participation and understand the common goals. 5.3 Evaluate the impact of technology on team functioning within the selected organisations. Team building and functioning makes people better work together but time and quality is the critical factors for the team decision making. There are a lot of impact of technology like virtual team, virtual working and virtual communication on team functioning commonly today. Refer to the example in Unit 2.1, Eli Lilly Hong Kong is a typical example of geographical-based structure with six Asia country office under a Asia Director’s management.
The Asia Director may visit Hong Kong office quarterly, not very often. So the teleconference or virtual conference or e-conference is an effective ways to enhance the communication between Hong Kong office and Asia Director. This type of technology is much better than communication through email in order to ignore misunderstanding of email wording. It can also ensure the Asia Director and other staff mobile and flexible working. Another example from Eli Lilly Hong Kong is the function and design of mobile office in Hong Kong office. Eli Lilly Hong Kong utilizes the technology to make the office as a location-response mobile environment. Except General Manager and directors, all staff have no fixed rooms, tables, computer and even stationeries. All staff works in different area every day. The better communication can be developed with the help of mobile office system. The use of I-Pad is another impact of technology within sales department. Nowadays, every sales representative in Eli Lilly Hong Kong has their own I-Pad. The best thing is all sales people can access email in the field which can enhance the communication between external customer and internal customers. Eventually benefit the competitive advantage in business. 6. Conclusion
This assignment has completed and achieved the criteria of four tasks in organizational and behavior regarding to explore organisational structure and culture, examine different approaches to management and leadership and theories of organization, examine the relationship between motivational theories and demonstrate an understanding of working with others, teamwork, groups and group dynamics.
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